Agrarian Reform Compendium (1902-2022)

LAWS & EXECUTIVE ISSUANCES
(1902-2022)
AGRARIAN REFORM
Foreword
T he history of agrarian reform

in this country is a chronicle of
the struggles of the landless Filipino
farmer to liberate himself from his
bondage to the soil and to the system
of inequality bred by that bondage.
It is also a chronicle of the struggle of government to build
a responsive policy framework that ensures not only ownership of
the farmer of the land he tills, but also ready access to services that
will enable him to make his land productive and thereby, expand
his opportunities to attain a better quality of life for himself and his
family.
This compilation of all laws and executive issuances on
agrarian reform promulgated through 102 years, from 1902 to
2022, offers a trove of information containing the evolution of
governmental policies on agrarian reform that, in sum, represent
government’s best responses to the struggle for emancipation of
the landless farmer for the past century.
We offer this at a time when we are embarking on passing
a landmark legislation that seeks the full emancipation of the
farmer from his bondage to the soil in response to the call of
President Ferdinand R. Marcos, Jr. to condone all unpaid payments
of amortizations, interests and charges for debts incurred by the
agrarian reform beneficiaries in the acquisition of the land awarded
to them by government. This legislation also seeks to assume
unpaid obligations of farmers to landowners under the voluntary
offer to sell/land transfer scheme. A free land distribution program
covering agricultural lands owned by government is also included
as well as a broader package of support services for agrarian reform
beneficiaries and their families.
We look ahead, with this new emancipation law, to an
agrarian policy framework that envisions a new breed of farmers who
are not mere beneficiaries of government services, but authentic
productive partners of government in national development.
Towards this vision, we offer this compendium of agrarian
reform laws and issuances to agrarian reform workers and advocates,
researchers, policy study specialists, students, academicians and
legal practitioners, legislators and legislative workers, and all other
interested sectors, as our contribution to the unceasing quest for
better modes and means for government to serve and make life
better for every Filipino.
In behalf of the Department of Agrarian Reform, I
acknowledge with deep gratitude, the invaluable assistance of
the staff of the Legislative Information Resources Management
Department of the House of Representatives under the leadership
of Dr. Edgardo H. Pangilinan, who, with Undersecretary Marilyn B.
Barua-Yap, made this compendium possible.
I hope that this compendium further strengthens the
partnership of the Department of Agrarian Reform and the House of
Representatives in enhancing access to information and knowledge
necessary for responsive legislation and policy making.
Thank you.
SEC. CONRADO M. ESTRELLA III

Department of Agrarian Reform
Speaker
LEGISLATIVE MEASURES
TABLE OF CONTENTS
Laws and Executive Issuances on
AGRARIAN REFORM
Part I
ACTS
ACT 496 3
AN ACT TO PROVIDE FOR THE ADJUDICATION
AND REGISTRATION OF TITLES TO LANDS IN THE
PHILIPPINE ISLANDS
November 6, 1902
ACT 4054 62
AN ACT TO PROMOTE THE WELL-BEING OF TENANTS
(APARCEROS) IN AGRICULTURAL LANDS DEVOTED TO
THE PRODUCTION OF RICE AND TO REGULATE THE
RELATIONS BETWEEN THEM AND THE LANDLORDS OF
SAID LANDS, AND FOR OTHER PURPOSES
February 27, 1933
ACT 4113 72
AN ACT TO PRESCRIBE CERTAIN PROVISIONS
CONCERNING TENANCY CONTRACTS ON LAND
PLANTED TO SUGAR CANE
December 7, 1933
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Laws and Executive Issuances on Agrarian Reform
COMMONWEALTH ACTS Page
COMMONWEALTH ACT NO. 178 77

AN ACT AMENDING SECTIONS SEVEN, FIFTEEN,
TWENTY-THREE AND TWENTY-NINE OF ACT NUMBERED
FOUR THOUSAND AND FIFTY-FOUR, ENTITLED “AN
ACT TO PROMOTE THE WELL-BEING OF TENANTS
SAID LANDS, AND FOR OTHER PURPOSES”
November 13, 1936
AN ACT CREATING THE NATIONAL LAND SETTLEMENT
ADMINISTRATION
June 3, 1939
AN ACT TO REGULATE THE RELATIONS BETWEEN
LANDOWNER AND TENANT AND TO PROVIDE FOR
COMPULSORY ARBITRATION OF ANY CONTROVERSY
ARISING BETWEEN THEM
June 9, 1939
REPUBLIC ACTS
REPUBLIC ACT NO. 34 89

AN ACT AMENDING CERTAIN SECTIONS OF ACT
NUMBERED FOUR THOUSAND FIFTY-FOUR, AS
AMENDED, OTHERWISE KNOWN AS “THE PHILIPPINE
RICE SHARE TENANCY ACT.”
September 30, 1946
AN ACT TO ESTABLISH AN AGRICULTURAL CREDIT AND
COOPERATIVE FINANCING SYSTEM TO ASSIST SMALL
FARMERS IN SECURING LIBERAL CREDIT AND TO
PROMOTE THE EFFECTIVE GROUPINGS OF FARMERS
INTO COOPERATIVE ASSOCIATIONS TO ENABLE THEM
TO MARKET EFFICIENTLY THEIR AGRICULTURAL
COMMODITIES, AND TO PLACE AGRICULTURE ON
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REPUBLIC ACTS Page
A BASIS OF ECONOMIC EQUALITY WITH OTHER

INDUSTRIES, AND FOR OTHER PURPOSES
August 14, 1952
AN ACT TO FURTHER IMPLEMENT THE FREE
DISTRIBUTION OF AGRICULTURAL LANDS OF THE
PUBLIC DOMAIN AS PROVIDED FOR IN COMMONWEALTH
ACT NUMBERED SIX HUNDRED AND NINETY-ONE, AS
AMENDED TO ABOLISH THE LAND SETTLEMENT AND
DEVELOPMENT CORPORATION CREATED UNDER
EXECUTIVE ORDER NUMBERED THREE HUNDRED
AND FIFTY-FIVE, DATED OCTOBER TWENTY-THREE,
NINETEEN HUNDRED AND FIFTY, AND TO CREATE
IN ITS PLACE THE NATIONAL RESETTLEMENT AND
REHABILITATION ADMINISTRATION, AND FOR OTHER
PURPOSES
June 18, 1954
AN ACT TO GOVERN THE RELATIONS BETWEEN
LANDHOLDERS AND TENANTS OF AGRICULTURAL
LANDS (LEASEHOLDS AND SHARE TENANCY)
August 30, 1954
AN ACT DEFINING A LAND TENURE POLICY, PROVIDING
FOR AN INSTRUMENTALITY TO CARRY OUT THE POLICY,
AND APPROPRIATING FUNDS FOR ITS IMPLEMENTATION
September 9, 1955
AN ACT TO ORDAIN THE AGRICULTURAL LAND REFORM
CODE AND TO INSTITUTE LAND REFORMS IN THE
PHILIPPINES, INCLUDING THE ABOLITION OF TENANCY
AND THE CHANNELING OF CAPITAL INTO INDUSTRY,
PROVIDE FOR THE NECESSARY IMPLEMENTING
AGENCIES, APPROPRIATE FUNDS THEREFOR, AND FOR
OTHER PURPOSES
August 8, 1963
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REPUBLIC ACTS Page

AN ACT AMENDING SECTION ONE HUNDRED SIXTY-
THREE OF REPUBLIC ACT NUMBERED THIRTY-EIGHT
HUNDRED FORTY-FOUR, OTHERWISE KNOWN AS THE
“AGRICULTURAL LAND REFORM CODE”
June 17, 1967
AN ACT AMENDING THE FIRST PARAGRAPH OF
SECTION ONE HUNDRED SIXTY-TWO OF REPUBLIC
ACT NUMBERED THREE THOUSAND EIGHT HUNDRED
FORTY-FOUR, KNOWN AS THE AGRICULTURAL LAND
REFORM CODE (REAPPOINTMENT OF SUBORDINATE
OFFICIALS)
Enacted without Executive approval, August 4, 1969
AN ACT AMENDING REPUBLIC ACT NUMBERED THIRTY-
EIGHT HUNDRED AND FORTY-FOUR, AS AMENDED,
OTHERWISE KNOWN AS THE AGRICULTURAL LAND
REFORM CODE, AND FOR OTHER PURPOSES
September 10, 1971
AN ACT TO ACCELERATE THE IMPLEMENTATION OF
THE AGRARIAN REFORM PROGRAM BY CREATING
AN AGRARIAN REFORM SPECIAL ACCOUNT IN THE
GENERAL FUND, PROVIDING THE NECESSARY FUNDS
THEREFOR, AND FOR OTHER PURPOSES
September 10, 1971
AN ACT APPROPRIATING THREE HUNDRED MILLION
PESOS FOR EXPENDITURES OCCASIONED BY THE
TYPHOONS, RAINS AND FLOODS IN THE MONTHS OF
JUNE AND JULY, NINETEEN HUNDRED SEVENTY-TWO,
AND FOR OTHER PURPOSES
August 8, 1972
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REPUBLIC ACTS Page

AN ACT INSTITUTING A COMPREHENSIVE AGRARIAN
REFORM PROGRAM TO PROMOTE SOCIAL JUSTICE AND
INDUSTRIALIZATION, PROVIDING THE MECHANISM
FOR ITS IMPLEMENTATION, AND FOR OTHER PURPOSES
June 10, 1988
AN ACT TO ORDAIN A COOPERATIVE CODE OF THE
PHILIPPINES
March 10, 1990
AN ACT ALLOWING THE LONG-TERM LEASE OF PRIVATE
LANDS BY FOREIGN INVESTORS
June 4, 1993
AN ACT AMENDING REPUBLIC ACT NUMBERED SEVEN
THOUSAND ONE HUNDRED AND EIGHTY-ONE ENTITLED
“AN ACT EXTENDING THE LIFE OF THE COMMITTEE ON
PRIVATIZATION AND ASSET PRIVATIZATION TRUST”
December 23, 1993
AN ACT PROVIDING FOR A COMPREHENSIVE AND
INTEGRATED SHELTER AND URBAN DEVELOPMENT
FINANCING PROGRAM BY INCREASING AND
REGULARIZING THE YEARLY APPROPRIATION OF THE
MAJOR COMPONENTS OF THE NATIONAL SHELTER
PROGRAM, INCLUDING THE ABOT-KAYA PABAHAY
FUND UNDER REPUBLIC ACT NO. 6846, AUGMENTING
THE AUTHORIZED CAPITAL STOCK AND PAID-UP
CAPITAL OF THE NATIONAL HOME MORTGAGE FINANCE
CORPORATION (NHMFC) AND THE HOME INSURANCE
AND GUARANTY CORPORATION (HIGC), IDENTIFYING
OTHER SOURCES OF FUNDING AND APPROPRIATING
FUNDS FOR THE PURPOSES.
December 16, 1994
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REPUBLIC ACTS Page

AN ACT AMENDING CERTAIN PROVISIONS OF REPUBLIC
ACT NO. 6657, ENTITLED “AN ACT INSTITUTING A
COMPREHENSIVE AGRARIAN REFORM PROGRAM TO
PROMOTE SOCIAL JUSTICE AND INDUSTRIALIZATION,
PROVIDING THE MECHANISM FOR ITS IMPLEMENTATION,
AND FOR OTHER PURPOSES”
February 20, 1995
AN ACT TO PROMOTE THE PRODUCTION, PROCESSING,
MARKETING AND DISTRIBUTION OF HIGH-VALUE
CROPS, PROVIDING FUNDS THEREFOR, AND FOR OTHER
PURPOSES
February 23, 1995
AN ACT TO STRENGTHEN THE IMPLEMENTATION OF
THE COMPREHENSIVE AGRARIAN REFORM PROGRAM,
February 23, 1995
AN ACT AMENDING REPUBLIC ACT NUMBERED
THIRTY-EIGHT HUNDRED FORTY-FOUR, AS AMENDED,
OTHERWISE KNOWN AS THE “CODE OF AGRARIAN
REFORM IN THE PHILIPPINES”
February 23, 1995
AN ACT FURTHER AMENDING PRESIDENTIAL DECREE
NO. 1467, AS AMENDED, OTHERWISE KNOWN AS THE
CHARTER OF THE PHILIPPINE CROP INSURANCE
CORPORATION (PCIC), IN ORDER TO MAKE THE CROP
INSURANCE SYSTEM MORE STABLE AND MORE
BENEFICIAL TO THE FARMERS COVERED THEREBY
AND FOR THE NATIONAL ECONOMY
December 29, 1995
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REPUBLIC ACTS Page

AN ACT INSTITUTIONALIZING THE SOCIAL REFORM
AND POVERTY ALLEVIATION PROGRAM, CREATING
FOR THE PURPOSE THE NATIONAL ANTI-POVERTY
COMMISSION, DEFINING ITS POWERS AND FUNCTIONS,
December 11, 1997
AN ACT PRESCRIBING URGENT RELATED MEASURES
TO MODERNIZE THE AGRICULTURE AND FISHERIES
SECTORS OF THE COUNTRY IN ORDER TO ENHANCE
THEIR PROFITABILITY, AND PREPARE SAID SECTORS
FOR THE CHALLENGES OF GLOBALIZATION THROUGH
AN ADEQUATE, FOCUSED AND RATIONAL DELIVERY
OF NECESSARY SUPPORT SERVICES, APPROPRIATING
FUNDS THEREFOR, AND FOR OTHER PURPOSES
December 22, 1997
AN ACT MERGING THE PHILIPPINE COTTON
CORPORATION AND THE COTTON RESEARCH
AND DEVELOPMENT INSTITUTE INTO A COTTON
DEVELOPMENT ADMINISTRATION, VESTING IT WITH
REGULATORY POWERS AND APPROPRIATING FUNDS
FOR THE PURPOSE
February 11, 1998
AN ACT STRENGTHENING FURTHER THE
COMPREHENSIVE AGRARIAN REFORM PROGRAM
(CARP), BY PROVIDING AUGMENTATION FUND
THEREFOR, AMENDING FOR THE PURPOSE SECTION
63 OF REPUBLIC ACT NO. 6657, OTHERWISE KNOWN AS
“THE CARP LAW OF 1988”
February 23, 1998
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REPUBLIC ACTS Page

AN ACT AMENDING REPUBLIC ACT NO. 7916, OTHERWISE
KNOWN AS THE “SPECIAL ECONOMIC ZONE ACT OF
1995”
June 1, 1999
AN ACT EXTENDING THE TERM OF THE COMMITTEE
ON PRIVATIZATION AND THE ASSET PRIVATIZATION
TRUST AMENDING FOR THE PURPOSE REPUBLIC
ACT NUMBERED SEVEN THOUSAND ONE HUNDRED
EIGHTY-ONE, AS AMENDED
December 28, 1999
AN ACT TO STRENGTHEN AND EXPAND THE ORGANIC
ACT FOR THE AUTONOMOUS REGION IN MUSLIM
MINDANAO, AMENDING FOR THE PURPOSE REPUBLIC
ACT NO. 6734, ENTITLED ‘AN ACT PROVIDING FOR THE
AUTONOMOUS REGION IN MUSLIM MINDANAO’, AS
AMENDED
Lapsed into law on March 31, 2001 without the President’s
signature, pursuant to Sec. 27 (1), Article VI of the Constitution.
AN ACT DECLARING THE ISLAND-TOWNS OF BIRI,
CAPUL, SAN ANTONIO AND SAN VICENTE, ALL IN THE
PROVINCE OF NORTHERN SAMAR AS ECO-TOURISM
ZONES
May 15, 2007
AN ACT AMENDING THE COOPERATIVE CODE OF THE
PHILIPPINES TO BE KNOWN AS THE “PHILIPPINE
COOPERATIVE CODE OF 2008”
February 17, 2009
AN ACT DECLARING A NATIONAL POLICY FOR TOURISM
AS AN ENGINE OF INVESTMENT, EMPLOYMENT,
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REPUBLIC ACTS Page
GROWTH AND NATIONAL DEVELOPMENT, AND

STRENGTHENING THE DEPARTMENT OF TOURISM
AND ITS ATTACHED AGENCIES TO EFFECTIVELY
AND EFFICIENTLY IMPLEMENT THAT POLICY, AND
APPROPRIATING FUNDS THEREFOR
May 12, 2009
AN ACT STRENGTHENING THE COMPREHENSIVE
AGRARIAN REFORM PROGRAM (CARP), EXTENDING
THE ACQUISITION AND DISTRIBUTION OF ALL
AGRICULTURAL LANDS, INSTITUTING NECESSARY
REFORMS, AMENDING FOR THE PURPOSE CERTAIN
PROVISIONS OF REPUBLIC ACT NO. 6657, OTHERWISE,
KNOWN AS THE COMPREHENSIVE AGRARIAN REFORM
LAW OF 1988, AS AMENDED, AND APPROPRIATING
FUNDS THEREFOR
August 07, 2009
AN ACT PROVIDING FOR AN AGRICULTURE AND
AGRARIAN REFORM CREDIT AND FINANCING SYSTEM
THROUGH BANKING INSTITUTIONS
February 23, 2010
AN ACT PROVIDING FOR THE DEVELOPMENT AND
PROMOTION OF ORGANIC AGRICULTURE IN THE
PHILIPPINES AND FOR OTHER PURPOSES
April 6, 2010
AN ACT REVIVING THE OBSERVANCE OF ARBOR DAY BY
AUTHORIZING THE LOCAL GOVERNMENT UNITS THE
RESPONSIBILITIES FOR CELEBRATING THE DAY FOR
TREE PLANTING AS AN ANNUAL EVENT
September 12, 2012
AN ACT ALLOWING THE INFUSION OF FOREIGN
EQUITY IN THE CAPITAL OF RURAL BANKS, AMENDING
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REPUBLIC ACTS Page
REPUBLIC ACT NO. 7353, OTHERWISE KNOWN AS “THE

RURAL BANK ACT OF 1992”, AS AMENDED, AND FOR
OTHER PURPOSES
May 24, 2013
AN ACT PROMOTING AGRICULTURAL AND FISHERIES
MECHANIZATION DEVELOPMENT IN THE COUNTRY
June 5, 2013
AN ACT PROMOTING AND SUPPORTING THE
COMPETITIVENESS OF THE SUGARCANE INDUSTRY
March 27, 2015
AN ACT STRENGTHENING AND INSTITUTIONALIZING
DIRECT CREDIT SUPPORT OF THE LAND BANK OF THE
PHILIPPINES TO AGRARIAN REFORM BENEFICIARIES,
SMALL FARMERS AND FISHERFOLK, FURTHER
AMENDING REPUBLIC ACT NO. 3844, OTHERWISE
KNOWN AS THE “AGRICULTURAL LAND REFORM CODE”,
AS AMENDED
Lapsed into law on July 17, 2016 without the signature of the
President, in accordance with Article VI, Section 27(1) of the
Constitution.
AN ACT STRENGTHENING, MODERNIZING AND ALIGNING
THE PRACTICE OF AGRICULTURAL ENGINEERING
IN THE COUNTRY INTO THE INTERNATIONALLY
RECOGNIZED PRACTICE OF AGRICULTURAL AND
BIOSYSTEMS ENGINEERING, AND FOR OTHER
PURPOSES
Lapsed into law on July 21, 2016 without the signature of the
President, in accordance with Article VI, Section 27(1) of the
Constitution.
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REPUBLIC ACTS Page

AN ACT CREATING THE DEPARTMENT OF HUMAN
SETTLEMENTS AND URBAN DEVELOPMENT, DEFINING
ITS MANDATE, POWERS AND FUNCTIONS, AND
February 14, 2019
AN ACT LIBERALIZING THE IMPORTATION,
EXPORTATION AND TRADING OF RICE, LIFTING
FOR THE PURPOSE THE QUANTITATIVE IMPORT
RESTRICTION ON RICE, AND FOR OTHER PURPOSES
February 14, 2019
AN ACT AMENDING REPUBLIC ACT NO. 10068 OR THE
ORGANIC AGRICULTURE ACT OF 2010
December 23, 2020
AN ACT DECLARING THE PROVINCE OF CATANDUANES
AS THE ABACA CAPITAL OF THE PHILIPPINES
Lapsed into law on April 15, 2022 without the signature of the
President, in accordance with Article VI, Section 27 (1) of the
Constitution.
BATAS PAMBANSA
BATAS PAMBANSA BLG. 65 779

AN ACT AMENDING FURTHER REPUBLIC ACT
NUMBERED SEVEN HUNDRED TWENTY, AS AMENDED,
OTHERWISE KNOWN AS THE “RURAL BANKS’ ACT”
April 1, 1980
AN ACT AUTHORIZING THE MINISTRY OF HUMAN
SETTLEMENTS TO ESTABLISH AND PROMULGATE
DIFFERENT LEVELS OF STANDARDS AND TECHNICAL
REQUIREMENTS FOR ECONOMIC AND SOCIALIZED
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BATAS PAMBANSA Page
HOUSING PROJECTS IN URBAN AND RURAL AREAS

FROM THOSE PROVIDED UNDER PRESIDENTIAL
DECREES NUMBERED NINE HUNDRED FIFTY-SEVEN,
TWELVE HUNDRED SIXTEEN, TEN HUNDRED NINETY-
SIX AND ELEVEN HUNDRED EIGHTY-FIVE
March 25, 1982
AN ACT ENACTING A LOCAL GOVERNMENT CODE
February 10, 1983
AN ACT EXEMPTING FROM PAYMENT OF DONOR’S
TAX, DONATIONS OF PRIVATE AGRICULTURAL LANDS
AND/OR HOMELOTS AND WAIVERS OF COMPENSATION
UNDER THE AGRARIAN REFORM PROGRAM, AND FOR
OTHER PURPOSES
March 7, 1984
AN ACT PROHIBITING THE ESTABLISHMENT OF
SHARE TENANCY OR AGRICULTURAL LEASEHOLD
RELATION IN LANDS ACQUIRED UNDER THE AGRARIAN
REFORM PROGRAM OF THE GOVERNMENT, PROVIDING
PENALTIES THEREFOR AND FOR OTHER PURPOSES
April 18, 1985
AN ACT PROVIDING LEGAL SANCTIONS AGAINST
TRANSFER OF LANDS ACQUIRED UNDER PRESIDENTIAL
DECREE NUMBERED TWENTY-SEVEN OF THE LAND
REFORM PROGRAM OF THE GOVERNMENT AND FOR
OTHER PURPOSES
April 18, 1985
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Part II
EXECUTIVE ISSUANCES
PRESIDENTIAL DECREES Page
PRESIDENTIAL DECREE NO. 2 807

PROCLAIMING THE ENTIRE COUNTRY AS A LAND
REFORM AREA
September 26, 1972
PROVIDING FOR THE DEVELOPMENT OF THE RICE AND
CORN INDUSTRY AND CREATING FOR THIS PURPOSE
THE NATIONAL GRAINS AUTHORITY
September 26, 1972
DECREEING THE EMANCIPATION OF TENANTS FROM
THE BONDAGE OF THE SOIL, TRANSFERRING TO
THEM THE OWNERSHIP OF THE LAND THEY TILL AND
PROVIDING THE INSTRUMENTS AND MECHANISM
THEREFOR
October 21, 1972
AUTHORIZING THE SECRETARY OF AGRARIAN REFORMS
TO SIGN ON BEHALF OF THE PRESIDENT OF THE
PHILIPPINES LAND TRANSFER CERTIFICATES ISSUED
TO TENANT-FARMERS PURSUANT TO PRESIDENTIAL
DECREE NO. 27
December 22, 1972
CREATING THE AGRARIAN REFORM FUND TO SUPPORT
FINANCING REQUIREMENTS OF AGRARIAN REFORM
xiii
PROVIDED IN PRESIDENTIAL DECREE NO. 27 AND FOR

OTHER PURPOSES
December 24, 1972
AMENDING CERTAIN PROVISIONS OF REPUBLIC ACT
NUMBERED THREE THOUSAND EIGHT HUNDRED
FORTY-FOUR, AS AMENDED, ENTITLED “THE CODE OF
AGRARIAN REFORM IN THE PHILIPPINES”
July 21, 1973
APPROPRIATING FUNDS TO THE DEPARTMENT OF
AGRARIAN REFORM TO FINANCE THE ACQUISITION
OF HAND TRACTORS
September 6, 1973
PROHIBITING THE EJECTMENT OF TENANT-TILLERS
FROM THEIR FARMHOLDINGS PENDING THE
PROMULGATION OF THE RULES AND REGULATIONS
IMPLEMENTING PRESIDENTIAL DECREE NO. 27
October 22, 1973
CODIFYING, REVISING AND UPDATING ALL FORESTRY
LAWS AND FOR OTHER PURPOSES
February 5, 1974
AMENDING CERTAIN SECTIONS OF REPUBLIC ACT
NUMBERED THREE THOUSAND EIGHT HUNDRED AND
May 4, 1974
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TRANSFERRING THE ASSETS AND LIABILITIES AS WELL
AS CERTAIN POWER OF THE AGRARIAN REFORM FUND
COMMISSION TO THE LAND BANK OF THE PHILIPPINES
May 17, 1974
AMENDING REPUBLIC ACT NUMBERED SIX THOUSAND
THREE HUNDRED NINETY, AS AMENDED
August 22, 1974
PRESCRIBING PENALTIES FOR THE UNLAWFUL
EJECTMENT, EXCLUSION, REMOVAL OR OUSTER OF
TENANT-FARMERS FROM THEIR FARMHOLDINGS
November 16, 1974
PROVIDING AN AGRARIAN REFORM CREDIT AND
FINANCING SYSTEM FOR AGRARIAN REFORM
BENEFICIARIES THROUGH BANKING INSTITUTIONS
May 29, 1975
CREATING THE PRESIDENTIAL COMMITTEE ON
AGRICULTURAL CREDIT
September 4, 1975
AMENDING SECTION 4 OF P.D. NO. 583, DATED
NOVEMBER 16, 1975, “PRESCRIBING PENALTIES FOR
THE UNLAWFUL EJECTMENT, EXCLUSION, REMOVAL,
OR OUSTER OF TENANT-FARMERS FROM THEIR
FARMHOLDINGS”
October 21, 1975
xv

PROVIDING THAT TENANT-FARMERS/AGRICULTURAL
LESSEES SHALL PAY THE LEASEHOLD RENTALS
WHEN THEY FALL DUE AND PROVIDING PENALTIES
THEREFOR
October 21, 1975
REORGANIZING THE PRESIDENTIAL ACTION
COMMITTEE ON LAND PROBLEMS (PACLAP)
November 27, 1975
REORGANIZING THE COURTS OF AGRARIAN RELATIONS,
STREAMLINING THEIR PROCEDURES, AND FOR OTHER
PURPOSES
June 17, 1976
CONVERTING THE BUREAU OF FARM MANAGEMENT
OF THE DEPARTMENT OF AGRARIAN REFORM INTO A
BUREAU OF LAND TENURE IMPROVEMENT
August 18, 1976
STRENGTHENING THE SECURITY OF TENURE OF
TENANT-TILLERS IN NON-RICE/CORN PRODUCING
PRIVATE AGRICULTURAL LANDS
October 21, 1976
AMENDING FURTHER SECTION EIGHTY-SIX OF
REPUBLIC ACT NUMBERED THIRTY EIGHT HUNDRED
AND FORTY-FOUR, AS AMENDED, ENTITLED “THE CODE
OF AGRARIAN REFORMS OF THE PHILIPPINES”
October 21, 1976
xvi

REITERATING THE PROHIBITION AGAINST
AGRICULTURAL SHARE TENANCY IN ALL AGRICULTURAL
LANDS AND PROVIDING PENALTIES THEREFOR
October 21, 1976
REVISING THE BUDGET PROCESS IN ORDER TO
INSTITUTIONALIZE THE BUDGETARY INNOVATIONS
OF THE NEW SOCIETY
July 30, 1977
GRANTING EMERGENCY MONTHLY INCENTIVE
ALLOWANCE TO LAWYERS IN THE BUREAU OF
AGRARIAN LEGAL ASSISTANCE AND IN THE REGIONAL
AND FIELD OFFICES OF THE DEPARTMENT OF
AGRARIAN REFORM AND PROVIDING APPROPRIATE
FUNDS THEREFOR
June 10, 1978
DECLARING THE SAN PEDRO TUNASAN ESTATE OF
THE DEPARTMENT OF AGRARIAN REFORM SUITABLE
FOR RESIDENTIAL, COMMERCIAL OR INDUSTRIAL, OR
OTHER NON-AGRICULTURAL PURPOSES
June 11, 1978
PROCLAIMING URBAN LAND REFORM IN THE
PHILIPPINES AND PROVIDING FOR THE IMPLEMENTING
MACHINERY THEREOF
June 11, 1978
AMENDING AND CODIFYING THE LAWS RELATIVE
TO REGISTRATION OF PROPERTY AND FOR OTHER
PURPOSES
June 11, 1978
xvii

AMENDING SECTION SIXTY TWO OF REPUBLIC ACT
FORTY-FOUR, AS AMENDED, OTHERWISE KNOWN AS
THE CODE OF AGRARIAN REFORM OF THE PHILIPPINES
January 16, 1981
AUTHORIZING AN ADJUSTMENT OF THE FUNDING
SUPPORT OF THE PHILIPPINE COCONUT AUTHORITY
AND INSTITUTING A PROCEDURE FOR THE
MANAGEMENT OF SUCH FUND
December 21, 1982
TO FURTHER ENCOURAGE THE PRODUCTION OF RICE,
CORN AND OTHER PRIORITY CROPS
June 29, 1984
EXECUTIVE ORDERS
EXECUTIVE ORDER NO. 8 s. 2001 1109

ESTABLISHING THE OFFICE OF THE PRESIDENTIAL
ADVISER ON AGRICULTURAL MODERNIZATION UNDER
THE OFFICE OF THE PRESIDENT
March 26, 2001
TRANSFERRING THE NATIONAL COMMISSION ON
INDIGENOUS PEOPLES FROM THE DEPARTMENT OF
THE ENVIRONMENT AND NATURAL RESOURCES TO
THE OFFICE OF THE PRESIDENT OF THE PHILIPPINES
November 8, 2010
PROVIDING FOR THE CREATION OF THE PRESIDENTIAL
COMMISSION TO FIGHT POVERTY
August 15, 1992
xviii
EXECUTIVE ORDERS Page

PROVIDING OPPORTUNITIES FOR THE DEVELOPMENT
OF BENEFICIARIES UNDER THE COMPREHENSIVE
LAND REFORM PROGRAM TO BECOME PRODUCTIVE
ENTREPRENEURS, PROVIDING THE MECHANISM
September 23, 1998
February 24, 2011
STRENGTHENING THE PRESIDENTIAL COMMISSION
FOR THE URBAN POOR
February 24, 2011
DIRECTING ALL DEPARTMENTS, BUREAUS, OFFICES
AND INSTRUMENTALITIES OF THE GOVERNMENT
TO IDENTIFY LANDS OWNED BY THE GOVERNMENT
DEVOTED TO OR SUITABLE FOR AGRICULTURE FOR
DISTRIBUTION TO QUALIFIED BENEFICIARIES
February 15, 2019
CREATING THE COMMITTEE ON NON-MEMBER
AGENCIES FOR LAND REFORM
March 19, 1964
PROVIDING FOR THE IMPLEMENTATION OF THE HYBRID
RICE PROGRAM, TRANSFERRING THE PHILIPPINE RICE
RESEARCH INSTITUTE FROM THE DEPARTMENT OF
AGRICULTURE TO THE OFFICE OF THE PRESIDENT AND
FOR OTHER PURPOSES
March 4, 2002
xix

STRENGTHENING THE ENFORCEMENT OF THE AGRI-
AGRA LAW (PD 717) AND LAUNCHING THE NDC AGRI-
AGRA ERAP BONDS FOR RURAL DEVELOPMENT
December 25, 1998
CREATING AN INTER-AGENCY TASK FORCE ON ZERO
HUNGER
January 16, 2020
ESTABLISHING PRIORITIES AND PROCEDURES
IN EVALUATING AREAS PROPOSED FOR LAND
CONVERSION IN REGIONAL AGRI-INDUSTRIAL
CENTERS/REGIONAL INDUSTRIAL CENTERS, TOURISM
DEVELOPMENT AREAS AND SITES FOR SOCIALIZED
HOUSING
September 8, 1993
CONSTITUTING THE COUNCIL FOR EXTENSION,
RESEARCH AND DEVELOPMENT IN AGRICULTURE AND
FISHERIES
July 22, 1999
REORGANIZING THE MINISTRY OF AGRARIAN REFORM
January 30, 1987
CREATING AN INTER-AGENCY COORDINATING
COMMITTEE TO PREPARE AND COORDINATE
IMPLEMENTATION OF A LAND ADMINISTRATION AND
MANAGEMENT PROGRAM
July 24, 1999
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EXECUTIVE ORDER NO. 129-A s. 1987 1189

MODIFYING EXECUTIVE ORDER NO. 129 REORGANIZING
AND STRENGTHENING THE DEPARTMENT OF AGRARIAN
REFORM AND FOR OTHER PURPOSES
July 26, 1987
TRANSFERRING THE PHILIPPINE CROP INSURANCE
CORPORATION (PCIC) FROM THE DEPARTMENT OF
AGRICULTURE TO THE DEPARTMENT OF FINANCE,
AND REORGANIZING THE PCIC BOARD OF DIRECTORS
September 14, 2021
INSTITUTING THE PRESIDENTIAL GOLDEN PLOW
AWARD IN RECOGNITION OF EXTRAORDINARY
AND OUTSTANDING SERVICE OR CONTRIBUTION
BY INDIVIDUALS, GROUPS OF INDIVIDUALS AND
INSTITUTIONS TO THE CAUSE OF LAND REFORM
October 1, 1968
ESTABLISHING THE FARMERS TRUST DEVELOPMENT
PROGRAM AND PROVIDING INSTITUTIONAL REFORMS
AND FUND MECHANISMS FOR MOBILIZING LONG TERM
PRIVATE SECTOR CAPITAL FOR RURAL DEVELOPMENT
September 27, 1999
TRANSFERRING THE NATIONAL IRRIGATION
ADMINISTRATION FROM THE OFFICE OF THE
PRESIDENT TO THE DEPARTMENT OF AGRICULTURE
April 25, 2022
CREATING THE NATIONAL COUNCIL ON FOOD
SECURITY AND JOB CREATION
January 30, 2003
xxi

AMENDING EXECUTIVE ORDER NO. 155 ABOLISHING
THE COUNCIL FOR INVESTMENTS IN TRADE, INDUSTRY,
TOURISM, AGRICULTURE, NATURAL RESOURCES,
TRANSPORTATION, COMMUNICATIONS AND SERVICES
AND REFOCUSING AND STRENGTHENING THE
INVESTMENT ONE-STOP ACTION CENTER AND
CREATING THE POSITION OF INVESTMENT OMBUDSMAN
November 23, 1999
CREATING SOCIALIZED HOUSING ONE-STOP
PROCESSING CENTERS TO FACILITATE THE
PROCESSING AND ISSUANCE OF PERMITS, CLEARANCES,
CERTIFICATIONS AND LICENSES APPROPRIATE
AND NECESSARY FOR THE IMPLEMENTATION OF
SOCIALIZED HOUSING PROJECTS, AND DIRECTING ALL
GOVERNMENT AGENCIES CONCERNED TO SUPPORT
THE OPERATIONS OF THE SAID CENTERS
June 27, 1994
CREATING THE OVERSIGHT AND EXECUTIVE
COMMITTEES FOR THE NATIONAL GOVERNMENT’S
MAJOR SOCIAL REFORM AGENDA
September 27, 1994
ESTABLISHING AN INTER-AGENCY STEERING
COMMITTEE TO ASSIST LOCAL GOVERNMENT UNITS
IN THE PREPARATION AND COMPLETION OF THEIR
COMPREHENSIVE LAND USE PLANS
January 20, 2000
DECLARING FULL LAND OWNERSHIP TO QUALIFIED
FARMER BENEFICIARIES COVERED BY PRESIDENTIAL
DECREE NO. 27; DETERMINING THE VALUE OF
xxii
REMAINING UNVALUED RICE AND CORN LANDS

SUBJECT TO P.D. NO. 27; AND PROVIDING FOR THE
MANNER OF PAYMENT BY THE FARMER BENEFICIARY
AND MODE OF COMPENSATION TO THE LANDOWNER
July 17, 1987
PROVIDING THE MECHANISMS FOR THE
IMPLEMENTATION OF THE COMPREHENSIVE AGRARIAN
REFORM PROGRAM
July 22, 1987
AMENDING EXECUTIVE ORDER NO. 203 ENTITLED:
“CREATING THE OVERSIGHT AND EXECUTIVE
COMMITTEES FOR THE NATIONAL GOVERNMENT
MAJOR SOCIAL REFORM AGENDA”
June 19, 1995
PROVIDING FOR THE ISSUANCE OF NATIONAL
GOVERNMENT BONDS TO BE KNOWN AS AGRARIAN
REFORM (AR) BONDS
July 25, 1995
STREAMLINING THE STRUCTURE AND FUNCTIONS OF
THE DEPARTMENT OF AGRARIAN REFORM AND FOR
OTHER PURPOSES
September 22, 2000
RATIONALIZING THE USE OF THE COCONUT LEVY
FUNDS BY CONSTITUTING A “FUND FOR ASSISTANCE
TO COCONUT FARMERS” AS AN IRREVOCABLE TRUST
FUND AND CREATING A COCONUT TRUST FUND
COMMITTEE FOR THE MANAGEMENT THEREOF
November 8, 2000
xxiii

PROVIDING FOR THE ORGANIZATION OF THE
DEPARTMENT OF AGRARIAN REFORM
November 10, 1971
CREATING THE AGRICULTURAL GUARANTEE FUND
BOARD
November 10, 1971
CREATING THE LAND SETTLEMENT AND DEVELOPMENT
CORPORATION AND DISSOLVING THE NATIONAL LAND
SETTLEMENT ADMINISTRATION, AND THE RICE AND
CORN PRODUCTION ADMINISTRATION AND THE
MACHINERY AND EQUIPMENT DEPARTMENT OF THE
NATIONAL DEVELOPMENT COMPANY
October 23, 1950
ENJOINING ALL GOVERNMENT FINANCIAL
INSTITUTIONS AND GOVERNMENT OWNED OR
CONTROLLED CORPORATIONS TO GRANT THE
DEPARTMENT OF AGRARIAN REFORM THE RIGHT OF
FIRST REFUSAL IN THE SALE OR DISPOSITION OF ALL
LANDS OWNED BY THEM WHICH ARE SUITABLE TO
AGRICULTURE
June 9, 1989
DESIGNATING THE DEPARTMENT OF AGRARIAN
REFORM AS TRUSTEE OF THE SPECIAL FUND FOR
ASSISTANCE TO THE PHILIPPINE LAND REFORM
EDUCATION PROGRAM
December 24, 1971
xxiv

TRANSFORMING THE DEPARTMENT OF AGRARIAN
REFORM INTO THE DEPARTMENT OF LAND REFORM
September 27, 2004
AMENDING EXECUTIVE ORDER NO. 364 ENTITLED
October 26, 2004
VESTING IN THE LAND BANK OF THE PHILIPPINES THE
PRIMARY RESPONSIBILITY TO DETERMINE THE LAND
VALUATION AND COMPENSATION FOR ALL LANDS
COVERED UNDER REPUBLIC ACT NO. 6657, KNOWN AS
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1988
June 14, 1990
MANDATING CERTAIN DEPARTMENTS AND AGENCIES
TO ALIGN THEIR RESPECTIVE PROGRAMS AND
PROJECTS WITH THE COMPREHENSIVE AGRARIAN
REFORM PROGRAM, DIRECTING THE DEPARTMENT
OF AGRARIAN REFORM TO ACCELERATE THE
AGRARIAN REFORM BENEFICIARIES DEVELOPMENT
THROUGH THE PROVISION OF ECONOMIC AND SOCIAL
INFRASTRUCTURE SUPPORT, AND PROVIDING THE
NECESSARY IMPLEMENTING MECHANISMS FOR THE
PURPOSE
June 14, 1990
DELEGATING TO CERTAIN DISTRICT LAND OFFICERS
THE POWER TO SIGN PATENTS AND CERTIFICATES
March 16, 1973
xxv

ACCELERATING THE ACQUISITION AND DISTRIBUTION
OF AGRICULTURAL LANDS, PASTURE LANDS,
FISHPONDS, AGRO-FORESTRY LANDS AND OTHER
LANDS OF THE PUBLIC DOMAIN SUITABLE FOR
AGRICULTURE
June 14, 1990
AMENDING THE COMPOSITION OF THE AGRARIAN
REFORM COORDINATING COUNCIL CREATED UNDER
EXECUTIVE ORDER NO. 347, SERIES OF 1971
November 16, 1974
AMENDING EXECUTIVE ORDER NO. 407, SERIES OF 1990,
ENTITLED “ACCELERATING THE ACQUISITION AND
DISTRIBUTION OF AGRICULTURAL LANDS, PASTURE
LANDS, FISHPONDS, AGRO-FORESTRY LANDS AND
OTHER LANDS OF THE PUBLIC DOMAIN SUITABLE FOR
AGRICULTURE”
February 14, 1991
RENAMING THE DEPARTMENT OF LAND REFORM BACK
TO DEPARTMENT OF AGRARIAN REFORM
August 23, 2005
DEVOLVING TO THE AUTONOMOUS REGIONAL
GOVERNMENT OF THE AUTONOMOUS REGION FOR
MUSLIM MINDANAO THE POWERS AND FUNCTIONS
OF THE DEPARTMENT OF AGRARIAN REFORM AND
THE CONTROL AND SUPERVISION OVER ITS OFFICES
WITHIN THE REGION
September 24, 1991
xxvi

FURTHER AMENDING EXECUTIVE ORDER NO. 407,
SERIES OF 1990, AMENDED BY EXECUTIVE ORDER NO.
448, SERIES OF 1991, “ACCELERATING THE ACQUISITION
AND DISTRIBUTION OF AGRICULTURAL LANDS,
PASTURE LANDS, FISHPONDS, AGROFORESTRY LANDS
AND OTHER LANDS OF THE PUBLIC DOMAIN SUITABLE
FOR AGRICULTURE”
February 18, 1992
CREATING AN INTERIM INTER-AGENCY TASK FORCE
TO PROVIDE FOR PRIVATE SECTOR PARTICIPATION
IN THE ESTABLISHMENT OF AGRO-INDUSTRIAL
DEVELOPMENT AREAS
March 16, 1992
REINSTATING THE DEPARTMENT OF AGRARIAN
REFORM, DEPARTMENT OF THE INTERIOR AND LOCAL
GOVERNMENT AND DEPARTMENT OF HEALTH AS
MEMBERS OF THE REGIONAL DEVELOPMENT COUNCIL
August 28, 2006
IMPROVING THE NEGOTIABILITY AND ACCEPTABILITY
OF AGRARIAN REFORM BONDS
September 11, 2007
NATIONWIDE ADOPTION OF THE CORN-BASED
FARMER-SCIENTISTS RESEARCH, DEVELOPMENT
AND EXTENSION (RDE) TRAINING PROGRAM FOR
SUSTAINABLE AGRICULTURAL DEVELOPMENT TO
LIBERATE POOR FARMERS FROM THE BONDAGE OF
POVERTY AND HUNGER
February 27, 2008
xxvii

INDIGENOUS PEOPLES FROM THE DEPARTMENT
OF AGRARIAN REFORM TO THE DEPARTMENT OF
ENVIRONMENT AND NATURAL RESOURCES
May 23, 2008
AMENDING EXECUTIVE ORDER NO. 183 CREATING THE
NATIONAL FOOD AND AGRICULTURE COUNCIL (NFAC),
AS AMENDED BY EXECUTIVE ORDER NO. 596
December 16, 1981
PROVIDING THE PROCEDURES AND GUIDELINES FOR
THE EXPEDITIOUS ACQUISITION BY THE GOVERNMENT
OF PRIVATE REAL PROPERTIES OR RIGHTS THEREON
FOR INFRASTRUCTURE AND OTHER GOVERNMENT
DEVELOPMENT PROJECTS
June 25, 1985
FURTHER IMPLEMENTING PRESIDENTIAL DECREE
NO. 1726 IN THE MINISTRY OF JUSTICE, MINISTRY OF
AGRARIAN REFORM AND MINISTRY OF LABOR AND
EMPLOYMENT AND ALL OTHER MINISTRIES OF THE
NATIONAL GOVERNMENT
October 22, 1985
CONDONATION OF ACCRUED INTERESTS ON OVERDUE
LAND AMORTIZATION PAYMENTS AND/OR RENTALS BY
AGRARIAN REFORM BENEFICIARIES IN ALL LANDED
ESTATES ADMINISTERED BY THE MINISTRY OF
AGRARIAN REFORM
January 28, 1986
xxviii
ADMINISTRATIVE ORDERS Page
ADMINISTRATIVE ORDER NO. 72 s. 1963 1451

CREATING A SPECIAL COMMITTEE ON REORGANIZATION
OF AGENCIES FOR LAND REFORM
August 2, 1963
REQUIRING ALL EXECUTIVE DEPARTMENTS, BUREAUS,
AND OFFICES TO RENDER FULL ASSISTANCE TO
THE LAND REFORM AGENCIES UNDERTAKING
IMPLEMENTATION OF THE AGRICULTURAL LAND
REFORM CODE
October 15, 1963
CREATING A FACT-FINDING COMMITTEE WITH
PLENARY POWERS TO INVESTIGATE AND DETERMINE
ALL THE FACTS AND CIRCUMSTANCES REGARDING
THE VOLUNTARY OFFER TO SELL THE GARCHITORENA
LAND IN CAMARINES SUR AND THE PROCEEDINGS
RELATIVE THERETO UNDER THE AGRARIAN REFORM
PROGRAM
May 26, 1989
CREATION OF AN INTER-AGENCY TASK FORCE
FOR THE CONDONATION OF AGRARIAN REFORM
LAND AMORTIZATION LIABILITIES AND FOR OTHER
PURPOSES
May 11, 2007
CREATING THE PRESIDENTIAL COORDINATING
COMMITTEE FOR SOCIAL JUSTICE AND AGRARIAN
REFORMS
October 31, 1969
xxix
ADMINISTRATIVE ORDERS Page

REVISING ADMINISTRATIVE ORDER NO. 182 DATED
OCTOBER 31, 1969, ENTITLED “CREATING THE
PRESIDENTIAL COORDINATING COMMITTEE FOR
SOCIAL JUSTICE AND AGRARIAN REFORMS”
January 13, 1970
CREATING A NATIONAL COMMITTEE ON THE
INTERNATIONAL DECADE FOR THE WORLD’S
INDIGENOUS PEOPLES, AND DECLARING 1995-2005
AS NATIONAL DECADE FOR FILIPINO INDIGENOUS
PEOPLES
July 13, 1995
SUSPENDING THE PROCESSING AND APPROVAL OF ALL
LAND CONVERSION APPLICATIONS OF ALL RICE LANDS
May 16, 2008
ADMINISTRATIVE ORDER NO. 226-A s. 2008 1472
AMENDING ADMINISTRATIVE ORDER NO. 226, SERIES OF
2008, ENTITLED: “SUSPENDING THE PROCESSING AND
APPROVAL OF ALL LAND CONVERSION APPLICATIONS
OF ALL RICE LANDS”
July 14, 2008
PRESCRIBING GUIDELINES FOR THE PROTECTION
OF AREAS NON-NEGOTIABLE FOR CONVERSION AND
MONITORING COMPLIANCE WITH SECTION 20 OF THE
LOCAL GOVERNMENT CODE
October 9, 1997
xxx
LETTER OF INSTRUCTIONS Page
LETTER OF INSTRUCTION NO. 46 1491

December 7, 1972
LETTER OF INSTRUCTIONS NO. 143 1493
October 31, 1973
November 16, 1974
November 16, 1974
February 19, 1975
May 7, 1975
February 3, 1976
October 21, 1976
June 2, 1977
ON THE COST OF AGRICULTURAL CREDIT
July 8, 1977
January 5, 1978
June 3, 1980
December 16, 1981
xxxi
LETTER OF INSTRUCTIONS Page
LETTER OF INSTRUCTIONS NO. 1180-A 1521

December 16, 1981
October 27, 1982
October 27, 1982
October 27, 1982
May 21, 1983
March 14, 1984
PROCLAMATIONS
PROCLAMATION NO. 29 s. 1936 1535

RESERVING FOR COLONIZATION PURPOSES A PARCEL
OF LAND IN THE MUNICIPALITIES OF KAPALONG AND
TAGUM, PROVINCE OF DAVAO, ISLAND OF MINDANAO
January 29, 1936
DIRECTING THAT ALL PROCEEDS OF THE SALE OF NON-
PERFORMING ASSETS OF THE ASSETS PRIVATIZATION
TRUST BE USED EXCLUSIVELY FOR LAND REFORM
March 3, 1987
INSTITUTING A COMPREHENSIVE AGRARIAN REFORM
PROGRAM
July 22, 1987
xxxii
PROCLAMATIONS Page

FURTHER AMENDING PROCLAMATION NO. 1530, DATED
FEBRUARY 2, 1976, BY PROVIDING FOR A SYSTEM OF
VALUATION IN ACCORDANCE WITH REPUBLIC ACT NO.
3844 AS AMENDED OR IN ACCORDANCE WITH SUCH
SYSTEM OF VALUATION, MODE OR TERMS OF PAYMENT
AS MAY BE AGREED UPON BY THE LAND BANK OF THE
PHILIPPINES AND THE DEPARTMENT OF AGRARIAN
REFORM
February 5, 1993
DECLARING THE PERIOD JUNE 9–15 OF EVERY YEAR
AS “AGRARIAN REFORM WEEK” AND RECOGNIZING
THE AGRARIAN REFORM COMMUNITY DEVELOPMENT
PROGRAM AS A KEY PROGRAM FOR NATIONAL
DEVELOPMENT
May 21, 1993
RESERVING FOR STOCK FARM PURPOSES A CERTAIN
PARCEL OF THE PUBLIC DOMAIN SITUATED IN THE
BARRIO OF DAING, MUNICIPALITY OF CERVANTES,
PROVINCE OF ILOCOS SUR, ISLAND OF LUZON
September 23, 1955
AMENDING PROCLAMATION NO. 582, DATED JULY
8, 1940, WHICH ESTABLISHED THE FAMY-INFANTA
FOREST RESERVE IN LAGUNA AND QUEZON, AND
PROCLAMATION NO. 1636, DATED APRIL 18, 1977,
WHICH ESTABLISHED A NATIONAL PARK, WILDLIFE
SANCTUARY AND GAME PRESERVE IN REAL, QUEZON,
AND RESERVING CERTAIN PORTIONS OF THE
LAND EMBRACED THEREIN FOR AGRICULTURAL
SETTLEMENT PURPOSES OF THE DEPARTMENT OF
AGRARIAN REFORM
December 10, 1987
xxxiii
PROCLAMATIONS Page

RESERVING FOR THE PURPOSE OF ESTABLISHING A
SETTLEMENT AND AN AGRICULTURAL COMMUNITY
UNDER THE AGRARIAN REFORM COMMUNITY PROGRAM
OF THE DEPARTMENT OF AGRARIAN REFORM CERTAIN
PARCELS OF LAND SITUATED IN BORONGAN AND SAN
JULIAN, PROVINCE OF EASTERN SAMAR
September 6, 1993
REVOKING PROCLAMATION NO. 106 DATED MAY
11, 1987 AND RESERVING FOR SETTLEMENT
PURPOSES THE LAND COVERED THEREBY UNDER
THE ADMINISTRATION AND DISPOSITION OF THE
April 13, 1988
RESERVING FOR THE PURPOSE OF ESTABLISHING
PARCELS OF LAND OF THE PUBLIC DOMAIN SITUATED
IN THE MUNICIPALITIES OF BUNAWAN AND VERUELA
(LOCALLY NAMED NUEVA ERA), PROVINCE OF AGUSAN
DEL SUR
September 15, 1993
AMENDING PROCLAMATION NO. 180 DATED MAY 21,
1993 BY DECLARING THE ENTIRE MONTH OF JUNE
EACH YEAR AS “AGRARIAN REFORM MONTH”
April 7, 2000
RESERVING FOR RESETTLEMENT PURPOSES UNDER
DEPARTMENT OF AGRARIAN REFORM CERTAIN
TRACTS OF LAND OF THE PUBLIC DOMAIN SITUATED
xxxiv
PROCLAMATIONS Page
IN THE MUNICIPALITY OF SAN REMIGIO, PROVINCE OF

ANTIQUE, ISLAND OF PANAY
November 6, 1993
EXCLUDING FROM THE OPERATION OF EXECUTIVE
ORDER NO. 63, DATED 25 JUNE 1914, AND PROCLAMATION
NO. 391, DATED 13 MARCH 1939, WHICH ESTABLISHED
THE MINERAL LAND RESERVATION IN THE PROVINCE
OF SURIGAO, ISLAND OF MINDANAO CERTAIN
ALIENABLE AND DISPOSABLE PARCELS OF LAND
EMBRACED THEREIN, AND DECLARING THE SAME
OPEN TO DISPOSITION UNDER THE COMPREHENSIVE
AGRARIAN REFORM PROGRAM OF THE DEPARTMENT
OF AGRARIAN REFORM AND OTHER PERTINENT LAWS
RELATIVE TO TITLING OF LANDS NOT SUITABLE FOR
AGRICULTURE
November 9, 1993
RESERVING FOR CITRUS EXPERIMENT STATION
PURPOSES TWO PARCELS OF THE PUBLIC DOMAIN
SITUATED IN THE BARRIO OF KISOLON, MUNICIPALITY
OF IMPASUGONG, PROVINCE OF BUKIDNON, ISLAND
OF MINDANAO
August 2, 1938
EXCLUDING FROM THE OPERATION OF PROCLAMATION
NO. 230, DATED APRIL 22, 1929, CERTAIN LOTS SITUATED
IN THE MUNICIPAL DISTRICT OF LIBONA, PROVINCE OF
BUKIDNON, ISLAND OF MINDANAO, AND DECLARING
THE SAME OPEN TO DISPOSITION
December 3, 1938
RESERVING FOR STOCKFARM SITE PURPOSES OF THE
BUREAU OF ANIMAL INDUSTRY CERTAIN PARCELS
xxxv
PROCLAMATIONS Page
OF LAND OF THE PUBLIC DOMAIN SITUATED IN THE

MUNICIPALITY OF MILAGROS, PROVINCE OF MASBATE
February 7, 1965
RESERVING CERTAIN PARCELS OF LAND
SITUATED IN THE MUNICIPALITIES OF CALBIGA
AND PINABACDAO, PROVINCE OF SAMAR FOR THE
PURPOSE OF ESTABLISHING A SETTLEMENT AND AN
AGRICULTURAL COMMUNITY UNDER THE AGRARIAN
REFORM COMMUNITY PROGRAM OF THE DEPARTMENT
OF AGRARIAN REFORM
May 27, 1994
RESERVING CERTAIN PARCELS OF LAND SITUATED
IN THE MUNICIPALITIES OF JAVIER, ABUYOG,
MAHAPLAG, INOPACAN, BAYBAY AND HILONGOS, ALL
OF THE PROVINCE OF LEYTE FOR THE PURPOSE OF
ESTABLISHING A SETTLEMENT AND AN AGRICULTURAL
COMMUNITY UNDER THE AGRARIAN REFORM
COMMUNITY PROGRAM OF THE DEPARTMENT OF
AGRARIAN REFORM
July 1, 1994
DEPARTMENT OF AGRARIAN REFORM (DAR) A CERTAIN
TRACT OF LAND OF THE PUBLIC DOMAIN SITUATED IN
GENERAL SANTOS CITY, ISLAND OF MINDANAO
August 15, 1994
EXCLUDING FROM THE OPERATION OF EXECUTIVE
ORDER NO. 63, DATED 25 JUNE 1914, AND PROCLAMATION
OF SURIGAO, ISLAND OF MINDANAO, CERTAIN
xxxvi
PROCLAMATIONS Page

AGRARIAN REFORM OF THE DEPARTMENT OF
AGRARIAN REFORM AND OTHER PERTINENT LAWS
RELATIVE TO TITLING OF LANDS THAT ARE SUITABLE
FOR AGRICULTURE
August 25, 1994
August 26, 1994
RESERVING FOR THE EXCLUSIVE, USE OF NON-
CHRISTIANS, A PARCEL OF THE PUBLIC DOMAIN
SITUATED IN THE BARRIO OF CULAT, MUNICIPALITY
OF CASIGURAN, PROVINCE OF TAYABAS, ISLAND OF
LUZON
October 9, 1939
ADOPTING AN OFFICIAL DEFINITION OF SOCIAL
REFORM AGENDA (SRA) PROGRAMS AND PROJECTS
FOR BUDGETARY AND OTHER PURPOSES
March 6, 1995
APPROVING A POLICY ON CONVERGENCE AND ITS
OPERATIONALIZATION THROUGH THE COORDINATED
ACTION OF THE AGENCIES’ TECHNICAL ACTION
OFFICERS
March 6, 1995
AMENDING PROCLAMATION NO. 378, DATED MARCH 13,
1953, WHICH RESERVED FOR RURAL RECONSTRUCTION
PURPOSES UNDER THE ADMINISTRATION OF THE
SOCIAL WELFARE ADMINISTRATION CERTAIN PARCELS
xxxvii
PROCLAMATIONS Page
OF LAND SITUATED IN THE MUNICIPALITY OF

BONGABON, PROVINCE OF NUEVA ECIJA, ISLAND OF
LUZON, BY PLACING THE ADMINISTRATION THEREOF
UNDER THE SECRETARY OF AGRICULTURE AND
NATURAL RESOURCES
December 8, 1959
DEDICATING THE DEPARTMENT OF AGRARIAN
REFORM BUILDING’S FOURTH FLOOR AS THE JUSTICE
MILAGROS A GERMAN HALL
December 12, 1995
SUPPLEMENTING PRESIDENTIAL PROCLAMATION
NOS. 295 AND 965, BY INCLUDING ADDITIONAL AREA
OF ABOUT 1,677.7575 HECTARES OF ALIENABLE AND
DISPOSABLE LANDS FROM THE SURIGAO MINERAL
RESERVATION FOUND TO BE SUITABLE AND UTILIZED
FOR AGRICULTURAL PURPOSES FOR DISPOSITION
UNDER THE COMPREHENSIVE AGRARIAN REFORM
PROGRAM OF THE DEPARTMENT OF AGRARIAN REFORM
November 30, 2004
AMENDING PROCLAMATION NO. 166 DATED 21 JUNE
1955 ENTITLED “RESERVING FOR SETTLEMENT
PURPOSES UNDER THE ADMINISTRATION AND
DISPOSITION OF THE NATIONAL RESETTLEMENT
AND REHABILITATION ADMINISTRATION (NARRA),
A CERTAIN PARCEL OF THE PUBLIC DOMAIN
SITUATED IN THE MUNICIPALITIES OF STA. INES,
SAN LUIS, PROSPERIDAD, TALACOGON, BORBON
AND GUADALUPE, PROVINCE OF AGUSAN, ISLAND
OF MINDANAO,” BY INCLUDING CERTAIN PARCELS
OF PUBLIC LAND LOCATED IN THE MUNICIPALITY
OF SAN LUIS, AGUSAN DEL SUR FOR SETTLEMENT
EXPANSION AND DEVELOPMENT PURPOSES UNDER
xxxviii
PROCLAMATIONS Page
THE ADMINISTRATION AND DISPOSITION BY THE

February 16, 1996
AMENDING PROCLAMATION NO. 1530, DATED
FEBRUARY 2, 1976, BY VESTING IN THE LAND BANK
OF THE PHILIPPINES, IN LIEU OF THE PHILIPPINE
AMANAH BANK, THE PRIMARY RESPONSIBILITY OF
FINANCING THE ACQUISITION OF PRIVATELY OWNED
PARCELS OF LAND SITUATED AT PANAMAO, TALIPAO
AND TIPTIPON, PROVINCE OF SULU, WHICH ARE
UNDER ADMINISTRATION AND DISPOSITION OF THE
November 14, 1991
AMENDING PROCLAMATION NO. 446 DATED AUGUST 15,
1994, SO AS TO CORRECT THE TECHNICAL DESCRIPTIONS
OF THE LAND EMBRACED THEREIN AND TO TRANSFER
THE ADMINISTRATION AND DISPOSITION OF THE SAME
FROM THE DEPARTMENT OF AGRARIAN REFORM TO
THE DEPARTMENT OF ENVIRONMENT AND NATURAL
RESOURCES
August 22, 1996
RESERVING FOR THE PURPOSE OF THE URBAN,
COMMERCIAL, AND INDUSTRIAL DEVELOPMENT
PROGRAMS OF PALAYAN CITY, CERTAIN PARCELS OF
LAND OF THE PUBLIC DOMAIN SITUATED IN THE CITY
OF PALAYAN, PROVINCE OF NUEVA ECIJA, ISLAND OF
LUZON
February 13, 1992
REVOKING PROCLAMATION NO. 174 DATED AUGUST
3, 1928 WHICH DECLARED A CERTAIN TRACT OF
LAND LOCATED IN THE MUNICIPALITY OF SANTIAGO,
xxxix
PROCLAMATIONS Page
PROVINCE OF ISABELA (NOW MUNICIPALITY OF

DIFFUN, PROVINCE OF QUIRINO), ISLAND OF LUZON,
AS A RESERVATION FOR THE EXCLUSIVE USE OF
NON-CHRISTIANS AND PROCLAIMING SAME AS
A RESETTLEMENT PROJECT FOR DISTRIBUTION
BY THE DEPARTMENT OF AGRARIAN REFORM
IN COORDINATION WITH THE DEPARTMENT OF
ENVIRONMENT AND NATURAL RESOURCES AND THE
OFFICE FOR NORTHERN CULTURAL COMMUNITIES, TO
THE ACTUAL OCCUPANTS UNDER THE COMPREHENSIVE
AGRARIAN REFORM PROGRAM (CARP)
October 10, 1996
PROCLAIMING THE SECOND WEEK OF JUNE AS
“AGRARIAN REFORM WEEK”
May 29, 1992
A SETTLEMENT AND AGRICULTURAL COMMUNITY
OF THE DEPARTMENT OF AGRARIAN REFORM, CERTAIN
PARCELS OF LANDS OF THE PUBLIC DOMAIN SITUATED
IN THE MUNICIPALITIES OF ARTECHE, JIPAPAD, ORAS
AND SAN POLICARPO, ALL OF EASTERN SAMAR
December 20, 1996
SUPPLEMENTING PROCLAMATION NO. 295, DATED 9
NOVEMBER 1993, ENTITLED “EXCLUDING FROM THE
OPERATION OF EXECUTIVE ORDER NO. 63, DATED 25
JUNE 1914 AND PROCLAMATION NO. 391, DATED 13
MARCH 1939, WHICH ESTABLISHED THE MINERAL
LAND RESERVATION IN THE PROVINCE OF SURIGAO,
ISLAND OF MINDANAO CERTAIN ALIENABLE AND
DISPOSABLE PARCELS OF LAND EMBRACED THEREIN,
AND DECLARING THE SAME OPEN TO DISPOSITION
xl
PROCLAMATIONS Page

PROGRAM OF THE DEPARTMENT OF AGRARIAN
REFORM AND OTHER PERTINENT LAWS RELATIVE TO
TITLING OF LANDS SUITABLE FOR AGRICULTURE”, BY
INCLUDING CERTAIN PARCELS OF LAND FURTHER
IDENTIFIED AS SUITABLE FOR AGRICULTURE IN THE
MUNICIPALITIES OF BASILISA, TUBAJON, LORETO,
ISLAND OF DINAGAT AND MUNICIPALITY OF CLAVER,
ALL WITHIN THE PROVINCE OF SURIGAO DEL NORTE
February 12, 1997
RESERVING FOR RESETTLEMENT PURPOSES OF
THE RESIDENTS OF PANTABANGAN, NUEVA ECIJA,
CERTAIN PARCELS OF LAND OF THE PUBLIC DOMAIN
SITUATED IN THE MUNICIPALITIES OP BONGABON AND
PANTABANGAN, PROVINCE OF NUEVA ECIJA; MARIA
AURORA, SUB-PROVINCE OF AURORA; AND DUPAX,
PROVINCE OF NUEVA VIZCAYA
March 9, 1972
DECLARING CERTAIN DELINEATED AREAS OF LAND
COVERING THE AREAS OF SAMAL ISLANDS SITUATED
IN THE MUNICIPALITY OF KAPUTIAN, DAVAO DEL
NORTE PROVINCE WITH POTENTIAL TOURISM VALUES
PURSUANT TO PRESIDENTIAL PROCLAMATION NO. 1801
October 19, 1997
DECLARING THE NEW BILIBID PRISON RESERVATION
LOCATED IN BARANGAY POBLACION, MUNTINLUPA
CITY AS GOVERNMENT AND SOCIALIZED HOUSING
SITE WITH MIXED-USE COMPONENT AND PROVIDING
FOR THE DISPOSITION THEREOF TO QUALIFIED
BENEFICIARIES AND FOR OTHER USEFUL PURPOSES
September 8, 2006
xli
PROCLAMATIONS Page

DECLARING OCTOBER 21ST AS TENANTS’ EMANCIPATION
DAY
October 19, 1973
RESERVING FOR SETTLEMENT PURPOSES EXCLUSIVELY
FOR MUSLIM EVACUEES AND LANDLESS MUSLIM
FAMILIES FROM THE TROUBLED AREAS OF MINDANAO
SITUATED IN THE MUNICIPALITIES OF LUMBA-A-
BAYABAO AND BUBONG, PROVINCE OF LANAO DEL
SUR, UNDER THE ADMINISTRATION AND DISPOSITION
OF THE DEPARTMENT OF AGRARIAN REFORM
October 22, 1973
PARCELS OF LAND SITUATED IN THE MUNICIPALITIES
OF CATARMAN, LOPE DE VEGA AND BOBON ALL OF THE
PROVINCE OF NORTHERN SAMAR
April 22, 1998
PROCLAMATION NO. 1495-A s. 1975 1828
RESERVING FOR SETTLEMENT PURPOSES CERTAIN
IN THE MUNICIPALITIES OF KAROMATAN AND
NUNUNGAN, PROVINCE OF LANAO DEL NORTE UNDER
September 11, 1975
xlii
PROCLAMATIONS Page
IN THE MUNICIPALITIES OF MATANAO, MAGSAYSAY

AND KIBLAWAN, PROVINCE OF DAVAO DEL SUR,
AND MUNICIPALITY OF COLUMBIO, PROVINCE OF
SULTAN KUDARAT, UNDER THE ADMINISTRATION
AND DISPOSITION OF THE DEPARTMENT OF AGRARIAN
REFORM
September 11, 1975
PARCEL OF LAND OF THE PUBLIC DOMAIN SITUATED
IN THE MUNICIPALITIES OF HINUNANGAN, SAN JUAN
AND ST. BERNARD, PROVINCE OF SOUTHERN LEYTE
UNDER THE ADMINISTRATION AND DISPOSITION OF
THE DEPARTMENT OF AGRARIAN REFORM
September 11, 1975
RESERVING FOR SETTLEMENT PURPOSES UNDER
IN THE MUNICIPALITIES OF DUPAX, PROVINCE
OF NUEVA VIZCAYA AND MADDELA, PROVINCE OF
QUIRINO, ISLAND OF LUZON, PHILIPPINES
September 11, 1975
IN THE MUNICIPALITIES OF BININDAYAN, BAYANG,
TUBURAN, BUTIG, LUMBATAN, AND PAGAYAWAN
(TATARICAN) PROVINCE OF LANAO DEL SUR UNDER
September 11, 1975
xliii
PROCLAMATIONS Page

RESERVING FOR SETTLEMENT PURPOSES UNDER
IN THE MUNICIPALITIES OF UPI AND DINAIG,
PROVINCE OF MAGUINDANAO, ISLAND OF MINDANAO,
PHILIPPINES
September 11, 1975
PARCELS OF LAND SITUATED IN PANAMAO, TALIPAO
AND TIPTIPON, PROVINCE OF SULU, PHILIPPINES,
THE DEPARTMENT OF AGRARIAN REFORM
February 2, 1976
EXCLUDING FROM THE OPERATION OF PROCLAMATION
NOS. 457 AND 544, SERIES OF 1939 AND 1940,
RESPECTIVELY, AN AREA OF FIFTEEN THOUSAND
HECTARES AND RESERVING THE SAME AND OTHER
IN THE MUNICIPALITIES OF ISABELA, LAMITAN AND
MALUSO, PROVINCE OF BASILAN FOR SETTLEMENT
DISPOSITION OF THE SECRETARY OF AGRARIAN
REFORM
February 2, 1976
RESERVING FOR RESETTLEMENT PURPOSES A CERTAIN
IN THE MUNICIPALITY OF SAMPALOC, PROVINCE OF
QUEZON, ISLAND OF LUZON
April 12, 1976
xliv
PROCLAMATIONS Page

DECLARING THE PERIOD FROM OCTOBER 15, TO 21,
1977, AS AGRARIAN REFORM WEEK
October 13, 1979
PROCLAMATION NO. 1798-A s. 1978 1868
IN THE MUNICIPALITY OF KAPAI, PROVINCE OF LANAO
DEL SUR, ISLAND OF MINDANAO, PHILIPPINES, UNDER
MINISTRY OF AGRARIAN REFORM
October 21, 1978
DECLARING THE ENTIRE METROPOLITAN MANILA
AREA AS AN URBAN LAND REFORM ZONE
September 11, 1979
DECLARING THE PERIOD FROM OCTOBER 15 TO 21, 1979
AS AGRARIAN REFORM WEEK
October 11, 1979
PROCLAIMING THE TRANSFER OF JURISDICTION OVER
SACOBIA RESETTLEMENT AREA FROM THE MINISTRIES
OF NATIONAL DEFENSE AND AGRARIAN REFORM TO
THE MINISTRY OF HUMAN SETTLEMENTS
March 25, 1980
IN THE MUNICIPALITY OF CATEEL, PROVINCE OF
DAVAO ORIENTAL, ISLAND OF MINDANAO, PHILIPPINES
xlv
PROCLAMATIONS Page

THE MINISTRY OF AGRARIAN REFORM
September 19, 1980
DECLARING THE PERIOD FROM OCTOBER 15 TO 21, 1980,
October 9, 1980
RESERVING FOR AGRO-INDUSTRIAL COOPERATIVE
SETTLEMENT PURPOSES CERTAIN PARCELS OF
LAND OF THE PUBLIC DOMAIN SITUATED IN
THE MUNICIPALITIES OF WAO AND BUMBARAN,
PROVINCE OF LANAO DEL SUR, ISLAND OF MINDANAO,
PHILIPPINES UNDER THE ADMINISTRATION AND
DISPOSITION OF THE SOUTHERN PHILIPPINES
DEVELOPMENT AUTHORITY OF THE MINISTRY OF
HUMAN SETTLEMENTS
January 17, 1981
DECLARING THE PERIOD FROM OCTOBER 21 TO 27, 1981,
October 2, 1981
October 13, 1982
RESERVING FOR SETTLEMENT PURPOSES A CERTAIN
IN THE MUNICIPALITY OF TAPAZ, PROVINCE OF CAPIZ,
May 21, 1983
xlvi
PROCLAMATIONS Page

IN THE MUNICIPALITIES OF BASEY, STA. RITA AND
PINABACDAO, PROVINCE OF WESTERN SAMAR, UNDER
May 21, 1983
October 6, 1983
AMENDING PRESIDENTIAL PROCLAMATION NO. 284,
SERIES OF 1938, AS AMENDED, BY EXCLUDING A
PORTION THEREOF CONSISTING OF 2,598 HECTARES
SITUATED IN THE MUNICIPALITIES OF DIPLAHAN
AND SIAY, PROVINCE OF ZAMBOANGA DEL SUR AND
RESERVING THE SAME FOR SETTLEMENT PURPOSES
March 14, 1984
October 4, 1984
October 10, 1985
xlvii
PROCLAMATIONS Page

DAVAO, ISLAND OF MINDANAO, PHILIPPINES UNDER
January 29, 1986
DECLARING THE KARAGAN VALLEY RESETTLEMENT
PROJECT IN THE PROVINCE OF DAVAO DEL NORTE AS A
CIVIL RESERVATION EXCLUSIVELY FOR THE MANSAKA
AND MANDAYA TRIBES AND OTHER CULTURAL
MINORITIES
January 29, 1986
APPENDICES:
INDEX 1911
LIST OF AMENDMENTS 1969
xlviii
LEGISLATIVE MEASURES – PUBLIC ACTS
PUBLIC ACTS
1
2
ACT NO. 496
AN ACT TO PROVIDE FOR THE ADJUDICATION AND

REGISTRATION OF TITLES TO LANDS IN THE PHILIPPINE
ISLANDS
By authority of the United States, be it enacted by the Philippine

Commission, that:
SECTION 1. The short title of this Act shall be “The Land

Registration Act.”
SEC. 2. A court is hereby established to be called the “Court

of Land Registration,” which shall have exclusive jurisdiction of
all applications for the registration under this Act of title to land
or buildings or an interest therein within the Philippine Islands,
with power to hear and determine all questions arising upon such
applications, and also have jurisdiction over such other questions
as may come before it under this Act, subject, however, to the right
of appeal, as hereinafter provided. The proceedings upon such
applications shall be proceedings in rem against the land and the
buildings and improvements thereon, and the decrees shall operate
directly on the land and the buildings and improvements thereon,
and vest and establish title thereto.
The court shall hold its sittings in Manila, but may adjourn
from time to time to such other places as the public convenience
may require, and may hold sessions at any time in the capital of
any province. In the city of Manila, the Municipal Board, and in the
provinces, the provincial boards, shall provide suitable rooms for
the sittings of the Court of Land Registration in the same building
with, or convenient to, the office of the register of deeds, and shall
provide all necessary books and such printed blanks and stationery
for use in registration proceedings as may be ordered by the court
hereby created.
The court shall have jurisdiction throughout the Philippine

Archipelago, and shall always be open, except on Sundays and
holidays established by law. It shall be a court of record, and shall
3
cause to be made a seal, and to be sealed therewith all orders,

process, and papers made by or proceeding from the court and
requiring a seal. All notices, orders, and process of such court may
run into any province and be returnable, as the court may direct.
The court shall from time to time make general rules and
forms for procedure, conforming as near as may be to the practice
in special proceedings in Courts of First Instance, but subject to the
express provisions of this Act and to general laws. Such rules and
forms before taking effect shall be approved by the judges of the
Supreme Court or a majority thereof.
In this Act, except where the context requires a different

construction, the word “court” shall mean the Court of Land
Registration.
SEC. 3. The Civil Governor, with the advice and consent of

the Philippine Commission, shall appoint two judges of the Court of
Land Registration, one of whom shall be appointed, commissioned,
and qualified as judge of the Court of Land Registration, and the
other as associate judge thereof, each of whom may be removed by
the Civil Governor, with the advice and consent of the Philippine
Commission, and any vacancy shall be filled in the manner in
this section provided. Such further associate judges of the Court
of Land Registration shall be appointed in the manner in this
section provided, as experience shall prove to be necessary, but the
necessity for such additional judges shall be determined by act of
the Philippine Commission.
SEC. 4. The authority and jurisdiction of the Court of Land

Registration shall begin and take effect as soon as the judges thereof
are appointed and qualified in the manner required by law for
judicial officers. The court may be held by a single judge, and when
so held shall have all the authority and jurisdiction committed to
said court. Different sessions may be held at the same time, either
in the same province or in different provinces, as the judges may
decide, and they shall so arrange sessions as to insure a prompt
discharge of the business of the court.
4
SEC. 5. Citations, orders of notice, and all other process issuing

from the court shall be under the seal of the court and signed by the
judge or clerk thereof, and shall be served in the manner provided
for the service of process in the Code of Procedure in Civil Actions
and Special Proceedings, and by the officers therein designated as
officers of the court, unless otherwise specially ordered in this Act.
SEC. 6. In case of a vacancy in the office of judge of the Court

of Land Registration, or of his absence or inability to perform his
duties, the associate judge shall perform them until the vacancy is
filled or any disability is removed.
SEC. 7. The Civil Governor, with the advice and consent of the
Philippine Commission, shall appoint a clerk, who may be removed
in the manner provided for the removal of a judge by virtue of
section three, and a vacancy in his office may be filled in the manner
in that section provided. He shall attend the sessions of the court
and keep a docket of all causes and shall affix the seal of the court
to all process or papers proceeding therefrom and requiring a seal.
SEC. 8. The clerk shall be under the direction of the court,

shall have the custody and control of all papers and documents filed
with him under the provisions of this Act, and shall carefully number
and index the same. Said papers and documents shall be kept in
the city of Manila, in an office to be called the “Land Registration
Office,” which shall be in the same building as the Court of Land
Registration or near to it. Clerks shall have authority, subject to
the provisions of the Civil Service Law, to employ such deputies,
assistants, translators, stenographers, typewriters, and messengers
as may be necessary, the number and salaries of such employees to
be fixed with the approval of the Attorney-General.
SEC. 9. The clerk may act in the city of Manila and in any
province, and after land has been registered under this Act he
may make all memoranda affecting the title, and enter and issue
certificates of title as provided herein.
SEC. 10. There shall be a register of deeds in the city of Manila,

and one in each province, who shall be appointed and removed in
5
the manner provided for the appointment and removal of judges

by section three, and who, after any land within their respective
districts has been registered under this Act shall have the same
authority as the clerk of the Court of Land Registration to make
all memoranda affecting the title of such land, and to enter and
issue new certificates of title as provided herein, and to affix the seal
of the court to such certificates and duplicate certificates of title;
but in executing the provisions of this Act the registers of deeds
shall be subject to the general direction of the clerk of the Court
of Land Registration, in order to secure uniformity throughout the
Archipelago, and their official designation shall be registers of deeds
for the province or for the city of Manila, in which their duties are to
be performed, as the case may be. In case of the death or disability
of the clerk of the Court of Land Registration, the register of deeds
for the city of Manila shall perform the duties of the clerk until the
vacancy is filled or the disability is removed.
SEC. 11. The clerk of the Court of Land Registration and all
registers of deeds shall be sworn before any official authorized to
administer oaths, and a record thereof shall be made in the records
of the court. They shall each give a bond to the Government of the
Philippine Islands for the benefit of whom it may concern in a sum
to be fixed by the court for the faithful performance of their official
duties, before entering upon the same. The judge and the associate
judges, and the clerk of the Court of Land Registration and all
registers of deeds, will have power to administer oaths in all matters
and cases in which an oath is required, whether pertaining to the
registration of lands or otherwise. The clerk and his deputy and
all registers of deeds shall keep an accurate account of all moneys
received, as fees or otherwise, which shall be subject to examination
by the Auditor for the Philippine Archipelago in the city of Manila,
and by the provincial treasurers in the several provinces, and to
revision thereof by the Auditor for the Philippine Archipelago, and
they shall pay over such moneys at the end of each calendar month to
the Treasurer of the Philippine Archipelago, except such moneys as
are otherwise disposed of by the provisions of section thirteen of this
Act. In the case of the death, absence, or disability of any register
of deeds, the assistant register, or if there is no assistant register,
the person acting as clerk in the office of register of deeds, shall
6
perform the duties of register, and the register, if living, shall be

held responsible for him. The clerk of the Court of Land Registration
and all registers of deeds may require bonds of indemnity from all
deputies, assistants, and employees in their respective offices. Each
register of deeds may appoint such deputies, assistants, clerks,
stenographers, typewriters, and translators and at such salaries as
the provincial board or the Municipal Board of the city of Manila,
as the case may be, authorize, with the approval of the Treasurer of
the Philippine Archipelago.
SEC. 12. The Civil Governor, with the advice and approval
of the Philippine Commission, may appoint one or more examiners
of titles in each of the fifteen judicial districts of the Philippine
Archipelago, who shall be lawyers, and who shall be subject to
removal in the manner provided in section three, and vacancies
therein may be filled in the manner in that section provided.
SEC. 13. The salary of the judge of the Court of Land

Registration shall be five thousand dollars per annum, that of
associate judge, and of any associate judge subsequently appointed
under this Act, shall be four thousand dollars per annum, and that
of the clerk of the court shall be two thousand five hundred dollars
per annum. The salaries of registers of deeds and examiners of titles
shall be fixed by act of the Philippine Commission in proportion to
the amount of business and responsibility of their several offices
to which appointments may be made. All salaries and expenses of
the court, including those for necessary interpreters, translators,
stenographers, typewriters, and other employees, as well as those of
deputy or assistant clerks duly authorized and examiners of titles,
shall be paid from the Treasury of the Philippine Archipelago, but
the salaries of the registers of deeds and of all deputies, assistants,
or clerks duly authorized and by them appointed, and all the
expenses of every kind incident to the office of register of deeds,
including necessary books and stationery, shall be paid out of the
respective provincial treasuries or out of the Insular Treasury from
funds belonging to the city of Manila, as the case may be. All fees
payable under this Act for the services of the clerk of the Court
of Land Registration and those of the examiner of titles, including
the fee for the original application, for filing plans, for indexing
7
and recording an instrument while application for registration

is pending, for examining title, for notices by mail, for notices by
publication, for entry of order dismissing application, or decree
of registration, and sending memorandum thereof to register of
deeds, copy of decree of registration, filing petitions in court, and
making certified copies of decrees, shall be paid into the Treasury
of the Philippine Archipelago. All fees payable under this Act
for the services of the register of deeds or his deputy or clerks,
including those for entry of original certificate of title, issuing all
duplicates thereof, making and entering new certificates of title and
all duplicates thereof, for the registration of instruments, making
and attesting copies of memorandum on instruments, for filing
and registering adverse claims, for entering statement of change of
residence or post-office, for entering any note on registration book,
for registration of a suggestion of death or notice of proceedings in
bankruptcy, insolvency or the like, for the registration of a discharge
of a lease or a mortgage or instrument creating an incumbrance,
for the registration of any levy or any discharge or dissolution of
attachment or levy or of any certificate of or receipt for payment of
taxes or a notice of any pending action, of a judgment or decree, for
indorsing of any mortgage lien or other instrument, memorandum
of partition, certified copies of registered instruments, shall be paid
into the appropriate provincial treasury, or into the Treasury of
the Philippine Archipelago for the city of Manila, as the case may
be. All fees payable under this Act for services by sheriff or other
officer shall be paid to the officer entitled thereto. Registers of
deeds shall pay over to the provincial treasury or to the Treasury of
the Philippine Archipelago, as the case may be, at the end of each
calendar month all funds received by them in accordance with the
provisions of this Act.
SEC. 14. Every order, decision, and decree of the Court of

Land Registration shall he subject to appeal to the Court of First
Instance of the city or province where the land lies, concerning
which the order, decision, or decree appealed from was made; but the
proceeding shall not pass to the Court of First Instance for review
upon the appeal until final determination by the Court of Land
Registration of the whole proceeding in which the order, decision,
or decree appealed from was made. The appeal shall be made and
8
entered within thirty days from the date of the final order, decision,
or decree, and the party, appealing shall, at the time of entering
his appeal, file in the Court of First Instance copies of all material
papers in the case certified by the clerk. Appearances and answers
shall be filed in the Court of First Instance within thirty days after
the appeal is entered, unless for good cause further time is allowed,
and upon motion of either party the case shall be advanced for
speedy hearing, and shall be tried by the Court of First Instance as
other actions are tried in that court. All competent testimony which
has been taken in writing before the Court of Land Registration
may be used on the trial in the Court of First Instance. Questions of
law arising in the Court of First Instance on trial of the appeal may
be taken to the Supreme Court for revisions by any party aggrieved,
in the same manner as in ordinary actions in the Court of First
Instance.
Whenever the facts before the Court of Land Registration shall

not be in dispute, but a pure question of law only is determinative of
the decision or decree to be made, that court may, after its decision
or decree therein, report such decision or decree directly for the
consideration of the Supreme Court with so much of the case as
may be necessary for the understanding of such questions of law,
without transmitting the same to the Court of First Instance. But
the procedure last provided shall not be made in any case where any
party desires an appeal to the Court of First Instance.
SEC. 15. At the end of the proceedings on appeal, the clerk of

the appellate court in which final decision was made shall certify to
the Court of Land Registration the final decision on the appeal, and
the Court of Land Registration shall enter the final decree in the
case, in accordance with the certificate of the clerk of the appellate
court in which final decision was made.
SEC. 16. If the party appealing does not prosecute his appeal
within the time limited, the original order, decision, or decree shall
and as if no appeal had been taken.
SEC. 17. The Court of Land Registration, in all matters over

which it has jurisdiction, may enforce its orders, judgments, or
9
derives in the same manner as orders, judgments, and decrees are

enforced in the Courts of First Instance, and, upon the request of
the judge of the Court of Land Registration, the governor or sheriff
of any province or of the city of Manila, as the case may be shall
assign a deputy to attend the sittings of the court in that province
or city.
SEC. 18. Costs shall be taxed in contested cases in the Court

of Land Registration in the same manner and for the same items of
as in Courts of First Instance, where no different provision is made.
ORIGINAL REGISTRATION
SEC. 19. Application for registration of title may be made by

the following persons, namely:
First. The person or persons claiming, singly or collectively, to

own the legal estate in fee simple.
Second. The person or persons claiming, singly or collectively,

to have the power of appointing or disposing of the legal estate in
fee simple.
Third. Infants or other persons under disability may make

application by their legally appointed guardians, but the person in
whose behalf the application is made shall be named as applicant
by the guardian.
Fourth. Corporations may make application by any officer

duly authorized by vote of the directors.
But the authority given to the foregoing four classes of persons

is subject to the following provisos:
That one or more tenants for a term of years shall not be

allowed to make application except jointly with those claiming the
reversionary interest in the property which makes up the fee simple
at common law.
10
That a mortgagor shall not make application without the

consent in writing of the mortgagee.
That a married woman shall not make application without

the consent in writing of her husband unless she holds the land
as her separate property or has a power to appoint the same in fee
simple, or has obtained a decree of the court authorizing her to deal
with her real estate as though she were sole and unmarried.
That one or more tenants claiming undivided shares less than

a fee simple in the whole land described in the application shall
not make application except jointly with the other tenant owning
undivided shares, so that the whole fee shall be represented in the
action.
But, notwithstanding the foregoing provisos, if the holder of a

mortgage, upon the land described in the application does not consent
to the making of the application, it may be entered nevertheless and
the title registered subject to such mortgage, which may be dealt
with or foreclosed as if the land subject to such mortgage had not
been registered. But the decree of registration in such case shall
state that registration is made subject to such mortgage, describing
it, and shall provide that no subsequent certificate shall be issued
and no further papers registered relating to such land after a
foreclosure of such mortgage.
SEC. 20. The application may be filed with the clerk of the
Court of Land Registration, or with the register of deeds of the
province or city in which the land or any portion thereof lies. Upon
filing his application the applicant shall forthwith cause to be filed
with the register of deeds for said city or province a memorandum
stating that application for registration has been filed, and the
date and place of filing, and a copy of the description of the land
contained in the application. This memorandum shall be recorded
and indexed by the register with the records of deeds. Each register
of deeds shall also keep an index of all applications in his province
or city, and, in every case where the application is filed with him,
shall transmit the same, with the papers and plans tiled therewith,
11
and such memorandum when recorded, to the clerk of the Court of

Land Registration.
SEC. 21. The application shall be in writing, signed and sworn

to by the applicant, or by some person duly authorized in his behalf.
All oaths required by this Act may be administered by any officer
authorized to administer oaths in the Philippine Islands. If there is
more than one applicant, the application shall be signed and sworn
to by and in behalf of each. It shall contain a description of the land
and shall state whether the applicant is married; and, if married,
the name of the wife or husband; and, if unmarried, whether he
or she has been married, and, if so, when and how the married
relation terminated. If by divorce, when, where, and by what court
the divorce was granted. It shall also state the name in full and
the address of the applicant, and also the names and addresses of
all adjoining owners and occupants, if known; and, if not known, it
shall state what search has been made to find them. It may be in
form as follows:
UNITED STATES OF AMERICA, PHILIPPINE ISLANDS
To the Honorable Judge of the Court of Land Registration:
I (or we), the undersigned, hereby apply to have the land

hereinafter described brought under the operations of the Land
Registration Act, and to have my (or our) title therein registered
and confirmed. And I (or we) declare: (1) That I am (or we are) the
owner (or owners) in fee simple of a certain parcel of land with the
buildings (if any; if not strike out the words “with the buildings”),
situated in (here insert accurate description). (2) That said land at
the last assessment for taxation was assessed, at ______________
dollars; and the buildings (if any) at _______________ dollars.
(3) That I (or we) do not know of any mortgage or incumbrance
affecting said land, or that any other person has any estate or
interest therein, legal or equitable, in possession, remainder,
reversion, or expectancy (if any, add “other than as follows,” and set
forth each clearly). (4) That I (or we) obtained title (if by deed, state
name of grantor, date and place of record, and file the deed or state
reason for not filing. If in any other way, state it). (5) That said land
12
is ____________ occupied (if occupied, state name in full and place

of residence and post-office address of occupant and the nature of
his occupancy. If unoccupied, insert “not”). (6) That the names in
full and addresses as far as known to me (or us) of the occupants of
all lands adjoining said land are as follows (give street and number
wherever possible. If names not known, state whether inquiry has
been made, and what inquiry). (7) That the names and addresses
so far as known to me (or us) of the owners of all lands adjoining
the above land are as follows (same directions as above). (8) That
I am (or we are) married. (Follow literally the directions given in
the prior portions of this section). (9) That my (or our) full name (or
names), residence, and post-office address is (or are) as follows:
___________________________
Dated this ___________________ day of _______________________

in the year nineteen hundred and _________________
(Signature)
_______________________________
(Schedule of documents.)
UNITED STATES OF AMERICA, PHILIPPINE ISLANDS
Province of (or city of) ___________________ (date).
Then personally appeared the above-named _________________,

known to me to be the signer (or signers) of the foregoing application,
and made oath that the statements therein, so far as made of his (or
their) own knowledge are true, and so far as made upon information
and belief, that he (or they) believe them to be true, before, me.
____________________________________________
Justice of the Peace
(or other officer authorized to administer oaths.)
SEC. 22. If the applicant is not a resident of the Philippine

Islands, he shall file with his application a paper appointing an
agent residing in the Philippine Islands, giving his name in full,
13
and his post-office address, and shall therein agree that the service
of any legal process in proceedings under or growing out of the
application shall be of the same legal effect if served upon the agent
as if upon the applicant if within the Philippine islands. If the agent
dies or becomes insane, or removes from the Philippine Islands, the
applicant shall at once make another appointment; and if he fails to
do so, the court may dismiss the application.
SEC. 23. Amendments to the application, including joinder,

substitution, or discontinuing as to parties, shall be allowed by the
court at any time upon terms that are just and reasonable. But
all amendments shall be in writing, signed and sworn to like the
original.
SEC. 24. The application may include two or more contiguous

parcels of land, or two or more parcels constituting one holding under
one and the same title, if within the same province or city. But two
or more persons claiming in the same parcels different interests,
which, collectively, make up the legal estate in fee simple in each
parcel, shall not join in one application for more than one parcel,
unless their interests are alike in each and every parcel. The court
may at any time order an application to be amended by striking out
one or more parcels, or by severance of the application.
SEC. 25. If the application described the land as bounded on

a public or private way or road, it shall state whether or not the
applicant claims any and what land within the limits of the way or
road, and whether the applicant desires to have the line of the way
or road determined.
SEC. 26. The applicant shall file with the application a plan
of the land, and all original muniments of title within his control
mentioned in the schedule of documents, such original muniments
to be produced before the examiner or the court at the hearing
when required. When an application is dismissed or discontinued,
the applicant may, with the consent of the court, withdraw such
original muniments of title.
14
SEC. 27. When an application is made subject to an existing

recorded mortgage, the holder of which has consented thereto, or to
a recorded lease, or when the registration is to be made subject to
such mortgage or lease executed after the time of the application
and before the date of the transcription of the decree, the applicant
shall, if required by the court, file a certified copy of such mortgage
or lease, and shall cause the original, or in the discretion of the
court, a certified copy thereof to be presented for registration before
the decree of registration is entered, and no registration fee shall
be charged for registering such original mortgage or lease or such
certified copy.
SEC. 28. The court may by general rule require facts to be

stated in the application in addition to those prescribed by this Act,
and not inconsistent therewith, and may require the filing of any
additional papers.
SEC. 29. After the filing of the application and before

registration the land therein described may be dealt with and
instruments relating thereto shall be recorded, in the same manner
as if no application had been made; but all instruments left for record
relating to such land shall be indexed in the usual manner in the
registry index and also in the index of applications. As soon as an
application is disposed of, the clerk of the Court of Land Registration
shall make a memorandum stating the disposition of the case and
shall send the same to the register of deeds for the proper province
or city, who shall record and index it with the records of deeds and
in the index of applications. If the proceedings upon the application
end in a decree of registration of title, the land included therein
shall, as soon as said decree is transcribed, as hereinafter provided
in section forty-one, become registered land, and thereafter no deeds
or other instruments relating solely to such land shall be recorded
with the records of deeds, but shall be registered in the registration
book and filed and indexed with records and documents relating to
registered lands.
SEC. 30. Immediately after the filing of the application the

court shall enter an order referring it to one of the examiners of
titles, who shall search the records and investigate all the facts in
15
the application, or otherwise brought to his attention, and file in the

case a report thereon, concluding with a certificate of his opinion
upon the title. The clerk shall give notice to the applicant of the
filing of such report. If the opinion of the examiner is adverse to
the applicant, he shall be allowed by the court a reasonable time in
which to elect to proceed further, or withdraw his application. The
election shall be made in writing and filed with the clerk.
SEC. 31. If, in the opinion of the examiner, the applicant has a
good title, as alleged, and proper for registration, or if the applicant,
after an adverse opinion of the examiner, elects to proceed further,
the clerk of the court shall, immediately upon the filing of the
examiner’s opinion or the applicant’s election, as the case may be,
cause notice of the filing of the application to be published once
in two newspapers, one of which newspapers shall be printed in
the English language and one in Spanish, of general circulation in
the province or city where any portion of the land lies, or if there
be no Spanish or English newspaper of general circulation in the
province or city where any portion of the land lies, then it shall be
a sufficient compliance with this section if the notice of the filing
of the application be published in a daily English newspaper and
a daily Spanish newspaper of the city of Manila, having a general
circulation. The notice shall be issued by order of the court, attested
by the clerk, and shall be in form substantially as follows:
REGISTRATION OF TITLE.
PROVINCE (or city) OF ______________________________
COURT OF LAND REGISTRATION.
To (here insert the names of all persons appearing to have an

interest and the adjoining owners so far as known), and to all whom
it may concern:
Whereas an application has been presented to said court by

(name or names, and addresses in full) to register and confirm his
(or their) title in the following-described lands (insert description),
you are hereby cited to appear at the Court of Land Registration,
16
to be held at ______________________, in said Province (or city)

of ______________________, on the ________________ day of
________________, A. D. nineteen hundred and ____________, at
_______________ o’clock in the forenoon, to show cause, if any you
have, why the prayer of said application shall not be granted. And
unless you appear at such court, at the time and place aforesaid,
your default will be recorded and the said application will be taken
as confessed, and you will be forever barred from contesting said
application or any decree entered thereon.
Witness: ________________________, judge of said court, this

________________ day of ____________________, in the year nineteen
hundred and _________.
Attest:
_______________________________________
Clerk of Said Court.
SEC. 32. The return of said notice shall not be less than twenty
nor more than sixty days from date of issue. The court shall also,
within seven days after publication of said notice in the newspapers,
as hereinbefore provided, cause a copy of the publication in Spanish
to be mailed by the clerk to every person named therein whose
address is known. The court shall also cause a duly attested copy of
the notice to be posted, in the Spanish language, in a conspicuous
place on each parcel of land included in the application, and also in
a conspicuous place upon the chief municipal building of the pueblo
in which the land or a portion thereof is situate, by the governor or
sheriff of the province or city, as the case may be, or by his deputy,
fourteen days at least before the return day thereof, and his return
shall be conclusive proof of such service. If the applicant requests
to have the line of a public way determined, the court shall order a
notice to be given by the clerk by mailing a registered letter to the
president of the municipal council, or to the Municipal Board, as
the case may be, of the municipality or city in which the land lies.
If the land borders on a river, navigable stream, or shore, or on an
arm of the sea where a river or harbor line has been established,
or on a lake, or if it otherwise appears from the application or the
proceedings that the Insular Government may have a claim adverse
17
to that of the applicant, notice shall be given in the same manner

to the Attorney-General. The court may also cause other or further
notice of the application to be given in such manner and to such
persons as it may deem proper. The court shall, so far as it deems it
possible, require proof of actual notice to all adjoining owners and
to all persons who appear to have interest in or claim to the land
included in the application. Notice to such persons by mail shall be
by registered letter if practicable. The certificate of the clerk that
he has served the notice as directed by the court, by publishing or
mailing, shall be filed in the case before the return day, and shall be
conclusive proof of such service.
SEC. 33. Upon the return day of the notice, and proof of service
of all orders of notice issued, the court may appoint a disinterested
person to act as guardian ad litem for minors and persons not in
being, unascertained, unknown, or out of the Philippine Islands,
who may have an interest. The compensation of the guardian or
agent shall be determined by the court and paid as part of the
expenses of the court.
SEC. 34. Any person claiming an interest, whether named in

the notice or not, may appear and file an answer on or before the
return day, or within such further time as may be allowed by the
court. The answer shall state all the objections to the application,
and shall set forth the interest claimed by the party filing the same,
and shall be signed and sworn to by him or by some person in his
behalf.
SEC. 35. If no person appears and answers within the time

allowed, the court may at once upon motion of the applicant, no
reason to the contrary appearing, order a general default to be
recorded and the application to be taken for confessed. By the
description in the notice, “To all whom it may concern,” all the world
are made parties defendant and shall be concluded by the default
and order. After such default and order the court may enter a decree
confirming the title of the applicant and ordering registration of the
same. The court shall not be bound by the report of the examiner of
titles, but may require other or further proof.
18
SEC. 36. If in any case an appearance is entered and answer

filed, the case shall be set down for hearing on motion of either party,
but a default and order shall be entered against all persons who do
not appear and answer, in the manner provided in the preceding
section. The court may hear the parties and their evidence or may
refer the case or any part thereof to one of the examiners of title,
as referee, to hear the parties and their evidence, and make report
thereon to the court. The trial before the referee may occur at any
convenient place within the province or city, and the time and place
of trial shall be fixed by the referee and reasonable notice thereof
shall be given by him to the parties. The court shall render judgment
in accordance with the report as though the facts had been found by
the judge himself, unless the court shall for cause shown set the
report aside or order it to be recommitted to the referee for further
finding: Provided, nevertheless, That the court may in its discretion
accept the report in part or set it aside in part. The court may in
any case before decree require a survey to be made for the purpose
of determining boundaries, and may order durable bounds to be set,
and referred to in the application, by amendment. The expense of
survey and bounds shall be taxed in the costs of the case and may
be apportioned the parties as justice may require. If no persons
appear to oppose the application, such expense shall be borne by
the applicant. If two or more applications claim the same land, or
part of the same land, the court may order the hearings upon all
such applications to be consolidated, if such consolidation is in the
interest of economy of time and expense.
SEC. 37. If in any case the court finds that the applicant has
not proper title for registration, a decree shall be entered dismissing
the application, and such decree may be ordered to be without
prejudice. The applicant may withdraw his application at any time
before final decree, upon terms to be fixed by the court.
SEC. 38. If the court after hearing finds that the applicant
has title as stated in his application, and proper for registration,
a decree of confirmation and registration shall be entered. Every
decree of registration shall bind the land, and quiet title thereto,
subject only to the exceptions stated in the following section. It shall
be conclusive upon and against all persons, including the Insular
19
Government and all the branches thereof, whether mentioned

by name in the application, notice, or citation, or included in the
general description “To all whom it may concern.” Such decree shall
not be opened by reason of the absence, infancy, or other disability
of any person affected thereby, nor by any proceeding in any court
for reversing judgments or decrees; subject, however, to the right of
any person deprived of land or of any estate or interest therein by
decree of registration obtained by fraud to file in the Court of Laud
Registration a petition for review within one year after entry of the
decree, provided no innocent purchaser for value has acquired an
interest. If there is any such purchaser, the decree of registration
shall not be opened, but shall remain in full force and effect forever,
subject only to the right of appeal hereinbefore provided. But any
person aggrieved by such decree in any case may pursue his remedy
by action for damages against the applicant or any other person
for fraud in procuring the decree. Whenever the phrase “innocent
purchaser for value” or an equivalent phrase occurs in this Act, it
shall be deemed to include an innocent lessee, mortgagee, or other
encumbrancer for value.
SEC. 39. Every applicant receiving a certificate of title

in pursuance of a decree of registration, and every subsequent
purchaser of registered land who takes a certificate of title for value
in good faith, shall hold the same free of all incumbrance except
those noted on said certificate and any of the following incumbrances
which may he subsisting, namely:
First. Liens, claims, or rights arising or existing under the

laws or Constitution of the United States or of the Philippine
Islands which the statutes of the Philippine Islands can not require
to appear of record in the registry.
Second. Taxes within two years after the same have become
due and payable.
Third. Any public highway, way, or private way established by

law, where the certificate of title does not state that the boundaries
of such highway or way have been determined. But if there are
casements or other rights appurtenant to a parcel of registered land
20
which for any reason have failed to be registered, such casements

or rights shall remain so appurtenant notwithstanding such failure,
and shall be held to pass with the land until cut off or extinguished
by the registration of the servient estate, or in any other manner.
SEC. 40. Every decree of registration shall bear the day of

the year, hour, and minute of its entry, and shall be signed by the
clerk. It shall state whether the owner is married or unmarried, and
if married, the name of the husband or wife. If the owner is under
disability, it shall state the nature of the disability, and if a minor,
shall state his age. It shall contain a description of the land as
finally determined by the court, and shall set forth the estate of the
owner, and also, in such manner as to show their relative priority,
all particular estates, mortgages, easements, liens, attachments,
and other incumbrances, including rights of husband or wife, if any,
to which the land or owner’s estate is subject, and may contain any
other matter properly to be determined in pursuance of this Act.
The decree shall be stated in a convenient form for transcription
upon the certificates of title hereinafter mentioned.
SEC. 41. Immediately upon the entry of the decree of

registration the clerk shall send a certified copy thereof, under
the seal of the court, to the register of deeds for the province, or
provinces, or city in which the land lies, and the register of deeds
shall transcribe the decree in a book to be called the “Registration
Book,” in which a leaf, or leaves, in consecutive order, shall be
devoted exclusively to each title. The entry made by the register
of deeds in this book in each case shall be the original certificate of
title, and shall be signed by him and sealed with the seal of the court.
All certificates of title shall be numbered consecutively, beginning
with number one. The register of deeds shall in each case make
an exact duplicate of the original certificate, including the seal, but
putting on it the words “Owner’s duplicate certificate,” and deliver
the same to the owner or to his attorney duly authorized. In case of
a variance between the owner’s duplicate certificate and the original
certificate the original shall prevail. The certified copy of the decree
of registration shall be filed and numbered by the register of deeds
with a reference noted on it to the place of record of the original
certificate of title: Provided, however, That when an application
21
includes land lying in more than one province, or one province

and the city of Manila, the court shall cause the part lying in each
province or in the city of Manila to be described separately by metes
and bounds in the decree of registration, and the clerk shall send to
the register of deeds for each province, or the city of Manila, as the
case may be, a copy of the decree containing a description of the land
within that province or city, and the register of deeds shall register
the same and issue an owner’s duplicate therefor, and thereafter for
all matters pertaining to registration under this Act the portion in
each province or city shall be treated as a separate parcel of land.
SEC. 42. The certificate first registered in pursuance of the

decree of registration in regard to any parcel of land shall be entitled
in the registration book, “Original certificate of title, entered
pursuant to decree of the Court of Land Registration, dated at”
(stating time and place of entry of decree and the number of case).
This certificate shall take effect upon the date of the transcription of
the decree. Subsequent certificates relating to the same land shall
be in like form, but shall be entitled “Transfer from number” (the
number of the next previous certificate relating to the same land),
and also the words “Originally registered” (date, volume, and page
of registration).
SEC. 43. Where two or more person are registered owners, as

tenants in common, or otherwise, one owner’s duplicate certificate
may be issued for the whole land, or a separate duplicate may be
issued to each for his undivided share.
SEC. 44. A registered owner holding one duplicate certificate,

for several distinct parcels of land may surrender it with the
approval of the court, and take out several certificates for portions
thereof. So a registered owner holding separate certificates for
several distinct parcels may surrender them and with like approval,
take out a single duplicate certificate for the whole land, or several
certificates for the different portions thereof. Any owner subdividing
a tract of registered land into lots shall file with the clerk a plan of
such land, when applying for a new certificate or certificates, and
the court, before issuing the same, shall cause the plan to be verified
22
and require that all boundaries, streets, and passageways shall be

distinctly and accurately delineated thereon.
SEC. 45. The obtaining of a decree of registration and the entry

of a certificate of title shall be regarded as an agreement running
with the land, and binding upon the applicant and all successors in
title that the land shall be and always remain registered land and
subject to the provisions of this act and all acts amendatory thereof.
SEC. 46. No title to registered land in derogation to that of

the registered owner shall be acquired by prescription or adverse
possession.
SEC. 47. The original certificate in the registration book, any

copy thereof duly certified under the signature of the clerk, or of the
register of deeds of the province or city where the land is situate, and
the seal of the court, and also the owner’s duplicate certificate, shall
be received as evidence in all the courts of the Philippine Islands
and shall be conclusive as to all matters contained therein except so
far as otherwise provided in this Act.
SEC. 48. Every certificate of title shall set forth the names of
all the persons interested in the estate in fee simple in the whole
land and duplicate certificates may be issued to each person, but
the clerk or register of deeds, as the case may be, shall note in the
registration book, and upon each certificate, to whom such duplicate
was issued.
SEC. 49. The clerk, under direction of the court, shall make
and keep indexes of all applications, of all decrees of registration, and
shall also index and classify all papers and instruments filed in his
office relating to applications and to registered titles. He shall also,
under direction of the court, cause forms of index and registration
and entry books to be prepared for use of the registers of deeds.
The court shall prepare and adopt convenient forms of certificates
of title, and shall also adopt general forms of memoranda to be
used by registers of deeds in registering common forms of deeds
of conveyance and other instruments, and to express briefly their
effect.
23
VOLUNTARY DEALING WITH LAND AFTER ORIGINAL

REGISTRATION
SEC. 50. An owner of registered land may convey, mortgage,

lease, charge, or otherwise deal with the same as fully as if it had
not been registered. He may use forms of deeds, mortgages, leases,
or other voluntary instruments like those now in use and sufficient
in law for the purpose intended. But no deed, mortgage, lease, or
other voluntary instrument, except a will, purporting to convey or
affect registered land, shall take effect as a conveyance or bind the
land, but shall operate only as a contract between the parties and
as evidence of authority to the clerk or register of deeds to make
registration. The act of registration shall be the operative act to
convey and affect the land, and in all cases under this Act the
registration shall be made in the office of register of deeds for the
province or provinces or city where the land lies.
SEC. 51. Every conveyance, mortgage, lease, lien, attachment,

order, decree, instrument, or entry affecting registered land which
would under existing laws, if recorded, filed, or entered in the office
of the register of deeds, affect the real estate to which it relates
shall, if registered, filed, or entered in the office of the register of
deeds in the province or city where the real estate to which such
instrument relates lies, be notice to all persons from the time of
such registering, filing, or entering.
SEC. 52. No new certificate shall be entered or issued upon

any transfer of registered land which does not divest the land
in fee simple from the owner or from some one of the registered
owners. All interests in registered land less than an estate in fee
simple shall be registered by filing with the register of deeds the
instrument creating or transferring or claiming such interest and
by a brief memorandum thereof made by the register of deeds
upon the certificate of title, signed by him. A similar memorandum
shall also be made on the owner’s duplicate. The cancellation or
extinguishment of such interests shall be registered in the same
manner.
24
SEC. 53. Where the register of deeds is in doubt upon any

question of law, or where any party in interest does not agree as
to the proper memorandum to be made in pursuance of any deed,
mortgage, or other voluntary instrument presented for registration,
the question shall be referred to the court for decision, either on the
certificate of the register of deeds stating the question upon which
he is in doubt or upon the suggestion in writing of any party in
interest; and the court, after notice to all parties and hearing, shall
enter an order prescribing the form of memorandum to the register
of deeds to make registration in accordance therewith.
SEC. 54. Every deed or other voluntary instrument presented

for registration shall contain or have indorsed upon it the full name,
place of residence, and post-office address of the grantee or other
person acquiring or claiming such interest under such instrument,
and every such instrument shall also state whether the grantee is
married or unmarried, and if married, give the name in full of the
husband or wife. Any change in the residence or post-office address
of such person shall be indorsed by the register of deeds on the
original instrument, on receiving a sworn statement of such change.
All names and addresses shall also be entered upon all certificates.
Notices and process in relation to registered land in pursuance of
this Act may be served upon any person in interest by mailing the
same to the address so given, and shall be binding whether such
person resides within or without the Philippine Islands, but the
court may, in its discretion, require further or other notice to be
given in any case, if in its opinion the interests of justice so require.
SEC. 55. No new certificate of title shall be entered, no

memorandum shall be made upon any certificate of title by the
clerk, or by any register of deeds, in pursuance of any deed or other
voluntary instrument, unless the owner’s duplicate certificate is
presented for such indorsement, except in cases expressly provided
for in this Act, or upon the order of the court, for cause shown;
and whenever such order is made, a memorandum thereof shall
be entered upon the new certificate of title and upon the owner’s
duplicate.
25
The production of the owners duplicate certificate whenever

any voluntary instrument is presented for registration shall be
conclusive authority from the registered owner to the clerk or
register of deeds to enter a new certificate or to make a memorandum
of registration in accordance with such instrument, and the new
certificate or memorandum shall be binding upon the registered
owner and upon all persons claiming under him in favor of every
purchaser for value and in good faith: Provided, however, That in
all cases of registration procured by fraud the owner may pursue
all his legal and equitable remedies against the parties to such
fraud, without prejudice, however, to the rights of any innocent
holder for value of a certificate of title: And provided further, That
after the transcription of the decree of registration on the original
application, any subsequent registration under this Act procured
by the presentation of a forged duplicate certificate, or of a forged
deed or other instrument, shall be null and void. In case of the loss
or theft of an owner’s duplicate certificate, notice shall be sent by
the owner or by some one in his behalf to the register of deeds of
the province in which the land lies as soon as the loss or theft is
discovered.
SEC. 56. Each register of deeds shall keep an entry book in

which he shall enter in the order of their reception all deeds and other
voluntary instruments, and all copies of writs or other process filed
with him relating to registered land. He shall note in such book the
year, month, day, hour, and minute of reception of all instruments,
in the order in which they are received. They shall be regarded as
registered from the time so noted, and the memorandum of each
instrument when made on the certificate of title to which it refers
shall bear the same date.
Every deed or other instrument, whether voluntary or

involuntary, so filed with the clerk or register of deeds shall be
numbered and indexed, and indorsed with a reference to the proper
certificate of title. All records and papers relating to registered land
in the office of the clerk or of any register of deeds shall be open
to the public, subject to such reasonable regulations as the clerk,
under the direction of the court, may make.
26
Duplicates of all deeds and voluntary instruments filed and

registered may be presented with the originals, and shall be attested
and sealed by the clerk or the register of deeds, and indorsed with
the file number and other memoranda on the originals, and may be
taken away by the person presenting the same.
Certified copies of all instruments filed and registered may

also be obtained at any time, upon the payment of the fees, of the
register of deeds.
CONVEYANCE IN FEE
SEC. 57. An owner desiring to convey in fee his registered

land or any portion thereof shall execute a deed of conveyance,
which the grantor or grantee may present to the register of deeds
in the province where the land lies. The grantor’s duplicate
certificate shall be produced and presented at the same time. The
register of deeds shall thereupon, in accordance with the rules and
instructions of the court, make out in the registration book a new
certificate of title to the grantee, and shall prepare and deliver to
him an owner’s duplicate certificate. The register of deeds shall note
upon the original and duplicate certificates the date of transfer, the
volume and page of the registration book where the new certificate
is registered, and a reference by number to the last prior certificate.
The grantor’s duplicate certificate shall be surrendered, and the
word “canceled” stamped upon it. The original certificate shall also
be stamped “canceled.” The deed of conveyance shall he filed and
indorsed with the number and place of registration of the certificate
of title of the land conveyed.
SEC. 58. When a deed in fee is for a part only of the land
described in a certificate of title, the register of deeds shall also enter
a new certificate and issue an owner’s duplicate to the grantor for
the part of the land not included in the deed. In every case of transfer
the new certificate or certificates shall include all the land described
in the original and surrendered certificates: Provided, however,
That no new certificate to a grantee of a part only of the land shall
be invalid by reason of the failure of the register of deeds to enter a
new certificate to the grantor for the remaining unconveyed portion:
27
And provided further, That in case the land described in a certificate

of title is divided into lots, designated by numbers or letters, with
measurements of all the bounds, and a plan of said land has been
filed with the clerk and verified pursuant to section forty-four of
this Act, and a certified copy thereof is recorded in the registration
book with the original certificate, when the original owner makes
a deed of transfer in fee of one or more of such lots, the register of
deeds may, instead of canceling such certificate and entering a new
certificate to the grantor for the part of the land not included in the
deed of transfer, enter on the original certificate and on the owner’s
duplicate certificate a memorandum of such deed of transfer, with a
reference to the lot or lots thereby conveyed as designated on such
plan, and that the certificate is canceled as to such lot or lots; and
every certificate with such memorandum shall be effectual for the
purpose of showing the grantor’s title to the remainder of the land
not conveyed as if the old certificate had been canceled and a new
certificate of such land had been entered; and such process may
be repeated so long as there is convenient space upon the original
certificate and the owner’s duplicate certificate for making such
memorandum of sale of lots.
SEC. 59. If at the time of any transfer there appear upon the
registration book incumbrances or claims adverse to the title of
the registered owner, they shall be stated in the new certificate or
certificates, except so far as they may be simultaneously released or
discharged.
MORTGAGES.
SEC. 60. The owner of registered land may mortgage the

same by executing a mortgage deed, and such deed may be assigned,
extended, discharged, released in whole or in part, or otherwise dealt
with by the mortgagee by any form of deed or instrument sufficient
in law for the purpose. But such mortgage deed, and all instruments
assigning, extending, discharging, and otherwise dealing with the
mortgage, shall be registered, and shall take effect upon the title
only from the time of registration.
28
SEC. 61. Registration of a mortgage shall be made in the

manner following, to wit: The owner’s duplicate certificate shall be
presented to the register of deeds with the mortgage deed, and he
shall enter upon the original certificate of title and also upon the
owner’s duplicate certificate a memorandum of the purport of the
mortgage deed, the time of filing and the file number of the deed, and
shall sign the memorandum. He shall also note upon the mortgage
deed the time of filing and a reference to the volume and page of the
registration book where it is registered.
The register of deeds shall also, at the request of the mortgagee,

make out and deliver to him a duplicate of the certificate of title, like
the owner’s duplicate, except that the words “mortgagee’s duplicate”
shall be stamped upon it in large letters diagonally across its face.
A memorandum of the issue of the mortgagee’s duplicate shall be
made upon the original certificate of title.
SEC. 62. Whenever a mortgage upon which a mortgagee’s

duplicate has been issued is assigned, extended, or otherwise
dealt with, the mortgagee’s duplicate shall he presented with the
instrument assigning, extending, or otherwise dealing with the
mortgage, and a memorandum of the instrument shall be made
upon the mortgagee’s duplicate certificate. When the mortgage is
discharged or otherwise extinguished the mortgagee’s duplicate
certificate shall be surrendered and stamped “canceled.” The
production of the mortgagee’s duplicate certificate shall be conclusive
authority to register the instrument therewith presented, subject,
however, to all the provisions and exceptions contained in section
fifty-five of this Act so far as the same are applicable.
A mortgage on registered land may also be discharged, by the

mortgagee in person, on the registration book, by indorsing upon the
original certificate of title and upon the owner’s duplicate certificate
a memorandum stating that the mortgage has been satisfied and
is discharged, together with the date of such entry, signed by the
mortgagee, and such discharge shall be attested by the register of
deeds, the mortgagee’s duplicate certificate being at the same time
surrendered and stamped “canceled.”
29
SEC. 63. Mortgages of registered land may be foreclosed in

the manner provided in the Code of Procedure in Civil Actions and
Special Proceedings. A certified copy of the final decree of the court
confirming the sale under foreclosure proceedings may be filed
with the register of deeds after the time for appealing therefrom
has expired, and the purchaser shall thereupon be entitled to the
entry of a new certificate and to the issuance of a new owner’s
duplicate certificate, a memorandum thereof being at the same time
likewise indorsed upon the mortgagor’s original certificate and the
mortgagee’s duplicate, if any, being first delivered up and canceled:
Provided, however, That nothing contained in this Act shall be
construed to prevent the mortgagor or other person interested from
directly impeaching by any proper legal proceedings any foreclosure
proceedings affecting registered land, prior to the entry of a new
certificate of title.
LEASES
SEC. 64. Leases of registered land shall be registered in the

manner provided in section fifty-two of this Act, in lieu of recording.
A lessee’s duplicate certificate may be issued to the lessee upon his
request, subject to the provisions hereinbefore made in regard to a
mortgagee’s duplicate certificate, so far as the same are applicable.
TRUSTS
SEC. 65. Whenever a deed or other instrument is filed for

the purpose of transferring registered land in trust, or upon any
equitable condition or limitation expressed therein, or for the
purpose of creating or declaring a trust or other equitable interest
in such land without transfer, the particulars of the trust, condition,
limitation, or other equitable interest shall not be entered on the
certificate; but a memorandum thereof shall be entered by the
words “in trust,” or “upon condition,” or other apt words, and by a
reference by number to the instrument authorizing or creating the
same. A similar memorandum shall be made upon the duplicate
certificate. The register of deeds shall note upon the original
instrument creating or declaring the trust or other equitable
interest a reference by number to the certificate of title to which it
30
relates, and to the volume and page in the registration book where
it is registered. If the instrument creating or declaring a trust or
other equitable interest is already recorded in the land register of
the Philippine Islands, a certified copy may be filed by the register
of deeds and registered.
SEC. 66. If the instrument creating or declaring a trust or

other equitable interest contains an express power to sell, mortgage,
or deal with the land in any manner, such power shall be stated in
the certificate of title by the words “with power to sell,” or “with
power to mortgage,” and by apt words of description in case of other
powers. No instrument transferring, mortgaging, or in any way
dealing with registered land held in trust shall be registered, unless
the power thereto enabling is expressly conferred in the instrument
of trust, or unless the decree of a court of competent jurisdiction has
construed the instrument in favor of such power, in which case a
certified copy of such decree may be filed with the register of deeds,
and he shall make registration in accordance therewith.
SEC. 67. When a new trustee of registered land is appointed by

a court of competent jurisdiction, a new certificate shall be entered
to him upon presentation to the register of deeds of a certified copy
of the decree and the surrender and cancellation of the duplicate
certificate.
SEC. 68. Whoever claims an interest in registered land by

reason of any implied or constructive trust shall file for registration
a statement thereof with the register of deeds. The statement shall
contain a description of the land, and a reference to the number of
the certificate of title and the volume and page of the registration
book where it is entered. Such claim shall not affect the title of a
purchaser for value and in good faith before its registration.
SEC. 69. Any trustee shall have authority to file an application

or registration of any land held in trust by him, unless expressly
prohibited, by the instrument creating the trust.
31
LEGAL INCIDENTS OF REGISTERED LAND.
SEC. 70. Registered land, and ownership therein, shall in all

respects be subject to the same burdens and incidents attached by
law to unregistered land. Nothing contained in this Act shall in any
way be construed to relieve registered land or the owners thereof
from any rights incident to the relation of husband and wife, or from
liability to attachment on mesne process or levy on execution, or
from liability to any lien of any description established by law on
land and the buildings thereon, or the interest of the owner in such
land or buildings, or to change the laws of descent, or the rights of
partition between coparceners, joint tenants and other cotenants,
or the right to take the same by eminent domain, or to relieve such
land from liability to be appropriated in any lawful manner for the
payment of debts, or to change or affect in any other way any other
rights or liabilities created by law and applicable to unregistered
land, except as otherwise expressly provided in this Act or in the
amendments hereof.
ATTACHMENTS AND OTHER LIENS.
SEC. 71. In every case where a writing of any description

or a copy of any writ is required by law to be filed or recorded in
the registry of deeds in order to create or preserve any lien, right,
or attachment upon unregistered land, such writing or copy when
intended to affect registered land, in lieu of recording, shall be filed
and registered in the office of the register of deeds for the province
in which the land lies, and, in addition to any particulars required
in such papers for recording with records of deeds, shall also contain
a reference to the number of the certificate of title of the land to be
affected, and the volume and page in the registration book where the
certificate is registered, and also, if the attachment, right, or lien is
not claimed on all the land in any certificate of title, a description
sufficiently accurate for identification, of the land intended to be
affected.
SEC. 72. In every case where an attachment or other lien or

adverse claim of any description is registered, and the duplicate
certificate is not presented at the time of registration to the register
32
of deeds, he shall within twenty-four hours thereafter send notice

by mail to the registered owner, stating that such paper has been
registered, and requesting him to send or produce the duplicate
certificate in order that a memorandum of the attachment or other
lien or adverse claim shall be made thereon. If the owner neglects
or refuses to comply within a reasonable time, the register of deeds
shall suggest the fact to the court, and the court, after notice, shall
enter an order to the owner to produce his certificate at a time and
place to be named therein, and may enforce the order by suitable
process.
SEC. 73. Attachment on mesne process and liens of every

description upon registered land shall be continued, reduced,
discharged, and dissolved by any method sufficient in law to
continue, reduce, discharge, or dissolve like liens on unregistered
land. All certificates or other instruments which are permitted
or required by law to be recorded in the registry of deeds to give
effect to the continuance, reduction, discharge, or dissolution of
attachments or other liens on unregistered lands, or to give notice
of such continuance, reduction, discharge, or dissolution, shall in
the case of like liens on registered land be filed with the register of
deeds and registered in the registration book, in lieu of recording.
SEC. 74. All the provisions of law now in force relating to

attachments of real estate and leasehold estates on mesne process
shall apply to registered land, except that the duties required to be
performed by the present recording officer shall be performed by
the register of deeds for the province where the land lies, who, in
lieu of recording, shall register the facts heretofore required to be
recorded, and for that purpose shall keep suitable books.
SEC. 75. Name and address of the plaintiff’s lawyer shall in

all cases be indorsed on the writ or process where an attachment
is made, and he shall be deemed to be the attorney of the plaintiff
until written notice that he has ceased to be such shall be filed for
registration by the plaintiff.
SEC. 76. Whenever an attachment on mesne process is

continued, reduced, dissolved, or otherwise affected by an order,
33
decision, or judgment of the court in which the action or proceeding

in which said attachment was made is pending, or by the order of
any judge or court having jurisdiction thereof, a certificate of the
entry of, such order, decision, or judgment from the clerk of the
court or judge by which such order, decision, or judgment has been
rendered and under the seal of the court or judge, shall be entitled
to be registered on presentation to the register of deeds.
SEC. 77. A lien of any description on registered land shall be

enforced in the same manner as like liens upon unregistered land.
Whenever registered land is sold on execution, or taken or sold for
taxes or for any assessment, or to enforce a lien of any character,
or for any costs and charges incident to such liens, any execution
or copy of execution, any officer’s return, or any deed, demand,
certificate, or affidavit, or other instrument made in the course of
proceedings to enforce such liens and required by law to be recorded
in the registry of deeds in the case of unregistered land, shall be
filed with the register of deeds for the province where the land lies
and registered in the registration book, and a memorandum made
upon the proper certificate of title, in each case, as an adverse claim
or incumbrance.
SEC. 78. Upon the expiration of the time, if any, allowed by law
for redemption after registered land has been sold on any execution,
or taken or sold for the enforcement of any lien of any description,
the person claiming under the execution or under any deed or other
instrument made in the course of proceedings to levy such execution
or enforce any lien, may petition the court for the entry of a new
certificate to him, and the application may be granted: Provided,
however, That every new certificate entered under this section shall
contain a memorandum of the nature of the proceeding on which
it is based: Provided further, That at any time prior to the entry
of a new certificate the registered owner may pursue all his lawful
remedies to impeach or annul proceedings under executions or to
enforce liens of any description.
34
PENDING SUITS, JUDGMENTS, DECREES, AND

PARTITIONS.
SEC. 79. No action to recover possession of real estate, or to

quiet the title thereto, or to remove clouds upon the title thereof, or
for partition or other proceeding of any kind in court affecting the
title to real estate or the use and occupation thereof or the buildings
thereon, and no judgment or decree, and no proceeding to vacate or
reverse any judgment or decree, shall have any effect upon registered
land as against persons other than the parties thereto, unless a
memorandum stating the institution of such action or proceeding
and the court wherein the same is pending, and the date of the
institution thereof, containing also a reference to the number of the
certificate of title of the land affected and the volume and page of the
registration book where it is entered, shall be filed and registered.
This section shall not apply to attachments, levies of execution, or
to proceedings for the probate of wills, or for administration of the
estates of deceased persons in the Court of First Instance: Provided,
however, That in case notice of the pendency of the action has been
duly registered it shall be sufficient to register the judgment or
decree in such action within sixty days after the rendition thereof.
SEC. 80. At any time after final judgment or decree in favor of

the defendant, or other disposition of the action such as to terminate
finally all rights of the plaintiff in and to the land and buildings
involved, in any case in which a memorandum has been registered
as provided in the preceding section, a certificate of the clerk of the
court in which the action or proceeding was pending stating the
manner of disposal thereof shall be entitled to registration.
SEC. 81. Whenever in any action to recover the possession or

ownership of real estate or any interest therein affecting registered
land judgment is entered for the plaintiff, such judgment shall be
entitled to registration on presentation of a certificate of the entry
thereof from the clerk of the court where the action is pending to
the register of deeds for the province where the land lies, who shall
enter a memorandum upon the certificate of title of the land to which
such judgment relates. If the judgment does not apply to all the land
described in the certificate of title, the certificate of the clerk of the
35
court where the action is pending and the memorandum entered by

the register of deeds shall contain a description of the land affected
by the judgment.
SEC. 82. When in any action to recover the possession or

title of real estate or an interest therein execution has been issued
directing the officer to place the plaintiff in possession of the land
affected by the judgment on which the execution was issued, the
officer shall cause an attested copy of the execution, with a return
of his doings thereon, to be filed and registered within three months
after the service, and before the return of the execution into the
office of the clerk whence it issued, and the plaintiff, in case the
judgment was that he was entitled to an estate in fee simple in the
demanded premises or in any part thereof, and for which execution
issued, shall thereupon be entitled to the entry of a new certificate
of title and to a cancellation of the certificate and owner’s duplicate
certificate of the former registered owner. If the former registered
owner neglects or refuses within a reasonable time after request
to produce his duplicate certificate in order that the same may be
canceled, the court on application and after notice shall enter an
order to the owner to produce his certificate at the time and place
named therein, and may enforce the order by suitable process.
SEC. 83. Every court passing a judgment or decree in favor

of the plaintiff affecting registered land shall, upon application of
the plaintiff, order any parties before it to execute for registration
any deed or instrument necessary to give effect to its judgment or
decree, and may require the registered owner to deliver his duplicate
certificate to the plaintiff to be canceled or to have a memorandum
entered upon it by the register of deeds. In case the person required
to execute any deed or other instrument necessary to give effect to
the judgment or decree is absent from the Philippine Islands, or is
a minor, or insane, or for any reason not amenable to the process
of the court, the court passing the judgment or decree may appoint
some suitable person a trustee to execute such instrument, and the
same when executed shall be registered and shall have full force
and effect to bind the land to be affected thereby.
36
SEC. 84. In all proceedings for partition of registered land,

after the entry of the final judgment or decree of partition and the
filing of the report of the committee or commissioners and final
judgment thereon, a copy of the final judgment or decree, certified
by the clerk of the court rendering the same, shall be filed and
registered; and thereupon, in case the land is set off to the owners in
severalty, any owner shall be entitled to have his certificate entered
to the share set off to him in severalty, and to receive an owner’s
duplicate thereof. In case the land is ordered by the court to be sold,
the purchaser or his assigns shall be entitled to have a certificate
of title entered to him or to them on presenting the deed of the
commissioners or committee for registration. In case the land is
ordered by the court rendering the judgment to be set off in entirety
to one of the parties upon payment to the other parties to the action,
the party to whom the land is thus ordered to be set off shall be
entitled to have a certificate of title entered to him on presenting
a copy of the judgment or decree certified by the clerk of the court
rendering the same: Provided, however, That any new certificate
entered in pursuance of partition proceedings, whether by way of
set-off or of assignment or of sale, shall contain a reference to the
final judgment or decree of partition and shall be conclusive as to the
title to the same extent against the same person as such judgment
or decree is made conclusive by the laws applicable thereto: And
provided also, That any person holding such certificates of title or
transfer thereof shall have the right to petition the court at any time
to cancel the memorandum relating to such judgment or decree, and
the court, after notice and hearing, may grant the application. Such
certificate shall thereafter be conclusive in the same manner and in
the same extent as other certificates of title.
SEC. 85. When a certified copy of a judgment or decree making

final partition of land or buildings is presented for registration, if a
mortgage or lease affecting a specific portion or an undivided share,
of the premises had previously been registered, the mortgagee,
or tenant claiming under the mortgagor or lessor, shall cause the
mortgage or lease and any duplicate certificate of title issued to the
mortgagee or lessee to be again presented for registration, and; the
register of deeds shall indorse on each the memorandum of such
partition, with a description of the land set off in severalty on which
37
such mortgage or lease remains in force. Such mortgagee or tenant

shall not be entitled to receive his own duplicate certificate of title
until such mortgage or lease has been so presented for registration.
BANKRUPTCY, INSOLVENCY, AND ANALOGOUS

PROCEEDINGS.
SEC. 86. Whenever proceedings in bankruptcy or insolvency,

or analogous proceedings, are instituted against a debtor who is an
owner of registered land, it shall be the duty of the officer serving
the notice of the institution of such proceedings on the debtor to
file a copy thereof in the registry of deeds for the province wherein
the land of the debtor lies. The assignee or trustee appointed by
the court having jurisdiction thereof in such proceedings shall
be entitled to the entry of a new certificate of registered land of
the debtor upon presenting and filing a certified copy of the order
appointing him such assignee or trustee, with the debtor’s duplicate
certificate of title; the new certificate shall state that it is entered
to him as assignee or trustee in insolvency or bankruptcy or other
proceedings, as the case may be.
SEC. 87. Whenever proceedings of the character named in

the preceding section against a registered owner, of which notice
has been registered, are vacated by decree or judgment, a certified
copy of the decree or judgment may be filed and registered. If a
new certificate has been entered to the assignee or trustee as
registered owner, the debtor shall be entitled to the entry of a new
certificate to him, and the certificate of the assignee or trustee shall
be surrendered.
EMINENT DOMAIN.
SEC. 88. Whenever any land of a registered owner, or any right

or interest therein, is taken by eminent domain, the Government or
municipality or corporation or other authority exercising such right
shall file for registration in the proper province a description of the
registered land so taken, giving the name of each owner thereof,
referring by number and place of registration in the registration
book to each certificate of title, and stating what, amount or interest
38
in the land is taken, and for what purpose. A memorandum of the

right or interest taken shall be made on each certificate of title
by the register of deeds, and where the fee simple is taken a new
certificate shall be entered to the owner for the land remaining
to him after such taking, and a new certificate shall be entered
to the Government, municipality, corporation, or other authority
exercising such right for the land so taken. All fees on account of
any memorandum of registration or entry of new certificates shall
be paid by the authority taking the land.
TRANSMISSION BY DESCENT AND DEVISE.
SEC. 89. Lands and any estate or interest therein registered

under this Act shall, upon the death of the owner, go to the executor
or administrator of the deceased in like manner as personal estate,
whether the owner dies testate or intestate, and shall be subject to
the same rules of administration as if the same were personalty,
except as otherwise provided in this Act, and except that the rule of
division shall be the same as in the descent of real property, or as
shall be provided by will.
SEC. 90. Before the executor or administrator of a deceased

owner of registered land or any estate or interest therein shall deal
with the same, he shall file in the office of the register of deeds a
certified copy of his letters of administration, or if there is a will,
a certified copy of the same and of the letters testamentary, or of
administration, with the will annexed, as the case may be, and shall
produce the duplicate certificate of title, and thereupon the register
of deeds shall enter upon the certificate and the duplicate certificate
a memorandum thereof with a reference to the letters or will and
letters by their file number, and the date of filing the same.
SEC. 91. Except in case of a will devising the land to an executor

to his own use or upon some trust or giving to the executor power
to sell, no sale or transfer of registered land shall be made by an
executor or by an administrator in the course of administration for
the payment of debts or for any other purpose, except in pursuance
of an order of a court of competent jurisdiction obtained as provided
by law.
39
SEC. 92. But after a memorandum of the will, letters

testamentary, or letters of administration have been entered upon
the register as hereinbefore provided, the executor or administrator
may deal with mortgages, leases, and other personal interests in or
upon registered land as if he were the registered owner thereof.
SEC. 93. Where it appears by the will, a certified copy of

which with letters testamentary is filed as provided in this Act, that
registered land is devised to the executor to his own use or upon
some trust, the executor may have the land transferred to himself
upon the register in like manner and subject to like terms and
conditions and to like rights as in the case of a transfer pursuant to
deed filed in the office of the register of deeds.
SEC. 94. When the will of a deceased owner of registered land,

or any estate or interest therein, empowers the executor to sell,
convey, encumber, charge, or otherwise deal with the land, it shall
not be necessary for such executor to be registered as the owner,
but a certified copy of the will and letters testamentary being filed
as provided in this Act, such executor may sell, convey, encumber,
charge, or otherwise deal with the land pursuant to the power in
like manner as if he were the registered owner, subject to the like
conditions is to the trust, limitations, and conditions expressed in
the will as in case of trusts, limitations, and conditions expressed
in a deed.
SEC. 95. Before making distribution of undevised registered

land, the executor or administrator shall file in the office of the
register of deeds a certified copy of the final decree of the court
having jurisdiction of the estate, which shall be conclusive evidence
in favor of all persons thereafter dealing with the land that the
persons therein named as the only heirs at law of the deceased
owner are such heirs.
SEC. 96. Whenever the court having jurisdiction of the

settlement of an estate shall, for the purpose of distribution thereof
or for other purposes provided by law, order registered land or any
interest or estate therein to be sold by the executor or administrator,
upon the filing of a certified copy of the order of sale and the deeds
40
executed in pursuance of the same in the office of the register of

deeds, a transfer of the land, estate, or interest to the purchaser may
be made upon the register as in the case of other sales by deed, and
the original certificate and owner’s duplicate shall be canceled and
a new certificate and owner’s duplicate be issued to the purchaser.
SEC. 97. Whenever, after the final determination of the amount

of all claims against the estate of the deceased, it shall be made to
appear to the court, having jurisdiction of the estate that the estate
will justify it and the proof of heirship has been made clear to that
court, it may direct the executor or administrator to make over and
transfer to the devisees or heirs, or some of them, in anticipation
of final distribution, a portion or the whole of the registered lands
to which they might be entitled on final distribution; and upon the
filing of a certified copy of such order in the office of the register
of deeds, the executor or administrator may cause such transfer
to be made upon the register in like manner as in case of a sale,
and a certificate and owner’s duplicate certificate shall be issued to
the devisees or heirs entitled thereto as in other cases. The land so
transferred shall be held free from all liens or claims against the
estate. In the proceedings to procure such order or directions such
notice shall be given to all parties in interest as the court having
jurisdiction of the estate may direct.
SEC. 98. For the purpose of final distribution of the estate the
court having jurisdiction thereof may determine the rights of all
persons in registered land, or any estate or interest therein of the
deceased, declare and enforce the rights of devisees, heirs, surviving
husbands or wives, and others, and make partition and distribution
according to the rights of the parties, and may give direction to the
executor and administrator as to the transfer of registered lands
and any estate or interest therein to the devisees or heirs, and may
direct the transfer to be to the several devisees or heirs or tenants
in common, or otherwise, as shall appear to the court to be most
convenient, consistently with the rights of the parties, or as the
parties interested may agree. A certified copy of the final order,
judgment, or decree of the court having jurisdiction of the estate
making final distribution shall be filed with the register of deeds
and thereupon new certificates and owner’s duplicate certificates
41
shall be issued to the parties severally entitled thereto in accordance

with such order, judgment, or decree, but nothing in this section
contained shall in any way affect or impair existing requirements of
law as to notice to be given to all parties interested in the estate of a
deceased person before final decree of distribution thereof.
ASSURANCE FUND.
SEC. 99. Upon the original registration of land under this Act,
and also upon the entry of a certificate showing title as registered
owners in heirs or devisees, there shall be paid to the register of
deeds one-tenth of one per centum of the assessed value of the real
estate on the basis of the last assessment for municipal taxation, as
an assurance fund.
SEC. 100. All money received by the register of deeds under

the preceding section shall be paid to the Treasurer of the Philippine
Archipelago. He shall keep the same invested, with the advice and
approval of the Civil Governor, and shall report annually to the
legislative body of the Philippine Islands the condition and income
thereof.
SEC. 101. Any person who without negligence on his

part sustains loss or damage through any omission, mistake, or
misfeasance of the clerk, or register of deeds, or of any examiner
of titles, or of any deputy or clerk of the register of deeds in the
performance of their respective duties under the provisions of
this Act, and any person who is wrongfully deprived of any land
or any interest therein, without negligence on his part, through
the bringing of the same under the provisions of this Act or by the
registration of any other person as owner of such land, or by any
mistake, omission, or misdescription in any certificate or owner’s
duplicate, or in any entry or memorandum in the register or other
official book, or by any cancellation, and who by the provisions of
this Act is barred or in any way precluded from bringing an action
for the recovery of such land or interest therein, or claim upon the
same, may bring in any court of competent jurisdiction an action
against the Treasurer of the Philippine Archipelago for the recovery
of damages to be paid out of the assurance fund.
42
SEC. 102. If such action be for recovery for loss or damage

arising only through any omission, mistake, or misfeasance of the
clerk, or of the register of deeds, or of any examiner of titles, or of any
deputy or clerk of the register of deeds in the performance of their
respective duties under the provisions of this Act, then the Treasurer
of the Philippine Archipelago shall be the sole defendant to such
action. But if such action be brought for loss or damage arising only
through the fraud or willful act of some person or persons other than
the clerk, the register of deeds, the examiners of titles, deputies, and
clerks, or arising jointly through the fraud or wrongful act of such
other person or persons and the omission, mistake, or misfeasance
of the clerk, the register of deeds, the examiners of titles, deputies,
or clerks, then such action shall be brought against both the
Treasurer of the Philippine Archipelago and such person or persons
aforesaid. In all such actions where there are defendants other than
the Treasurer of the Philippine Archipelago and damages shall
have been recovered, no final judgment shall be entered against the
Treasurer of the Philippine Archipelago until execution against the
other defendants shall be returned unsatisfied in whole or in part,
and the officer returning the execution shall certify that the amount
still due upon the execution can not be collected except by application
to the assurance fund. Thereupon the court having jurisdiction of
the action, being satisfied as to the truth of such return, may, upon
proper showing, order the amount of the execution and costs, or
so much thereof as remains unpaid, to be paid by the Treasurer of
the Philippine Archipelago out of the assurance fund. It shall be
the duty of the Attorney-General in person or by deputy to appear
and defend all such suits with the aid of the fiscal of the province in
which the land lies or the City Attorney of the city of Manila as the
case may be: Provided, however, That nothing in this Act shall be
construed to deprive the plaintiff of any action which he may have
against any person for such loss or damage or deprivation of land or
of any estate or interest therein without joining the Treasurer of the
Philippine Archipelago as a defendant therein.
SEC. 103. If the assurance fund at any time be not sufficient

to meet the amount called for by such judgment, the Treasurer of
the Philippine Archipelago shall make up the deficiency from any
funds in the Treasury not otherwise appropriated; and in such
43
case any sums thereafter received by the Treasurer on account of

the assurance fund shall be transferred to the general fund of the
Treasury until the amount paid on account of the deficiency shall
have been made up.
SEC. 104. In every case where payment has been made by

the Treasurer of the Philippine Archipelago in accordance with the
provisions of this Act, the Government of the Philippine Islands
shall be subrogated to all rights of the plaintiff against any other
parties or securities, and the Treasurer shall enforce the same in
behalf of the Government. Any sum so recovered by the Treasurer
shall be paid into the Treasury of the Philippine Islands to the
account of the assurance fund.
SEC. 105. The income of the assurance fund shall be added to

the principal and invested until said fund amounts to the sum of two
hundred thousand dollars, and thereafter the income of such fund
shall be paid into the Insular Treasury for the general purposes of
the Insular Government.
The term “dollars” wherever used in this Act shall be construed

to mean money of the United States.
SEC. 106. The assurance fund shall not be liable to pay

for any loss or damage or deprivation occasioned by a breach of
trust, whether express, implied, or constructive, by any registered
owner who is a trustee, or by the improper exercise of any sale in
mortgage-foreclosure proceedings. Nor shall any plaintiff recover
as compensation in an action under this Act more than the fair
market value of the real estate at the time when he suffered the
loss, damage, or deprivation thereof.
SEC. 107. All actions for compensation under this Act by

reason of any loss or damage or deprivation of land or any estate or
interest therein shall be begun within the period of six years from
the time when the right to bring or take such action or proceeding
first accrued, and not afterwards: Provided, That the right of action
herein provided shall survive to the personal representative of the
person sustaining loss or damage, if deceased, unless barred in his
44
lifetime: And provided further, That if at the time when such right
of action first accrues the person entitled to bring such action or
take such proceeding is within the age of majority, or insane, or
imprisoned, such person, or anyone claiming from, by, or under him
may bring the action or take the proceeding at any time within two
years after such disability is removed, notwithstanding the time
before limited in that behalf has expired.
POWERS OF ATTORNEY.
SEC. 108. Any person may by power of attorney procure

land to be registered and convey or otherwise deal with registered
land, but the letters of attorney shall be acknowledged before a
notary public or a judge or clerk of a court of record attested by
at least one witness and shall be filed with the clerk or register
of deeds of the province where the land lies, and registered. Any
instrument revoking such letters shall be acknowledged, attested,
and registered in like manner.
LOST DUPLICATE CERTIFICATE.
SEC. 109. If a duplicate certificate is lost or destroyed, or

can not be produced by a grantee, heir, devisee, assignee, or other
person applying for the entry of a new certificate to him or for the
registration of any instrument, a suggestion of the fact of such loss
or destruction may be filed by the registered owner or other person
in interest, and registered. The court may thereupon, upon the
petition of the registered owner or other person in interest, after
notice and hearing, direct the issue of a new duplicate certificate,
which shall contain a memorandum of the fact that it is issued in
place of the lost duplicate certificate, but shall in all respects be
entitled to like faith and credit as the original duplicate, and shall
thereafter be regarded as the original duplicate for all the purposes
of this Act.
ADVERSE CLAIMS.
SEC. 110. Whoever claims any right or interest in registered

land adverse to the registered owner, arising subsequent to the date
45
of the original registration, may if no other provision is made in this

Act for registering the same, make a statement in writing setting
forth fully his alleged right or interest, and how or under whom
acquired, and a reference to the volume and page of the certificate of
title of the registered owner, and a description of the land in which
the right or interest is claimed. The statement shall be signed and
sworn to, and shall state the adverse claimant’s residence and
designate a place at which all notices may be served upon him. This
statement shall be entitled to registration as an adverse claim, and
the court, upon a petition of any party in interest, shall, grant a
speedy hearing upon the question of the validity of such adverse
claim and shall enter such decree therein as justice and equity may
require. If the claim is adjudged to be invalid, the registration shall
be canceled. If in any case the court after notice and hearing shall
find that a claim thus registered was frivolous or vexatious, it may
tax the adverse claimant double or treble costs in its discretion.
SURRENDER OF DUPLICATE CERTIFICATES.
SEC. 111. In every case where the clerk or any register of

deeds is requested to enter a new certificate in pursuance of an
instrument purporting to be executed by the registered owner, or
by reason of any instrument or proceedings which divest the title of
the registered owner against his consent, if the outstanding owner’s
duplicate certificate is not presented for cancellation when such
request, is made, the clerk or register of deeds shall not enter a
new certificate, but the person claiming to be entitled thereto may
apply by petition to the court. The court, after hearing, may order
the registered owner or any person withholding the duplicate to
surrender the same, and direct the entry of a new certificate upon
such surrender.
If in any case the person withholding the duplicate certificate

is not amenable to the process of the court, or if for any reason the
outstanding owner’s duplicate certificate can not be delivered up,
the court may by decree annul the same and order a new certificate
of title to be entered. Such new certificate and all duplicates thereof
shall contain a memorandum of the annulment of the outstanding
duplicate.
46
If in any case an outstanding mortgagee’s or lessee’s duplicate,

certificate is not produced and surrendered when the mortgage
is discharged or extinguished or the lease is terminated, like
proceedings may be had to obtain registration as in the case of the
nonproduction of an owner’s duplicate.
AMENDMENT AND ALTERATION OF CERTIFICATES OF

TITLE.
SEC. 112. No erasure, alteration, or amendment shall be

made upon the registration book after the entry of a certificate of
title or of a memorandum thereon and the attestation of the same by
the clerk or any register of deeds, except by order of the court. Any
registered owner or other person in interest may at any time apply
by petition to the court, upon the ground that registered interests of
any description, whether vested, contingent, expectant, or inchoate,
have terminated and ceased; or that new interests have arisen or
been created which do not appear upon the certificate; or that any
error, omission, or mistake was made in entering a certificate or
any memorandum thereon, or on any duplicate certificate; or that
the name of any person on the certificate has been changed; or that
the registered owner has been married; or, if registered as married,
that the marriage has been terminated; or that a corporation which
owned registered land and has been dissolved has not conveyed the
same within three years after its dissolution; or upon any other
reasonable ground; and the court shall have jurisdiction to hear and
determine the petition after notice to all parties in interest, and
may order the entry of a new certificate, the entry or cancellation
of a memorandum upon a certificate, or grant any other relief upon
such terms and conditions, requiring security if necessary, as it
may deem proper: Provided, however, That this section shall not be
construed to give the court authority to open the original decree of
registration, and that nothing shall be done or ordered by the court
which shall impair the title or other interest of a purchaser holding
a certificate for value and in good faith, or his heirs or assigns,
without his or their written consent.
Any petition filed under this section and all petitions

and motions filed under the provisions of this Act after original
47
registration shall be filed and entitled in the original case in which

the decree of registration was entered.
SERVICE OF NOTICES AFTER REGISTRATION.
SEC. 113. All notices required by or given in pursuance of

the provisions of this Act by the clerk or any register of deeds, after
original registration, shall be sent by mail to the person to be notified
at his residence and post-office address as stated in the certificate
of title, or in any registered instrument under which he claims an
interest, in the office of the clerk or register of deeds, relating to the
parcel of land in question.
All notices and citations directed by special order of the court

under the provisions of this Act, after original registration, may
be served in the manner above stated, and the certificate of the
clerk shall be conclusive proof of such service: Provided, however,
That the court may in any case order different or further service,
by publication or otherwise, and shall in all cases do so when the
interests of justice require such action.
FEES FOR REGISTRATION.
SEC. 114. Fees payable under this Act shall be as follows:
For every application to bring land under this Act, including

indexing and recording the same, and transmitting to the clerk
when filed with the register of deeds, three dollars.
For every plan filed, seventy-five cents.
For indexing any instrument recorded while application for

registration is pending, twenty-five cents.
For examining title, five dollars and one-tenth of one per

centum of the value of the land, as fixed by the last preceding
valuation for the purposes of taxation.
48
For each notice by mail, twenty-five cents and the actual cost
of printing.
For all services by a sheriff or other officer under this Act, the
same fees as are now provided by law for like services.
For each notice by publication, twenty-five cents and the

actual cost of publication.
For entry of order dismissing application, or decree of

registration, and sending memorandum to register of deeds, one
dollar.
For copy of decree of registration, one dollar.
For entry of original certificate of title and issuing one

duplicate certificate, three dollars.
For making and entering a new certificate of title, including

issue of one duplicate certificate, one dollar.
For each duplicate certificate, after the first, fifty cents.
For the registration of every instrument, whether single or

in duplicate or triplicate, including entering, indexing, and filing
the same, and attesting registration thereof, and also making and
attesting copy of memorandum on one instrument or on a duplicate
certificate when required, one dollar and fifty cents.
For making and attesting copy of memorandum on each

additional instrument or duplicate certificate if required, fifty cents.
For filing and registering an adverse claim, three dollars.
For entering statement of change of residence or post-office

address, including indorsing and attesting the same on a duplicate
certificate, twenty-five cents.
49
For entering any note in the entry book or in the registration

book, twenty-five cents.
For the registration of a suggestion of death or notice of

bankruptcy, insolvency, or analogous proceeding, twenty-five cents.
For the registration of a discharge or release of mortgage or

other instrument creating an incumbrance, fifty cents.
For the registration of any levy, or of any discharge or

dissolution of any attachment or levy, or of any certificate of or
receipt for the payment of taxes, or notice of any pending action, or
of a judgment or decree, fifty cents.
For indorsing on any mortgage, lease, or other instrument a

memorandum of partition, one dollar.
For every petition filed under this Act after original

registration, one dollar.
For a certified copy of any decree or registered instrument, the

same fees as are provided by the Code of Procedure in Civil Actions
and Special Proceedings for clerks of Courts of First Instance for
like services.
In all cases not expressly provided for by the law the fees
of all public officers for any official duty or service under this
Act shall be at the same rate as those prescribed herein for like
services: Provided, however, That if the value of the land sought to
be registered does not exceed one hundred dollars the fees payable
for the application to bring land under this Act and for indexing and
recording instruments while application for registration is pending,
for examining title, for notices by mail or by publication, for services
by sheriff or other officer, for entry of order dismissing application
or decree of registration, and for entry of original certificate, of title
and issuing one duplicate shall be ten dollars.
50
PENALTIES.
SEC. 115. Certificates of title and duplicate certificates issued,

under this Act shall be subjects of larceny.
SEC. 116. Whoever knowingly swears falsely to any statement

required to be made under oath by this Act shall be guilty of perjury
and liable to the penalties provided by law for perjury.
SEC. 117. Whoever fraudulently procures, or assists in

fraudulently procuring, or is privy to the fraudulent procurement
of any certificate of title or owner’s duplicate certificate, or of any
entry in the register or other book kept in the office of the clerk
or of any register of deeds, or of any erasure or alteration in any
entry in any set of books or in any instrument authorized by this
Act, or knowingly defrauds or is privy to defrauding any person
by means of a false or fraudulent instrument, certificate, owner’s
duplicate certificate statement or affidavit affecting registered land,
shall be fined not exceeding five thousand dollars or imprisoned not
exceeding five years, or both, in the discretion of the court.
SEC. 118. (1) Whoever forges or procures to be forged or

assists in forging the seal of the clerk or of any register of deeds,
or the name signature, or handwriting of any officer of the court or
of the register of deeds, in case where such officer is expressly or
impliedly authorized to affix his signature; or
Fraudulently stamps or procures to be stamped or assists in

stamping any document with any forged seal of the clerk or register
of deeds; or
Forges, or procures to be forged, or assists in forging the

name, signature or handwriting of any person whosoever to any
instrument which is expressly or impliedly authorized to be signed
by such person under the provisions of this Act; or
Uses any document upon which an impression, or part of the

impression, of any seal of the clerk or of a register of deeds has been
forged, knowing the same to have been forged, or any document
51
the signature to which has been forged, knowing the same to have
been forged, shall be imprisoned not exceeding ten years or fined
not exceeding five thousand dollars, or both, in the discretion of the
court.
Prosecutions for offenses for violations of any of the provisions

of this Act shall be instituted and conducted in the proper Court of
First Instance.
SEC. 119. Whoever, with intent to defraud, sells and conveys

registered land, knowing that an undischarged attachment or any
other incumbrance exists thereon which is not noted by memorandum
on the duplicate certificate of the title, without informing the grantee
of such attachment or other incumbrance before the consideration is
paid, shall be punished by imprisonment not exceeding three years
or by a fine not exceeding one thousand dollars, or by both, in the
discretion of the court.
SEC 120. No conviction for any act prohibited by this Act shall
affect any remedy which any person aggrieved or injured by such
act may be entitled to by law against the person who has committed
such act or against his estate.
REGISTER OF DEEDS IN MANILA.
SEC. 121. Wherever in this Act the phrase “the register of

deeds in the province where the land lies,” or an equivalent phrase,
occurs it shall be construed to include and be applicable to the
register of deeds in the city of Manila.
PUBLIC LANDS.
SEC. 122. Whenever public lands in the Philippine Islands

belonging to the Government of the United States or to the
Government of the Philippine Islands are alienated, granted, or
conveyed to persons or to public or private corporations, the same
shall be brought forthwith under the operation of this Act and
shall become registered lands. It shall be the duty of the official
issuing the instrument of alienation, grant, or conveyance in behalf
52
of the Government to cause such instrument, before its delivery to

the grantee, to be filed with the register of deeds for the province
where the land lies and to be there registered like other deeds and
conveyances, whereupon a certificate shall be entered as in other
cases of registered land, and an owner’s duplicate certificate issued
to the grantee. The deed, grant, or instrument of conveyance from
the Government to the grantee shall not take effect as a conveyance
or bind the land, but shall operate only as a contract between the
Government and the grantee and as evidence of authority to the
clerk or register of deeds to make registration. The act of registration
shall be the operative act to convey and affect the lands, and in
all cases under this Act registration shall be made in the office of
the register of deeds for the province where the land lies. The fees
for registration shall be paid by the grantee. After due registration
and issue of the certificate and owner’s duplicate such land shall be
registered land for all purposes under this Act.
ACT, HOW CONSTRUED.
SEC. 123. This Act shall be construed liberally so far as may

be necessary for the purpose of effecting its general intent.
CONTINUANCE OF EXISTING SYSTEM AS TO

UNREGISTERED LAND.
SEC. 124. As to lands not registered in accordance with the

provisions of this Act, the system of registration and recording
heretofore established by law in these islands shall continue and
remain in force, except in so far as hereinafter modified, and the
evidential weight given by existing law to titles registered as existing
law now provides shall be accorded to such titles in the hearings
had under this Act before the examiners and before the court.
The duties of registering and recording land titles in accordance
with the law heretofore existing shall be performed in the several
provinces and the city of Manila by the registers of deeds in this
Act provided, after such registers of deeds have been appointed:
Provided, however, That the originals of deeds, mortgages, leases,
and other instruments affecting the title to unregistered land shall
not be retained by notaries public or other officials before whom
53
the same are solemnized, but after having been duly executed may
be delivered to the grantee, mortgagee, lessee, or other person
entitled to the same and be by him presented to the register of
deeds for the province where the land lies for registration and
recording, in the same manner and with the same legal effect that
copies thereof certified by notaries public under existing law are
registered and recorded. The register of deeds upon receiving any
such deed, mortgage, lease, or other instrument dealing with land
not registered under this Act shall indorse upon the instrument so
received the true year, month, day, hour, and minute when the same
is received, and the same shall be deemed to have been registered
and recorded as unregistered land from the time of the indorsement
of such memorandum thereon. He shall also indorse thereon the
volume and page wherein the same is registered and recorded.
After the due registration and recording of such instrument the
owner thereof shall be entitled to the custody and possession of the
same. The original instrument, the record thereof in the books of
the register of deeds, and any certified copy of such record shall be
competent evidence in any court of justice. The fees of the register
of deeds for registering and recording any such instrument shall be
the same as those now provided by law for registering and recording
a certified copy of a notarial instrument dealing with land.
SEC. 125. Until registers of deeds shall be appointed in

accordance with the provisions of this Act, the officials performing
the duties of registrars and recorders of deeds in the several provinces
and in the city of Manila shall be registers of deeds and perform the
duties of registers of deeds as defined by this Act. Their deputies
shall be deputy registers of deeds. All laws relative to existing
registrars of deeds and recorders, their deputies, including their
compensation, clerk hire, and expenses, shall extend to registers of
deeds and their deputies under this Act so far as the same may be
applicable.
NOTARIES PUBLIC.
SEC. 126. All notaries public in the Islands, and all other
officials and persons having in their possession notarial books,
records, protocols, archives, and other documents, shall immediately
54
deliver to the Chief of the Bureau of Archives all such notarial

books, records, protocols, archives, and documents in accordance
with the provision of section eighty of Act Numbered One hundred
and thirty-six, entitled “An Act providing for the organization of
courts in the Philippine Islands,” and hereafter notaries public shall
only have the powers and perform the duties prescribed for notaries
public in sections eighty-one to ninety-one, inclusive, of said Act
Numbered One hundred and thirty-six.
FORMS.
SEC. 127. Deeds, conveyances, mortgages, leases, releases,

and discharges affecting lands, whether registered under this Act
or unregistered, shall be sufficient in law when made substantially
in accordance with the following forms, and shall be as effective to
convey, encumber, lease, release, discharge, or bind the lands as
though made in accordance with the more prolix forms heretofore
in use: Provided, That every such instrument shall be signed by
the person or persons executing the same, in the presence of two
witnesses, who shall sign the instrument as witnesses to the
execution thereof, and shall be acknowledged to be his or their
free act and deed by the person or persons executing the same,
before the judge of a court of record or clerk of a court of record, or
a notary public, or a justice of the peace, who shall certify to such
acknowledgment substantially in the form next hereinafter stated :
1. Form of acknowledgment by person executing deed of

conveyance, mortgage, lease, release, or discharge affecting land.
UNITED STATES OF AMERICA, PHILIPPINE ISLANDS.
PROVINCE OF (or city of Manila) ________________________
At the municipality of _____________________________,

in said province, on this ______________________ day of
___________________________, A. D. 19______, personally appeared
_____________________________________, known to me to be the
same person (or persons) who executed the foregoing instrument,
and acknowledged that the same is his (or their) free act and deed.
55
Before me ______________________________________________
(Notary public or other official as the case may be.)
2. Deed of land registered under this Act.
I, ______________________________, of _____________________,
in the Province of ___________________________, in the Philippine
Islands, in consideration of _____________________________
dollars, to me paid by ___________________________, of
____________________________, in the Province of _________
____________________________, in the Philippine Islands, do
hereby sell and convey to said _______________________________
and his heirs and assigns that parcel of land, together with
all the buildings and improvements thereon, situated in the
municipality of ______________________________, and Province of
____________________________, in the Philippine Islands, bounded
and described as follows (here insert boundaries and description),
of which land I am the registered owner in accordance with the
provisions of the Land Registration Act, my title thereto being
evidenced by Certificate Number ________________________ in the
land records of said province.
In witness whereof, I have hereunto signed my name on this

_______________________ day of __________________, A. D. 19______
______________________________________
Signed in the presence of:
______________________________________
______________________________________
(To be followed by acknowledgment according to Form 1.)
3. Deed of land not registered under this Act, without covenants

of warranty.
I, ________________________________, of ____________________
_____________________, in the Province of _____________________, in
the Philippine Islands, in consideration of _______________________
_________ dollars, to me paid by ________________________________
56
of _____________________________, in the Province of __________

______________________, in the Philippine Islands, do hereby sell
and convey to the said ____________________________, his heirs
and assigns, that parcel of land, together with all the buildings and
improvements thereon, situated in the municipality of ____________
____________________________, in the Province of ________________
_________________ in the Philippine Islands, bounded and described
as follows (here insert boundaries and description).
In witness whereof. I have hereunto signed my name, on this

________________________ day of ___________________, A. D. 19___
__________________________________
______________________________________
______________________________________
(Acknowledgment.)
4. Deed of land not registered under this Act, with covenants

of warranty.
I,_________________________, of ___________________________,
in the Province of ___________________________in the Philippine
Islands, in consideration of _______________________________
dollars, to me paid by _____________________________, of
___________________________________ , in the Province of
__________________________, in the Philippine Islands, do hereby
sell and convey to the said ____________________________________
__, his heirs and assigns, that parcel of land, together with all the
buildings and improvements thereon, situated in the municipality
of _________________________________________, in the Province of
____________________________, in the Philippine Islands, bounded
and described as follows (here insert boundaries and description);
and the said _________________________ (seller) does hereby
covenant and agree with the said _____________________________
(purchaser) that he is lawfully seized in fee of said premises, that
they are free from all incumbrances, that he has a perfect right
to convey the same, and that he will warrant and forever defend
the same unto the said _______________________________________
_ (purchaser), his heirs and assigns, against the lawful claims of all
57
persons whomsoever (or insert other covenants, whatever they may

be).
In witness whereof, etc.
______________________________________
______________________________________
______________________________________
(Acknowledgment.)
5. Mortgage of land registered under this Act.
I, ______________________________, of _____________________,
in the Province of ______________________________ in the Philippine
Islands, in consideration of ________________________dollars, to
me paid by ________________________, of______________________,
in the Province of __________________________________, in the
Philippine Islands, do hereby, by way of mortgage, convey to the said
______________________________, his heirs and assigns, that parcel
of land, together with all the buildings and improvements thereon,
situated in the municipality of _______________________________, in
the Province of _________________________________in the Philippine
Islands, bounded and described as follows (here insert boundaries
and description), of which land I am the registered owner, in
accordance with the provisions of the Land Registration Act, my title
thereto being evidenced by Certificate Number ________________,
in the land records of said province; Provided, nevertheless, That if
I, the said ______________________________ (mortgagor) shall duly
pay, or cause to be paid, to the said __________________________
(mortgagee) my certain promissory notes of this date by me signed,
and payable to the said ___________________ (mortgagee), all dated
on this date, each for the sum of ______________________________
_____ dollars, and payable in one, two, and three years from date
(or otherwise, as the case may be), with lawful interest, then this
mortgage shall be thereby discharged and of no further effect,
otherwise it shall remain in full force and be enforceable in the
manner provided by law.
58

______________________________________
______________________________________
______________________________________
(Acknowledgment.)
6. Mortgage of land not registered under this Act.
(This mortgage may be in the same form as that prescribed

in Form No. 5, but omitting that portion of Form No. 5 which
describes the land as registered under the Land Registration Act,
and including such covenants, of warranty as the parties may agree
upon.)
7. Discharge of mortgage of land registered tender this Act.
I, ______________________________________, of ______________
_________________, in the Province of ___________________________,
in the Philippine Islands, mortgagee of the land embraced in
Certificate Number _________ in the land records of the Province
of __________________________, by virtue of a mortgage executed
by _______________________________, of ________________________,
Islands, on the _____________________________________ day of
____________________19 ____, having received the full consideration
named as the condition of said mortgage, do hereby forever release
and discharge the same.

______________________________________
______________________________________
______________________________________
(Acknowledgment.)
59
8. Discharge of Mortgage of land not registered under this Act.
(The discharge in this case may be as in Form No. 7, varying

the description of the mortgage to suit the facts.)
9. Lease of land registered under this Act.
I, ________________________________, of ________________,
Islands, in consideration of the agreements hereinafter contained,
do hereby lease unto ________________________________, of
________________________, in the Province of ___________________,
in the Philippine Islands, and his assigns (if the lease is to be
assignable), that parcel of land, together with all the buildings and
improvements thereon, situated in the municipality of ____________
____________________, in the Province of ________________________
in the Philippine islands, bounded and described as follows (here
insert boundaries and description), of which land I am the registered
owner, in accordance with the provisions of the Land Registration
Act, my title thereto being evidenced by Certificate Number
_____________ in the land records of said province, for the period of
____________________ years from this date.
And I, the said lessee, in consideration of this lease, do hereby

promise, for myself and my heirs and assigns, that I will cause to be
paid to the said _____________________________ (lessor), an annual
rental (or monthly rental) of ___________________________________
dollars per year (or per month, as the case may be) during the whole
period of this lease, payable on the ______________________ day of
_________________________ of each year (or at such other times as
may be agreed upon).
(Other special agreements of the lease may be here inserted.)

______________________________________
______________________________________
______________________________________
(Acknowledgment.)
60
10. Lease of land not registered under this Act.
This lease may be as in Form No. 9, omitting that portion

thereof that relates to the certificate of title and inserting such
covenants of warranty as may be agreed upon.
11. Release of leased lands, whether registered under this Act

or not.
(Such release may be as in Forms Nos. 7 and 8, for the discharge

of mortgages, using the term “release,” instead of “discharge,” and,
inserting such description as fully identifies the lease.)
SEC. 128. This Act shall take effect January first, nineteen
hundred and three.
Enacted, November 6, 1902.
61
ACT NO. 4054
AN ACT TO PROMOTE THE WELL-BEING OF TENANTS

SAID LANDS, AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the

Philippines in Legislature assembled and by the authority of
the same:
PART I.–Share tenancy contract in general
SECTION 1. Title of Act.–This Act shall be

known as “The Philippine Rice Share Tenancy Act.”
SEC. 2. Share tenancy contracts defined.–A contract of share

of tenancy is one whereby a partnership between a landlord and a
tenant is entered into, for a joint pursuit of rice agricultural work
with common interest in which both parties divide between them
the resulting profits as well as the losses.
SEC. 3. Landlord and tenant interpreted.–For the purposes

of this Act, the word “landlord” shall mean and includes either a
natural or juridical person who is the real owner of the land which is
the subject-matter of the contract, as well as a lessee, a usufructuary
or any other legitimate possessor of agricultural land cultivated by
another; and the word “tenant” shall mean a farmer or farm laborer
who undertakes to work and cultivate land for another or a person
who furnishes the labor.
SEC. 4. Form of contract. – The contract on share tenancy,

in order to be valid and binding, shall be drawn in triplicate in the
language or dialect known to all the parties thereto, to be signed or
thumb-marked both by the landlord or his authorized representative
and by the tenant, before two witnesses, one to be chosen by each
party. The party who does not know how to read and write may
request one of the witnesses to read the contents of the document.
62
Each of the contracting parties shall retain a copy of the contract

and the third copy shall be filed with, and registered in the office of
the municipal treasurer of the municipality, where the land, which
is the subject-matter of the contract, is located: Provided, however,
That in order that a contract may be considered registered, both
the copy of the landlord and that of the tenant shall contain an
annotation made by the municipal treasurer to the effect that same
is registered in his office.
SEC. 5. Registry of tenancy contract. – For the purposes of

this Act, the municipal treasurer of the municipality wherein the
land, which is the subject-matter of a contract, is situated, shall
keep a record of all contracts made within his jurisdiction, to be
known as Registry of Tenancy Contracts. He shall keep this registry
together with a copy of each contract entered therein, and make
annotations on said registry in connection with the outcome of a
particular contract, such as the way same is extinguished: Provided,
however, That the municipal treasurer shall not charge fees for
the registration of said contract which shall be exempt from the
documentary stamp tax.
SEC. 6. Duration of contract.–Any contract on rice tenancy

entered into between landlord and tenant or farm laborer according
to this Act shall last in accordance with the stipulation of the
parties: Provided, however, That in the absence of stipulation,
same shall be understood to last only during one agricultural
year: Provided, further, That unless the contract is renewed in
writing and registered as provided in section four hereof within
thirty days after the expiration of the original period, the same shall
be presumed to be extinguished: Provided, finally, That in case of
renewing the contract without changing the stipulations therein it
is sufficient that the municipal treasurer shall annotate the word
“renewed” in the three copies of the contract and in the Registry of
Tenancy Contracts.
For the purposes of this section, one agricultural year shall

mean the length of time necessary for the preparation of the land,
sowing, planting and harvesting a crop, although it may be shorter
or longer than a calendar year.
63
SEC. 7. Rules governing tenancy contracts.–In any contract of

tenancy mentioned in this Act, the contracting parties shall be free
to enter into any or all kinds of agreement or stipulations so long as
they are not contrary to existing laws, customs, morals and public
policy: Provided, That such contract shall be conclusive evidence of
what has been agreed upon between the contracting parties, if their
stipulations are not denounced or impugned within thirty days from
its registration in the office of the municipal treasurer, as provided
in section five of this Act.
SEC. 8. Share basis.–In the absence of any written agreement

to the contrary and when the necessary implements and the work
animals are furnished by the tenant; and the expenses for planting,
harvesting, threshing, irrigation and fertilizer, if any, as well as
other expenses incident to the proper cultivation of the land, are
borne equally by both the landlord and tenant, the crop shall be
divided equally. The division shall be made in the same place
where the crop has been threshed and each party shall transport
his share to his warehouse, unless the contrary is stipulated by
the parties: Provided, however, That when the landlord furnishes
the work animal gratuitously it shall be deemed as a special
consideration, and the tenant shall be obliged to transport the share
of the landlord to his warehouse if it is within the municipality
where the land cultivated is situated.
SEC. 9. Auxiliary industry.–In the absence of any written

agreement to the contrary, the profits of any other industry carried
on the holding for the common benefit shall belong in equal shares
to both landlord and tenant, after making the necessary deduction
for expenses which shall be returned to the party who advanced it.
Auxiliary industry shall not, however, be construed to include

the crops or products raised from a garden, poultry, and such other
industries carried on a lot specially provided for the residence of the
tenant.
64
PART II.–Accounts and their liquidation
SEC. 10. Loans.–All advances obtained by the tenant from the

landlord in connection with the cultivation, planting, harvesting,
and such other incidental expenses for the improvement of the
crop planted, shall bear interest not exceeding ten per centum per
agricultural year and shall be evidenced by a written contract to
this effect, otherwise they shall not bear any interest: Provided,
however, That on all loans other than money, such as grain or other
agricultural products made to the tenant by the landlord, no interest
in excess of ten per centum shall be added to the invoice price of the
article thus loaned, and any inflation of the original price of said
article shall be considered as usurious and penalized according to
the provisions of the Usury Law.
SEC. 11. Limit of loans.–The limit of the loan that can be

requested by a tenant shall be fifty per centum of the average yearly
tenant’s share on the particular piece of land allotted to said tenant
for cultivation during the last three years: Provided, That in the
case of land to be cultivated for the first time, the limit of the loan
shall depend upon the agreement of the parties until the third year.
SEC. 12. Memorandum of advances.–Any obligation referring

to any amount, either in money or in kind, which the tenant may
have received in advance from time to time from the landlord,
shall be unenforceable by action unless the same, or some note or
memorandum thereof, be in writing, in a language or dialect known
to the party charged, and subscribed by the said party, or by his
agent. Said memorandum or note shall be signed by both parties
and made in duplicate, one copy to remain with the landlord and the
other with the tenant.
SEC. 13. Form of final accounting.–The final accounting

between landlord and tenant at the end of each agricultural year,
shall be effected within fifteen days after the threshing of the
harvested crop and the same shall be made to appear on a note
or memorandum written in a language known to the tenant and
signed by both parties in the presence of two witnesses, who shall
be selected by each party. Each of the contracting parties shall be
65
furnished with a copy of said note or memorandum, and such final

accounting, once duly signed by both parties and two witnesses,
shall be deemed conclusive evidence of its contents, except in case
of fraud.
SEC. 14. Settlement of debts.–Once the accounting is made,

any amount of money which the landlord may have advanced to
the tenant as expenses of cultivation or for his own private use,
as well as any amount of grain or agricultural products advanced
for his support and that of his family, shall be paid by the tenant
out of his share, except fifteen per centum of same which is hereby
declared exempt from the landlord’s lien: Provided, That such grain
or agricultural products shall be appraised in money according to
their current market value at the place where the land is located
at the time of their delivery to the tenant: Provided, further, That
in case his share is not sufficient, his outstanding debt shall be
reduced in money and shall bear an interest of not more than twelve
per centum per annum: And provided, finally, That the remaining
debt of the tenant once converted into money shall not again be
converted into kind. Said outstanding debt may, however, be paid in
money or in agricultural products appraised at the current market
price at the time of payment.
SEC. 15. Use of official measurement.–In all transactions

entered into between landlords and tenants on agricultural products,
whether contracting a debt or making payment thereof, the official
measure of the Government shall be used.
PART III.–Rights and obligations of landlord
SEC. 16. Landlord as manager.–For the purpose of this Act,

the management of the farm rests with the landlord, to be exercised
either directly or indirectly, through a representative.
SEC. 17. Special lien on share of tenant.–The landlord shall

have a special and preferential lien over the share of the tenant in
the product of the farm cultivated by him: Provided, however, That
such lien over the product of the farm shall be enforceable only to
as much as eighty-five per centum of the total share of the tenant
66
in case the latter has an outstanding debt after the accounting is

made.
SEC. 18. Land taxes, burden and contribution.–The landlord

shall be responsible for the payment of taxes imposed by the
Government upon the land which is the subject matter of the
contract and it shall be illegal to make the tenant bear a part of such
tax, burden and contribution, either directly or indirectly.
SEC. 19. Landlord cannot dismiss his tenant except for good
causes.–The landlord shall not dismiss his tenant without just and
reasonable cause, otherwise the former shall be liable to the latter
for losses and damages to the extent of his share in the product of
the farm entrusted to the dismissed tenant.
Any one of the following shall be considered just and reasonable

cause for dismissing a tenant by the landlord before the expiration
of the period:
(1) Gross misconduct or willful disobedience on the part of

the tenant to the orders of the landlord or of his representative in
connection with his work.
(2) Negligence on the part of the tenant to do the necessary
farm work expected of him so as to insure a good harvest.
(3) Non-compliance with any of the obligations imposed upon
the tenant by this Act or by the contract.
(4) Fraud or breach of trust in connection with work entrusted
to him.
(5) When the tenant leases it or lets to another the use of the
land entrusted to him by the landlord, without the consent of the
latter.
(6) Commission of a crime against the person of the landlord
or his representative, or any member of the family of the same.
PART IV.–Rights and obligations of a tenant
SEC. 20. Freedom of tenant at certain time.–The tenant shall

be free to work elsewhere during the intervals of the working season
in the farm where he is a tenant: Provided, That if he is requested
67
by the landlord to perform other work not connected with his duties
as tenant, he shall be paid accordingly by said landlord, unless
otherwise stipulated in the contract.
SEC. 21. Right of tenant in case of dismissal.–In case of

dismissal the tenant shall not be dispossessed of the land he
cultivates until he is previously reimbursed of his advances if any,
incurred in the cultivation, planting or harvesting, and such other
incidental expenses for the improvement of the crop cultivated, even
if such dismissal is for just cause.
SEC. 22. Lot for dwelling.–The tenant shall be entitled to

construct a dwelling on the land cultivated by him, if he so chooses,
and once a dwelling is constructed, he shall also be entitled to a fixed
residential lot if there is any available, not exceeding ten per centum
of the total area cultivated by him, but in no case shall it exceed five
hundred square meters, wherein he can have a garden, poultry and
such other minor industries necessary for his livelihood: Provided,
however, That the tenant shall be given forty-five days within
which to remove his house from the land of the landlord in case
of cancellation of the contract of tenancy for any reason: Provided,
however, That in case he fails to devote the lot allotted him for the
purposes herein mentioned for a period of six months, it shall revert
again to the cultivation of rice.
SEC. 23. Standard of conduct to be observed by tenant.–The

tenant shall be under obligation to cultivate the farm as a good
father of the family, by doing all the work necessary to obtain the
greatest possible returns from the farm entrusted to him, such as
the proper preparation of the soil, the cutting of shrubs and grasses
that may be growing on the land as well as the repair of dikes.
The tenant shall also be obliged to take reasonable care of

the work animals that may be delivered to him by the landlord,
otherwise, he shall be liable for their death or physical incapacity
by reason of his negligence.
68
The tenant shall likewise be liable for any damage caused by

his animal for letting it loose, in case it feeds upon or destroys the
crop of another.
SEC. 24. Trespass by third person.–The tenant shall inform

the landlord at once of any trespass committed by a third person
upon the farm entrusted to him, otherwise it may be considered as
negligence on his part.
SEC. 25. Tenant cannot leave landlord at any time except for
good causes.–The tenant cannot leave his landlord without just and
reasonable cause, otherwise the former shall be liable to the latter
for losses and damages to the extent of eighty-five per cent of his
share in the product of the farm cultivated by him.
Any one of the following shall be considered just and

reasonable cause on the part of the tenant for leaving the service
before the expiration of the period:
(1) Cruel and inhuman treatment on the part of the landlord

or his representative toward the tenant or his family.
(2) Non-compliance on the part of the landlord with any of the
obligations imposed upon him by the provisions of this Act or by the
contract.
(3) Compelling the tenant to do any work against his will,
which is not in any way connected with his farm work nor stipulated
in the contract.
(4) Commission of a crime by the landlord against the person
of the tenant, or any member of the family of the latter.
PART V.–Extinguishing of contract
SEC. 26. How extinguished.-The contract of farm tenancy is

extinguished:
(1) At the end of each agricultural year, unless otherwise

stipulated by the parties.
69
(2) By the agreement of the parties.
(3) By the death or physical incapacity of the tenant or farmer,

in which case his heirs if any, shall be given a proportional share
in the products in accordance with the service rendered by the
deceased.
(4) By the sale or alienation of the land which is the subject

matter of the contract, in which case the purchaser shall assume
the rights and obligations of the former landlord in relation with the
tenant or farmer.
(5) When the estate is no longer fit for agriculture or becomes

public property.
(6) By merger in the same person of the personality of landlord

and tenant and tenant or landlord and farmer.
PART VI.–Penal and final provisions
SEC. 27. Violations.–All violations of the provisions of this Act

involving deceit, malice, or fraud shall be punished in accordance
with article three hundred and eighteen of the Revised Penal Code.
If the violation is committed by means of falsification or

alteration of private documents, the provisions of article one
hundred and seventy-two of the same Code shall be applied.
SEC. 28. Repealing provisions.–All laws or parts of laws

inconsistent with the provisions of this Act are hereby repealed.
SEC. 29. Final provisions.–This Act shall be applicable to

the relations between landlords and tenants of rice lands only,
and shall take effect on May first, nineteen hundred and thirty-
three: Provided, however, That this Act shall take effect only in
the provinces where the majority of the municipal councils shall,
by resolution, have petitioned for its application to the Governor-
General, who thereupon shall, by proclamation, fix the date when
this law shall, take effect in said provinces: And provided, further,
70
That this Act shall be translated into the dialects of the localities to
which its provisions shall apply, and a sufficient number of copies
shall be printed for free distribution by the municipal treasurer
concerned to the persons asking for them.
Approved, February 27, 1933.
ACT 4054 (secs. 3, 4, 7, 8, 9, and 22) were amended by RA 34.

ACT 4054 (secs. 7, 15, 23, and 29) were amended by CA 178.
ACT 4054 was repealed by RA 1199.
71
ACT NO. 4113
AN ACT TO PRESCRIBE CERTAIN PROVISIONS CONCERNING

TENANCY CONTRACTS ON LAND PLANTED TO SUGAR
CANE

Philippines in Legislature assembled and by the authority of
the same:
SECTION 1. Vouchers and other documents. — When

the sugar cane produced on a piece of land is milled in a sugar
central, it shall be the duty of the owner of said land to inform the
tenant, on the basis of the receipts issued by the central which
must, on demand, be exhibited to the tenant, of the number of
tons of cane harvested on the land cultivated by the tenant and
of the number of piculs of sugar accruing to said cane, and of
the share of said cane of the additional sugar distributed by the
central after each milling season and of the molasses which the
tenant is entitled to receive.
SEC. 2. Necessary expenses of milling elsewhere than

at central. — When the cane is not milled at the central but in
the private mill of the landowner, the latter, in the absence of
any agreement to the contrary, shall stipulate with his tenant
regarding the necessary expenses of milling, cutting and hauling
the cane from field to mill, and of purchasing all necessary
ingredients for boiling the sugar, and all material to be used for
the proper packing of the product.
SEC. 3. Contract for the sale of the product of the land.

— When there is no written agreement concerning the value of
the share of the tenant, the landowner shall not sell said share
without the knowledge and written consent of the tenant or his
representative. When the tenant does not consent to the sale of
the product representing his share of the crop, the landowner
in whose keeping said product shall remain, shall have the
right to sell the same after the lapse of thirty days after the
termination of the milling at the current market price and shall
use the proceeds of such sale to pay all indebtedness and other
72
obligations of the tenant to the landowner and the storage and

preservation of the product sold, delivering the balance, if there
be any, to the tenant.
SEC. 4. Liquidation and distribution of the crop. — The

settlement of accounts between landowner and tenant and the
distribution of the crop shall be made immediately after each
milling season, and as regards cane not milled in sugar centrals,
each of the parties shall be obliged to haul his share to the place
where it desires the same to be taken, unless previously agreed
otherwise in writing between the parties.
SEC. 5. Right of tenant to claim. — When the landowner

has for any reason pledged the crop harvested on the land to
any commercial bank or other body or person, and such crop is
distrained by said creditor and the share of the tenant is included,
the tenant shall be entitled to claim payment by the landowner
of the amount of his share at the current price of the product in
the local market, out of all his real or personal property or any
interest or account he may have in or against any concern or
person.
SEC. 6. Written advice. — After having paid the expenses

of planting, cultivating, and harvesting the crop, the landowner
shall advise the tenant in writing of said expenses.
SEC. 7. Penalty for violation. — Any violation of the

provisions of this Act shall be punished by a fine of not less
than twenty-five pesos nor more than two hundred pesos, or by
imprisonment for not less than ten days nor more than sixty
days, or both, in the discretion of the court.
SEC. 8. This Act shall take effect on January first,

nineteen hundred and thirty-four.
Approved, December 7, 1933.
73
74
LEGISLATIVE MEASURES – COMMONWEALTH ACTS
Commonwealth ACTS
75
76
B. No. 705
FIRST NATIONAL ASSEMBLY
Special Session
COMMONWEALTH ACT NO. 178
AN ACT AMENDING SECTIONS SEVEN, FIFTEEN, TWENTY-

THREE AND TWENTY-NINE OF ACT NUMBERED
FOUR THOUSAND AND FIFTY-FOUR, ENTITLED "AN
ACT TO PROMOTE THE WELL-BEING OF TENANTS
SAID LANDS, AND FOR OTHER PURPOSES."
Be it enacted by the National Assembly of the Philippines:
SECTION 1. Section seven of Act Numbered Four thousand

and fifty-four, entitled "An Act to promote the well-being of tenants
(aparceros) in agricultural lands devoted to the production of rice
and to regulate the relations between them and the landlords of
said lands, and for other purposes," is hereby amended so as to read
as follows:
"SEC. 7. Rules governing tenancy contracts. – In any contract

of tenancy mentioned in this Act, the contracting parties shall be
free to enter into any or all kinds of agreements or stipulations so
long as they are not contrary to existing laws, customs, morals and
public policy, and such contract shall be conclusive evidence of what
has been agreed upon between the contracting parties, except in
case of fraud or error, if their stipulations are not denounced or
impugned within thirty days from its registration in the office of the
municipal treasurer, as provided in section five of this Act."
SEC. 2. Section fifteen of Act Numbered Four thousand and

fifty-four is hereby amended so as to read as follows:
77
"SEC. 15. Use of official weights and measures. – In all

transactions entered into between landlords and tenants on
agricultural products, whether contracting a debt or making payment
thereof, the official weights and measures of the Government shall
be used."
SEC. 3. Section twenty-three of Act Numbered Four thousand

and fifty-four is hereby amended so as to read as follows:
"SEC. 23. Standard of conduct to be observed by tenant. – The

tenant shall be under obligation to cultivate the farm as a good
father of the family, by doing all the work necessary to obtain the
greatest possible returns from the farm entrusted to him, such as
the proper preparation of the soil, the cutting of shrubs and grasses
that may be growing on the land as well as the repair of dikes.
"The tenant shall also be obliged to take reasonable care of

the work animals that may be delivered to him by the landlord,
necessary for the work entrusted to him; otherwise, he shall be liable
for their death or physical incapacity by reason of his negligence."
SEC. 4. Section twenty-nine of Act Numbered Four thousand

and fifty-four is hereby amended so as to read as follows:
"SEC.. 29. Final provisions. – This Act shall be applicable

to the relations between landlords and tenants of rice lands only,
and shall take effect after January first, nineteen hundred and
thirty-seven by proclamation to be issued by the President of the
Philippines upon recommendation of the Secretary of Labor, when
public interests so require, in the municipalities and on the date
designated in such proclamation; and once enforced, its effects
may similarly be suspended. This Act shall be translated into the
local languages of the municipalities to which its provisions shall
apply, and a sufficient number of copies shall be printed for free
distribution by the municipal treasurer concerned to the persons
asking for them."
78
Approved: November 13, 1936.
CA 178 amended ACT 4054 (secs. 7, 15, 23, and 29).
79
B. No. 660
SECOND NATIONAL ASSEMBLY
First Session
AN ACT CREATING THE NATIONAL LAND SETTLEMENT

ADMINISTRATION
SECTION 1. There is created a corporation composed of five

persons to be known as “National Land Settlement Administration.”
They shall act as members of the Board of Directors in charge of
the management of the Corporation and shall be appointed every
three years by the President of the Philippines, with the consent
of the Commission on Appointments of the National Assembly.
The Corporation shall enjoy the general powers mentioned in the
Corporation Law, shall be subject to the provisions thereof insofar
as the same are compatible with the provisions of this Act, and for
attaining the purposes of the same, may perform any act which
a corporation, copartnership, or natural person is authorized to
perform under the laws existing or which may be hereafter enacted.
This Corporation shall have its main office in the City of Manila.
SEC. 2. The Corporation shall serve as an agency of the

Commonwealth Government for the attainment of the following
objectives:
(a) To facilitate the acquisition, settlement and cultivation

of lands whether acquired from the Government or from private
parties;
(b) To afford opportunity to own farms to tenant farmers

and small farmers from congested areas, and to trainees who have
completed the prescribed military training.
80
(c) To encourage migration to sparsely populated regions, and

facilitate the amalgamation of the people in different sections of the
Philippines.
(d) To develop new money crops to take the place of the present
export crops which may suffer from the loss of preferences which
they enjoy in the American market.
SEC. 3. To carry out these purposes, the Corporation shall

have the following powers:
(a) To hold without limitation as to area public agricultural

lands for a period not exceeding twenty-five years, renewable by
the President of the Philippines for another period of not exceeding
twenty-five years;
(b) To recommend to the President of the Philippines the

reservation of public lands, preferably those situated along national
highways, and to provide for the clearing, breaking, and cultivation
of the lands so reserved for subsistence farming, or for money crops,
or for both, on a cooperative basis or under such arrangements
as may prove beneficial to the settlers, and for their survey into
convenient lots, and to set aside such area or areas as may be
deemed desirable for townsites, roads, government building sites,
parks, and other public improvements. The expenses incurred in
connection with the survey and subdivision of lots for allotment to
settlers or for their initial cultivation shall be chargeable to the fund
herein appropriated and shall be prorated among the lots of the
subdivisions and charged against the corresponding settlers.
(c) To dispose of the lands so reserved, held, surveyed, or

subdivided to persons qualified under the Constitution and the
Public Land Act and who possess such other qualifications as may
be prescribed by the Board of Directors. The disposition and final
grant of the land shall be made subject to the limitations prescribed
in the Constitution and the Public Land Act and to the compliance of
all conditions as may be imposed by the Board of Directors. Within a
period of ten years after such final grant, the land shall not, except
81
by inheritance, be encumbered, alienated or transferred, nor shall it

become liable to the satisfaction of any debt contracted, prior to the
expiration of said period; but the improvements or crops on the land
may be mortgaged or pledged to the credit agencies created under
the provisions of this Act. No settler shall be entitled to hold a lot
more than twenty-four hectares, and no officer or employee of the
corporation shall be permitted to acquire, directly or indirectly, any
land within the reservation, unless with the specific approval of the
Board of Directors in each case. The applicants shall be recruited
from all provinces in proportion to their respective population, and
in case a province shall not be able to fill the quota assigned, the
unfilled portion of the quota may be covered from other provinces
having greater number of applicants.
(d) To acquire from private parties those lands that are

necessary to enable it to carry out the purposes for which it is
created, for roads, highways, streets, and avenues, or those private
lands surrounded by or adjacent to the public land acquired by the
corporation.
(e) To make contracts and enter into such arrangements

or contracts as it may consider convenient and advantageous to
the common interest of the settlers and the Government for the
development, exploitation, and operation of any of its properties;
(f) To establish and operate credit agencies to extend credit to

the settlers upon the security of rights acquired by them as settlers
on the crops raised or improvements made by them. The rate of
interest on such loan shall not exceed six per centum per annum.
(g) To establish and operate electric light and water plants,

water supplies, irrigation systems, trading stores or cooperatives to
engage in the buying and selling of commodities and other services
or improvements which in the judgment of the Board will promote
the well-being of the settlers;
82
(h) To act as agent, broker, commission merchant, or

representative of the settlers in the marketing of the products
raised or made by such settlers;
(i) To borrow, issue bonds, or otherwise raise funds for

carrying out the objects of this corporation, whenever it is deemed
necessary for the interest of the settlers, giving its property as
security therefor;
(j) To engage in manufacturing, milling, lumbering, retailing,

and in such business enterprises or industries as may be necessary
and desirable to insure the success of the land settlement projects;
(k) To adopt such uniform rules and regulations as may be

necessary to carry out the purposes of this Act.
SEC. 4. The Board of Directors shall elect its chairman from

among its members. Three members of the board shall constitute
a quorum for the transaction of business. The members, if not
Government officials or employees, shall each receive such per
diems as may be determined by the board, not to exceed thirty pesos
for each day of meeting actually attended by them.
SEC. 5. Subject to the approval of the President of the

Philippines, the board shall appoint a manager and fix his
compensation, which shall not exceed eighteen thousand pesos per
annum. The Manager shall, subject to the approval of the board,
appoint such technical, clerical, and other employees as may be
necessary: Provided, That all appointments for positions with
compensation of two thousand four hundred pesos per annum
or more shall be subject to the approval of the President of the
Philippines.
SEC. 6. The capital of the corporation shall be twenty million

pesos, to be subscribed by the Government of the Commonwealth of
the Philippines.
83
SEC. 7. There are appropriated out of the proceeds of the

coconut oil excise tax or out of any other available funds in the
Philippine Treasury such sums as may be necessary to pay for such
part or parts of the capital as may be required from time to time
by the Board of Directors with the approval of the President of the
Philippines, but the aggregate value of which shall not exceed four
million pesos in any one year.
SEC. 8. The corporation shall submit its annual report and

balance sheet to the President of the Philippines and the National
Assembly as provided for in sections five hundred and seventy-four
to five hundred and seventy-seven, inclusive, of the Administrative
Code.
SEC. 9. This Act shall take effect upon its approval.
Approved: June 3, 1939.
84
B. No. 1037
SECOND NATIONAL ASSEMBLY
First Session
AN ACT TO REGULATE THE RELATIONS BETWEEN

LANDOWNER AND TENANT AND TO PROVIDE FOR
COMPULSORY ARBITRATION OF ANY CONTROVERSY
ARISING BETWEEN THEM
SECTION 1. Any agreement or provision of law to the contrary

notwithstanding, in all cases where land is held under any system of
tenancy the tenant shall not be dispossessed of the land cultivated
by him except for any of the causes mentioned in section nineteen
of Act Numbered Four thousand and fifty-four or for any just cause,
and without the approval of a representative of the Department of
Justice duly authorized for the purpose. Should the landowner or
the tenant feel aggrieved by the action taken by this official, or in the
event of any dispute between them arising out of their relationship
as landowner and tenant, either party may submit the matter to
the Court of Industrial Relations which is given jurisdiction to
determine the controversy in accordance with law.
Approved, June 9, 1939.
CA 461 was repealed by RA 1199.
85
86
Republic Acts
87
88
LEGISLATIVE MEASURES – REPUBLIC ACTS
REPUBLIC ACT NO. 34
AN ACT AMENDING CERTAIN SECTIONS OF ACT NUMBERED

FOUR THOUSAND FIFTY-FOUR, AS AMENDED,
OTHERWISE KNOWN AS “THE PHILIPPINE RICE SHARE
TENANCY ACT”

Philippines in Congress assembled:
SECTION 1. Sections three and four of Act Numbered Four

thousand and fifty-four are hereby amended to read as follows:
“SEC. 3. Landlord and tenant interpreted. - For the

purpose of this Act, the word “landlord” shall mean and include
either a natural or juridical person who is the real owner of
the land which is the subject-matter of the contract, as well as
a lessee, a usufructuary or any other legitimate possessor of
agricultural land cultivated by another; and the word “tenant”
shall mean a farmer or farm laborer who undertakes to work
and cultivates land for another or a person who furnishes the
labor with the consent of the landlord.
“SEC. 4. Form of contract. - The contract on share

tenancy, in order to be valid and binding, shall be drawn in
triplicate in the language or dialect known to all the parties
thereto, to be signed to thumb-marked both by the landlord
or his authorized representative and by the tenant, before
two witnesses, one to be chosen by each party. The party
who does not know how to read and write may request one
of the witnesses to read the contents of the document. Each
of the contracting parties shall retain a copy of the contract
and the third copy shall be filed with, and registered in, the
office of the municipal treasurer of the municipality, where
the land, which is the subject-matter of the contract, is
located: Provided, however, That in order that a contract may
be considered registered, both the copy of the landlord and
that of the tenant shall contain an annotation made by the
89
municipal treasurer to the effect that same is registered in his

office.
“The forms of contract shall be uniform and shall be

prepared and furnished by the Department of Justice. Oath
or affirmation by the contracting parties before the municipal
treasurer concerned shall be sufficient for the purpose of
acknowledgment. No fees or stamps of any kind shall be paid
or required.”
SEC. 2. Section seven of the same Act, as amended by

Commonwealth Act Numbered One hundred seventy-eight, is
hereby further amended to read as follows:
“SEC. 7. Freedom to contract. - The landlord and tenant

shall be free to enter into any or all kinds of tenancy contract
as long as they are not contrary to existing laws, morals and
public policy. Such contract shall be conclusive evidence of what
has been agreed upon between the contracting parties, except
in case of fraud or error, if the said contract is not denounced
or impugned within thirty days from its registration in the
office of the municipal treasurer, as provided in section five of
this Act.
“The following stipulations are hereby declared to be

against public policy:
“(a) If the tenant shall receive less than fifty-five per

cent of the net produce, in case he furnishes the work animals
and the farm implements, and the expenses of planting and
cultivation are borne equally by said tenant and the landlord.
“(b) If the rental stipulated to be paid by the tenant to the

landlord is higher than twenty-five per cent of the estimated
normal harvest, in case of a contract providing for a fixed
rental of the land.
90
“(c) If the landlord is the owner of the work animal, and

the tenant of the farm implements, and the expenses are
equally divided between the landlord and the tenant, for the
tenant to receive less than fifty per centum of the net crop.”
SEC. 3. Sections eight, nine and twenty-two of the same Act

are amended to read as follows:
“SEC. 8. Share basis. - In the absence of any written

agreement to the contrary and when the tenant furnishes the
necessary implements and the work animals and defrays all
the expenses for planting and cultivation of the land, the crop
shall be divided as follows: the tenant shall receive seventy
per cent of the net produce of the land and the landlord thirty
per cent, for first-class land, the normal production of which,
based on the average yield for the three preceding years,
is more than forty cavans of palay per one cavan of seeds;
seventy-five per cent for the tenant and twenty-five per cent
for the landlord, in case of land the average normal production
of which is not more than forty cavans of palay per one
cavan of seeds. In case the landlord furnishes the necessary
work animals and farm implements and, likewise, bears all
the expenses of planting and cultivation, the landlord shall
receive seventy per cent and the tenant thirty per cent of the
crop; but if the landlord furnishes the necessary work animals
and farm implements and bears equally with the tenant the
expenses of planting and cultivation, the crop shall be divided
equally between the parties.
“Expenses for harvesting and threshing shall be deducted

from the gross produce. Expenses for the maintenance of
irrigation systems within the respective areas shall be for
the account of the tenant, but amortizations for the cost of
construction of the system itself shall be for the account of
the landlord. The expenses for construction and maintenance
of privately owned irrigation systems shall be agreed upon
between the landlord and tenant, but in case of disagreement,
all expenses for the construction of the system shall be for the
91
account of the landlord, provided that the costs of constructing

the distribution canals shall be for the account of the tenant.
“The division shall be made in the same place where the

crop has been threshed and each party shall transport his
share to his warehouse, unless the contrary is stipulated by
the parties.
“SEC. 9. Auxiliary industry. - In the absence of any

written agreement to the contrary, in case the land is planted
to a second crop of rice or other auxiliary crops, the tenant
shall receive eighty per cent and the landlord twenty per cent
of the net produced, provided all expenses of production are
borne by the tenant.
“Auxiliary industry shall not, however, be construed to

include the crops or products raised from a garden, poultry,
and such other industries carried on a lot specially provided
for the residence of the tenant.
“SEC. 22. Lot for dwelling. - The tenant shall be entitled

to construct a dwelling on the land cultivated by him, if he
so chooses, and once a dwelling is constructed, he shall be
entitled to a fixed residential lot of not less than six hundred
square meters, but not exceeding one thousand square meters
in area, depending upon the availability of suitable land and
the area cultivated by the tenant belonging to the landowner,
the same to be devoted to the purposes of a garden, poultry
and such other minor industries as may be necessary for his
livelihood, the products of which shall accrue to the tenants
exclusively: Provided, That the tenant shall be given forty-
five days within which to remove his house from the land of
the landlord in the event of the cancellation of the contract
of tenancy for any reason: Provided, further, That in case he
fails to devote the lot allotted to him for the purposes herein
mentioned for a period of six months, it shall revert the
cultivation of palay.”
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SEC. 4. This Act shall take effect immediately, provided

that when the landlord has advanced money, seeds or the like to
the tenant, and in the cases in which it might be applicable, the
landlord shall have a preferential lien on the share of the tenant for
the payment of such advances made plus six per cent interest per
annum.
Approved: September 30, 1946
RA 34 amended ACT 4054 (secs. 3, 4, 7, 8, 9, and 22).
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H. No. 3231
REPUBLIC ACT NO. 821
AN ACT TO ESTABLISH AN AGRICULTURAL CREDIT AND

COOPERATIVE FINANCING SYSTEM TO ASSIST SMALL
FARMERS IN SECURING LIBERAL CREDIT AND TO
PROMOTE THE EFFECTIVE GROUPINGS OF FARMERS
INTO COOPERATIVE ASSOCIATIONS TO ENABLE THEM
TO MARKET EFFICIENTLY THEIR AGRICULTURAL
COMMODITIES, AND TO PLACE AGRICULTURE ON
A BASIS OF ECONOMIC EQUALITY WITH OTHER
INDUSTRIES, AND FOR OTHER PURPOSES

DECLARATION OF POLICY
SECTION 1. It is hereby declared to be the policy of Congress

to assist small farmers in securing liberal credit and to promote
the effective groupings of farmers into cooperative associations to
enable them to market efficiently their agricultural commodities, so
as to place agriculture (including livestock, poultry and fishing) on a
basis of economic equality with other industries, and to improve the
standard of living of our people engaged in agriculture—
(1) By granting personal loans to eligible small producers

who are actually engaged in agriculture and by encouraging the
organization of farmers into effective cooperative associations under
their own control for greater unity of effort in productive processing,
storage and marketing and by promoting the establishment and
financing of a farm marketing system of producer-controlled and
producer-owned cooperative associations.
(2) By extending government assistance in financing of

facilities which may be required by cooperative associations for the
processing, storage and marketing of agricultural produce as well
94
as for production and other essential services which may be needed

for improved rural living.
(3) By promoting the effective merchandising of agricultural

commodities in domestic and foreign commerce so that profits of
agriculture may be kept by the farmers through the medium of
their cooperative associations who may operate the facilities stated
above, thus minimizing speculation and preventing inefficient and
wasteful methods of distribution.
(4) By encouraging private banks to establish agencies in the

rural areas through the concentration of storage of farm produce
and by making available to credit institutions comprehensive
production and credit information.
(5) By granting the Administration organized in this Act the

privilege of rediscounting with the Central Bank of the Philippines,
the Rehabilitation Finance Corporation and the Philippine National
Bank eligible evidence of indebtedness acquired by it in carrying out
its authorized activities.
SEC. 2. To effectuate the foregoing policy, a body corporate

to be known as the Agricultural Credit and Cooperative Financing
Administration, hereafter referred to as the “Administration”, is
hereby created. Said Administration shall execute the powers and
functions vested in, and conferred upon it, by this Act only in such
manner as will, in the judgment of the Board of Governors, aid to the
fullest practicable extent in carrying out the policy above declared.
AGRICULTURAL CREDIT AND COOPERATIVE FINANCING

ADMINISTRATION
SEC. 3. Place of business.—The Administration shall have

its principal place of business in the City of Manila, but may have
representatives in other places as are necessary for the proper
conduct of its business.
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SEC. 4. General powers.—The Administration is hereby

authorized to adopt, alter, and use a corporate seal which shall
be judicially noticed; to make contracts; to lease or own real and
personal property, and to sell or otherwise dispose of the same; to
sue and be sued; to make an annual report to Congress upon the
administration of this Act and any other matter relating to the
better effectuation of the policy declared in section one, including
recommendations for legislation; to make such regulations as
are necessary to execute the functions vested in it by this Act; to
appoint and fix the salaries of a secretary and such experts, and
subject to the provisions of the civil service laws, such other officers
and employees, as are necessary to execute such functions; to
make such expenditures for the rent and personal services at the
seat of government and elsewhere, for cooperative and law books,
periodicals, and books of reference, and for printing and binding as
are necessary to execute such functions. Expenditures by the Board
shall be allowed and paid upon the presentation of itemized vouchers
thereof approved by the Chairman of the Board; and otherwise to do
and perform any and all things that may be necessary or proper to
carry out the purpose of this Act.
The Administration may acquire and hold such assets and

incur such liabilities as result directly from operations authorized
by the provisions of this Act, or as are essential to the proper conduct
of such operations.
SEC. 5. Special powers.—The Administration is authorized

and directed:
(1) To establish such regional, provincial and local offices as are

considered necessary for the efficient conduct of the Administration’s
activities.
(2) To formulate policies and procedures with respect to

credits to small farmers and the financing and construction as well
as the operations of facilities to be financed by the Administration.
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(3) To approve such loans as deemed necessary and appropriate

and on terms specified by the Board, and to delegate this authority
to officials of the Administration.
(4) To establish and operate terminal markets or producers’

exchanges equipped with the necessary facilities for adequate
storage which will serve as clearing houses for the cooperative
associations; these exchanges to be eventually owned jointly by the
cooperative associations in either a region or individual province.
(5) To control the issuance of warehouse receipts for the

purpose of facilitating liberal production credit and other short-
term loans and for the protection of the lending institutions.
(6) To supervise any MSA-PHILCUSA Aid to cooperatives

which may be entrusted to it by the joint entities, and to provide
continuity of the program of assistance initiated by the said entities
for the small farmers.
(7) To take charge of all government activities relating to the

promotion, organization, and supervision of cooperative associations
in rural areas particularly to promote education in the principles
and practices of cooperative production, marketing and credit
among farmers.
(8) To encourage diversified agriculture and accumulate all

necessary statistics related to agricultural production, marketing,
credit and financing.
(9) To float debentures for the purpose of implementing this

Act when sufficient revolving funds to undertake the financing
program are not provided for by Congress.
SEC. 6. Board of Governors.—Its composition.—The powers

and functions of the Administration shall be exercised by a Board
of Governors to be composed of the Chairman and six members
who shall be appointed by the President of the Philippines with
the consent of the Commission on Appointments for a term of three
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years: Provided, however, That the first members appointed under

the provisions of this section shall have terms of office two for one,
two for two, and two for three years, respectively.
SEC. 7. Vacancies.—Any vacancy in the Board of Governors

created by the death, resignation, or removal of an appointive
member shall be filled by the appointment, as provided for in section
six hereof, of a new member to complete the unexpired period of the
term of the member concerned.
No member of the Board of Governors shall be required to

submit courtesy resignation on occasion of any change in the
Presidency of the Philippines.
SEC. 8. Powers and duties of the Chairman.—The Chairman

of the Board shall be the chief executive of the Administration. He
shall be known as Administrator and shall cease only when his term
expires, or when he resigns or is removed for cause. The person
appointed as Administrator shall be possessed of administrative
ability, experience related to agricultural financing and, in
general, knowledge of Philippine agriculture. The Administrator’s
compensation shall be fixed by the President of the Philippines
but it shall not be less than eighteen thousand pesos per year. The
powers and duties of the Administrator shall be:
(a) To prepare the agenda for the meetings of the Board and
to submit for the consideration thereof the policies and measures
which he believes to be necessary to carry out the purposes and
provisions of this Act;
(b) To execute and administer the policies and measures

approved by the Board;
(c) To direct and supervise the operations and internal

administration of the Administration. The Chairman may delegate
certain of his administrative responsibilities to other officers of the
Administration, subject to the rules and regulations of the Board;
and
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(d) To exercise such other powers as may be vested in him by

the Board.
SEC. 9. Activities of the Administration.—The activities of the

Administration shall be carried out under the supervision of the
Administrator through the following administrative officials who
will be responsible directly to him:
(a) An Assistant Administrator to assist the Administrator

when the volume of activities is sufficient to justify the creation of
this position.
(b) A General Counsel to advise the Administrator on legal

matters and procedures.
(c) Regional supervisors as determined necessary but not to

exceed seven in number.
(d) Such division chiefs as are considered necessary for the

efficient conduct of the Administration’s activities, except that a
cooperative division shall be established to promote cooperatives
and administer cooperative loaning activities.
(e) Provincial directors who will be responsible for

administering the Administration’s activities in rural communities.
Supervisory jurisdiction over provincial directors may be delegated
by the Administrator to the regional supervisors to the extent
which he deems necessary for the efficient accomplishment of the
Administration’s activities.
The office of a provincial director shall be established in the

capital of the province to which such official is assigned. Contract
with loan applicants and borrowers will be maintained through
loan supervisors and assistant loan supervisors as authorized by
the Administration.
(f) The Secretary of Justice shall be the ex officio legal adviser

of the Administration. He shall appoint a representative who shall
99
be the General Counsel of the Administration. Any assistant legal

counsel and other personnel shall be appointed by the Board. All
salary and operating expenses of the General Counsel will be fixed
and paid by the Administration.
(g) The Auditor General shall be the ex officio Auditor in

charge of the auditing office of the Administration. The Auditor
General shall, upon the recommendation of the Auditor of the
Administration, appoint or remove personnel of the auditing office.
The operating expense of the auditing office and the salaries and
traveling expenses of the officials and employees of such office
shall be fixed by the Board and paid by the Administration. The
representative of the Auditor shall render a quarterly report on
the financial condition of the Administration to the President of
the Philippines, the Secretary of Finance, the Auditor General and
the Board of Governors. The report shall contain a statement of
the resources and liabilities including earnings and expenses, the
amount of paid-up capital stock, surplus, reserve and profits, as
well as losses, bad debts and such other facts which the Auditor
considers necessary to accurately describe the financial condition of
the Administration.
SEC. 10. Revolving fund.—(a) There is hereby authorized to

be appropriated the sum of one hundred million pesos which shall
be made available by the Congress as soon as practicable after the
approval of this Act and shall constitute a revolving fund to be
administered by the Administration as provided in this Act.
(b) Any sums or assets which MSA-PHILCUSA may assign

to the Administration shall be constituted as part of this revolving
fund except when it is provided that said sums or assets are to be
used for research or operating expenses.
(c) The President of the Philippines is empowered to allocate

and transfer to the Administration any unallocated unexpended
collections made by bureaus under the Department of Agriculture
and Natural Resources, from the sale and lease of public lands,
abaca inspection fees, forest charges and others.
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(d) The Administration, subject to the approval of the President

of the Philippines, is authorized to float debentures to augment its
revolving fund when Congress shall fail to make available adequate
sums: Provided, however, That the aggregate amounts procured
from the sources mentioned in this section shall not exceed total of
one hundred million pesos.
SEC. 11. Loaning activities.—Loaning activities of the

Administration shall be directed towards:
(a) Stimulating the development and operation of farmers’

cooperatives.
(b) Minimizing the lack of credit as a limiting factor in the

expansion of Philippine agriculture.
(c) Freeing farmers from the economic and social domination

caused by the unreasonable conditions and excessive charges
imposed by money lenders for the use of capital.
(d) Establishing an official policy with respect to agricultural

credit which will be flexible enough to permit private financing
institutions sufficient latitude in their operations to participate in
serving those borrowers having the economic stability necessary for
the use of such credit.
SEC. 12. Definitions.—For purposes relating to the

implementation of this Act, the following definitions shall apply:
(a) A farmers cooperative association shall be a voluntary

business organization among farmers (producers of agricultural
products including tenants and landlords) established for the
purpose of marketing farm products and/or buying farm supplies
and implements collectively for the members’ direct benefit. It is
governed according to the cooperative principles of one-man-one-
vote basis, limited interest on capital and the savings apportioned
among the members on the basis of patronage.
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(b) The term “small farmer” shall mean an individual person

who exclusively uses the labor available from within his family, and
is actually engaged in agriculture.
SEC. 13. Credit to small farmers.—Credit extended to small

farmers, either with titles or no titles over their lands, whether
tenants or part owners, should be based upon the anticipated
productive capacity of farmers insofar as repayment probabilities
are concerned: Provided, however, That the amount does not exceed
two thousand pesos. Such loans may be granted for the purchase
of fertilizer, seed, feed, work animals and corresponding tillage
equipment, poultry, livestock and such other items specified by
regulations as are directly related to the production of crops and
livestock. The ability of such a borrower to provide security in the
form of land or other tangible securities should not be the primary
deciding factor in approving or disapproving a loan. Instead, the size
of the loans should be predicated upon his production with other
security being considered as supplemental. In instances where
credit is extended for items which are not consumed in their use,
such items should be pledged as security, but in such cases approval
of the loan should be dependent upon the borrower’s productive
capacity after receiving the item rather than upon the return which
can be anticipated in the event of forced sale of the item. Loans
made to farmers should be conditioned upon compliance by them
with those proven practices which are reasonably within their
capacity to carry out and will result in the maximum income and
production from such farming units. The supervision necessary to
insure full implementation of this policy will be maintained by the
Administration.
SEC. 14. Terms of loans.—The terms of loans made to farmers

should be adjusted to the needs of the borrower with special attention
being given to the following:
(a) Making the duration of the loan consistent with the period
of time necessary to permit repayment by the borrower from his
production.
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(b) Adjusting the terms of repayment to the borrower’s

income from his production. Where necessary the repayment of the
loan should be amortized over a period of time which will permit
installment payments which are within the borrower’s income.
(c) Granting extensions in the time for repayment when

damages and destruction caused by insects, disease, weather and
other causes beyond the power of the borrower to control occur.
(d) Since the production of the borrower must serve as the

primary security, such production should be pledged as security with
appropriate safeguards being taken to insure against unauthorized
disposition.
(e) When the Administration considers such to be necessary

to insure repayment, it may require a borrower to enter into a
marketing agreement covering the terms which must be complied
with, including notice to the Administration and manner of
disposition of the produce covered by the contract. The duration of
such contract shall be terminated when the borrower has complied
with his obligation to the Administration.
(f) In the event of any breach or threatened breach of a

marketing contract by a borrower, the Administration shall be
entitled to an injunction and a decree of specific performance. Also,
upon filing a verified complaint showing a breach or threatened
breach, the Administration shall be entitled to a temporary
restraining order against such borrower.
SEC. 15. Loan to cooperatives.—Loan shall be made to any

cooperative association, if in the judgment of the board of directors
of the association concerned, the loan is in furtherance of the policy
declared in section one, and the cooperative association applying
for the loan has an organization and management, and business
policies, of such character as to insure the reasonable safety of the
loan and the furtherance of such policy. No cooperative association
shall be entitled to apply for a loan unless it has been registered
with the Securities and Exchange Commission. The provision of
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existing cooperative laws regarding minimum number of members

shall apply to cooperative associations mentioned in this Act.
Loans for the construction or acquisition by purchase of such

facilities shall be subject to the following limitations:
(a) Loans for the construction or acquisition by purchase of

such facilities may be made in an amount equivalent to one hundred
per centum of the value of the facilities to be constructed: Provided,
however, That the facilities meet the following requirements:
(1) All major parts must be completely of steel or concrete

materials;
(2) If ten annual amortizations will fully pay back for the
loans.
(b) Loans for facilities not meeting the above-mentioned

requirements may be made, provided the amount is not in excess of
eighty per centum of the value of the facilities, to be constructed or
purchased.
(c) No loan for the purchase of facilities shall be made unless

the board of directors of the association concerned finds that the
purchase price to be paid is reasonable.
(d) No loan for the construction or purchase of such facilities

shall be made unless the board of directors of the cooperative
association finds that there are not available suitable existing
facilities that will furnish their services to the cooperative association
at reasonable rates, and in addition to the preceding limitations, no
loan shall be made unless the said board finds that suitable facilities
are not available for purchase or lease at a reasonable price or rent.
SEC. 16. Interest in all kinds of loans shall not be more than
eight per centum per annum. Loans to any cooperative association
shall be made upon the terms specified in this Act and upon such
other terms not inconsistent therewith and upon such security the
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Board of Governors may deem necessary. Loans may be subjected

to a five per centum insurance fee which is to be paid at the time the
loan is granted.
SEC. 17. Personal short term loans to members in good

standing with cooperatives may be granted by the association from
funds which it may receive in advance from the Administration for
the said purpose; such loans may be granted against warehouse
receipt of the Cooperative Association to the extent of eighty per
centum of the market value of the stored produce; loans upon the
security of expected production from the current crop to the extent
of sixty per cent of the value of expected yield: Provided, however,
That no loan shall be granted on any production estimated to exceed
the applicant’s previous year’s stored crop with the Cooperative by
more than fifty per centum.
SEC. 18. Transfer of functions, personnel, and equipment of the

Cooperatives Administration Office.—All the powers vested in and
the duties conferred upon the Cooperatives Administration Office
by Commonwealth Act Numbered Five hundred and sixty-five, as
amended by Commonwealth Act Numbered Seven hundred and
thirteen, relative to the promotion, organization and supervision of
Cooperative Marketing Associations as authorized by Act Numbered
Three thousand four hundred and twenty-five and such number of
personnel equipment as are now used and utilized in the promotion,
organization and supervision of said cooperative marketing
associations by the Cooperatives Administration Office and the
unexpended balance of the funds provided for in Commonwealth
Act Numbered Seven hundred and thirteen and Republic Act
Numbered Five hundred and eighty-three, are hereby absorbed
by, and transferred to the Agricultural Credit and Cooperative
Financing Administration.
GENERAL PROVISIONS
SEC. 19. (a) Obligations issued by the Administration in

accordance with the authority of paragraph (2) of section five of this
Act shall be secured by the assets of the Administration including
105
all securities held by it under the provisions of this Act. These

obligations shall be redeemable at the option of the Administration
at or before maturity and in such manner as may be stipulated
therein and shall bear such rate of interest as may be fixed by the
Administration. The Administration shall provide for appropriate
reserves for the redemption or retirement of such obligations.
Obligations issued and offered for sale by the Administration
may be offered at such price or prices as the Administration may
determine. The said obligations shall and are hereby fully and
unconditionally guaranteed both as to principal and interest by the
Government of the Republic of the Philippines, and such guaranty
shall be expressed on the face thereof.
(b) In the event that the Administration shall be unable to pay

debentures, bonds, collaterals, notes or such other obligations issued
by it, the Secretary of Finance shall pay the amount thereof which is
hereby appropriated out of any funds in the National Treasury not
otherwise appropriated and thereupon, to the extent of the amounts
so paid, the Government of the Republic of the Philippines shall
succeed to all of the rights of the holders of such bonds, debentures,
notes, collaterals or other obligations.
SEC. 20. All notes, bonds, debentures, and other obligations

issued by the Administration shall be exempt from all taxation both
as to principal and interest, except inheritance and gift taxes.
SEC. 21. Upon the request of the Board, the Central Bank of
the Philippines and Rehabilitation Finance Corporation shall lend
or provide technical assistance needed by the Administration.
SEC. 22. Any justice of the peace, in his capacity as notary

ex officio, shall render service free of charge to any person applying
for a loan under this Act not exceeding five hundred pesos either in
administering the oath or in the acknowledgment of instruments
relating to such loan.
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SEC. 23. Any register of deeds shall accept for registration,

free of charge, any instrument relative to a loan made under this
Act and which does not exceed five hundred pesos.
PENAL PROVISIONS
SEC. 24. Any justice of the peace or register of deeds who shall
demand or accept directly or indirectly, any gift, fee, commission or
other form of compensation in connection with the service required
to be performed by the said justice of the peace as provided in section
twenty-two and by the said registry official as provided in section
twenty-three of this Act, shall be punished by a fine not exceeding
one thousand pesos or by imprisonment for not more than one year,
or both, at the discretion of the court.
SEC. 25. No officer or employee of the Administration nor

any government official who may exercise executive or supervisory
authority over the said Administration, either directly or indirectly,
for himself or as the representative or agent of others, shall become a
guarantor, indorser, or surety for loans from the said Administration
to others. Any such officer or employee who violates the provisions of
this section shall be immediately removed by competent authority
and said officer or employee shall be punished by imprisonment for
not less than one year nor exceeding five years and by a fine of not
less than one thousand nor more than five thousand pesos.
SEC. 26. No fee, commission, gift, or charge of any kind

shall be exacted, demanded, or paid, for obtaining loans from
the Administration, and any officer, employee, or agent of the
Administration exacting, demanding, or receiving any fee for service
in obtaining a loan, shall be punished by a fine of not less than one
thousand nor more than three thousand pesos and imprisonment
for not less than one year nor more than three years.
SEC. 27. Any person who, for the purpose of obtaining,

renewing, or increasing a loan or the extension of the period thereof
in his own or another’s behalf, should give false information or
cause, through his intrigue or machination, the existence and
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production of any false information with regard to the identity,

situation, productivity, or value of the security, or with regard
to a point which would affect the granting or denial of the loan,
whether the latter has been consummated or not, and every officer
or employee of the Administration who, through connivance or
negligence, should allow by action or omission such false information
to pass unnoticed, thereby causing damage to the Administration or
exposing the latter to the danger of suffering such damage, shall be
punished with imprisonment of not less than three months or more
than three years, and a fine of not less than the amount of the loan
obtained or applied for, nor more than three times such amount.
SEC. 28. It shall be unlawful for any member, officer, or

employee of the Administration to speculate, directly or indirectly,
in any agricultural commodity or product thereof, or in contracts
relating thereto, or in the stock of membership interests of any
association or corporation engaged in handling, processing, or
disposing of any such commodity or product. Any such person
violating this section shall, upon conviction thereof, be fined not
more than twenty thousand pesos, or imprisoned not more than ten
years, or both.
SEC. 29. It shall be unlawful for any director, officer, employee

or member of any cooperative association, clearing house association,
or commodity committee, or for any person acting on behalf of any
such association or committee, to which or to whom information
has been imparted in confidence by the Board of Governors of the
Administration to disclose such information in violation of any
regulation of the Board. Any director, officer, employee, or member
of such association or committee violating this section, shall be fined
not more than ten thousand pesos or imprisoned for not more than
five years, or both.
MISCELLANEOUS PROVISIONS
SEC. 30. If any provision of this Act is declared unconstitutional,

or the applicability thereof to any person, circumstance, commodity
or class of transactions with respect to any commodity is held invalid,
108
the validity of the remainder of the Act and the applicability of such
provision to other persons, circumstances, commodities, and classes
of transactions shall not be affected thereby.
SEC. 31. All Acts, parts of Acts, and any special charters, or
parts thereof, of the banking and financial institutions inconsistent
herewith are hereby repealed.
Approved: August 14, 1952
109
S. No. 125
H. No. 2254
AN ACT TO FURTHER IMPLEMENT THE FREE DISTRIBUTION

OF AGRICULTURAL LANDS OF THE PUBLIC DOMAIN AS
PROVIDED FOR IN COMMONWEALTH ACT NUMBERED
SIX HUNDRED AND NINETY-ONE, AS AMENDED, TO
ABOLISH THE LAND SETTLEMENT AND DEVELOPMENT
CORPORATION CREATED UNDER EXECUTIVE ORDER
NUMBERED THREE HUNDRED AND FIFTY-FIVE, DATED
OCTOBER TWENTY-THREE, NINETEEN HUNDRED
AND FIFTY, AND TO CREATE IN ITS PLACE THE
NATIONAL RESETTLEMENT AND REHABILITATION
ADMINISTRATION, AND FOR OTHER PURPOSES

SECTION 1. It is hereby declared to be the policy of Congress

to help speed up the free distribution of agricultural lands of the
public domain to landless tenants and farm workers who are citizens
of the Philippines and to encourage migration to sparsely populated
regions pursuant to the fundamental policy of the government to
promote the level of production, employment and living standards
of the people.
SEC. 2. National Resettlement and Rehabilitation

Administration.—In furtherance of the above, policy there is hereby
created a corporation to be known as National Resettlement and
Rehabilitation Administration hereafter referred to as “NARRA”
to perform under the supervision and control of the President of
the Philippines, through the Office of Economic Coordinator all
the duties and functions of the Bureau of Lands as provided in
Commonwealth Act Numbered Six hundred and ninety-one as
amended, and such other duties as hereinafter specified in this Act.
110
It shall be headed by a General Manager and an Assistant General

Manager who shall be appointed as hereinafter provided.
SEC. 3. The NARRA shall have at least three divisions, to

wit: (1) Settler Selection and Screening, (2) Transportation and
Supplies, and (3) Settlement Assistance and Community Work.
The General Manager shall submit at the beginning of each fiscal
year, but not later than July thirty-one, a program of activities for
the whole fiscal year together with the budget of expenditures to
support such a program for the final approval of the President of
the Philippines.
POWERS
SEC. 4. General powers.—NARRA is hereby authorized to

adopt, alter, and use an official seal; to make contracts, to lease or
own real and personal property, and to sell or otherwise dispose of
the same; to sue and be sued; and to make such regulations as are
necessary to execute the functions vested in it by this Act.
SEC. 5. Special powers.—NARRA is authorized:
(1) To give land, subject to the qualifications, requirements

and conditions prescribed by the Public Land Act and under the
terms and conditions as may be defined by the Board of Directors,
to landless citizens of the Philippines who need, deserve and are
capable of tilling the land;
(2) To facilitate the settlement, acquisition and cultivation of

agricultural lands;
(3) To acquire by purchase such agricultural portions of landed

estates as may be directed by the President of the Philippines for
the prosecution of the policy stated in section one of this Act;
(4) To reclaim swamps and marshes, obtain title thereto where

feasible, and to support them into agricultural lands for settlement;
111
(5) To promote community life in the settlements;
(6) To borrow money from any credit institution for any of the
purposes herein provided;
(7) To survey, subdivide and set aside lots or areas of such

lands for farming, townsites, roads, parks, government centers,
and other public and civic improvements, and to dispose of farm
lands and townsite lots to persons qualified to the extent of areas
authorized under the Constitution and the Public Land Act, subject
to such other qualifications and to prices, terms and conditions as
may be prescribed by the Board of Directors;
(8) To secure for the settlers from other government agencies

such assistance and facilities as may be necessary to accelerate
development, cultivation and electrification of settlements;
construction of irrigation systems; institution of credit facilities,
enhancement of cottage industries; and establishment of processing
plants, warehouses and marketing facilities; and
(9) To do such other things and to transact all such business

directly or indirectly necessary, incidental or conducive to the
attainment of the policy enunciated in this Act
SEC. 6. In addition to the functions and duties specified and

to implement the same properly, the NARRA shall undertake the
following activities:
(1) To select and screen applicants for allocation within the

areas set aside for purposes of settlement in the public domain who
(a) are bona fide farmers in the highly settled areas, (b) do not own
any land with an area of five hectares or more, (c) have not owned
any homestead, (d) have not secured any homestead rights from any
homesteader, (e) are capable of discharging their responsibilities as
settlers, and (f) shall work the land in the settlement areas on the
basis of the family-operated, family-type farms: Provided, That in
selecting applicants the following order or priority shall be observed:
(a) actual bona fide tenants or occupants of the land; (b) surrendered
112
dissidents, who take an oath and show sincere desire, to support the
Constitution of the Philippines; (c) graduates of agricultural schools
and colleges, (d) trainees who have completed military training;
(e) veterans and members of guerrilla organizations; and (f) other
applicants possessing the qualifications required herein.
(2) To assist settlers in transporting themselves, their

belongings, work animals and farm equipment, if any, from the
communities from which they are migrating to the settlement
areas reserved for the purpose, and for subsistence necessary until
credit can be provided by the Agricultural Credit and Cooperative
Financing Administration (ACCFA) under section thirteen of this
Act, or by any other credit institution by loaning to them the full
amount required for such purposes. These loans shall be non-
interest bearing, a lien upon the land, and shall be amortized over a
period of ten years, payable annually beginning with the end of the
third year after the date of arrival in the settlement area, subject
to the right of the borrower to pay in full at any time prior to the
maturity of the loan;
(3) To assist the said settlers in securing equipment,

supplies and materials needed in the settlement areas at the
most advantageous prices or terms, and, if requested, to assist the
cooperative associations of the new settlers in securing the most
advantageous prices or terms on farm implements and supplies
needed by the cooperative associations and their members;
(4) To help provide housing and other accommodations for the

new settlers in the settlement areas upon arrival by locating them
in properly surveyed and subdivided lots reserved for the purpose,
to help organize community activities that the new settlers require
upon arrival in the new settlement, and to cooperate with the
agricultural extension service, the Bureau of Health, the Bureau of
Public Schools and other pertinent agencies of the Government, in
providing the services for the proper establishment of community
facilities as well as the organization of collective efforts essential to
development in the new settlement areas.
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(5) To submit its annual report and balance sheets to the

President and the Congress of the Philippines, as provided in
sections five hundred and seventy-four to five hundred and seventy-
seven of the Administrative Code;
(6) To appoint and fix the number and salaries, upon

recommendation of the Office of Economic Coordination and with
the approval of the President of the Philippines and subject to Civil
Service Law and Rules and the salary law, of such subordinate
personnel as may be necessary for the proper discharge of its duties
and functions and upon recommendation of the Office of Economic
Coordination and with the approval of the President, suspend,
remove or otherwise discipline, any of its subordinate employees,
and
(7) To perform such other related duties as may be assigned to

it by the President of the Philippines from time to time.
SEC. 7. Board of Directors—Its Compositions, tenure of office

and meetings.—The powers and functions of NARRA shall be
exercised by a Board of Directors to be composed of a Chairman
and five members. They shall be appointed by the President of the
Philippines with the consent of the Commission on Appointments
for a term of three years. Any person chosen to fill a vacancy shall
serve only for the unexpired term of the member whom he succeeds.
The Board shall hold regular meetings and such number of

special meetings as may be called by the Chairman or any three
members from time to time; Provided, however, That the total
number of meetings of the Board shall not be more than four a
month. The Chairman and the members shall each receive a per
diem of twenty-five pesos for every meeting actually intended.
SEC. 8. Powers and duties of the Board of Directors.—The

Board of Directors shall have the following powers and duties:
(1) To prescribe, amend and repeal by-laws, rules and

regulations governing the manner in which the general business
114
of NARRA may be exercised, including provisions regarding

subdivision of lands into small farm lots, distribution thereof, initial
aid to settlers and manner of payment of such lots, and provisions
for the formation of such committee or committees as the General
Manager may deem necessary to facilitate the business of the
NARRA, and to expedite the disposition of, and the issuance of
titles, over said farm lots of contemplated in section five;
(2) To appoint and fix the term of office of the General

Manager, and Assistant General Manager, whose compensation
shall be twelve thousand pesos per annum for the General Manager,
and nine thousand pesos per annum for the Assistant General
Manager, subject to the recommendation of the Office of Economic
Coordination and the approval of the President of the Philippines,
and to appoint and fix the compensation of a Secretary of the Board
and such other officers of the Corporation as may be needed. The
Board, by majority vote of all the members, may for cause, upon
recommendation of the Office of Economic Coordination and with the
approval of the President of the Philippines, suspend and/or remove
the General Manager and/or the Assistant General Manager; and
(3) To approve the annual budget and such supplemental

budgets of NARRA which may be submitted to it by the General
Manager from time to time.
SEC. 9. NARRA shall be the custodian and administrator of

public lands reserved or may hereafter be reserved by the President
of the Philippines for settlement, all lands actually reserved for
the Land Settlement and Development Corporation (LASEDECO),
and the agricultural lands surveyed and subdivided under
Commonwealth Act Numbered Six hundred ninety-one.
SEC. 10. The Land Settlement and Development Corporation

created under Executive Order Numbered Three hundred fifty-five,
dated October twenty-three, nineteen hundred and fifty, known for
short as LASEDESCO, is hereby abolished, and all its obligations
under said Executive Order, except its commercial accounts which
are to be paid as hereinafter provided, are hereby transferred to the
115
Treasury of the Philippines to be amortized over a period of fifteen

years subject to the availability of funds of the Government.
All assets of the LASEDECO, including farm machinery and

equipment, shall be turned over to a Board of Liquidators and shall
be sold at public auction, the proceeds thereof to be used in paying
off its accounts with commercial firms and the net proceeds to be
transferred to the Agricultural Credit and Cooperative Financing
Administration (ACCFA) for loan to settlers or cooperative
organizations of settlers as provided for under this Act: Provided,
however, That such buildings, equipment, and machinery as may
be needed the settlers’ cooperatives either in the area where such
property is located or in areas being settled under the provisions of
this Act may be transferred to the said cooperatives at an appraised
value fixed by the Board of Liquidators.
SEC. 11. To carry out of the purposes of this Act, there is hereby
appropriated for the “Revolving Fund of the Colonists”, as provided
for in Commonwealth Act Numbered Six hundred and ninety-one,
the sum of five million pesos for the fiscal year 1954-1955 out of
any funds in the National Treasury not otherwise appropriated,
to be spent by the NARRA upon recommendation of the Office of
Economic Coordination and under the supervision and authority
of the President of the Philippines for the activities prescribed
herein. A sum of not less than eight million pesos for every fiscal
year thereafter, for a period of ten years, shall be included in the
General Appropriations Acts for the subsequent fiscal years for the
said “Revolving Fund of the Colonists” to carry out the purposes of
this Act.
SEC. 12. All public agricultural lands referred to in section

fourteen of Executive Order Numbered Three hundred and fifty-
five, dated October Twenty-three, nineteen hundred and fifty, are
hereby transferred to the jurisdiction of the NARRA to be disposed
of in accordance with the provisions of this Act: Provided, That the
settlement of the agricultural lands so transferred under this section
by voluntary settlers who do not receive any direct assistance under
116
the provisions of this Act or by duly qualified homestead applicants

shall not be precluded nor obstructed.
SEC. 13. In addition to the financial aid that may be given to

settlers from the “Revolving Fund of the Colonists”, the Agricultural
Credit and Cooperative Financing Administration (ACCFA) created
under Republic Act Numbered Eight Hundred and twenty-one
is hereby authorized to give loans or financial assistance to the
settlers or settlers’ cooperatives to help establish themselves as
independent farmers following their arrival in the settlement areas:
Provided, however, That it may require any borrower to become a
bona fide member of a cooperative association in the settlement
areas as a condition for giving such financial aid or loan. Such loans
shall be subject to the conditions specified in section six, subsection
two, of this Act, with the modification that the lien shall be on the
borrower’s produce and that the amortization period shall begin one
year after the date of the loan.
TRANSITORY AND SPECIAL PROVISIONS
SEC. 14. The officials, employees and laborers of the

LASEDECO who may be separated from the service by virtue
hereof and who are entitled to retire under Republic Act Numbered
Six hundred sixty shall be so retired upon the payment of the
obligations of the LASEDECO to the Government Service Insurance
System subsisting under said account on the date of the approval
hereof. Those who may not be retired shall be entitled to thirty days’
separation pay, the money value of earned vacation and sick leaves,
and gratuity which shall be paid in one lump sum equivalent to
one month’s salary for every year of satisfactory service rendered
in any branch of the government and government agencies and
the instrumentalities on the basis of the highest salary received by
them; Provided, That any of said officials, employees or laborers
who has rendered less than one year of service shall be paid in one
lump sum a gratuity equivalent to one-half of one months’ salary:
And provided, further, That in case of subsequent reinstatement in
the Government service or in any Government-owned or controlled
corporation of any such official, employee or laborer who has been
117
paid gratuity hereunder, he shall refund to the National Government

the value of the gratuity which he would not have as yet received if
it had been payable in monthly installments.
SEC. 15. Subject to the provisions of section ten hereof, the

President of the Philippines shall provide by executive order for the
liquidation of the assets and liabilities of LASEDECO and is hereby
authorized to transfer to NARRA such properties, equipment,
assets and rights of LASEDECO as may be needed by the former in
carrying out the purposes and objectives of this Act.
SEC. 16. Any provision of law to the contrary notwithstanding,

all surveyed portions of the public agricultural lands heretofore
transferred or reserved for the administration of NARRA under
this Act and of those which may hereafter be transferred by the
President of the Philippines to NARRA for the purposes of this
Act, shall be ceded to NARRA, and the President of the Philippines
shall from time to time cause the issuance of patents or other deeds
transferring title to such lands to NARRA in accordance with the
provisions of the Public Land Act and such rules and regulations
as may be promulgated to facilitate the transfer of title to NARRA.
PENAL PROVISIONS
SEC. 17. No officer or employee of NARRA shall be permitted

in any manner to acquire, directly or indirectly, any land within the
land settlement projects of NARRA. Any such officer or employee
who violates the provisions of this section shall immediately be
removed by competent authority and said officer or employee
shall be punished by imprisonment for not less than one year nor
exceeding five years and by a fine of not less than one thousand nor
more than five thousand pesos. Should a dummy be used to violate
the provisions of this section, the same penalty shall be applied to
the dummy.
SEC. 18. No official or employee of the Corporation shall

directly or indirectly be financially interested in any contract with
the corporation or in any special privilege granted by said corporation
118
during his term of office. Any violation of this prohibition shall be

punished by dismissal from office and by a fine of not more than five
thousand pesos and imprisonment of not more than five years.
SEC. 19. If any provision of this Act is declared unconstitutional,

or the applicability thereof to any person, circumstance, or transaction
is held invalid, the validity of the remainder of the Act and the
applicability of such provision to other persons, circumstances, and
transactions shall not be affected thereby.
SEC. 20. All Act, parts of Act, and any special charters, or
parts thereof, inconsistent herewith are hereby repealed.
RA 1160 repealed EO 355 s. 1950.
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S. No. 98
H. No. 2398
AN ACT TO GOVERN THE RELATIONS BETWEEN LANDHOLDERS

AND TENANTS OF AGRICULTURAL LANDS (LEASEHOLD
AND SHARE TENANCY)

PART I
GENERAL PROVISIONS
SECTION 1. Title.—This Act shall be known as the

“Agricultural Tenancy Act of the Philippines.”
SEC. 2. Purpose.—It is the purpose of this Act to establish

agricultural tenancy relations between landholders tenants upon the
principle of social justice; to afford adequate protection to the rights
of both tenants and landholders; to insure an equitable division of
the produce and income derived from the land; to provide tenant-
farmers with incentives to greater and more efficient agricultural
production; to bolster their economic position and to encourage
their participation in the development of peaceful, vigorous and
democratic rural communities.
SEC. 3. Agricultural Tenancy Defined.—Agricultural tenancy

is the physical possession by a person of land devoted to agriculture
belonging to, or legally possessed by, another for the purpose of
production through the labor of the former and of the members of
his immediate farm household, in consideration of which the former
agrees to share the harvest with the latter, or to pay a price certain
or ascertainable, either in produce or in money, or in both.
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SEC. 4. Systems of Agricultural Tenancy; Their Definitions.—

Agricultural tenancy is classified into leasehold tenancy and share
tenancy.
Share tenancy exists whenever two persons agree on a joint

undertaking for agricultural production wherein one party furnishes
the land and the other his labor, with either or both contributing
any one or several of the items of, production, the tenant cultivating
the land personally with the aid of labor available from members
of his immediate farm household, and the produce thereof to be
divided between the landholder and the tenant ii proportion to their
respective contributions.
Leasehold tenancy exists when a person who, either personally

or with the aid of labor available from members of his immediate
farm household, undertakes to cultivate a piece of agricultural land
susceptible of cultivation by a single person together with members
of his immediate farm household, belonging to or legally possessed
by, another in consideration of a price certain or ascertainable to be
paid by the person cultivating the land either in percentage of the
production or in a fixed amount in money, or in both.
SEC. 5. Definitions of Terms. —As used in this Act:
(a) A tenant shall mean a person who, himself and with the aid
available from within his immediate farm household, cultivates the
land belonging to, or possessed by, another, with the latter’s consent
for purposes of production, sharing the produce with the landholder
under the share tenancy system, or paying to the landholder a price
certain or ascertainable in produce or in money or both, under the
leasehold tenancy system.
(b) A landholder shall mean a person, natural or juridical,

who, either as owner, lessee, usufructuary, or legal possessor,
lets or grants to another the use or cultivation of his land for a
consideration either in shares under the share tenancy system, or a
price certain or ascertainable under the leasehold tenancy system.
121
(c) Agricultural year is the period of time necessary for the

raising of seasonal agricultural products, including the preparation
of the land, and the sowing, planting and harvesting of the crop:
Provided, however, That in the case of coconuts, citrus, coffee, ramie,
and other crops where more than one harvest is obtained from one
planting, the words “agricultural year” shall mean the period of
time from the preparation of land to the first harvest and thereafter
from harvest to harvest. In both cases, the period of time may be
shorter or longer than a calendar year.
(d) Farm implements include hand tools or machines ordinarily

employed in a farm enterprise.
(e) Work animals include animals ordinarily employed in a

farm enterprise. The words include carabaos, horses, bullocks, etc.
(f) Pulling of the seedlings is a phase of farm work in which

seedlings are uprooted from the seed beds immediately before
transplanting.
(g) Final harrowing is the last stage in pulverizing the soil

into fine particles in readying the field for the transplanting of the
seedlings.
(h) Reaping is the cutting of rice stalks.
(i) Harvesting shall mean the gathering of the fruit produce of

a crop other than rice.
(j) Piling into small stacks used as a term in rice share

tenancy shall mean the piling into several small stacks within the
tenant’s holdings of reaped and bundled stall containing the grain,
preparatory to their transportation to the place designated for their
threshing.
(k) Piling into big stacks used as a term in rice share tenancy
shall mean the piling into one huge stack of the several small stacks
of reaped and bundled stalks containing grain, which constitute
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the entire harvest of the tenant from his holdings, preparatory to

threshing.
(l) Proven farm practices include those sound farming

practices which have attained general acceptance through usage or
are officially recommended by the Department of Agriculture and
Natural Resources.
(m) Fair rental value is an amount of money not in excess

of allowable depreciation plus six per cent interest per annum on
the investment computed at its market value: Provided, however,
That the fair rental value for the work animal or animals and farm
implements required to produce the crop shall not exceed five per
cent of the gross harvest for the animal or animals and five per cent
for implements: And provided, further, That whenever a tractor or
power and the necessary implements are utilized interchangeably
with work animals in the same holding during the same agricultural
year the rental shall not exceed ten per cent for the combined
services.
(n) Immediately after as used in this Act shall be inclusive of

the last day of harvesting, threshing or processing and the next five
days thereafter.
(o) Immediate farm household includes the members of the

family of the tenant, and such other person or persona whether
related to the tenant or not, who are dependent upon him for support
and who usually help him operate the farm enterprise.
(p) Incapacity means any cause or circumstance which

prevents the tenant from fulfilling his contractual obligations and
those imposed by this Act.
(q) Inspect means to examine and observe. However, such

examinations and observations shall not include any acts of
intimidation or coercion.
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(r) Auxiliary crop is any product raised other than the crop
to which the cultivation of the land is principally devoted; and
excluding the produce of the lot referred to in Section twenty-six.
SEC. 6. Tenancy Relationship; Its Definition.—Tenancy

relationship is a juridical tie which arises between a landholder
and a tenant once they agree, expressly or impliedly, to undertake
jointly the cultivation of land belonging to the former, either under
the share tenancy .or leasehold tenancy system, as a result of which
relationship the tenant acquires the right to continue working on
and cultivating the land, until and unless he is dispossessed of his
holdings for any of the just causes enumerated in Section fifty or the
relationship is terminated in accordance with Section nine.
SEC. 7. Tenancy Relationship; How Established; Security of

Tenure.—Tenancy relationship may be established either verbally
or in writing, expressly or impliedly. Once such relationship is
established, the tenant shall be entitled to security of tenure as
hereinafter provided.
SEC. 8. Limitation of Relation.—The relation of landholder

and tenant shall be limited to the person who furnishes land, either
as owner, lessee, usufructuary, or legal assessor, and to the person
who actually works the land himself with the aid of labor available
from within his immediate farm household.
SEC. 9. Severance of Relationship.—The tenancy relationship

is extinguished by the voluntary surrender of the land by, or the
death or incapacity of, the tenant, but his heirs or the members of
his immediate farm household may continue to work the land until
the close of the agricultural year. The expiration of the period of the
contract as fixed by the parties, and the sale or alienation of the land
do not of themselves extinguish the relationship. In the latter case,
the purchaser or transferee shall assume the rights and obligations
of the former landholder in relation to the tenant. In case of death
of the landholder, his heir or heirs shall likewise assume his rights
and obligations.
124
SEC. 10. Contracts; Nature and Continuity of Conditions.—

The terms and conditions of tenancy contracts stipulated by the
parties or as provided by law, shall be understood to continue until
modified by the parties. Modifications of the terms and conditions of
contracts shall not prejudice the right of the tenant to the security
of his tenure on the land as determined in Sections six, seven, and
forty-nine.
SEC. 11. Freedom to Contract in General.—The landholder

and the tenant shall be free to enter into any or all kinds of tenancy
contract, as long as they are not contrary to law, morals or public
policy. Except in case of fraud, error, force, intimidation or undue
influence, when such contract is reduced to writing and registered
as hereinafter provided, the latter shall be conclusive evidence of
what has been agreed upon between the contracting parties, if not
denounced or impugned within thirty days after its registration.
Said contract shall be contrary to law, morals and public

policy:
A. In Share Tenancy
(a) If the tenant is to receive less than the corresponding share

for the different contributions he made to the production of the farm
as hereinafter provided.
(b) If it is stipulated that the tenant or any member of his

immediate farm household shall without compensation perform any
work or render any service not connected with the tenant’s duties
and obligations provided under this Act.
B. In Leasehold Tenancy
(a) If the tenant-lessee is to pay to the landholder-lessor, as

a consideration for the use of the land, an amount in excess of that
hereinafter provided for the kind and class of land involved.
125
(b) If the tenant-lessee is to pay the landholder-lessor

consideration in excess of the amount prescribed as fair rental
value, as determined pursuant to the provisions of this Act, for the
use of work animals, services and/or implements belonging to the
landholder-lessor, in case it is agreed between the parties that the;
latter shall furnish any or all of these items of production.
(c) If it is stipulated that, as a condition precedent to the

commencement or continuance of the lease, the tenant-lessee shall
rent work animals, services or farm implements, or shall make
use of any store or services operated by the landholder-lessor or
any other person, or that the landholder-lessor may impose fines,
deductions and/or assessments, or that the tenant-lessee shall,
without compensation, perform any work or render any service not
connected with the tenant’s duties and obligations provided under
this Act.
SEC. 12. Form and Registration of Contract.—A contract of

tenancy in writing, in order to be conclusive as evidence, shall be
drawn in quadruplicate in the language or dialect known to all the
parties thereto and signed or thumb-marked both by the landholder
or his authorized representative, and the tenant himself, before
two witnesses, one to be chosen by each party. If any of the parties
does not know how to read, one of the witnesses, to be chosen by
him, shall read the contents of the document to him. Each of the
contracting parties shall retain a copy of the contract and the third
and fourth copies mall be delivered to the municipal treasurer of
the municipality where the land which is the subject-matter of the
contract is located, who shall file and register the third copy in his
office and forward the fourth copy to the court: Provided, That in
order that a tenancy contract may be registered, it shall be the duty
of the municipal treasurer to require the presentation of the copies
of the landholder tenant, respectively, and to place an annotation
on each copy of the fact of registration in his office, stating the date,
time and place of registration as well as the entry or registration
number.
126
The form of contract shall be uniform and shall be prepared and

furnished by the court. The contracting parties shall acknowledge
the execution of the contract before the municipal treasurer or
justice of the peace or the mayor of the municipality where the land
is situated. No fees or stamps of any kind shall be paid or required.
When one of the parties is unable to read, in case of doubt the

burden of proof to show that he understood the terms of the contract
shall rest upon the other party who is able to read.
SEC. 13. Registry of Tenancy Contracts.—For the purposes of

this Act, the municipal treasurer of the municipality wherein the
land which is the subject-matter of a tenancy contract is situated
shall keep a record of all such contracts entered into within his
jurisdiction, to be known as “Registry of Tenancy Contracts.” He
shall keep this registry together with a copy of each contract entered
therein, and make annotations on said registry of all subsequent acts
relative to each contract, such as its renewal, novation, cancellation,
etc.: Provided, That the municipal treasurer shall not charge any
fee for the registration of said contracts or of any subsequent acts
relative thereto, none of which shall be subject to the documentary
stamp tax.
SEC. 14. Change of System.—The tenant shall have the

right to change the tenancy contract from one of share tenancy to
the leasehold tenancy and vice versa and from one crop-sharing
arrangement to another of the share tenancy. If the share tenancy
contract is in writing and is duly registered, the right may be
exercised at the expiration of the period of the contract. In the
absence of any written contract, the right may be exercised at the
end of the agricultural year. In both cases the change to the leasehold
system shall be effective one agricultural year after the tenant has
served notice of his intention to change upon the landholder.
SEC. 15. Interest on Loans or Advances.—On all loans or

advances obtained by the tenant from the landholder in connection
with the cultivation, planting, harvesting and other incidental
expenses for the improvement of the crop planted, as well as loans
127
or advances for the subsistence of the tenant and his family, the
interest which may be stipulated shall not exceed eight per centum
per calendar year: Provided, That on all loans or advances other
than money, such as grain or other agricultural products, made to
the tenant by the landholder, the interest shall be computed on the
basis of the current price of the produce at the time it was loaned.
Violation of the provisions of this section shall be punished in
accordance with the Usury Law.
SEC. 16. Memorandum of Loans or Advances.—Any obligation

referring to any amount either in money or in kind, including the
payment of interest, which the tenant may have received from time
to time as loan or advance from the landholder, shall be void unless
the same, or some note or memorandum thereof, be in writing in a
language or dialect known to the party charged, and subscribed by
said party, or by his duly authorized agent.
SEC. 17. Form of Final Accounting.—The final accounting

between landholder and tenant at the end of each agricultural year
shall be effected within ten days after the threshing in case of rice
and within the same period of time after the harvest or gathering of
the fruits in the case of other crops. In case of crops which have to
be sold in processed form, the final accounting shall be within five
days after the sale is consummated and the sales receipt shall be
exhibited to the tenant.
The accounting shall be made to appear in a note or

memorandum written in a language or dialect known to the tenant
and signed by both parties in the presence of two witnesses who
shall be selected by each party. Each of the contracting parties shall
be furnished with a copy said note or memorandum and such final
accounting, duly signed by both parties and two witnesses, shall
be deemed conclusive evidence of its contents, except in case of
fraud, error, force, intimidation or undue influence. When one of the
parties is unable to read, the burden of proof, in case of doubt, to
show that he understood the accounting, shall rest upon the other
party who is able to read.
128
In the absence of a written accounting in accordance with

the preceding paragraph, the tenant may, within three years from
the date of the threshing of the crop in question, petition the Court
to compel the landholder to render an accounting of the same in
accordance with this section.
SEC. 18. Settlement of Debts.—Once the accounting is made,

any amount of money which the landholder may have advanced to
the tenant for expenses of cultivation, harvesting or gathering of the
crop or for his own private use, as well as any amount of grain or
agricultural products advanced for his subsistence and that of his
family, shall be paid by the tenant out of his share either in grain or
in money, at the option of the latter: Provided, That such grain or
agricultural products shall be appraised in money according to their
current market value at the place where the land is located at the
time of their delivery to the tenant: Provided, further, That in case
his share is not sufficient, his outstanding debt shall be reduced to
money and shall bear an interest of not more than ten per centum
per annum: And provided, finally, That the remaining debt of the
tenant once converted into money shall not again be converted into
kind. Said outstanding debt may, however, be paid in money or
agricultural products appraised at the local current mark price at
the time of payment.
SEC. 19. Exemption from Lien and/or Attachment. —Twenty-

five per centum of the tenant’s share of the produce of the land in
share tenancy, or of the entire produce in leasehold tenancy, one
work animal and one of each kind of farm implement belonging
to the tenant, provided that the value of such work animal and
implements do not exceed five hundred pesos, shall be exempt from
lien and attachment.
SEC. 20. Use of Official Weights and Measures.—In all

transactions entered into between the landholder and the tenant
concerning agricultural products the official weights and measures
of the Government shall be used.
129
SEC. 21. Ejectment; Violation; Jurisdiction.—All cases

involving the dispossession of a tenant by the landholder or by
a third party and/or the settlement and disposition of disputes
arising from the relationship of landholder and tenant, as well as
the violation of any of the provisions of this Act, shall be under
the original and exclusive jurisdiction of such court as may now
or hereafter be authorized by law to take cognizance of tenancy
relations and disputes.
PART II
THE SHARE SYSTEM
Chapter I
Common Provisions
SEC. 22. Rights of the Tenant.
(1) The tenant shall be free to work elsewhere whenever the

nature of his farm obligations warrants his temporary absence from
his holdings.
(2) The tenant shall, aside from his labor, have the right to
provide any of the contributions for production whenever he can do
so adequately and on time.
(3) The tenant’s dwelling shall not, without his consent, be

removed from the lot assigned to him by the landholder, unless there
is a severance of the tenancy relationship between them as provided
under Section nine, or unless the tenant is ejected for cause, and
only after the expiration of forty-five days following such severance
of relationship or dismissal for cause.
If the tenant is dismissed without just cause and he is

constrained to work elsewhere, he may choose either to remove his
dwelling at the landholder’s cost or demand the value of the same
from the landholder at the time of the unjust dismissal.
130
(4) The tenant shall have the right to be indemnified for his
labor and expenses in the cultivation, planting, or harvesting and
other incidental expenses for the improvement of the crop raised in
case he is dispossessed of his holdings whether such dismissal is for
a just cause or not, provided the crop still exists at the time of the
dispossession.
SEC. 23. Obligations of the Tenant.—It shall be the obligations

of the tenant:
(1) To cultivate and take care of the farm, the growing crops
and other improvements entrusted to him as a good father of a
family, by doing all the work necessary in accordance with proven
farming practices.
(2) To inform the landholder at once of any trespass committed

by a third person upon the farm.
(3) To take reasonable care of the work animals and farm

implements used in the joint undertaking. He shall not use the work
animals and farm implements entrusted to him by the landholder
for purposes other than those intended, or allow their use by other
persons without the knowledge and consent of the landholder.
The tenant shall not abandon or surrender his holdings

and leave the farm and growing crop and other improvements
unattended during the work season, except for just and reasonable
cause. In case of such unjustified abandonment or surrender, any
or all of his expected share in the crop may, in the discretion of the
court, be forfeited in favor of the landholder to the extent of the
damage caused thereby.
Any of the following shall be considered just and reasonable

cause for the tenant to terminate the tenancy relationship:
(a) Cruel, inhuman or offensive treatment on the part of the

landholder or his representative toward the tenant or any member
of his immediate farm household.
131
(b) Non-compliance on the part of the landholder with any of

the obligations imposed upon him by the provisions of this Act or by
the contract.
(c) If the landholder or his representative compels the tenant

or any member of his immediate farm household to do any or render
any service not in any way connected with his farm work, or even
without compulsion if no compensation is paid.
(d) Commission of a crime by the landholder or his

representative against the tenant or any member of his immediate
farm household.
SEC. 24. Prohibitions to Tenant:
(1) It shall be unlawful for the tenant, whenever the area of his
holdings is five hectares or more, or is of sufficient size to make him
and the members of his immediate farm household fully occupied
in its cultivation, to contract to work at the same time on two or
more separate holdings belonging to different landholders under
any system of tenancy, without the knowledge and consent of the
landholder with whom he first entered into tenancy relationship.
(2) It shall be unlawful for a share-tenant to employ a sub-

tenant to furnish labor on any phase of the work required of him
under this Act, except in cases of illness or any temporary incapacity
on his part, in which eventuality the tenant or any member of
his immediate farm household is under obligation to report such
illness or incapacity to the landholder. Payment to the subtenant,
in whatever form, for services rendered on the land under this
circumstance, shall be for the account of the tenant.
(3) Subject to provisions of the next preceding paragraph,

land entrusted for cultivation to a leasehold tenant shall not be sub-
let nor shall the lease be assigned by the tenant to another person,
except with the written consent of the lessor.
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SEC. 25. Rights of the Landholder:
(1) The landholder shall have the right to choose the kind of
crop and the seeds which the tenant shall plant in his holdings:
Provided, however, That if the tenant should object, the court shall
settle the conflict, according to the best interest of both parties.
(2) The landholder shall have the right to require the use of
fertilizer of the kind or kinds shown by proven farm practices to be
adapted to the requirements of the land.
(3) The landholder shall have the right to inspect and observe
the extent of compliance on the part of the tenant with the terms
and conditions of their contract and the provisions of this Act.
(4) In cases where the crop has to be sold in processed

form before division and the tenant has no representative, the
landholder shall have the right to deal with millers or processors in
representation of the tenant.
SEC. 26. Obligations of the Landholder:
(a) The landholder shall furnish the tenant an area of not less
than one thousand square meters where the latter may construct
his dwelling, raise vegetables, poultry, pigs and other animals and
engage in minor industries, the products of which shall accrue to
the tenant exclusively.
(b) The landholder shall keep the tenant in the peaceful

possession and cultivation of his holdings which are the subject-
matter of the contract.
SEC. 27. Prohibitions to the Landholder:
(1) The landholder shall not dispossess the tenant of his

holdings except for any of the causes enumerated in Section fifty, and
without the cause having been proved before, and the dispossession
authorized by, the court; otherwise, he shall, aside from the penalty
133
of fine and/or imprisonment provided for any violation of this Act,

be liable to the tenant for damages to the extent of the landholder’s
participation in the harvest in addition to the tenant’s right under
Section twenty-two of this Act.
(2) The landholder shall be responsible for the payment of

taxes levied by the Government upon the land which is the subject-
matter of the contract and it shall be unlawful to make the tenant
bear a part or all of the same, either directly or indirectly.
(3) The landholder shall not require the tenant to bear, directly
or indirectly, any part of the rent, “canon” or other consideration
which he, the former, may be under obligation to pay to a third
person for the use of the land.
SEC. 28. Expenses for Seeds; Fertilizer; Pest and Control

Expenses.
(1) The same amount of seeds or seedlings used in the

production of any crop shall be deducted from the gross harvest and
returned to the party who furnished the same.
(2) The cost of fertilizer and expenses for pest and weed control
as evidenced by sales invoices shall be paid out of the gross harvest
and returned to the party who advanced the cost and expenses.
SEC. 29. Irrigation System.—The cost of the construction of

an irrigation system, including the distributory canals, shall be
borne exclusively by the landholder. The cost of maintenance and
operation of the system shall, however, be borne by the landholder
and the tenant in proportion to their respective shares in the
harvest.
SEC. 30. Auxiliary Crop.—In case the land is planted to

an auxiliary crop, the tenant shall receive eighty per centum and
the landholder twenty per centum of the net produce, provided all
expenses of production are borne by the tenant.
134
Auxiliary crops shall not, however, be construed to include

the crops or products raised from the garden, poultry and other
industries carried on the lot specifically provided for the tenant
under Section 26(a) hereof.
SEC. 31. Cost of Fertilizer, etc.; when to be Advanced by the

Landholder.—Whenever the use of fertilizer or the application
of insect, disease and rodent control measures is directed by the
landholder, he shall advance their cost, which shall be deducted
from the gross produce.
Chapter II
Rice Share Tenancy
SEC. 32. Share Basis.—The parties shall, on ricelands which

produce a normal average of more than forty cavanes per hectare
for the three agricultural years next preceding the current harvest,
receive as shares in the gross produce, after setting aside the same
amount of palay used as seed, and after deducting the cost of fertilizer,
pest and control, reaping and threshing, the amount corresponding
to the total equivalent of their individual contributions, computed
as follows:
Contribution Participation
1. Land...................................................................... 30%
2. Labor .................................................................... 30%
3. Farm implements ................................................ 5%
4. Work Animals ...................................................... 5%
5. Final harrowing of the field immediately
before transplanting............................................. 5%
6. Transplanting ...................................................... 25%
SEC. 33. Share Basis on Second Class Land.—On ricelands,

which produce a normal average of forty cavans or less per hectare
for the three agricultural years next preceding the current harvest,
135
the participation for the contribution of the land shall be twenty-

five per centum and that of labor, thirty-five per centum.
SEC. 34. Reimbursement Not Allowed.—Contributions or

shares in the contribution to the production of the crop in the form
of cash, grain or services, once shouldered or rendered alone by one
party may not be reimbursed by the other party after the phase or
phases of work required in the joint undertaking shall have been
completed.
SEC. 35. Sharing of Expenses.—In case the landholder and

the tenant agree to share equally in the expenses of final harrowing
of field and transplanting, the latter may engage the services of
persons or helpers to perform these phases of farm work, provided
the rates for each shall have been previously determined and
agreed upon between the landholder and the tenant. In case of
disagreement upon said rates, the party who undertakes the work
shall bear all the expenses, and be entitled to the corresponding
share in the harvest, after deducting the expenses of reaping.
SEC. 36. Further Rights of the Tenant.—In addition to the

provision of Section twenty-two, the tenant shall have the right to:
1. Determine when to scatter the seeds, to transplant

the seedlings, and to reap the harvest, provided they shall be in
accordance with proven farm practices and after due notice to the
landholder.
2. Choose the thresher which shall thresh the harvest

whenever it is the best available in the locality and the best suited
to the landholder’s and tenant’s needs and provided the rate charged
is equal to or lower than the rate charged by the owner of other
threshers under similar circumstances: Provided, further, That in
cases where there are more than one tenant the selection of the
majority of the tenants shall prevail: Provided, finally, That if the
landholder is the owner of a thresher and is ready and willing to
grant equal or lower rates under the same conditions, the use of the
landholder’s thresher shall be given preference.
136
3. Apply appropriate pest, insect, disease and rodent control

measures whenever in his judgment such action is necessary:
Provided, however, That if a tenant fails to apply any of the above
control measures after the landholder has made a request in writing
for such action, he shall be liable for any loss resulting from such
failure.
4. Apply fertilizer of the kind or kinds shown by proven farm

practices to be adapted to the requirements of the land, provided the
landholder has not exercised his right under Section twenty-five to
require the use of such fertilizer.
SEC. 37. Further Rights of the Landholder.—In addition to

the provisions of Section twenty-five, the landholder, by himself or
through his representative, may determine:
1. The proper height of pilapils or dikes according to the local

practices.
2. The location and size of irrigation canals.
3. The site for the stacking of the harvest, provided it shall not
be farther than one kilometer from the center of the area cultivated
by a majority of the tenants.
4. The date of threshing.
Provided, however, That in case of disagreement by the tenant

in any of the foregoing instances, the court shall determine whatever
may be in the interest of both parties.
SEC. 38. Labor; What It Constitutes.—The tenant shall

perform the following as the labor contributed by him under Section
thirty-two:
1. The preparation of the seedbed which shall include plowing,

harrowing, and watering of the seedbed, the scattering of the seeds,
and the care of the seedlings.
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2. The plowing, harrowing, and watering of the area he

is cultivating, except final harrowing of the field as an item of
contribution specified in Section thirty-two of this Act.
3. The maintenance, repair and weeding of dikes, paddies,

and irrigation canals in his holdings.
4. The pulling and bundling of the seedlings preparatory to

their transplanting.
5. Care of the growing plants.
6. Gathering and bundling of the reaped harvest.
7. The piling of the bundles into small stacks.
8. The preparation of the place where the harvest is to be

stacked,
9. Gathering of the small stacks and their transportation to

the place where they are to be stacked.
10. Piling into a big stack preparatory to threshing.
SEC. 39. Prohibition on Pre-Threshing.—It shall be unlawful

for either the tenant or the landholder, without mutual consent, to
reap or thresh a portion of the crop at any time previous to the date
set for its threshing. Any violation by either party shall be treated
and penalized in accordance with this Act and/or under the general
provisions of law applicable to the act committed.
SEC. 40. Place of Crop Division.—The division of the crop shall

be made in the same place where the harvest has been threshed
and each party shall transport his share to his warehouse or barn,
unless the contrary is stipulated by the parties.
138
Chapter III
Share Tenancy on Crops other than Rice
SEC. 41. Basis of Shares in Crops other than Rice.– The

landholder and the tenant on lands which produce crops other than
rice shall be free to enter into any contract stipulating the ratio of
crop division. In the absence of a stipulation, the customs of the place
shall govern: Provided, That whether the basis of division of the
crop is the contract between the parties or the customs of the place,
the share of the tenant for his labor in the production shall not be
less than thirty per cent of the harvest or produce, after deducting
the expenses for harvesting and/or initial processing: Provided,
further, That in cases where the share of the tenant is, according
to local practices or customs prevailing at the time of the approval
of this Act, more than the minimum herein set, the tenant’s share
thus established by local practices or customs shall prevail and be
considered the minimum.
PART III
THE LEASEHOLD TENANCY
SEC. 42. Landholder-Lessor and Tenant-Lessee, Defined. Any

person, natural or juridical, either as owner, lessee, usufructuary
or legal possessor of agricultural land, who lets, leases or rents to
another said property for purposes of agricultural production and
for a price certain or ascertainable either in an amount of money or
produce, shall be known as the landholder-lessor; and any person
who, with the consent of the former, tills, cultivates or operates
said land, susceptible of cultivation by one individual, personally or
with the aid of labor available from among his own immediate farm
household, is a tenant-lessee.
SEC. 43. Rights and Obligations of Tenant-Lessee.—With

the creation of the tenancy relationship arising out of the contract
between the landholder-lessor and tenant-lessee, the latter shall
have the right to enter the premises of the land, and to the adequate
139
and peaceful enjoyment thereof. He shall have the right to work

the land according to his best judgment, provided the manner and
method of cultivation and harvest are in accordance with proven
farm practices. Upon termination of the relationship, he shall be
entitled to one half of the value of the improvements made by him,
provided they are reasonable and adequate to the purposes of the
lease.
The tenant-lessee shall pay the consideration stipulated in the

lease contract provided it shall not exceed the limit fixed in Section
forty-six. In the absence of stipulation, the consideration shall be
that established in said Section forty-six. He shall make proper
use of the land and the improvements thereon and shall be under
obligation to cultivate it as a good father of a family, by doing all
the work considered reasonable and necessary in accordance with
proven farm practices. He is likewise obliged to take reasonable care
of the work animals and farm implements that may be delivered to
him by the landholder, in case it is agreed between the parties that
the landholder-lessor shall furnish any or all of them.
SEC. 44. Rights of Landholder-lessor.—The landholder-lessor

or his duly authorized representatives shall have the right to inspect
the premises of the land which is the subject of the lease for the
purpose of ascertaining the tenant’s compliance with the provisions
of the contract and of this Act, but in no case shall he exercise any
coercion, intimidation or violence in word or deed.
SEC. 45. Manner of Rental Payment.—Payment of the

consideration for the use of land may be made either in an amount
certain or ascertainable in money or in produce, or both.
SEC. 46. Consideration for the Use of Land.
(a) The consideration for the use of ricelands, shall not be

more than thirty per centum of the gross produce for first class lands
and not more than twenty-five per centum for second class lands.
Classification of ricelands shall be determined by productivity: first
class lands being those which yield more than forty cavanes per
140
hectare and second class lands being those which yield forty cavanes
or less, the same to be computed upon the normal average harvest of
the three preceding years.
(b) The consideration for agricultural land where exist fruit

trees and other useful trees and plants, from which the whole or any
portion of the produce of the said land is taken, shall not be more
than what have been specified in the preceding section: Provided,
however, That additional considerations for the enjoyment of said
trees and useful plants, if the principal product is rice or other crops,
shall be decided and specified by negotiation between landholder-
lessor and the tenant-lessee: Provided, further, That where the
tenant-lessee, during the period of the lease and/or in consideration
thereof, plants and/or takes care of said trees and plants, with
the consent of the landholder-lessor, the tenant-lessee shall be
compensated by the latter in the manner agreed between them.
(c) The consideration for the use of sugar lands, fishponds,

saltbeds and of lands devoted to the raising of livestock shall be
governed by stipulation between the parties.
SEC. 47. Rental of Work Animals, etc. and Applicability of

Schedules.—Upon agreement of the parties, the tenant-lessee
may make use of such work animals, farm implements or services
belonging to the landholder-lessor as are available for hire, the
consideration of which shall be based on their fair rental value.
The rates on the fair rental value for the use of work animals,
farm implements and services, belonging to the landholder-lessor
shall be those provided in Schedules “A”, “B”, and “C”, which shall
apply upon approval of this Act and shall remain in force, unless the
Secretary of Agriculture and Natural Resources revises the same in
accordance with Section fifty-two.
SEC. 48. Loans and Interests.—Loans, either in money or

in kind, obtained by a tenant-lessee from the landholder-lessor
shall be payable at the time stipulated: Provided, however, That
this shall not be construed as prejudicing the right of the borrower
141
to repay his obligation before date of maturity. The loan, unless

it is otherwise stipulated, shall be payable in money at not more
than eight per cent interest per annum, computed from the date
the indebtedness was contracted up to and including the date of
payment. A note or memorandum to evidence indebtedness shall be
executed in accordance with the provision of Section sixteen.
PART IV
SECURITY OF TENURE
SEC. 49. Ejectment of Tenant.—Notwithstanding any

agreement or provision of law as to the period, in all cases where
land devoted to any agricultural purpose is held under any system of
tenancy, the tenant shall not be dispossessed of his holdings except
for any of the causes hereinafter enumerated and only after the
same has been proved before, and the dispossession is authorized
by, the court.
SEC. 50. Causes for the Dispossession of a Tenant. —Any of

the following shall be a sufficient cause for the dispossession of a
tenant from his holdings:
(a) The bona fide intention of the landholder to cultivate

the land himself personally or through the employment of farm
machinery and implements: Provided, however, That should the
landholder not cultivate the land himself or should fail to employ
mechanical farm implements for a period of one year after the
dispossession of the tenant, it shall be presumed that he acted in
bad faith and the tenant shall have the right to demand possession
of the land and damages for any loss incurred by him because of
said dispossession: Provided, further, That the landholder shall, at
least one year but not more than two years prior to the date of his
petition to dispossess the tenant under this sub-section, file notice
with the court and shall inform the tenant in writing in a language
or dialect known to the latter of his intention to cultivate the land
himself, either personally or through the employment of mechanical
142
implements, together with a certification of the Secretary of

Agriculture and Natural Resources that the land is suited for
mechanization: Provided, further, That the dispossessed tenant and
the members of his immediate household shall be preferred in the
employment of necessary laborers under the new set-up.
(b) When the tenant violates or fails to comply with any of the
terms and conditions of the contract or any of the provisions of this
Act: Provided, however, That this subsection shall not apply when
the tenant has substantially complied with the contract or with the
(c) The tenant’s failure to pay the agreed rental or to deliver

the landholder’s share: Provided, however, That this shall not apply
when the tenant’s failure is caused by a fortuitous event or force
majeure.
(d) When the tenant uses the land for a purpose other than
that specified by agreement of the parties.
(e) When a share-tenant fails to follow those proven farm

practices which will contribute towards the proper care of the land
and increased agricultural production.
(f) When the tenant through negligence permits serious injury

to the land which will impair its productive capacity.
(g) Conviction by a competent court of a tenant or any member

of his immediate family or farm household of a crime against the
landholder or a member of his immediate family.
SEC. 51. Burden of Proof.—She burden of proof to show the

existence of a lawful cause for the ejectment of a tenant shall rest
upon the landholder.
143
PART V
SPECIAL PROVISIONS
SEC. 52. Duties of the Secretary of Agriculture and Natural

Resources.—It shall be the duty of the Secretary of Agriculture and
Natural Resources to:
1. Conduct such educational programs as circumstances may

require adequately to acquaint tenants and landholders with their
rights and responsibilities under this Act.
2. Revise the rental rates provided for in Schedules “A” and

“B”, whenever such revision is made necessary by changes in values
and prices, so that the rental rates shall conform to the standard of
fair rental value as defined in Section 5 (m).
3. Facilitate the preparation and registration of landholder-

tenant contracts through the distribution of appropriate printed
forms and instructions to guide the interested parties in drafting
and executing rental agreements. The forms of contracts must bear
the approval of the court.
4. Conduct surveys and researches to determine extent of

compliance, adaptability to different crops areas and the fairness of
this Act to all parties affected by its implementation.
5. Submit an annual report to the President containing an

analysis showing the progress made towards attaining the objectives
enumerated in Section two of this Act and recommendations
concerning methods of improving the implementation and general
effectiveness of this Act. Copies of this report shall be provided to
members of the Congress.
SEC. 53. Duties of Secretary of Justice.—The Secretary

of Justice, through the Executive Judge of the Court, shall be
responsible for formulating a national enforcement program, among
144
other things, through the assignment of judges and personnel,

which will insure the full enforcement of the provisions of this Act.
SEC. 54. Representation by Counsel.—In all cases wherein a

tenant cannot afford to be represented by counsel, it shall be the
duty of the Public Defender of the Department of Labor to represent
him, upon proper notification by the party concerned, or the court of
competent jurisdiction shall assign or appoint counsel de oficio for
the indigent tenant.
SEC. 55. Applicability of General Laws.—The provisions of

existing laws which are not inconsistent herewith shall apply to
the contracts governed by this Act as well as to acts or omissions
by either party against each other during, and in connection with,
their relationship.
SEC. 56. Doubts to Be Solved in Favor of the Tenant.– In the

interpretation and enforcement of this Act and other laws as well
as of the stipulations between landholder and the tenant, the courts
and administrative officials shall solve all grave doubts in favor of
the tenant.
SEC. 57. Penal Provision.—Violation of any of the provisions

of this Act shall be punished with a fine not exceeding two thousand
pesos or imprisonment not exceeding one year, or both, in the
discretion of the Court.
SEC. 58. Separability of Provisions.—If for any reason, any

section or provision of this Act shall be questioned in any court, and
shall be held to be unconstitutional or invalid, no other section or
provision of this Act shall affected thereby.
SEC. 59. Repealing Provisions.—Public Act Numbered Four

thousand fifty-four, as amended by Republic Act Numbered Thirty-
four, Commonwealth Act Numbered Fifty-three, Commonwealth
Act Numbered Four hundred sixty-one as amended by Republic
Act Numbered Forty-four, and all laws, rules and regulations
inconsistent herewith are hereby repealed.
145
SEC. 60. Effective Date.—This Act shall take effect upon its
approval.
Approved, August 30, 1954.
SCHEDULE “A”
The rental value of work animals and farm implements other

than machinery, shall not exceed the allowable depreciation charges
plus six per cent (6%) interest per annum computed on the market
value of the said work animals and farm implements as hereinbelow
fixed. The market value of work animals and farm implements not
fixed in this Schedule shall be those prevailing in the locality where
the said animals and implements are rented.
===================================================
Item Market Period of Allowable Allowable Fair rental
depreciation depreciation Interest at 6 value per
value in years charge per cent annum
______________________________________________________________
Carabao .................... P300.00 10 P30.00 P18.00 P48.00

Bullock ...................... 600.00 7 85.91 36.00 121.00
Horse, native ........... 150.00 8 18.75 9.00 27.75
Cattle ........................ 200.00 7 28.57 12.00 40.57
Plow, iron ................. 40.00 5 8.00 2.40 10.40
Plow, wooden ........... 25.00 2 12.50 1.50 14.00
Harrow, iron ............ 18.00 5 3.60 1.00 4.68
Carreton (native cart).. 400.00 10 40.00 24.00 64.00
===================================================
SCHEDULE “B”
The rental value for farm machineries inclusive of tractors,

tractor equipment, engines, motors, and pumps shall not exceed
the allowable depreciation equal to one-tenth (1/10) of the current
market value plus interest at six per cent (6%) per annum.
146
SCHEDULE “C”
The amounts to charged by the landholder when he performs

services in the operation of the farm enterprise shall not exceed the
rates in the locality where such services are rendered.
RA 1199 repealed ACT 4054.

RA 1199 repealed CA 53.
RA 1199 repealed CA 461.
147
H. No. 2557
AN ACT DEFINING A LAND TENURE POLICY, PROVIDING FOR

AN INSTRUMENTALITY TO CARRY OUT THE POLICY, AND
APPROPRIATING FUNDS FOR ITS IMPLEMENTATION

SECTION 1. Short title.—This Act shall be known as the

“Land Reform Act of 1955.”
SEC. 2. Declaration of policy.—It is the declared policy of the

State to create and maintain an agrarian system which is peaceful,
prosperous and stable, and to this end the Government shall establish
and distribute as many family-size farms to as many landless
citizens as possible through the opening up of public agricultural
lands and the division and distribution of private agricultural lands
where agrarian conflicts exist, either by private arrangement with
the owners or through expropriation proceedings.
THE LAND TENURE ADMINISTRATION
SEC 3. Creation and composition.—For the purpose of carrying

out the policy enunciated in this Act, there is hereby created a Land
Tenure Administration, hereinafter called the Administration,
which shall be directly under the control and supervision of and
responsible to the President of the Philippines. The Administration
shall consist of a Chairman and two members who shall be
appointed by the President with the consent of the Commission on
Appointments and shall hold office for a period of five years. They
may be removed for cause or for incapacity to discharge the duties
of their office.
SEC. 4. Qualifications and compensation of members.—No

person shall be appointed Chairman or member of the Administration
148
unless he is natural born citizen of the Philippines, at least thirty-

five years of age, and not related by affinity or consanguinity within
the fourth civil degree to any landowner who may be affected by this
Act.
The Chairman shall receive an annual compensation of fifteen

thousand pesos and the members shall each receive an annual
compensation of twelve thousand pesos.
SEC. 5. Functions.—It shall be the responsibility of the

Administration to:
(1) Make studies on the land tenure problems throughout the

Philippines, prepare over-all long range plans to solve such problems,
and keep the President and the Congress of the Philippines full
informed of the progress of the land tenure reform program;
(2) Initiate immediate investigation in areas reporting land

tenure difficulties and recommend appropriate action without delay;
(3) Inform the President and the Congress of the Philippines

of any deficiency of the other departments or agencies of the
Government in the implementation of legislation bearing on or
affecting the land tenure reform;
(4) Prepare a plan for the systematic opening of virgin lands of

the public domain for distribution to tenants, preference to be given
to those tenants who are ejected by virtue of mechanization and to
other landless citizens; and
(5) To implement and carry out the expropriation and the

resale or lease of urban lands already authorized by existing laws.
SEC. 6. Powers.—In pursuance of the policy enunciated in

section two hereof, the Administration is authorized to:
(1) Purchase private agricultural lands for resale at cost to

bona fide tenants or occupants, or in the case of estates abandoned
149
by the owners for the last five years, to private individuals who will
work the lands themselves and who are qualified to acquire or own
lands but who do not own more than six hectares of lands in the
Philippines;
(2) Initiate and prosecute expropriation proceedings for the

acquisition of private agricultural lands in proper cases, for the
same purpose of resale at cost: Provided, That the power herein
granted shall apply only to private agricultural lands as to the area
in excess of three hundred hectares of contiguous area if owned by
natural persons and as to the area in excess of six hundred hectares if
owned by corporations: Provided, further, That land where justified
agrarian unrest exists may be expropriated regardless of its area.
(3) Prepare a schedule of areas of family-size farm units, not

exceeding six hectares each, for different crops in different localities;
and
(4) Promulgate such rules and regulations as may be necessary

for the successful implementation of the provisions of this Act.
SEC. 7. Appointment of subordinate officials and employees.—

To enable the Administration to implement the provisions of this
Act more effectively, it shall have a Legal Staff, a Technical Staff
and a Financial Staff, the personnel of which shall be appointed by
the Administration which shall also fix their compensation.
The Administration shall appoint, subject to Civil Service

rules and regulations, fix the compensation and determine the
duties of such officials and employees as the exigencies of the service
may require. The Administration shall establish and prescribe its
own rules, regulations, standards and records for the employment,
promotion, transfer, welfare and compensation of employees and
officers of the Administration and provide a system of organization.
SEC. 8. Assistance of other departments and agencies.—The

Administration may call upon any department or agency of the
150
Government for assistance and cooperation on any matter connected

with the functions and powers of the Administration.
NEGOTIABLE LAND CERTIFICATES
SEC. 9. Issuance.—The President, for the purpose provided for

in this Act and upon recommendation of the Secretary of Finance and
concurred in by the Monetary Board, is hereby authorized to issue
negotiable land certificates upon the request of the Administration:
Provided, That only sixty million a year will be issued during the
first two years, and thirty million each year during the succeeding
years.
Negotiable land certificates shall be issued in denominations

of one thousand pesos or multiples of one thousand pesos and shall
be payable to bearer on demand and presentation at the Central
Bank. These certificates if presented for payment after five years
from the date of issue shall earn interest at the rate of four per
centum per annum; if presented for payment after ten years from
the date of issue shall earn interest at the rate of four and one-half
per centum per annum; and if presented for payment after fifteen
years from the date of issue shall earn interest at the rate of five per
centum per annum.
SEC. 10. Uses of certificates.—Negotiable land certificates

may be used by the holder thereof for any of the following purposes:
(1) Payment for agricultural lands or other properties

purchased from the Government: Provided, however, That in the
case of purchase of agricultural lands, the purchaser is not otherwise
prohibited to own or hold agricultural lands under the Constitution;
(2) Payment for the purchase of shares of stock or of the assets

of any industrial or commercial corporations owned or controlled by
the Government;
(3) Payment of all tax obligations of the holder thereof, or of

any debt or monetary obligation of the holder to the Government or
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any of its instrumentalities or agencies including the Rehabilitation

Finance Corporation and the Philippine National Bank: Provided,
however, That payment of indebtedness shall not be less than twenty
per centum of the total indebtedness of the debtor; and
(4) As surety or performance bonds, in all cases where the

Government may require or accept real property as bonds.
NEGOTIATED PURCHASE OF PRIVATE AGRICULTURAL

LANDS
SEC. 11. Lands subject to purchase.—The Administration,

acting for and on behalf of the Government, may negotiate to
purchase any privately owned agricultural land when the majority
of the tenants therein petition for such purchase.
SEC. 12. Action on the petition.—Upon receipt of the petition,

the Administration shall;
(1) Within thirty days, determine on the basis of the

information contained in the petition, the suitability of the land for
purchase, notify the petitioners and the landowner accordingly, and
fix the date for preliminary negotiations;
(2) Within sixty days from the preliminary negotiation,

conduct investigations and technical surveys to determine title to
the land and its real value, taking into account (a) the prevailing
prices of similar lands in the immediate area, (b) the soil conditions
topography and climate hazards, (c) actual production, (d)
accessibility, and (e) improvements; and
(3) Fix, within ninety days from the preliminary negotiation,

the date for final negotiation.
SEC. 13. Deposit by tenants.—Before fixing the date for final

negotiation under section twelve, paragraph (3), and in the interest
of public welfare, the Administration shall require the tenants to
form a cooperative to be affiliated with a government financing
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cooperative agency. Such cooperative agency shall deposit with the

Administration an amount not exceeding twenty-five per centum of
the annual gross produce of the principal crop or crops of such land
on the basis of the average of harvest of the three years immediately
preceding the year the petition was filed. This deposit shall be
credited to the selling price to the tenants in accordance with the
individual contribution of each said deposit.
SEC. 14. Payment.—In negotiating for the purchase of

agricultural land, the Administration shall offer to pay the purchase
price wholly in land certificates or partly in legal tender and partly
in land certificates: Provided, That the amount to be paid in legal
tender shall in no case exceed fifty per centum of the purchase
price: Provided, further, That the landowner, if he desires and the
Administration so agrees, may be paid, by way of barter or exchange,
with such residential, commercial or industrial land owned by the
Government as may be agreed upon by the parties.
SEC. 15. Outstanding debts of tenants.—In cases where the

landowner is willing to accept payment wholly in land certificates,
the Administration is authorized to include in the price to be paid
the landowner all the outstanding debts, evidenced in writing, of
the tenants to said landowner, the Administration to be thereafter
reimbursed in accordance with such rules and regulations as it may
promulgate: Provided, That the resulting increase in price by virtue
of such inclusion will not be more than ten per centum of the total
cost of the land agreed upon in the negotiated sale.
EXPROPRIATION OF PRIVATE AGRICULTURAL LANDS
SEC. 16. When proper.—The Administration may initiate

and prosecute expropriation proceedings for the acquisition of
private agricultural land subject to the provisions of section six,
paragraph (2), upon petition of a majority of the tenants and after
it is convinced of the suitability of such land for subdivision into
family-size farm units, and that public interest will be served by its
immediate acquisition, when any of the following conditions exists:
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(1) That the landowner falling with the terms of section six,
paragraph (2), continues to refuse to sell after all efforts have been
exhausted by the Administration to negotiate for its purchase; or
(2) That the landowner is willing to sell under sections eleven

and twelve but cannot agree with the Administration as to the price
and/or the manner of its payment.
SEC. 17. Petition.—The petition, in case the landowner

refuses to sell, shall be filed in the manner and form to be prescribed
by the Administration. However, before initiating expropriation
proceedings, the Administration shall make one last effort to
purchase the land by negotiated sale.
SEC. 18. Possession of the land; procedure.—The

Administration after commencing the expropriation suit may take
immediate possession of the land upon deposit, with the Court
which has acquired jurisdiction over the expropriation, of money or a
certificate of deposit of a depository of the Republic of the Philippines
as provided in section three of Rule 69 of the Rules of Court equal to
the value of the land as provisionally and promptly determined by
the Court taking into consideration the factors mentioned in section
twelve, paragraph (2).
Thereafter the procedure in the Rules of Court with respect

to eminent domain proceedings shall be followed. Pending judicial
expropriation proceedings the owner of the land sought to be
expropriated shall be given annually such allowance as his latest
income tax return, prior to the institution of the proceedings, shows
to be his net income from the land. Such allowance shall be approved
by the court having jurisdiction and shall be deducted from the final
amount awarded as compensation to the owner.
SEC. 19. Payment.—After the court has made final

determination of the just compensation for the land expropriated, it
shall be paid wholly in cash unless the landowner chooses to be paid
wholly or partly in land certificates, in which case section fifteen
shall apply.
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SEC. 20. Prohibition against alienation.—Upon the filing of

the petition referred to in sections twelve and sixteen, the landowner
cannot alienate any portion of the land covered by such petition
except in pursuance of the provisions of this Act, or enter into any
form of contract to defeat the purposes of this Act, and no ejectment
proceedings against any tenant or occupant of the land covered
by the petition shall be instituted or prosecuted until it becomes
certain that the land shall not be acquired by the Administration.
GENERAL PROVISIONS
SEC. 21. Resale of lands purchased or expropriated subject

to condition.—It shall be a condition in all resale contracts and
annotated on the Torrens titles of lands acquired and subdivided
by authority of this Act that said lands shall not be subdivided, sold
or in any manner transferred or encumbered without prior consent
of the Administration and only to qualified farmers or tenants or to
government banking institutions or agencies.
SEC. 22. Exemption from tax.—All land certificates issued

by authority of this Act shall be exempt from all forms of taxes.
The purchase price paid by the Government for any agricultural
land acquired for resale to tenants under the authority of this
Act, whether through negotiation or expropriation, shall not be
considered as income of the landowner concerned for purposes of
the income tax.
SEC. 23. Definition of terms.—For the purposes of this Act,

the following terms are defined as follows:
(1) Agricultural lands—shall mean lands devoted to

agricultural production and shall include the farm home lots.
(2) Family-size farm units—shall mean such are of farm land

not exceeding six hectares as will permit the efficient use of the
labor resources of the farm family, taking into account the addition
of such supplementary labor as may be necessary either for seasonal
155
peak loads or during the developmental and transitional stages of

the family itself.
(3) At cost—shall mean the purchase price plus six per cent
interest per annum for twenty-five years which includes the one per
cent per annum for administration expenses, plus actual expenses
for survey, subdivision and registration. The total, divided into
twenty-five equal installments, shall be the annual cost to the
tenant for twenty-five years.
SEC. 24. Payment of family-size farms sold to veterans and

other government employees.—Veterans of the Armed Forces of
the Philippines and other government employees with backpay
certificates from the Government are hereby authorized to use their
backpay certificates in payment of family-size farms that may be
acquired by them by authority of this Act.
SEC. 25. Trust fund.—All collections from the redistribution

of the lands acquired by the Administration, after deducting the one
per cent for administration expenses and the actual expenses for
survey, subdivision and registration, shall be kept in the National
Treasury as a special trust fund to be used exclusively for the
redemption of the land certificates and bonds issued by authority
of this Act.
SEC. 26. Sinking fund; appropriation.—A sinking fund shall

be established in such manner that the total annual contribution
thereto, accrued at such rate of interest as may be determined by
the Secretary of Finance in consultation with the Monetary Board,
shall be sufficient to redeem at maturity the land certificates and
bonds issued under this Act. Said fund shall be under the custody
of the Central Bank which shall invest the same in such manner as
the Monetary Board may approve; shall charge all expenses of such
investment to said sinking fund; and shall credit the same with the
interest on investments and other income belonging to it.
A standing annual appropriation not exceeding twenty

million pesos is hereby made out of the general fund in the National
156
Treasury to provide for the sinking fund created in the section and
to carry into effect the purposes of this Act.
In addition, there is hereby appropriated out of the bond issue

authorized under Republic Act Numbered One thousand, the sum
of one hundred million pesos to carry out the provisions of this Act.
SEC. 27. Appropriation for the Administration.—There is

hereby appropriated out of any funds in the National Treasury not
otherwise appropriated, the sum of three hundred thousand pesos
for salaries, per diems, traveling expenses, furniture, office supplies
and other expenses that may be incurred by the Administration
for the fiscal year 1955-1956. The expenses of the Administration
for the succeeding years shall be provided for in the corresponding
annual general appropriation acts.
SEC. 28. Transfer of functions of the Division of Landed Estates,

Bureau of Lands.—Upon the organization of the Administration,
the Division of Landed Estates in the Bureau of Lands shall stand
abolished and its functions, powers and duties, personnel, records,
equipment and balances of appropriation shall thereupon be
transferred to the said Administration.
SEC. 29. Repeal of laws.—All acts or parts of acts which are

inconsistent with the provisions of this Act are hereby repealed.
SEC. 30. Effectivity.—This Act shall take effect upon its

approval.
Approved, September 9, 1955.
157
5th Congress
S. No. 542
H. No. 5222
AN ACT TO ORDAIN THE AGRICULTURAL LAND REFORM

CODE AND TO INSTITUTE LAND REFORMS IN THE
PHILIPPINES, INCLUDING THE ABOLITION OF TENANCY
AND THE CHANNELING OF CAPITAL INTO INDUSTRY,
PROVIDE FOR THE NECESSARY IMPLEMENTING
AGENCIES, APPROPRIATE FUNDS THEREFOR AND FOR
OTHER PURPOSES

PRELIMINARY CHAPTER.—TITLE, DECLARATION OF

POLICY AND COMPOSITION OF CODE
SECTION 1. Title—This Act shall be known as the Agricultural

Land Reform Code.
SEC. 2. Declaration of Policy.—It is the policy of the State:
(1) To establish owner-cultivatorship and the economic

family-size farm as the basis of Philippine agriculture and, as a
consequence, divert landlord capital in agriculture to industrial
development;
(2) To achieve a dignified existence for the small farmers free

from pernicious institutional restraints and practices;
(3) To create a truly viable social and economic structure

in agriculture conducive to greater productivity and higher farm
incomes;
(4) To apply all labor laws equally and without discrimination

to both industrial and agricultural wage earners;
158
(5) To provide a more vigorous and systematic land

resettlement program and public land distribution; and
(6) To make the small farmers more independent, self-reliant

and responsible citizens, and a source of genuine strength in our
democratic society.
SEC. 3. Composition of Code.—In pursuance of the policy

enunciated in Section two, the following are established under this
Code:
(1) An agricultural leasehold system to replace all existing

share tenancy systems in agriculture;
(2) A declaration of rights for agricultural labor;
(3) An authority for the acquisition and equitable distribution

of agricultural land;
(4) An institution to finance the acquisition and distribution

(5) A machinery to extend credit and similar assistance to

agriculture;
(6) A machinery to provide marketing, management, and

other technical services to agriculture;
(7) A unified administration for formulating and implementing

projects of land reform;
(8) An expanded program of land capability survey,

classification, and registration; and
(9) A judicial system to decide issues arising under this Code

and other related laws and regulations.
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CHAPTER I.—AGRICULTURAL LEASEHOLD SYSTEM
SEC. 4. Abolition of Agricultural Share Tenancy.—

Agricultural share tenancy, as herein defined, is hereby declared to
be contrary to public policy and shall be abolished: Provided, That
existing share tenancy contracts may continue in force and effect
in any region or locality, to be governed in the by meantime the
pertinent provisions of Republic Act Numbered Eleven hundred
and ninety-nine, as amended, until the end of the agricultural
year when the National Land Reform Council proclaims that all
the government machineries and agencies in that region or locality
relating to leasehold envisioned in this Code are operating, unless
such contracts provide for a shorter period or the tenant sooner
exercises his option to elect the leasehold system: Provided, further,
That in order not to jeopardize international commitments, lands
devoted to crops covered by marketing allotments shall be made
the subject of a separate proclamation that adequate provisions,
such as the organization of cooperatives, marketing agreements,
or other similar workable arrangements, have been made to insure
efficient management on all matters requiring synchronization of
the agricultural with the processing phases of such crops: Provided,
furthermore, That where the agricultural share tenancy contract
has ceased to be operative by virtue of this Code, or where such a
tenancy contract has been entered into in violation of the provisions
of this Code and is, therefore, null and void, and the tenant
continues in possession of the land for cultivation, there shall be
presumed to exist a leasehold relationship under the provisions of
this Code, without prejudice to the right of the landowner and the
former tenant to enter into any other lawful contract in relation
to the land formerly under tenancy contract, as long as in the
interim the security of tenure of the former tenant under Republic
Act Numbered Eleven hundred and ninety-nine, as amended, and
as provided in this Code, is not impaired: Provided, finally, That if
a lawful leasehold tenancy contract was entered into prior to the
effectivity of this Code, the rights and obligations arising therefrom
shall continue to subsist until modified by the parties in accordance
with the provisions of this Code.
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SEC. 5. Establishment of Agricultural Leasehold Relation.—

The agricultural leasehold relation shall be established by operation
of law in accordance with Section four of this Code and, in other
cases, either orally or in writing, expressly or impliedly.
SEC. 6. Parties to Agricultural Leasehold Relation.—The

agricultural leasehold relation shall be limited to the person
who furnishes the landholding, either as owner, civil law lessee,
usufructuary, or legal possessor, and the person who personally
cultivates the same.
SEC. 7. Tenure of Agricultural Leasehold Relation.—The

agricultural leasehold relation once established shall confer upon the
agricultural lessee the right to continue working on the landholding
until such leasehold relation is extinguished. The agricultural
lessee shall be entitled to security of tenure on his landholding
and cannot be ejected therefrom unless authorized by the Court for
causes herein provided.
SEC. 8. Extinguishment of Agricultural Leasehold Relation.—

The agricultural leasehold relation established under this Code
shall be extinguished by:
(1) Abandonment of the landholding without the knowledge

of the agricultural lessor;
(2) Voluntary surrender of the landholding by the agricultural

lessee, written notice of which shall be served three months in
advance; or
(3) Absence of the persons under Section nine to succeed to

the lessee, in the event of death or permanent incapacity of the
lessee.
SEC. 9. Agricultural Leasehold Relation Not Extinguished by

Death or Incapacity of the Parties.—In case of death or permanent
incapacity of the agricultural lessee to work his landholding, the
leasehold shall continue between the agricultural lessor and the
161
person who can cultivate the landholding personally, chosen by the

agricultural lessor within one month from such death or permanent
incapacity, from among the following: (a) the surviving spouse; (b)
the eldest direct descendant by consanguinity; or (c) the next eldest
descendant or descendants in order of their age: Provided, That in
case the death or permanent incapacity of the agricultural lessee
occurs during the agricultural year, such choice shall be exercised
at the end of that agricultural year: Provided, further, That in the
event the agricultural lessor fails to exercise his choice within the
periods herein provided, the priority shall be in accordance with the
order herein established.
In case of death or permanent incapacity of the agricultural

lessor, the leasehold shall bind his legal heirs.
SEC. 10. Agricultural Leasehold Relation Not Extinguished

by Expiration of Period, etc.—The agricultural leasehold relation
under this Code shall not be extinguished by mere expiration of the
term or period in a leasehold contract nor by the sale, alienation
or transfer of the legal possession of the landholding. In case the
agricultural lessor sells, alienates or transfers the legal possession
of the landholding, the purchaser or transferee thereof shall be
subrogated to the rights and substituted to the obligations of the
agricultural lessor.
SEC. 11. Lessee’s Right of Pre-emption.—In case the agricultural

lessor decides to sell the landholding, the agricultural lessee shall
have the preferential right to buy the same under reasonable terms
and conditions: Provided, That the entire landholding offered for
sale must be preempted by the Land Authority if the landowner so
desires, unless the majority of the lessees object to such acquisition:
Provided, further, That where there are two or more agricultural
lessees, each shall be entitled to said preferential right only to
the extent of the area actually cultivated by him. The right of pre-
emption under this Section may be exercised within ninety days
from notice in writing, which shall be served by the owner on all
lessees affected.
162
SEC. 12. Lessee’s Right of Redemption.—In case the

landholding is sold to a third person without the knowledge of the
agricultural lessee, the latter shall have the right to redeem the same
at a reasonable price and consideration: Provided, That the entire
landholding sold must be redeemed: Provided, further, That where
there are two or more agricultural lessees, each shall be entitled
to said right of redemption only to the extent of the area actually
cultivated by him. The right of redemption under this Section may
be exercised within two years from the registration of the sale, and
shall have priority over any other right of legal redemption.
SEC. 13. Affidavit Required in Sale of Land Subject to Right of

Pre-emption.—No deed of sale of agricultural land under cultivation
by an agricultural lessee or lessees shall be recorded in the Registry
of Property unless accompanied by an affidavit of the vendor that
he has given the written notice required in Section eleven of this
Chapter or that the land is not worked by an agricultural lessee.
SEC. 14. Right of Pre-emption and Redemption Not Applicable

to Land to be Converted into Residential, Industrial and Similar
Purposes.—The right of pre-emption and redemption granted under
Sections eleven and twelve of this Chapter cannot be exercised over
landholdings suitably located which the owner bought or holds for
conversion into residential, commercial, industrial or other similar
non-agricultural purposes: Provided, however, That the conversion
be in good faith and is substantially carried out within one year
from the date of sale. Should the owner fail to comply with the above
condition, the agricultural lessee shall have the right to repurchase
under reasonable terms and conditions said landholding from said
owner within one year after the aforementioned period for conversion
has expired: Provided, however, That the tenure of one year shall
cease to run from the time the agricultural lessee petitions the Land
Authority to acquire the land under the provisions of paragraph 11
of Section fifty-one.
SEC. 15. Agricultural Leasehold Contract in General.—The

agricultural lessor and the agricultural lessee shall be free to enter
into any kind of terms, conditions or stipulations in a leasehold
163
contract, as long as they are not contrary to law, morals or public

policy. A term, condition or stipulation in an agricultural leasehold
contract is considered contrary to law, morals or public policy:
(1) If the agricultural lessee is required to pay a rental in

excess of that which is hereinafter provided for in this Chapter;
(2) If the agricultural lessee is required to pay a consideration

in excess of the fair rental value as defined herein, for the use of
work animals and/or farm implements belonging to the agricultural
lessor or to any other person; or
(3) If it is imposed as a condition in the agricultural leasehold

contract:(a) that the agricultural lessee is required to rent work,
animals or to hire farm implements from the agricultural lessor or
a third person, or to make use of any store or services operated by
the agricultural lessor or a third person; or (b) that the agricultural
lessee is required to perform any work or render any service other
than his duties and obligations provided in this Chapter with or
without compensation; or (c) that the agricultural lessee is required
to answer for any fine, deductions and/or assessments.
Any contract by which the agricultural lessee is required to

accept a loan or to make payment therefor in kind shall also be
contrary to law, morals or public policy.
SEC. 16. Nature and Continuity of Conditions of Leasehold

Contract.—In the absence of any agreement as to the period, the terms
and conditions of a leasehold contract shall continue until modified
by the parties: Provided, That in no case shall any modification of its
terms and conditions prejudice the right of the agricultural lessee
to the security of his tenure on the landholding: Provided, further,
That in case of a contract with a period an agricultural lessor may
not, upon the expiration of the period, increase the rental except in
accordance with the provisions of Section thirty-four.
SEC. 17. Form and Registration of Contract.—Should

the parties decide to reduce their agreement into writing, the
164
agricultural leasehold contract shall be drawn in quadruplicate in

a language or dialect known to the agricultural lessee and signed
or thumb-marked both by the agricultural lessee personally and
by the agricultural lessor or his authorized representative, before
two witnesses, to be chosen by each party. If the agricultural lessee
does not know how to read, the contents of the document shall be
read and explained to him by his witness. The contracting parties
shall acknowledge the execution of the contract before the justice
of the peace of the municipality where the land is situated. No fees
or stamps of any kind shall be required in the preparation and
acknowledgment of the instrument. Each of the contracting parties
shall retain a copy of the contract. The justice of the peace shall
cause the third copy to be delivered to the municipal treasurer of
the municipality where the land is located and the fourth copy to
the Office of the Agrarian Counsel.
Except in case of mistake, violence, intimidation, undue

influence, or fraud, an agricultural contract reduced in writing and
registered as hereinafter provided, shall be conclusive between the
contracting parties, if not denounced or impugned within thirty
days after its registration.
SEC. 18. Registration of Leasehold Contract.—The municipal

treasurer shall, upon receipt of his copy of the contract, require
the agricultural lessee and agricultural lessor to present their
respective copies of the contract, and shall cause to be annotated
thereon the date, time and place of registration as well as its entry
or registration number.
SEC. 19. Registry of Agricultural Leasehold Contracts.—The

municipal treasurer of the municipality wherein the land is situated
shall keep a record of all such contracts drawn and executed within
his jurisdiction, to be known as “Registry of Agricultural Leasehold
Contracts”. He shall keep this registry together with a copy of each
contract entered therein, and make annotations on said registry of
all subsequent acts relative to each contract, such as its renewal,
novation, cancellation, etc. No registration fees or documentary
165
stamps shall be required in the registration of said contracts or of

any subsequent acts relative thereto.
SEC. 20. Memorandum of Loans.—No obligation to pay money

on account of loans including interest thereon obtained by the
agricultural lessee from the agricultural lessor or his representative
shall be enforceable unless the same or a memorandum thereof be
in writing in a language or dialect known to the agricultural lessee,
and signed or thumb-marked by him, or by his agent.
SEC. 21. Exemption from Lien and/or Execution.—The

following shall be exempt from lien and/or execution against the
agricultural lessee:
(1) Twenty-five per centum of the entire produce of the land

under cultivation; and
(2) Work animals and farm implements belonging to the

agricultural lessee: Provided, That their value does not exceed one
thousand pesos. But no article or species of property mentioned in
this Section shall be exempt from execution issued upon a judgment
recovered for its price or upon a judgment of foreclosure of a
mortgage thereon.
SEC. 22. Use of Accepted Standards of Weights and Measures.—

In all transactions entered into between the agricultural lessee and
the agricultural lessor concerning agricultural products the official
or, upon agreement of the parties, the accepted standards of weights
and measures shall be used.
SEC. 23. Rights of Agricultural Lessee in General.—It shall be

the right of the agricultural lessee:
(1) To have possession and peaceful enjoyment of the land;
(2) To manage and work on the land in a manner and method

of cultivation and harvest which conform to proven farm practices;
(3) To mechanize all or any phase of his farm work; and
166
(4) To deal with millers and processors and attend to the

issuance of quedans and warehouse receipts for the produce due
him.
SEC. 24. Right to a Home Lot.—The agricultural lessee shall

have the right to continue in the exclusive possession and enjoyment
of any home lot he may have occupied upon the effectivity of this
Code, which shall be considered as included in the leasehold.
SEC. 25. Right to be Indemnified for Labor.—The agricultural

lessee shall have the right to be indemnified for the cost and
expenses incurred in the cultivation, planting or harvesting and
other expenses incidental to the improvement of his crop in case he
surrenders or abandons his landholding for just cause or is ejected
therefrom. In addition, he has the right to be indemnified for one-
half of the necessary and useful improvements made by him on
the landholding: Provided, That these improvements are tangible
and have not yet lost their utility at the time of surrender and/or
abandonment of the land-holding, at which time their value shall
be determined for the purpose of the indemnity for improvements.
SEC. 26. Obligations of the Lessee.—It shall be the obligation

of the agricultural lessee:
(1) To cultivate and take care of the farm, growing crops, and
other improvements on the landholding as a good father of a family
and perform all the work therein in accordance with proven farm
practices;
(2) To inform the agricultural lessor within a reasonable time

of any trespass committed by third persons upon the farm, without
prejudice to his direct action against the trespasser;
(3) To take reasonable care of the work animals and farm

implements delivered to him by the agricultural lessor and see that
they are not used for purposes other than those intended or used
by another without the knowledge and consent of the agricultural
lessor: Provided, however, That if said work animals get lost or
167
die, or said farm implements get lost or are destroyed, through the
negligence of the agricultural lessee, he shall be held responsible
and made answerable therefor to the extent of the value of the work
animals and/or farm implements at the time of the loss, death or
destruction;
(4) To keep his farm and growing crops attended to during

the work season. In case of unjustified abandonment or neglect of
his farm, any or all of his expected produce may, upon order of the
Court, be forfeited in favor of the agricultural lessor to the extent of
the damage caused thereby;
(5) To notify the agricultural lessor at least three days before

the date of harvesting or, whenever applicable, of threshing; and
(6) To pay the lease rental to the agricultural lessor when it

falls due.
SEC. 27. Prohibitions to Agricultural Lessee.—It shall be

unlawful for the agricultural lessee:
(1) To contract to work additional land holdings belonging to a

different agricultural lessor or to acquire and personally cultivate
an economic family-size farm, without the knowledge and consent
of the agricultural lessor with whom he had entered first into
leasehold, if the first landholding is of sufficient size to make him
and the members of his immediate farm household fully occupied in
its cultivation; or
(2) To employ a sub-lessee on his landholding: Provided,

however, That in case of illness or temporary incapacity he may
employ laborers whose services on his Landholding shall be on his
account.
SEC. 28. Termination of Leasehold by Agricultural Lessee

During Agricultural Year.—The agricultural lessee may terminate
the leasehold during the agricultural year for any of the following
causes:
168
(1) Cruel, inhuman or offensive treatment of the agricultural

lessee or any member of his immediate farm household by the
agricultural lessor or his representative with the knowledge and
consent of the lessor;
(2) Non-compliance on the part of the agricultural lessor with

any of the obligations imposed upon him by the provisions of this
Code or by his contract with the agricultural lessee;
(3) Compulsion of the agricultural lessee or any member of his

immediate farm household by the agricultural lessor to do any work
or render any service not in any way connected with farm work or
even without compulsion if no compensation is paid;
(4) Commission of a crime by the agricultural lessor or his

representative against the agricultural lessee or any member of his
immediate farm household; or
(5) Voluntary surrender due to circumstances more

advantageous to him and his family.
SEC. 29. Rights of the Agricultural Lessor.—It shall be the

right of the agricultural lessor:
(1) To inspect and observe the extent of compliance with the

terms and conditions of their contract and the provisions of this
Chapter;
(2) To propose a change in the use of the landholding to

other agricultural purposes, or in the kind of crops to be planted:
Provided, That in case of disagreement as to the proposed change,
the same shall be settled by the Court according to the best interest
of the parties concerned: Provided, further, That in no case shall an
agricultural lessee be ejected as a consequence of the conversion of
the land to some other agricultural purpose or because of a change
in the crop to be planted;
169
(3) To require the agricultural lessee, taking into consideration

his financial capacity and the credit facilities available to him,
to adopt in his farm proven farm practices necessary to the
conservation of the land, improvement of its fertility and increase
of its productivity: Provided, That in case of disagreement as to
what proven farm practice the lessee shall adopt, the same shall
be settled by the Court according to the best interest of the parties
concerned; and
(4) To mortgage expected rentals.
SEC. 30. Obligations of the Agricultural Lessor.—It shall be

the obligation of the agricultural lessor;
(1) To keep the agricultural lessee in peaceful possession and

cultivation of his landholding; and
(2) To keep intact such permanent useful improvements

existing on the landholding at the start of the leasehold relation as
irrigation and drainage systems and marketing allotments, which
in the case of sugar quotas shall refer both to domestic and export
quotas, provisions of existing laws to the contrary notwithstanding.
SEC. 31. Prohibitions to the Agricultural Lessor.—It shall be

unlawful for the agricultural lessor:
(1) To dispossess the agricultural lessee of his landholding

except upon authorization by the Court under Section thirty-six.
Should the agricultural lessee be dispossessed of his landholding
without authorization from the Court, the agricultural lessor shall
be liable for damages suffered by the agricultural lessee in addition
to the fine or imprisonment prescribed in this Code for unauthorized
dispossession;
(2) To require the agricultural lessee to assume, directly or

indirectly, the payment of the taxes or part thereof levied by the
government on the landholding;
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(3) To require the agricultural lessee to assume, directly or

indirectly, any part of the rent, “canon” or other consideration which
the agricultural lessor is under obligation to pay to third persons for
the use of the land;
(4) To deal with millers or processors without written

authorization of the lessee in cases where the crop has to be sold in
processed form before payment of the rental; or
(5) To discourage, directly or indirectly, the formation,

maintenance or growth of unions or organizations of agricultural
lessees in his landholding, or to initiate, dominate, assist or
interfere in the formation or administration of any such union or
organization.
SEC. 32. Cost of Irrigation System.—The cost of construction

of a permanent irrigation system, including distributory canals, may
be borne exclusively by the agricultural lessor who shall be entitled
to an increase in rental proportionate to the resultant increase in
production; Provided, That if the agricultural lessor refuses to bear
the expenses of construction the agricultural lessee or lessees may
shoulder the same, in which case the former shall not be entitled
to an increase in rental and shall, upon the termination of the
relationship, pay the lessee or his heir the reasonable value of the
improvement at the time of the termination: Provided, further, That
if the irrigation system constructed does not work, it shall not be
considered as an improvement within the meaning of this Section.
SEC. 33. Manner, Time and Place of Rental Payment.—The

consideration for the lease of the land shall be paid in an amount
certain in money or in produce, or both, payable at the place agreed
upon by the parties immediately after threshing or processing if the
consideration is in kind, or within a reasonable time thereafter, if
not in kind.
In no case shall the agricultural lessor require the agricultural

lessee to file a bond, make a deposit or pay the rental in advance,
in money or in kind or in both, but a special and preferential lien is
171
hereby created in favor of the agricultural lessor over such portion

of the gross harvest necessary for the payment of the rental due in
his favor.
SEC. 34. Consideration for the Lease of Riceland and Lands

Devoted to Other Crops.—The consideration for the lease of riceland
and lands devoted to other crops shall not be more than the
equivalent of twenty-five per centum of the average normal harvest
during the three agricultural years immediately preceding the date
the leasehold was established after deducting the amount used for
seeds and the cost of harvesting, threshing, loading, hauling and
processing, whichever are applicable: Provided, That if the land
has been cultivated for a period of less than three years, the initial
consideration shall be based on the average normal harvest during
the preceding years when the land was actually cultivated, or on the
harvest of the first year in the case of newly-cultivated lands, if that
harvest is normal: Provided, further, That after the lapse of the first
three normal harvests, the final consideration shall be based on the
average normal harvest during these three preceding agricultural
years: Provided, furthermore, That in the absence of any agreement
between the parties as to the rental, the maximum allowed herein
shall apply: Provided, finally, That if capital improvements are
introduced on the farm not by the lessee to increase its productivity,
the rental shall be increased proportionately to the consequent
increase in production due to said improvements. In case of
disagreement, the Court shall determine the reasonable increase
in rental.
SEC. 35. Exemption from Leasehold of Other Kinds of

Lands.—Notwithstanding the provisions of the preceding Sections,
in the case of fishponds, saltbeds, and lands principally planted to
citrus, coconuts, cacao, coffee, durian, and other similar permanent
trees at the time of the approval of this Code, the consideration,
as well as the tenancy system prevailing, shall be governed by the
provisions of Republic Act Numbered Eleven hundred and ninety-
nine, as amended.
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SEC. 36. Possession of Landholding; Exceptions.—

Notwithstanding any agreement as to the period or future surrender
of the land, an agricultural lessee shall continue in the enjoyment
and possession of his landholding except when his dispossession
has been authorized by the Court in a judgment that is final and
executory if after due hearing it is shown that:
(1) The agricultural lessor-owner or a member of his immediate

family will personally cultivate the landholding or will convert the
landholding, if suitably located, into residential, factory, hospital
or school site or other useful non-agricultural purposes: Provided,
That the agricultural lessee shall be entitled to disturbance
compensation equivalent to five years rental on his landholding in
addition to his rights under Sections twenty-five and thirty-four,
except when the land owned and leased by the agricultural lessor
is not more than five hectares in which case instead of disturbance
compensation the lessee may be entitled to an advanced notice of at
least one agricultural year before ejectment proceedings are filed
against him: Provided, further, That should the landholder not
cultivate the land himself for three years or fail to substantially
carry out such conversion within one year after the dispossession
of the tenant, it shall be presumed that he acted in bad faith and
the tenant shall have the right to demand possession of the land
and recover damages for any loss incurred by him because of said
dispossession;
(2) The agricultural lessee failed to substantially comply

with any of the terms and conditions of the contract or any of the
provisions of this Code unless his failure is caused by fortuitous
event or force majeure;
(3) The agricultural lessee planted crops or used the

landholding for a purpose other than what had been previously
agreed upon;
(4) The agricultural lessee failed to adopt proven farm

practices as determined under paragraph 3 of Section twenty-nine;
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(5) The land or other substantial permanent improvement

thereon is substantially damaged or destroyed or has unreasonably
deteriorated through the fault or negligence of the agricultural
lessee;
(6) The agricultural lessee does not pay the lease rental when
it falls due: Provided, That if the non-payment of the rental shall
be due to crop failure to the extent of seventy-five per centum as a
result of a fortuitous event, the non-payment shall not be a ground
for dispossession, although the obligation to pay the rental due that
particular crop is not thereby extinguished; or
(7) The lessee employed a sub-lessee on his landholding in

violation of the terms of paragraph 2 of Section twenty-seven.
SEC. 37. Burden of Proof.—The burden of proof to show the

existence of a lawful cause for the ejectment of an agricultural lessee
shall rest upon the agricultural lessor.
SEC. 38. Statute of Limitations.—An action to enforce any

cause of action under this Code shall be barred if not commenced
within three years after such cause of action accrued.
CHAPTER II.—BILL OF RIGHTS FOR AGRICULTURAL LABOR
SEC. 39. Rights for Agricultural Labor—To enable the

farm workers to enjoy the same rights and opportunities in life as
industrial workers, they shall enjoy the following:
(1) Right to self-organization;
(2) Right to engage in concerted activities;
(3) Right to minimum wage;
(4) Right to work for not more than eight hours;
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(5) Right to claim for damages for death or injuries sustained

while at work;
(6) Right to compensation for personal injuries, death or

illness; and
(7) Right against suspension or lay-off.
SEC. 40. Right to Self-Organization.—The farm workers shall

have the right to self-organization and to form, join or assist farm
workers’ organizations of their own choosing for the purpose of
collective bargaining through representatives of their own choosing:
Provided, That this right shall be exercised in a manner as will
not unduly interfere with the normal farm operations. Individuals
employed as supervisors shall not be eligible for membership in
farm workers’ organizations under their supervision but may form
separate organizations of their own.
SEC. 41. Right to Engage in Concerted Activities.—The farm

workers shall also have the right to engage in concerted activities
for the purpose of collective bargaining and other mutual aid or
protection.
For the purpose of this and the preceding Section, it shall be

the duty of the farm employer or manager to allow the farm workers,
labor leaders, organizers, advisers and helpers complete freedom to
enter and leave the farm, plantation or compound at the portion
of the same where said farm workers live or stay permanently or
temporarily.
SEC. 42. Right to Minimum Wage.—Notwithstanding any

provision of law or contract to the contrary, farm workers in farm
enterprises shall be entitled to at least P3.50 a day for eight hours’
work: Provided, That this wage may, however, be increased by the
Minimum Wage Board as provided for in Republic Act Numbered
Six hundred and two.
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SEC. 43. Right to Eight Hours’ Work.—Notwithstanding the

provision of existing laws to the contrary, farm workers shall not be
required to work for more than eight hours daily. When the work
is not continuous, the time during which the farm worker is not
working and can leave his working place and can rest completely
shall not be counted.
Work may be performed beyond eight hours a day in case of

actual or impending emergencies caused by serious accidents, fire,
flood, typhoon, epidemic, or other disaster or calamity, or in case
of urgent work to be performed on farm machines, equipment or
installations in order to avoid a serious loss which the farm employer
or manager would otherwise suffer, or some other just cause of
a similar nature, but in all such cases the farm workers shall be
entitled to receive compensation for the overtime work performed at
the same rate as their regular wages, plus at least twenty-five per
centum additional, based on their daily wages.
No farm employer or manager shall compel a farm worker

to work during Sundays and legal holidays: Provided, however,
That should the farm worker agree to work on said days, he shall
be paid an additional sum of at least twenty-five per centum of his
regular compensation: Provided, further, That the farm employer
or manager shall not be held liable for any claim for overtime
work which he had not previously authorized, except if the work
rendered was to avoid damages to crops, produce, work animals or
implements, buildings or the like.
Any agreement or contract between the farm employer or

manager and the farm worker contrary to the provisions of this
Section shall be null and void.
SEC. 44. Right of Action for Damages.—Notwithstanding the

provisions of existing laws to the contrary, Act Numbered Eighteen
hundred and seventy-four, as amended, entitled “An Act to extend
and regulate the responsibility of employers for personal injuries
and death suffered by their employees while at work”, shall apply to
farm workers insofar as it may be applicable.
176
SEC. 45. Right to Compensation for Personal Injuries, Death,

or Illness.—Notwithstanding the provisions of existing laws to
the contrary, Act Numbered Thirty-four hundred and twenty-
eight, as amended, entitled “An Act prescribing the compensation
to be received by employees for personal injuries, death or illness
contracted in the performance of their duties”, shall apply to farm
workers insofar as it may be applicable.
SEC. 46. Right Against Suspension or Lay-Off.—The

landowner, farm employer or farm manager shall not suspend, lay-
off, or dismiss any farm worker without just cause from the time a
farm workers’ organization or group of farm workers has presented
to the landowner a petition or complaint regarding any matter likely
to cause a strike or lockout and a copy thereof furnished with the
Department of Labor, or while an agricultural dispute is pending
before the Court of Agrarian Relations. If it is proved during the
said period that a worker has been suspended or dismissed without
just cause, the Court may direct the reinstatement and the payment
of his wage during the time of his suspension or dismissal, or of
any sum he should have received had he not been suspended or
dismissed, without prejudice to any criminal liability of the
landowner, farm employer or farm manager as prescribe by Section
twenty-four of Commonwealth Act Numbered One hundred and
three, as amended.
SEC. 47. Other Applicable Provisions.—All other existing laws

applicable to non-agricultural workers in private enterprises which
are not inconsistent with this Code shall likewise apply to farm
workers, farm labor organizations and agrarian disputes as defined
in this Code, as well as to relations between farm management and
farm labor and the functions of the Department of Labor and other
agencies.
SEC. 48. Exceptions to Preceding Sections.—The preceding

Sections of this Chapter, except Sections forty, forty-one, forty-two
and forty-three shall not apply to farm enterprises comprising not
more than twelve hectares.
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CHAPTER III.—LAND AUTHORITY
ARTICLE I.—Organization and Functions of the Land Authority
SEC. 49. Creation of the Land Authority.—For the purpose

of carrying out the policy of establishing owner-cultivatorship and
the economic family-size farm as the basis of Philippine agriculture
and other policies enunciated in this Code, there is hereby created
a Land Authority, hereinafter called the Authority, which shall be
directly under the control and supervision of the President of the
Philippines. The Authority shall be headed by a Governor who shall
be appointed by the President with the consent of the Commission
on Appointments.
He shall be assisted by two Deputy Governors who shall be

Appointments, each of whom shall head such operating departments
as may be set up by the Governor. The Governor and the Deputy
Governors shall hold office for five years.
SEC. 50. Qualifications and Compensation of Governors.—

No person shall be appointed Governor or Deputy Governor of the
Authority unless he is a natural-born citizen of the Philippines,
with adequate background and experience in land reform here and/
or elsewhere, and at least thirty-five years of age.
The Governor shall receive an annual compensation of twenty-

four thousand pesos; the Deputy Governors shall each receive an
annual compensation of eighteen thousand pesos.
SEC. 51. Powers and Functions.—It shall be the responsibility

of the Authority:
(1) To initiate and prosecute expropriation proceedings for

the acquisition of private agricultural lands as defined in Section
one hundred sixty-six of Chapter XI of this Code for the purpose of
subdivision into economic family-size farm units and resale of said
farm units to bona fide tenants, occupants and qualified farmers:
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Provided, That the powers herein granted shall apply only to private
agricultural lands subject to the terms and conditions and order of
priority hereinbelow specified:
a. all idle or abandoned private agricultural lands, except those

held or purchased within one year from the approval of this Code
by private individuals or corporations for the purpose of resale and
subdivision into economic family-size farm units in accordance with
the policies enunciated in this Code: Provided, That the subdivision
and resale shall be substantially carried out within one year from
the approval of this Code;
b. all private agricultural lands suitable for subdivision into

economic family-size farm units, owned by private individuals or
corporations worked by lessees, no substantial portion of whose
landholding in relation to the area sought to be expropriated, is
planted to permanent crops under labor administration, in excess
of seventy-five hectares except all private agricultural lands under
labor administration and lands acquired under Section seventy-one
of this Code; and
c. in expropriating private agricultural lands declared by the

National Land Reform Council or by the Land Authority within
a land reform district to be necessary for the implementation of
the provisions of this Code, the following order of priority shall be
observed:
1. idle or abandoned lands;
2. those whose area exceeds 1,024 hectares;
3. those whose area exceeds 500 hectares but is not more

than 1,024 hectares;
4. those whose area exceeds 144 hectares but is not more than
500 hectares; and
5. those whose area exceeds 75 hectares but is not more than

144 hectares.
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(2) To help bona fide farmers without lands or agricultural

owner-cultivators of uneconomic-size farms to acquire and own
economic family-size farm units;
(3) To administer and dispose of agricultural lands of

the public domain under the custody and administration of the
National Resettlement and Rehabilitation Administration prior to
the approval of this Code and such other public agricultural lands
as may hereafter be reserved by the President of the Philippines for
resettlement and sale, in accordance with such terms and conditions
as are set forth under this Chapter: Provided, That the exercise
of the authority granted herein, as well as in the preceding sub-
paragraph, shall not contravene public policy on the permanency
of forest reserves or other laws intended for the preservation and
conservation of public forests;
(4) To develop plans and initiate actions for the systematic

opening of alienable and disposable lands of the public domain for
speedy distribution to and development by deserving and qualified
persons or corporations;
(5) To recommend to the President, from time to time after

previous consultation with the Secretary of Agriculture and Natural
Resources, what portion of the alienable or disposable public lands
shall be reserved for settlement or disposition under this Chapter;
(6) To give economic family-size farms to landless citizens of

the Philippines who need, deserve, and are capable of cultivating
the land personally, through organized resettlement, under the
terms and conditions the Authority may prescribe, giving priority
to qualified and deserving farmers in the province where such lands
are located;
(7) To reclaim swamps and marshes, obtain titles there to

whenever feasible and subdivide them into economic family-size
farms for distribution to deserving and qualified farmers;
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(8) To undertake measures which will insure the early

issuance of titles to persons or corporations w430/ 2ho have actually
settled and cultivated disposable and alienable lands of the public
domain;
(9) To survey, subdivide and set aside lands or areas of

landholdings under its administration for economic family-
size farms, large-scale farm operations, town sites, roads, parks,
government centers and other civic improvements as circumstances
may warrant and to submit subdivision survey plans conducted
either by the government or private surveyors on parcels of lands
under its administration for verification and approval either by the
Director of Lands or by the Land Registration Commission;
(10) To inform the Agricultural Productivity Commission

and the Office of the Agrarian Counsel of the problems of settlers
and farmers on lands under its administration;
(11) To acquire for agricultural lessees exercising their

right of pre-emption under Chapter I of this Code, any landholdings
mentioned thereunder;
(12) To conduct land capability survey and classification of

the entire country and print maps;
(13) To make such arrangements with the Land Bank with

respect to titles of agricultural lands of the public domain under its
administration as will be necessary to carry out the objectives of
this Code;
(14) To expropriate home lots occupied by agricultural

lessees outside their landholdings for resale at cost to said
agricultural lessees; and
(15) To submit to the President of the Philippines and

to both Houses of Congress through their presiding officers, to
the Secretary of Finance and to the Auditor General within sixty
days of the close of the fiscal year, an annual report showing its
181
accomplishments during the year; the expropriation proceedings it

has undertaken; the expenditures it has incurred and other financial
transactions undertaken with respect thereto.
SEC. 52. Appointment of Subordinate Officials and

Employees.—The Governor shall organize the personnel in such
departments, divisions and sections of the Authority as will insure
their maximum efficiency. He shall appoint, subject to civil service
rules and regulations, fix the compensation, subject to WAPCO rules
and regulations, and determine the duties of subordinate officials
and employees as the exigencies of the service may require.
ARTICLE II.—Expropriation of Private Agricultural Lands
SEC. 53. Compulsory Purchase of Agricultural Lands.—

The Authority shall, upon petition in writing of at least one-third
of the lessees and subject to the provisions of Chapter VII of this
Code, institute and prosecute expropriation proceedings for the
acquisition of private agricultural lands and home lots enumerated
under Section fifty-one. In the event a landowner agrees to sell his
property under the terms specified in this Chapter and the National
Land Reform Council finds it suitable and necessary to acquire such
property, a joint motion embodying the agreement, including the
valuation of the property, shall be submitted by the Land Authority
and the landowner to the Court for approval: Provided, That in such
case, any person qualified to be a beneficiary of such expropriation
or purchase may object to the valuation as excessive, in which case
the Court shall determine the just compensation in accordance with
Section fifty-six of this Code.
SEC. 54. Possession of the Land; Procedure.—The Authority,

after commencing the expropriation suit, may take immediate
possession of the land upon deposit with the Court that has acquired
jurisdiction over the expropriation proceedings in accordance with
the Rules of Court, of money, and bonds of the Land Bank, in
accordance with the proportions provided for under Section eighty
of this Code, equal to the value as determined by the Court in
accordance with the provisions of Section fifty-six hereof.
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SEC. 55. Expeditious Survey and Subdivision.—Immediately

after the Authority takes possession of lands to be acquired by it
under this Code, it shall undertake a subdivision survey of the
land into economic family-size farms which shall be immediately
assigned to beneficiaries selected in accordance with Section one
hundred and twenty-eight subject to such rules and regulations as
it may prescribe.
SEC. 56. Just Compensation.—In determining the just

compensation of the land to be expropriated pursuant to this
Chapter, the Court, in land under leasehold, shall consider as a
basis, without prejudice to considering other factors also, the annual
lease rental income authorized by law capitalized at the rate of six
per centum per annum.
The owner of the land expropriated shall be paid in accordance

with Section eighty of this Act by the Land Bank and pursuant to an
arrangement herein authorized.
SEC. 57. Duty of Court in Expropriation Proceedings.—In

expropriation proceedings, it shall be the duty of the Court to include
in its resolution or order of expropriation a provision that the Land
Authority shall, after taking possession of the land and after the
subdivision thereof, allow the Land Bank to have the title thereto
for the purpose of paying the owner the just compensation therefor.
SEC. 58. Issuance of Certificates of Title for Parcel or Lot.—

After the payment of just compensation on the land expropriated
the Land Bank shall cause the issuance of separate certificates of
titles for each parcel or lot in accordance with the subdivision survey
made under Section fifty-five.
SEC. 59. Prohibition Against Alienation and Ejectment.—

Upon the filing of the petition referred to in Section fifty-three the
landowner may not alienate any portion of the land covered by such
petition except in pursuance of the provisions of this Code, or enter
into any form of contract to defeat the purposes of this Code, and
no ejectment proceedings against any lessee or occupant of the land
183
covered by the petition shall be instituted or prosecuted until it

becomes certain that the land shall not be acquired by the Authority.
SEC. 60. Disposition of Expropriated Land.—After separate

certificates of titles have been issued in accordance with Section
fifty-eight, the Land Authority, on behalf of the Republic of
the Philippines and in representation of the Land Bank as the
financing agency, shall allot and sell each parcel or lot to a qualified
beneficiary selected under Section fifty-five of this Code, subject to
uniform terms and conditions imposed by the Land Bank: Provided,
That the resale shall be at cost which shall mean the purchase
price plus not more than six per centum per annum, which shall
cover administrative expenses, and actual expenses for subdivision,
surveying, and registration: Provided, further, That such cost shall
be paid on the basis of an amortization plan not exceeding twenty-
five years at the option of the beneficiary.
In case some agricultural lessees working portions of

agricultural lands acquired by the government under this Code
prefer to remain as lessees thereof, which preference shall be
expressed in writing and attested by a representative of the Office
of Agrarian Counsel, the resale and redistribution to them shall be
deferred until such time that such lessees are ready and willing to
assume the obligations and responsibilities of independent owners,
which shall be manifested by a written notice to this effect by the
lessees and which shall oblige the Land Authority forthwith to
allot and sell such portions to such lessees under the same
uniform terms and conditions. Pending the sale, such lessees shall
continue to work on their landholdings and receive the produce
thereof, subject, however, to the requirement that they pay the
Land Bank the allowable rental established in Section thirty-four.
The Land Bank shall apply the rental to the six percent added to the
acquisition price and credit the balance to the acquisition cost in the
name of the lessee as partial payment for the land.
The Land Authority shall administer said parcels of land

during the period they are under lease. Competent management
and adequate production credit shall be provided in accordance with
184
the program developed by the Land Reform Project Team for such
area.
SEC. 61. Organization of Cooperative Associations.—For

the purpose of more efficient management, adoption of modern
farm methods and techniques, and spreading risk, either through
diversification of farm projects or mutual assumption of risks, the
farmer beneficiaries may organize themselves into cooperative
associations with the advice or assistance of the Agricultural
Productivity Commission and in accordance with the guidelines
established by said Commission for such associations.
SEC. 62. Limitation on Land Rights.—Except in case of

hereditary succession by one heir, landholdings acquired under this
Code may not be resold, mortgaged, encumbered, or transferred
until after the lapse of ten years from the date of full payment and
acquisition and after such ten-year period, any transfer, sale or
disposition may be made only in favor of persons qualified to acquire
economic family-size farm units in accordance with the provisions of
this Code: Provided, That a purchaser who acquired his landholding
under a contract to sell may secure a loan on the same from any
private lending institution or individual for an amount not exceeding
his equity on said landholding upon a guaranty by the Land Bank.
SEC. 63. Inscription of Specific Prohibition Against Resale and

Subdivision of Landholding.—Certificates of titles of landholdings
acquired by the Land Authority and resold to purchasers shall
contain therein a specific inscription prohibiting further subdivision
and the resale, transfer or encumbrance of said landholdings except
as provided in the preceding Section.
SEC. 64. Exemption from Attachment.—Lands acquired under

the provisions of this Chapter shall be exempt from execution and
attachment, except when the land itself is the property mortgaged,
in accordance with Section sixty-two of this Code.
SEC. 65. Precedence of Expropriation Cases.—Expropriation

cases filed by the Authority under the provisions of this Chapter
185
shall take precedence over all other civil cases pending before the
Court and shall be terminated within a period not exceeding six
months from the date of filing.
ARTICLE III.—Distribution of Agricultural Lands of the Public

Domain
SEC. 66. Title to Public Agricultural Land.—Upon reservation

by the President of the Philippines of public agricultural land
available for disposition by the Land Authority, such land shall
be surveyed, titled and transferred to the Land Bank, which shall
reduce said title into individual titles for specific parcels or lots
in accordance with the subdivision survey conducted by the Land
Authority under paragraph 9 of Section fifty-one: Provided, however,
That existing laws governing the acquisition of public lands shall
have been complied with.
The Land Authority shall thereupon distribute in accordance

with the provisions of this Code, each parcel or lot, subject to the
terms and conditions of the Land Bank, to a beneficiary selected
pursuant to Section seventy-one or in accordance with paragraph 3
of Section fifty-one, to a beneficiary selected pursuant to paragraph
3 of Section one hundred twenty-eight.
SEC. 67. Census of Settlements.—The Authority shall take

a census of all settlements already made or started by farmers
on their own initiative on public agricultural lands, forest lands,
and on private titled lands which had been cleared, occupied
and cultivated wholly or partially by them, with or without legal
sanction. The census shall include, among other things, the bona
fide character of the settlements, the character of the settlers or
farmers, the exact status of the lands settled, the feasibility of
enlarging the settlements, particularly in connection with the
resources of the land occupied and the neighboring areas, actual
and potential accessibility to markets, as well as strategic location
of the settlement with respect to national security.
186
SEC. 68. Assistance to Settlers in Transporting Themselves

and Their Belongings.—The Authority may, in certain projects,
assist settlers in transporting themselves, their belongings, work
animals and farm equipment, if any, from the communities from
which they are migrating to the settlement areas reserved for the
purpose and for subsistence necessary until credit can be provided
by government financing agencies, or by any other credit institution
by loaning to them the full amount required for such purposes.
These loans from the Land Authority shall be non-interest bearing,
shall constitute a lien upon the land, and shall be amortized over a
period of ten years, payable annually beginning with the end of the
third year, after the date of arrival in the settlement areas, subject
to the right of the borrower to pay in full at any time prior to the
maturity of the loan.
SEC. 69. Assistance to Settlers in Securing Equipment.— The

Authority may assist the settlers in securing equipment, supplies
and materials needed; or assist the cooperative associations of the
new settlers in securing the most advantageous prices or terms on
farm implements and supplies needed.
SEC. 70. Providing Housing and Accommodations to Settlers.—

The Authority may help provide housing and other accommodations
for the new settlers upon their arrival in the settlement areas by
stationing them in properly surveyed and subdivided lots reserved
for the purpose; help them organize community activities; and
cooperate with the Bureau of Health, the Bureau of Public Schools
and other pertinent agencies of the Government, in providing
services necessary for the proper establishment of community
facilities.
SEC. 71. Power of the Land Authority to Sell to Holders of

Bonds Issued to Former Landowners Whose Lands Have Been
Purchased for Redistribution.—The Land Authority shall sell, for a
price not less than the appraised value, any portion not exceeding
one hundred forty-four hectares in the case of individuals or one
thousand twenty-four hectares in the case of corporations of the
public agricultural lands transferred to the Land Bank which
187
is suitable for large-scale farm operations to any holder, who is

qualified to acquire agricultural lands through purchase, of bonds
issued to former landowners whose lands have been purchased for
redistribution under this Code, subject to the condition that the
purchaser shall, within two years after acquisition, place under
cultivation at least thirty per centum of the entire area under
plantation administration and the remaining seventy per centum
within five years from the date of acquisition. The Governor of the
Land Authority shall issue the title of said land upon showing that
the purchaser has begun the development and cultivation of his land
under plantation administration: Provided, That public agricultural
land sold as hereinabove specified shall not be the object of any
expropriation as long as the same shall be developed and cultivated
for large-scale production under farm labor management, except as
allowed by the Constitution.
The selling price of the portion of the public agricultural

land sold under this Section shall be credited to the Government’s
subscription to the Land Bank. As payment for the land sold under
this Section, the Land Bank shall accept as sole instruments of
payment the bonds issued pursuant to Section seventy-six. Issued
bonds accepted as payment for the land sold shall be cancelled to
the extent of the amount paid.
All sales under this Code shall be subject to the provision of

Chapter V of the Public Land Act covering sales of public agricultural
lands insofar as they are not inconsistent with the provisions of this
Code.
SEC. 72. Duplicate Records to be Furnished the Bureau of

Lands.—The Land Authority shall furnish the Bureau of Lands
with the duplicate records of proceedings on applications for the
sale or other disposition of public agricultural lands under its
administration.
SEC. 73. Transfer of Appropriations, Powers, Functions, etc.—

The National Resettlement and Rehabilitation Administration and
the Land Tenure Administration are hereby abolished and their
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powers and functions not inconsistent with this Code, balances of all
appropriations, funds, equipment, records and supplies, as well as
agricultural lands, public and private, under their administration,
are hereby transferred to the Authority: Provided. That the function
of the Land Tenure Administration with respect to the expropriation
of urban lands as provided by existing laws is hereby transferred to
and shall hereafter be undertaken by the People’s Homesite and
Housing Corporation.
In addition to the appropriations herein transferred, there

is hereby appropriated from the general funds in the National
Treasury not otherwise appropriated the sum of five million pesos,
or so much thereof as may be necessary, to carry out the purposes
of this Code.
To carry out the land capability survey and classification

mentioned in paragraph 12 of Section fifty-one and Section one
hundred thirty-two of this Code, there is hereby appropriated out of
the unappropriated funds of the National Treasury the amount of
ten million pesos.
CHAPTER IV.—LAND BANK
SEC. 74. Creation.—To finance the acquisition by the

Government of landed estates for division and resale to small
landholders, as well as the purchase of the land-holding by the
agricultural lessee from the landowner, there is hereby established
a body corporate to be known as the “Land Bank of the Philippines”,
hereinafter called the “Bank”, which shall have its principal place
of business in Manila. The legal existence of the Bank shall be for a
period of fifty years counting from the date of the approval hereof.
The Bank shall be subject to such rules and regulations as the
Central Bank may from time to time promulgate.
SEC. 75. Powers in General.—To carry out this main purpose,

the Bank shall have the power:
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(1) To prescribe, repeal, and alter its own by-laws, to determine

its operating policies, and to issue such rules and regulations as
may be necessary to achieve the main purpose for the creation of the
Bank;
(2) To adopt, alter and use a corporate seal;
(3) To acquire and own real and personal property, and to sell,
mortgage or otherwise dispose of the same;
(4) To sue and be sued, make contracts, and borrow money

from both local and foreign sources. Such loans shall be subject
to approval by the President of the Philippines and shall be fully
guaranteed by the Government of the Philippines;
(5) Upon recommendation of the Committee on Investments,

to hold, own, purchase, acquire, sell or otherwise invest, or reinvest
in stocks, bonds or other securities capable of giving the Bank
a reasonably assured income sufficient to support its financing
activities and give its private stockholders a fair return on their
holdings: Provided, however, That pending the organization of the
Committee on Investments, the Bank may exercise the powers
herein provided without the recommendation of said Committee
on Investments: Provided, further, That in case of the dissolution
of the Land Bank all unsold public lands transferred to it which
may be allocated to the Government of the Philippines in the
course of liquidation of the business of the Bank shall revert to the
Department of Agriculture and Natural Resources; and
(6) To provide, free of charge, investment counseling and

technical services to landowners whose lands have been acquired
by the Land Bank. For this purpose, the Land Bank may contract
the services of private consultants.
SEC. 76. Issuance of Bonds.—The Land Bank shall, upon

recommendation by the Board of Trustees and approval of the
Monetary Board of the Central Bank, issue bonds, debentures and
other evidences of indebtedness at such terms, rates and conditions
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as the Bank may determine up to an aggregate amount not exceeding,

at any one time, five times its unimpaired capital and surplus. Such
bonds and other obligations shall be secured by the assets of the
Bank and shall be fully tax exempt both as to principal and income.
Said income shall be paid to the bondholder every six (6) months
from the date of issue. These bonds and other obligations shall be
fully negotiable and unconditionally guaranteed by the Government
of the Republic of the Philippines and shall be redeemable at
the option of the Bank at or prior to maturity, which in no case
shall exceed twenty-five years. These negotiable instruments of
indebtedness shall be mortgageable in accordance with established
banking procedures and practices to government institutions not
to exceed sixty per centum of their face value to enable the holders
of such bonds to make use of them in investments in productive
enterprises. They shall also be accepted as payments for reparation
equipment and materials.
The Board of Trustees shall have the power to prescribe rules

and regulations for the registration of the bonds issued by the Bank
at the request of the holders thereof.
SEC. 77. Issuance of Preferred Shares of Stock to Finance

Acquisition of Landed Estates.—The Land Bank shall issue, from
time to time, preferred shares of stock in such quantities not
exceeding six hundred million pesos worth of preferred shares as may
be necessary to pay the owners of landed estates in accordance with
Sections eighty and eighty-one of this Code. The amount of shares
that the Bank may issue shall not exceed the aggregate amount
needed to pay for acquired estates in the proportions prescribed in
said Section eighty of this Code. The Board of Trustees shall include
as a necessary part of the by-laws that it shall issue under Section
seventy-five of this Code, such formula as it deems adequate for
determining the net asset value of its holdings as a guide and basis
for the issuance of preferred shares. The shares of stock issued
under the authority of this provision shall be guaranteed a rate of
return of six per centum per annum. In the event that the earnings
of the Bank for any single fiscal year are not sufficient to enable
the Bank, after making reasonable allowance for administration,
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contingencies and growth, to declare dividends at the guaranteed

rate, the amount equivalent to the difference between the Bank’s
earnings available for dividends and that necessary to pay the
guaranteed rate shall be paid by the Bank out of its own assets
but the Government shall, on the same day that the Bank makes
such payment, reimburse the latter in full, for which purpose such
amounts as may be necessary to enable the Government to make
such reimbursements are hereby appropriated out of any moneys
in the National Treasury not otherwise appropriated. The Bank
shall give sufficient notice to the Budget Commissioner and the
President of the Philippines in the event that it is not able to pay
the guaranteed rate of return on any fiscal period. The guaranteed
rate of return on these shares shall not preclude the holders thereof
from participating at a percentage higher than six per centum
should the earnings of the Bank for the corresponding fiscal period
exceed the guaranteed rate of return. The Board of Trustees shall
declare and distribute dividends within three months after the close
of each fiscal year at the guaranteed rate unless a higher rate of
return is justified by the Bank’s earnings after making reasonable
allowance for administration, contingencies and growth, in which
case dividends shall be declared and distributed at a higher rate.
The capital gains derived from the sale or transfer of such shares
and all income derived therefrom in the form of dividends shall be
fully exempt from taxes.
SEC. 78. Special Guaranty Fund.—In the event that the Bank
shall be unable to pay the bonds, debentures, and other obligations
issued by it, a fixed amount thereof shall be paid from a special
guaranty fund to be set up by the Government, to guarantee the
obligation of the Land Bank, and established in accordance with
this Section, and thereupon, to the extent of the amounts so paid,
the Government of the Republic of the Philippines shall succeed
to all the rights of the holders of such bonds, debentures or other
obligations: Provided, however, That for the next four years after
the establishment of the Bank, the payment to the special guaranty
fund should not exceed one million pesos per year, after which
period, the Government shall pay into the guaranty fund the sum
of five hundred thousand pesos each year until the cumulative
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total of such guaranty fund is no less than twenty percent of the

outstanding net obligation of the Land Bank at the end of any single
calendar year.
The guaranty fund shall be administered by the Central Bank

of the Philippines in the manner most consistent with its charter.
For the purpose of such fund, there shall be appropriated annually
the sum of one million pesos out of any moneys in the National
Treasury not otherwise appropriated, until the total amount of
twenty million pesos shall have been attained.
SEC. 79. Receiving Payments and Time Deposits.—The Bank,

under the supervision of the Monetary Board and subject to the
provisions of the General Banking Act, shall receive savings and
time deposits from the small landholders in whose favor public lands
or landed estates acquired by the Land Authority have been sold
and, for this purpose, establish, and maintain branches and offices
in such areas as may be necessary to service such deposits. The
Monetary Board shall supervise and authorize the Bank to receive
savings and time deposits from the public in areas where facilities
for such a service do not exist or cannot be adequately provided by
other deposit institutions.
SEC. 80. Making Payment to Owners of Landed Estates.—

The Land Bank shall make payments in the form herein prescribed
to the owners of land acquired by the Land Authority for division
and resale under this Code. Such payment shall be made in the
following manner: ten per centum in cash and the remaining balance
in six percent, tax-free, redeemable bonds issued by the Bank in
accordance with Section seventy-six, unless the landowner desires
to be paid in shares of stock issued by the Land Bank in accordance
with Section seventy-seven in an amount not exceeding thirty per
centum of the purchase price.
In the event there is an existing lien or encumbrance on the

land in favor of any Government institution at the time of acquisition
by the Land Bank, the bonds and/or shares, in that order, shall be
accepted as substitute collaterals to secure the indebtedness.
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The profits accruing from payment shall be exempt from the

tax on capital gains.
SEC. 81. Capital.—The authorized capital stock of the Bank

shall be one billion five hundred million pesos divided into ninety
million shares with a par value of ten pesos each, which shall be
fully subscribed by the Government and sixty million preferred
shares with a par value of ten pesos each which shall be issued
in accordance with the provisions of Sections seventy-seven and
eighty-three of this Code. Of the total capital subscribed by the
Government, two hundred million pesos shall be paid by the
Government within one year from the approval of this Code, and
one hundred million pesos every year thereafter for two years for
which purpose the amount of two hundred million pesos is hereby
appropriated upon the effectivity of this Code, and one hundred
million pesos every year for the next two years thereafter, out of
the funds in the National Treasury not otherwise appropriated
for the purpose: Provided, That if there are not enough funds in
the National Treasury for the appropriation herein made, the
Secretary of Finance, with the approval of the President of the
Philippines, shall issue bonds or other evidence of indebtedness to
be negotiated either locally or abroad in such amount as may be
necessary to cover any deficiency in the amount above appropriated
but not exceeding four hundred million pesos, the proceeds of
which are hereby appropriated: Provided, further, That the bonds
to be issued locally shall not be supported by the Central Bank:
Provided, finally, That there is automatically appropriated out of
the unappropriated funds in the National Treasury such amounts
as is necessary to cover the losses which shall include among other
things loss of earnings occasioned by the limitation of the resale
cost herein provided such that said amount together with the
administrative expenses mentioned in Section ninety hereof shall
not exceed in the aggregate the equivalent of two and one-half per
centum of its assets limited therein.
SEC. 82. Government Shares.—All shares of stock in the Bank

subscribed or owned by the Government shall not be entitled to
participate in the income earned by the Bank from its investments
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and other operations, whether in the form of cash or stock dividends

or otherwise. Amounts expended for the administration of the Bank
shall not be deemed as a participation of the Government in income.
SEC. 83. Preferred Shares.—All preferred shares of stock

issued under Section seventy-seven of this Code shall be entitled
to the income earned by the Bank on its investments and other
operations and shall have a limited right to elect annually one
member of the Board of Trustees and one member of the Committee
on Investments: Provided, That the holders of such preferred shares
of stock shall not bring derivative suits against the Bank. Such
preferred shares shall be fully transferable: Provided, further, That
upon the liquidation of the Bank, the redemption of such preferred
shares shall be given priority and shall be guaranteed at par value.
SEC. 84. Voting of Shares.—The voting power of all the shares

of stock of the Land Bank owned or controlled by the Government
shall be vested in the President of the Philippines or in such person
or persons as he may from time to time designate.
SEC. 85. Use of Bonds.—The bonds issued by the Land Bank

may be used by the holder thereof and shall be accepted in the
amount of their face value as any of the following:
(1) Payment for agricultural lands or other real properties

purchased from the Government;
(2) Payment for the purchase of shares of stock of all or

substantially all of the assets of the following Government owned
or controlled corporations: The National Development Company;
Cebu Portland Cement Company; National Shipyards and Steel
Corporation; Manila Gas Corporation; and the Manila Hotel
Company.
Upon offer by the bondholder, the corporation owned or

controlled by the Government shall, through its Board of Directors,
negotiate with such bondholder with respect to the price and
other terms and conditions of the sale. In case there are various
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bondholders making the offer, the one willing to purchase under

terms and conditions most favorable to the corporation shall be
preferred. If no price is acceptable to the corporation, the same shall
be determined by a Committee of Appraisers composed of three
members, one to be appointed by the corporation, another by the
bondholder making the highest or only offer, and the third by the
two members so chosen. The expenses of appraisal shall be borne
equally by the corporation and the successful purchaser.
Should the Government offer for sale to the public any or all
of the shares of stock or the assets of any of the Government owned
or controlled corporations enumerated herein, the bidder who offers
to pay in bonds of the Land Bank shall be preferred provided that
the various bids be equal in every respect except in the medium of
payment.
(3) Surety or performance bonds in all cases where the

Government may require or accept real property as bonds; and
(4) Payment for reparations goods.
SEC. 86. Board of Trustees.—The affairs and business of

the Bank shall be directed, its powers exercised and its property
managed and preserved by a Board of Trustees. Such Board shall
be composed of one Chairman and four members, one of whom shall
be the head of the Land Authority who shall be an ex-officio member
of such Board and another to be elected by the holders of preferred
shares. The Chairman and two members of the Board of Trustees
shall serve on full-time basis with the Bank. With the exception
of the head of the Land Authority and the member elected by the
holders of preferred shares, the Chairman and all members of the
Board shall be appointed by the President with the consent of the
Commission on Appointments for a term of seven years, except
that the first Chairman and members to be appointed under this
Code shall serve for a period of three, five and seven years, such
terms to be specified in their respective appointments. Thereafter
the Chairman and members, with the exception of the ex-officio
member, appointed after such initial appointment shall serve for
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a term of seven years including any Chairman or member who is

appointed in place of one who resigns or is removed or otherwise
vacates his position before the expiration of his seven-year term.
The Chairman and the two full-time members of the Board shall
act as the heads of such operating departments as may be set up
by the Board under the authority granted by Section eighty-seven
of this Code. The Chairman shall have authority, exerciseable at
his discretion, to determine from time to time the organizational
divisions to be headed by each member serving full time and to
make the corresponding shifts in designations pursuant thereto.
The compensation of the Chairman and the members of the Board
of Trustees serving full time shall be twenty-four thousand and
eighteen thousand pesos, respectively. The other members of the
Board shall receive a per diem of one hundred pesos for each session
of the Board that they attend.
SEC. 87. The Chairman and Vice-Chairmen.—The Chairman

of the Board shall be the chief executive officer of the Bank. He
shall have direct control and supervision of the business of the Bank
in all matters which are not by this Code or by the by-laws of the
Bank specifically reserved to be done by the Board of Trustees. He
shall be assisted by an Executive Vice-Chairman and one or more
vice-chairmen who shall be chosen and may be removed by the
Board of Trustees. The salaries of the Vice-Chairmen shall be fixed
by the Board of Trustees with the approval of the President of the
Philippines.
SEC. 88. Qualifications of Members.—No person shall be

appointed Chairman or member of the Board unless he is a man of
accepted integrity, probity, training and experience in the field of
banking and finance, at least thirty-five years of age and possessed
of demonstrated administrative skill and ability.
SEC. 89. Committee on Investment.—There shall be a

Committee on Investments composed of three members: the
member of the Board of Trustees elected by the holders of preferred
shares as Chairman, one member to be appointed by the President
of the Philippines from among the government members of the
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Board of Trustees, and another member to be elected by the

holders of preferred shares under Section eighty-three of this Code.
The Committee on Investments shall recommend to the Board of
Trustees the corporations or entities from which the Land Bank
shall purchase shares of stock.
The Land Bank shall not invest in any corporation, partnership

or company wherein any member of the Board of Trustees or of
the Committee on Investments or his spouse, direct descendant or
ascendant has substantial pecuniary interest or has participation
in the management or control of the enterprise except with the
unanimous vote of the members of the Board of Trustees and of the
Committee on Investments, excluding the member interested, in a
joint meeting held for that purpose where full and fair information
of the extent of such interest or participation has been adequately
disclosed in writing and recorded in the minutes of the meeting:
Provided, That such interested member shall not in any manner
participate in the deliberations and shall refrain from exerting
any pressure or influence whatever on any official or member of
the Bank whose functions bear on or relate to the investment of
the funds of the Bank in the enterprise: Provided, further, That the
total investment in any single corporation, partnership, company,
or association shall not exceed five per centum of the total investible
funds.
SEC. 90. Personnel; Cost of Administration.—The

administrative expenses of the Bank during any single fiscal year
shall not in any case exceed two and one-half per centum of its total
assets. The Board of Trustees shall provide for an organization and
staff of officers and employees necessary to carry out the functions
of the Bank, fix their compensation, and appoint and remove such
officers and employees for cause. The Bank officers and employees
shall be subject to the rules and regulations issued by the Civil
Service Commission but shall not fall under the Wage and Position
Classification Office. The Board of Trustees shall recommend to the
Civil Service Commission rules and regulations for the recruitment,
appointment, compensation, administration, conduct, promotion
and removal of all Bank officers and employees under a strict
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merit system and prepare and conduct examinations under the

supervision of said Commission.
SEC. 91. Legal Counsel.—The Secretary of Justice shall be

ex-officio legal adviser of the Bank. Any provision of law to the
contrary notwithstanding, the Land Bank shall have its own Legal
Department, the chief and members of which shall be appointed
by the Board of Trustees. The composition, budget and operating
expenses of the Office of the Legal Counsel and the salaries and
traveling expenses of its officers and employees shall be fixed by the
Board of Trustees and paid by the Bank.
SEC. 92. Auditor.—The Auditor General shall be the ex-officio

auditor of the Bank and shall appoint a representative, who shall
be the auditor in charge of the auditing office of the Bank. The
Auditor General shall, upon the recommendation of the auditor of
the Bank, appoint or remove the personnel of the auditing office.
The compensation, budget and operating expenses of the auditing
office and the salaries and traveling expenses of the officers and
employees thereof shall be fixed by the Board of Trustees and paid
by the Bank notwithstanding any provision of law to the contrary.
SEC. 93. Report on Condition of Bank.—The representative of

the Auditor General shall make a quarterly report on the condition
of the Bank to the President of the Philippines, to the Senate
through its President, to the House of Representatives through its
Speaker, to the Secretary of Finance, to the Auditor General and to
the Board of Trustees of the Bank. The report shall contain, among
other things, a statement of the resources and liabilities including
earnings and expenses, the amount of capital stock, surplus, reserve
and profits, as well as losses, bad debts, and suspended and overdue
paper carried in the books as assets of the Bank, and a plantilla of
the Bank.
SEC. 94. Auditing Rules and Regulations.—The Auditor

General shall, with respect to the Bank, formulate improved and
progressive auditing rules and regulations designed to expedite the
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operations of the Bank and prevent the occurrence of delays and

bottlenecks in its work.
SEC. 95. Removal of Members.—The President of the

Philippines may, at any time, remove the Chairman or any member
of the Board appointed by him if the interest of the Bank so requires,
for any of the following causes:
(1) Mismanagement, grave abuse of discretion, infidelity in the

conduct of fiduciary relations, or gross neglect in the performance of
duties;
(2) Dishonesty, corruption, or any act involving moral

turpitude; and
(3) Any act or performance tending to prejudice or impair the

substantial rights of the stockholders.
Conviction of the Chairman or a member for a crime carrying

with it a penalty greater than arresto mayor shall cause the removal
of such Chairman or member without the necessity of Presidential
action.
The Chairman or member may, in any of the above cases, be

civilly liable for any damage that may have been suffered by the
stockholders.
SEC. 96. Transfer of Claims and Liabilities.—The assets

of the former Land Tenure Administration and the National
Resettlement and Rehabilitation Administration in the form of
claims and receivables arising from the sale or transfer of private
and public lands, agricultural equipment, machinery, tools and
work animals, but excluding advances made for subsistence, to
small landholders shall, after an exhaustive evaluation to determine
their true asset value, be irrevocably transferred to the Bank under
such arrangements as the Land Authority and the Bank shall agree
upon. Thereafter, the Bank shall have authority and jurisdiction
to administer the claims, to collect and make adjustments on the
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same and, generally, to do all other acts properly pertaining to the

administration of claims held by a financial institution. The Land
Authority, upon request of the Bank, shall assist the latter in the
collection of such claims. The Land Authority shall be entitled to
collect from the Bank no more than the actual cost of such collection
services as it may extend. The claims transferred under this Section
shall not be considered as part of the Government’s subscription to
the capital of the Bank.
SEC. 97. Regulation.—The Bank shall not be subject to the

laws, rules and regulations governing banks and other financial
institutions of whatever type except with respect to the receipt of
savings and time deposits in accordance with Section seventy-nine
of this Code, in which case the legal reserve and other requirements
prescribed by the Central Bank for such deposits shall apply. The
Bank shall be operated as an autonomous body and shall be under
the supervision of the Central Bank.
SEC. 98. Tax Exemption.—The operations, as well as

holdings, equipment, property, income and earnings of the Bank
from whatever sources shall be fully exempt from taxation.
SEC. 99. Organization of Bank.—The Bank shall be organized

within one year from the date that this Code takes effect.
SEC. 100. Penalty for Violation of the Provisions of this

Chapter.—Any trustee, officer, employee or agent of the Bank who
violates or permits the violation of any of the provisions of this
Chapter, or any person aiding or abetting the violations of any of
the provisions of this Chapter, shall be punished by a fine not to
exceed ten thousand pesos or by imprisonment of not more than five
years, or both such fine and imprisonment at the discretion of the
Court.
CHAPTER V.—AGRICULTURAL CREDIT ADMINISTRATION
SEC. 101. Reorganization of ACCFA to Align Its Activities.—

The administrative machinery of the Agricultural Credit and
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Cooperative Financing Administration created under Republic Act

Numbered Eight hundred twenty-one, as amended by Republic Act
Numbered Twelve hundred and eighty-five, shall be reorganized to
enable it to align its activities with the requirements and objectives
of this Code and shall be known as the Agricultural Credit
Administration.
SEC. 102. Financing.—To finance the additional credit

functions of the Agricultural Credit Administration as a result of
the land reform program laid down in this Code, there is hereby
appropriated the sum of one hundred fifty million pesos out of funds
in the National Treasury not otherwise appropriated in addition to
existing appropriations for the Agricultural Credit and Cooperative
Financing Administration.
SEC. 103. Privilege of Rediscounting.—The Agricultural Credit

Administration is hereby granted the privilege of rediscounting with
the Central Bank of the Philippines, the Development Bank of the
Philippines and the Philippine National Bank eligible evidence of
indebtedness acquired by it in carrying on its authorized activities,
at an interest rate equal to the lowest charged by the above financing
institutions on any private person or entity.
SEC. 104. Power to Obtain Additional Funds.—Nothing

in this Section shall limit the power of the Agricultural Credit
Administration to obtain from the Central Bank of the Philippines,
the Development Bank of the Philippines, the Philippine National
Bank and other financing institutions, such additional funds as may
be necessary for the effective implementation of this Act: Provided,
That such additional funds are to be utilized as loans to farmers
and/or farmers’ cooperatives.
SEC. 105. Loaning Activities.—Loaning activities of the

Agricultural Credit Administration shall be directed to stimulate
the development and operation of farmers’ cooperatives. The term
“Farmers’ Cooperatives” shall be taken to include all cooperatives
relating to the production and marketing of agricultural products
and those formed to manage and/or own, on a cooperative basis,
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services and facilities, such as irrigation and transport systems,

established to support production and/or marketing of agricultural
products.
Under such rules and regulations in accordance with generally

accepted banking practices and procedures as may be promulgated
by the Agricultural Credit Administration, Rural Banks and
Development Banks may, in their respective localities, be designated
to act as agents of the Agricultural Credit Administration in regard
to its loaning activities.
SEC. 106. Credit to Small Farmers.—Production loans and

loans for the purchase of work animals, tillage equipment, seeds,
fertilizer, poultry, livestock, feeds and other similar items, may be
extended to small farmers as defined in Republic Act Numbered
Eight hundred twenty-one, based upon their paying capacity and
such securities as they can provide, and under such terms and
conditions as the Agricultural Credit Administration may impose,
provided the amount thereof does not exceed two thousand pesos, or
such amount as may be fixed by the President, but in no case shall
the amount of loan exceed eighty per centum of the value of the
collateral pledged. In instances where credit is extended for items
which are not consumed in their use, such items may be pledged
as security therefor. The Agricultural Credit Administration shall
promulgate such rules and regulations as may be necessary in
the extension of the loans herein authorized so as to assure their
repayment: Provided, That such rules and regulations shall follow
and be in accordance with generally accepted financing practices
and procedures.
SEC. 107. Security for Loans.—The production of the

borrower, after deducting the lease rental and/or liens thereon, shall
be accepted as security for loans: Provided, That said production is
pledged to the Agricultural Credit Administration with appropriate
safeguards to insure against its unauthorized disposition: Provided,
further, That the amount of loan shall not exceed sixty per centum
of the value of the estimated production.
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SEC. 108. Loans to Cooperatives.—The Agricultural Credit

Administration is hereby authorized to extend such types of loans
as it may deem necessary for the effective implementation of this
Code, to eligible farmers’ cooperatives as herein defined, under such
terms and conditions as it may impose and with such securities
as it may require. A farmers’ cooperative that has been registered
with the Securities and Exchange Commission and affiliated with
the Agricultural Credit Administration shall be eligible for loans
if, in the judgment of the latter, its organization, management and
business policies are of such character as will insure the safety and
effective use of such loans.
SEC. 109. Loans for Construction or Acquisition by Purchase of

Facilities.—Loans for the construction or acquisition by purchase of
facilities of farmers’ cooperatives may be granted by the Agricultural
Credit Administration.
SEC. 110. Interest on Loans.—The total charges including

interest and insurance fees on all kinds of loans shall not be more than
eight per centum per annum: Provided, That if an impairment of the
capitalization of the Agricultural, Credit Administration is imminent
by reason of the limitation of the interest rate herein provided, there
is automatically appropriated out of the unappropriated funds in
the National Treasury such amounts as is necessary to cover the
losses of the Agricultural Credit Administration, but not exceeding
six million pesos for any one year.
SEC. 111. Institution of Supervised Credit.—To provide

for the effective use of credit by farmers, the Agricultural Credit
Administration may institute a program of supervised credit in
cooperation with the Agricultural Productivity Commission.
SEC. 112. Guidance to Cooperatives.—The Agricultural Credit

Administration shall have the power to register and provide credit
guidance or assistance to all agricultural cooperatives including
irrigation cooperatives and other cooperative associations or fund
corporations.
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SEC. 113. Auditing of Operations.—For the effective

supervision of farmers’ cooperatives, the head of the Agricultural
Credit Administration shall have the power to audit their
operations, records and books of account and to issue subpoena
and subpoena duces tecum to compel the attendance of witnesses
and the production of books, documents and records in the conduct
of such audit or of any inquiry into their affairs. Any person who,
without lawful cause, fails to obey such subpoena or subpoena duces
tecum shall, upon application of the head of Agricultural Credit
Administration with the proper court, be liable to punishment for
contempt in the manner provided by law and if he is an officer of the
association, to suspension or removal from office.
SEC. 114. Prosecution of Officials.—The Agricultural Credit

Administration, through the appropriate provincial or city fiscal,
shall have the power to file and prosecute any and all actions which
it may have against any and all officials or employees of farmers’
cooperatives arising from misfeasance or malfeasance in office.
SEC. 115. Free Notarial Service.—Any justice of the peace,

in his capacity as notary ex-officio, shall render service free of
charge to any person applying for a loan under this Code either in
administering the oath or in the acknowledgment of instruments
relating to such loan.
SEC. 116. Free Registration of Deeds.—Any register of deeds

shall accept for registration, free of charge any instrument relative
to a loan made under this Code.
SEC. 117. Writing-off Unsecured and Outstanding Loans.—

Subject to the approval of the President upon recommendation of
the Auditor General, the Agricultural Credit Administration may
write-off from its books, unsecured and outstanding loans and
accounts receivable which may become uncollectible by reason of
the death or disappearance of the debtor, should there be no visible
means of collecting the same in the foreseeable future, or where the
debtor has been verified to have no income or property whatsoever
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with which to effect payment. In all cases, the writing-off shall be

after five years from the date the debtor defaults.
SEC. 118. Exemption from Duties, Taxes and Levies.—The

Agricultural Credit Administration is hereby exempted from the
payment of all duties, taxes, levies, and fees, including docket and
sheriff’s fees, of whatever nature or kind, in the performance of its
functions and in the exercise of its powers hereunder.
CHAPTER VI.—AGRICULTURAL PRODUCTIVITY

COMMISSION
SEC. 119. Creation of the Agricultural Productivity

Commission.—For the purpose of accelerating progressive
improvement in the productivity of farms, the advancement of
farmers and the strengthening of existing agricultural extension
services through the consolidation of all promotional, educational
and informational activities pertaining to agriculture, the present
Bureau of Agricultural Extension of the Department of Agriculture
and Natural Resources is hereby placed directly under the executive
supervision and control of the President and hereinafter renamed
Agricultural Productivity Commission.
Upon the effectivity of this Code, the Agricultural Tenancy

Commission of the Department of Justice, together with its powers,
duties, responsibilities, files, records, supplies, equipment, personnel
and unexpended balance of appropriations, is hereby placed under
the Agricultural Productivity Commission as a separate office
thereof.
SEC. 120. Commissioner of the Agricultural Productivity

Commission.—The Agricultural Productivity Commission shall
be administered by an Agricultural Productivity Commissioner
who shall be appointed by the President with the consent of the
Commission on Appointments and who shall have a compensation
of sixteen thousand pesos per annum. No person shall be appointed
as Agricultural Productivity Commissioner unless he be a holder of
at least a Bachelor of Science degree in Agriculture from a reputable
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school or college of agriculture and shall have practiced agriculture

for at least five years, and who is of recognized competence in
agricultural economics or any of its equivalents.
SEC. 121. Powers and Duties.—The Agricultural Productivity

Commissioner shall exercise the same powers and duties vested in
the Director of the Bureau of Agricultural Extension.
SEC. 122. Division on Cooperatives.—In addition to the

existing divisions of the Bureau of Agricultural Extension, herein
renamed as Agricultural Productivity Commission, there shall be
a Division of Cooperatives and such other divisions and sections as
the Agricultural Productivity Commissioner may deem necessary
to organize in order to carry out the promotional and educational
activities of the Commission.
SEC. 123. Recruitment, Selection and Training of Extension

Workers.—The extension workers shall be recruited and selected
from graduates of agricultural colleges with adequate practical
experience and training in actual crop, tree, poultry and livestock
farming: Provided, however, That in the event there are no graduates
of agricultural colleges available, graduates of agricultural high
schools may be temporarily employed. Training of extension
workers shall be done in conjunction with research institutions to
insure their maximum efficiency.
SEC. 124. Functions of Extension Workers.—In addition to

their functions under Republic Act Numbered Six hundred eighty,
it shall be the duty of extension workers:
(1) To reside in the locality where they are assigned, to

disseminate technical information to farmers, and to demonstrate
improved farm management practices and techniques;
(2) To work with individual farmers in farm planning and

budgeting, guide them in the proper conduct of farm business and
work out schedules of re-payment of loans obtained by farmers;
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(3) To assist farmers in securing the services or assistance

of other agencies, or their personnel, having to do with relevant
activities and problems of farmers;
(4) To visit newly-established independent farm operators

either singly or collectively at least once a month;
(5) To conduct educational activities that will acquaint

leaseholders and other independent farm operators with their rights
and responsibilities under this Code;
(6) To encourage the formation and growth of private

associations, study clubs, committees and other organized groups
of farmers, familiarize them with modern methods of farming and
interest them to actively participate, collaborate or take the initiative
in agricultural research, experimentation and implementation
of projects in cooperation with the Agricultural Productivity
Commission and other agencies; and
(7) To promote, stimulate and assist in the organization of

farmers’ cooperatives.
SEC. 125. Appropriation.—In addition to the funds herein

transferred, there is hereby appropriated from the general funds in
the National Treasury not otherwise appropriated the sum of five
million pesos, or so much thereof as may be necessary to carry out
the purposes of this Chapter.
CHAPTER VII.—LAND REFORM PROJECT ADMINISTRATION
SEC. 126. Creation of National Land Reform Council.— There

is hereby created a National Land Reform Council, Hereinafter
called the Council, which shall be composed of the Governor of the
Land Authority, who shall act as Chairman, the Administrator of
the Agricultural Credit Administration, the Chairman of the Board
of Trustees of the Land Bank, the Commissioner of the Agricultural
Productivity Commission and another member appointed by the
President upon recommendation of the minority party receiving
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the second largest number of votes in the last Presidential election

who shall hold office at the pleasure of such minority party, unless
sooner removed for cause by the President, as members and the
Agrarian Counsel as legal counsel: Provided, That the Council shall
not be considered fully constituted and ready to function until after
the member representing the minority party has been appointed
by the President of the Philippines: Provided, further, That the
minority party shall submit its recommendation to the President
within sixty days from the approval of this Code, in the absence
of which the Council shall be deemed to be so constituted even
without such member from the minority party: Provided, finally,
That the minority representative shall receive a per diem of fifty
pesos for each day he attends a council meeting, chargeable to the
appropriations of the Land Authority.
SEC. 127. Meetings; Resolutions.—The Chairman of the

Council shall convoke the Council as its responsibilities enumerated
in Section one hundred twenty-eight may warrant, and shall preside
over its meetings.
It shall be the duty of the members to attend any meeting of

the Council upon the call of the Chairman. In case of inability, a
member may require the officer next in rank in his agency to attend
the meeting in his behalf.
A majority vote of the members present if there is a quorum

shall be necessary for the approval of a resolution. Upon such
approval the resolution shall be final and binding upon all members
of the Council and their respective agencies insofar as their functions,
powers and duties required under this Code are concerned.
The refusal of any member to implement any resolution or part

thereof falling within the scope of the powers granted to his agency
shall be sufficient ground for the President of the Philippines to
remove said member from office or to impose upon him disciplinary
or administrative sanctions.
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SEC. 128. Functions of National Land Reform Council.—It

shall be the responsibility of the Council:
(1) To construct the general program of land reform

contemplated by this Code;
(2) To establish guidelines, plans and policies for its member-

agencies relative to any particular land reform project;
(3) To formulate such rules and regulations as may be

necessary to carry out the provisions of this Code for (a) the selection
of agricultural land to be acquired and distributed under this Code;
(b) the determination of sizes of family farms as defined in Section
one hundred sixty-six; and (c) the selection of beneficiaries to family
farms available for distribution: Provided, That priority shall be
given in the following order: First, to members of the immediate
family of the former owner of the land within the first degree of
consanguinity who will cultivate the land personally with the aid
of labor available within his farm household; Second, to the actual
occupants personally cultivating the land either as agricultural
lessees or otherwise with respect to the area under their cultivation
; Third, to farmers falling under the preceding category who are
cultivating uneconomic-size farms with respect to idle or abandoned
lands; Fourth, to owner-operators of uneconomic-size farms; and
Fifth, to such other categories as may be fixed by virtue of this
Code, taking into consideration the needs and qualifications of the
applicants;
(4) To revise, approve, or reject any land reform proposal or

project; and
(5) To proclaim in accordance with the provisions of this

Code, which proclamation shall be considered as having been
promulgated immediately after three successive weekly publications
in at least two newspapers of general circulation in the region or
locality affected by the proclamation, preference being given to
local newspapers, if any, that all the government machineries and
agencies in any region or locality relating to leasehold envisioned in
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this Code are operating: Provided, That the conversion to leasehold

in the proclaimed area shall become effective at the beginning of
the next succeeding agricultural year after such promulgation:
Provided, further, That the proclamation shall be made after having
considered factors affecting feasibility and fund requirements and
the other factors embodied in Sections one hundred twenty-nine,
one hundred thirty and one hundred thirty-one.
SEC. 129. Creation of Land Reform Districts.—The Council

shall exercise the functions enumerated in the preceding Section
for particular areas which the Council shall select and designate
as land reform districts. A district shall constitute one or more
land reform projects, each project to comprise either a large landed
estate or several areas within small estates. In the selection of a
district, the Council shall consider factors affecting the feasibility of
acquiring for redistribution the areas within the district, including:
(1) The productivity of the area;
(2) Its suitability for economic family-size farms ;
(3) The tenancy rate in the area;
(4) The minimum fixed capital outlay required to develop the

area;
(5) The proximity of the area to resettlement projects; and
(6) The number of farmers that cultivate uneconomic-size

farms, the ability and readiness of such farmers to be resettled, and
the availability of idle or abandoned lands that may be acquired or
expropriated as well as of other resettlement facilities.
SEC. 130. Regional Land Reform Committee.—For the purpose

of implementing the program and policies of the Council on the local
level, the Council shall establish in each region of the Philippines a
Regional Land Reform Committee which shall be composed of the
representatives of the agencies composing the National Land Reform
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Council and shall be under the chairmanship of the representative

of the Land Authority. The Committee shall recommend to the
Council such plans for projects of land reform in its jurisdiction
as it may deem appropriate. The Committee shall conduct public
hearings, gather and analyze data, estimate the essentials of such
plans for projects or programs and consolidate its findings in a report
to be submitted to the Council for its consideration. The decision
of the Council upon such projects or programs shall be returned
to the Committee, within thirty days from the submission thereof,
for early implementation or execution by said Committee and the
agencies represented therein.
SEC. 131. Land Reform Project Team.—The Regional Land

Reform Committee shall direct and assign a Land Reform Project
Team for any project or projects within the region, to be composed
of an appropriate number of personnel from the member-agencies.
The Team shall be headed by a representative of the Land Authority
designated by the Committee, but each agency shall, in every case, be
duly represented by at least one member in the Team. On the basis
of national, regional, and local policies and programs formulated
and approved by the Council through the Committee, the Team
shall determine (a) the suitability of any area for redistribution into
economic family-size farms; (b) the economic size of farm units; (c) the
feasibility of acquiring and distributing the area; (d) the willingness
of the lessees to assume the responsibilities of ownership; and (e) the
financial and other requirements of the project. For this purpose,
it shall gather data, obtain opinions, conduct surveys, pursue
investigations, and incorporate any information thus established in
a development program for the area concerned to be submitted in
the form of a consolidated report to the Committee.
CHAPTER VIII.—LAND CAPABILITY SURVEY AND

CLASSIFICATION
SEC. 132. Land Survey to Conform to Legal Requirements.—

To provide the necessary basis for the implementation of the land
reform program formulated under this Code, the Land Authority
is hereby authorized to undertake a land capability survey and
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classification in cooperation with the relevant agencies that will

be directly benefited by such survey and classification. The survey
shall be made to conform to the requirements of the Department
of Agriculture and Natural Resources for implementation of
agricultural programs and forestry inventory, of the Board of
Technical Surveys and Maps, and of the National Economic Council
and other agencies for agricultural planning and other purposes.
SEC. 133. Cadastral Survey.—To resolve the rights of

landholders holding unregistered property, the Bureau of Lands
is directed to undertake an expanded cadastral survey and land
registration program commencing within three months from the
passage of this Code.
SEC. 134. Costs of Fees and Charges.—Notwithstanding

any provisions of law to the contrary, the following rules shall
apply with respect to the costs, fees and charges in the survey,
monumenting, and registration of lands of whatever description and
nature had in relation to cadastral proceedings undertaken by the
National Government, either alone through its offices, agencies and
instrumentalities, or in conjunction with provincial and municipal
governments.
SEC. 135. Apportionment of Cost of Survey.—One-half of

the cost of survey and monumenting and registration proceedings
shall be fully assessed and collected against each and all of the
lots included in cadastral proceedings and shall be apportioned in
accordance with the area thereof, but in no case shall less than ten
pesos be charged against each lot, the other half being chargeable to
the National Government. The amounts taxed against each of the
lots or parcels of land shall be considered as a special assessment
of taxes against the respective parcels, shall constitute a first lien
upon the land and shall be collected by the Director of Lands or
his duly authorized representatives in equal installments within a
period of three years, bearing interest at the rate of six per centum
per annum. The first installment shall become due and payable at
the same time as the general land taxes for the year next succeeding
the year in which the assessment of the cost shall be received by the
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Provincial Treasurer, and shall be collected in the same manner

as such general taxes. Each succeeding installment shall become
due and payable at the same time as the general land taxes for
the corresponding current year and shall be collected in the same
manner. The Director of Lands shall for this purpose send to the
officer in charge of such collection a copy of said assessment of costs:
Provided, however, That the amounts representing the proportional
shares of the costs taxed against lots surveyed at the request and
expense of their owner and for which a plan other than the cadastral
plan has been made by a duly authorized surveyor prior to the
decision in the cadastral proceeding, or which have been registered
in accordance with the provisions of Act Numbered Four hundred
ninety-six, entitled “The Land Registration Act”, or surveyed,
patented, or leased under the Public Land and Mining Laws, prior
to the decision in the cadastral proceeding, or have been declared
to be public lands by the Court, shall not constitute a lien against
said lot nor shall be collected from the owner thereof: Provided,
further, That the owner of any lot may, if he so desires, pay any
installment of the costs taxed against his lot at any time before the
same becomes due.
SEC. 136. Payment of Costs of Land in Its Entirety in Case

of Transfer of Land.—In case of the sale, transfer, or conveyance,
for a pecuniary consideration, of any property, or part thereof,
registered by virtue of a decree issued in a cadastral proceeding,
prior to the payment of the total amount of the costs taxed against
such property in accordance with the preceding Section endorsed
as an encumbrance or lien upon each cadastral certificate of title,
the vendor or his legal representative shall pay such costs in their
entirety in case the order apportioning the costs has already been
issued in the cadastral proceeding in which the property being
sold, transferred, or conveyed is included, and the register of deeds
concerned shall demand of the vendor, before registering the deed
for such sale, transfer, or conveyance of said property, that he exhibit
a receipt signed by the Director of Lands or his duly authorized
representative showing that such encumbrance or lien has been
paid.
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SEC. 137. Costs of Registration Proceedings.—The costs of

the registration proceedings under the provisions of this Code shall
consist of a sum equivalent to ten per centum of the costs of the
survey and monumenting of the land. The amount of the costs of
the proceeding so taxed shall be for all services rendered by the
Land Registration Commission and the clerk or his deputies in
each cadastral proceeding, and the expense of publication, mailing,
and posting notice, as well as the notices of the decision and the
order apportioning the cost shall be borne by the Land Registration
Commission.
SEC. 138. Laws Covering Survey and Registration of Land in

Force.—Unless otherwise provided in this Chapter, all provisions of
law covering the survey and registration of land shall remain in full
force and effect.
SEC. 139. Revolving Fund.—All amounts collected by the

Bureau of Lands or its duly authorized representatives from the
owners of the various lots as costs of proceedings, survey, and
monumenting in relation to the cadastral survey program herein
described shall be paid into a Special Cadastral Program Revolving
Fund to finance the cadastral land survey and registration of other
unregistered lands.
SEC. 140. Appropriation.—To finance and support the

expanded cadastral land survey and registration program set
forth herein, the amount of one hundred million pesos is hereby
appropriated out of funds in the National Treasury not otherwise
appropriated, which amount shall be paid into a “Special Cadastral
Program Revolving Fund”, to finance the cadastral land survey and
registration of other unregistered areas.
CHAPTER IX.—COURTS OF AGRARIAN RELATIONS
SEC. 141. Creation.—Courts of Agrarian Relations are hereby

organized and established throughout the Philippines in conformity
with the provisions of this Chapter.
215
SEC. 142. Regional Districts.—Regional districts for the

Courts of Agrarian Relations in the Philippines are constituted as
follows:
The first Regional District shall consist of the provinces

of Cagayan, Batanes, Isabela and Nueva Vizcaya, with seat in
Tuguegarao, Cagayan for Branch I and in Ilagan, Isabela for Branch
II;
The second Regional District, of the provinces of Ilocos Norte,

Ilocos Sur, Abra, Mountain Province, La Union and the City of
Baguio, with seat in Laoag, Ilocos Norte for Branch I and in San
Fernando, La Union for Branch II;
The third Regional District, of the provinces of Pangasinan

and Zambales, and the City of Dagupan, with seat in Lingayen,
Pangasinan for Branch I, in Tayug, Pangasinan for Branch II and
in Iba, Zambales for Branch III;
The fourth Regional District, of the provinces of Nueva Ecija

and Tarlac, and Cabanatuan City, with seat in Cabanatuan City for
Branch I, in Guimba, Nueva Ecija for Branch II, in Tarlac, Tarlac
for Branch III and in Moncada, Tarlac for Branch IV;
The fifth Regional District, of the provinces of Pampanga,

Bataan and Bulacan, with seat in Malolos, Bulacan for Branch I, in
San Fernando, Pampanga for Branch II, in Angeles, Pampanga for
Branch III and in Balanga, Bataan for Branch IV;
The sixth Regional District, of the City of Manila, Quezon City,

Pasay City, the province of Rizal, the City of Cavite, the province of
Cavite, the City of Tagaytay, Trece Martires City, and the province
of Palawan, with seat in Manila for Branch I (Executive Judge), in
Cavite City for Branch 11 and in Pasig, Rizal for Branch III;
The seventh Regional District, of the province of Laguna, the

City of San Pablo, the province of Batangas, the City of Lipa, and
the provinces of Oriental Mindoro and Occidental Mindoro, with
216
seat in Los Baños, Laguna for Branch I, in Batangas, Batangas for

Branch II and in Mamburao, Mindoro Occidental for Branch III;
The eighth Regional District, of the province of Quezon, the

subprovince of Aurora, the City of Lucena, and the province of
Camarines Norte, with seat in the City of Lucena for Branch I and
in Daet, Camarines Norte for Branch II;
The ninth Regional District, of the province of Camarines Sur,

Naga City, Legazpi City and the provinces of Albay, Catanduanes,
Sorsogon and Masbate, with seat in Naga City for Branch I, in
Legazpi City for Branch II and in Sorsogon, Sorsogon for Branch III;
The tenth Regional District, of the province of Capiz, Roxas

City, the provinces of Aklan, Romblon, Marinduque and Iloilo, the
City of Iloilo, and the province of Antique, with seat in the City of
Iloilo for Branch I and in Roxas City for Branch II;
The eleventh Regional District, of the province of Occidental

Negros, the Cities of Bacolod and Silay, the province of Oriental
Negros, Dumaguete City, and the subprovince of Siquijor, with seat
in Bacolod City for Branch I, in Dumaguete City for Branch II and
in San Carlos City for Branch III;
The twelfth Regional District, of the province of Samar, the

City of Calbayog, the province of Leyte, and the Cities of Ormoc
and Tacloban, with seat in Catbalogan, Samar for Branch I and in
Ormoc City for Branch II;
The thirteenth Regional District, of the province of Cebu, the

City of Cebu, and the province of Bohol, with seat in the City of
Cebu for Branch I and in Tagbilaran, Bohol for Branch II;
The fourteenth Regional District, of the provinces of Surigao

and Agusan, Butuan City, the province of Oriental Misamis,
Cagayan de Oro City, the provinces of Bukidnon, Lanao del Sur and
Lanao del Norte, and the Cities of Iligan and Marawi, with seat in
Cagayan de Oro City for Branch I and in Iligan City for Branch II;
217
The fifteenth Regional District, of the province of Davao, the

City of Davao, the provinces of Cotabato and Occidental Misamis,
Ozamiz City, the provinces of Zamboanga del Norte and Zamboanga
del Sur, Zamboanga City, Basilan City and the province of Sulu,
with seat in the City of Davao for Branch I, Cotabato City for Branch
II and Ozamiz City for Branch III.
SEC. 143. Judges of Agrarian Relations.—The judicial function

of the Courts of Agrarian Relations shall be vested in an Executive
Judge and the Regional District Judges, who shall be appointed
from time to time, depending on the need for their services, by the
President of the Philippines with the consent of the Commission on
Appointments: Provided, however, That the Executive Judge and
the eight Associate Judges, at the time of the approval of this Code,
of the Court of Agrarian Relations established and organized under
Republic Act Numbered Twelve hundred and sixty-seven, shall
continue as Agrarian Judges without need of new appointments
by the President of the Philippines and new confirmation of the
Commission on Appointments: Provided, further, That upon the
approval of this Code, the said Executive Judge shall continue as
such with authority to exercise the usual administrative functions
over the Court of Agrarian Relations not incompatible with the
provisions of this Chapter and shall have his office in Manila without
prejudice to his holding court in any district where the requirements
of the service so warrant, and the eight Associate Judges shall be
assigned as Regional District Judges by the Executive Judge to any
of the regional districts as constituted in the preceding Section.
SEC. 144. Qualifications of Judges; Tenure of Office;

Compensation.—No person shall be appointed as Executive Judge
or Regional District Judge unless he has been a citizen of the
Philippines for ten years and has practiced law in the Philippines
for a period of not less than ten years or has held during a like
period, within the Philippines, an office requiring admission to the
practice of law in the Philippines as an indispensable requisite.
Regional District Judges shall be appointed to serve during

good behavior, until they reach the age of seventy years or become
218
incapacitated to discharge the duties of their office, unless sooner

removed in accordance with law.
The judges may be suspended or removed in the same manner

and upon the same grounds as judges of the Court of First Instance.
The Executive Judge shall receive an annual compensation

which shall be equal to that allowed or may hereafter be allowed
for judges of the Court of First Instance and the Regional District
Judges shall receive an annual compensation of one thousand pesos
less than that of the Executive Judge.
SEC. 145. Leave Privileges; Traveling Expenses.—Judges

of the Courts of Agrarian Relations shall be entitled to the same
retirement and leave privileges now granted or may hereafter be
granted to judges of the Court of First Instance. They shall be
entitled to traveling expenses when performing their duties outside
official stations.
SEC. 146. Vacation of Courts of Agrarian Relations.—The

yearly vacation of Courts of Agrarian Relations shall begin with the
first of April and close with the first of June of each year.
SEC. 147. Assignment of Judges to Vacation Duty.—During

the month of January of each year the Executive Judge shall issue
an order naming the judges who are to remain on duty during the
court vacation of that year; and, consistently with the requirements
of the judicial service, the assignment shall be so made that no judge
shall be assigned to vacation duty, unless upon his own request,
with greater frequency than once in two years.
Such order shall specify, in the case of each judge assigned

to vacation duty, the territory over which in addition to his own
district his authority as vacation judge shall extend.
The Executive Judge may from time to time modify his order
assigning the judges to vacation duty as newly arising conditions or
emergencies may require.
219
A judge assigned to vacation duty shall not ordinarily be

required to hold court during such vacation; but the Executive Judge
may, when in his judgment the emergency shall require, direct any
judge assigned to vacation duty to hold during the vacation a special
term of court in any district.
SEC. 148. Judges of Regional Districts.—Four judges shall be

commissioned for each of the fourth and fifth Regional Districts;
three judges shall be commissioned for each of the third, sixth,
seventh, ninth, eleventh and fifteenth Regional Districts; and two
judges for each of the other Regional Districts.
SEC. 149. Oath of Office.—Before entering upon the discharge

of the duties of their office, the judges shall take and subscribe to an
oath of office in accordance with the provisions of Section twenty-
three of the Revised Administrative Code.
SEC. 150. Division of Business Between Branches.—All

business appertaining to the Courts of Agrarian Relations of each
Regional District shall be equitably distributed among the judges of
the branches in such manner as shall be agreed upon by the judges
themselves. Should the judges fail to agree on the distribution of
business, then the Executive Judge shall make the distribution.
SEC. 151. Judges’ Certification as to Work Completed.— The

judges of the Courts of Agrarian Relations shall certify at the end
of each month that all petitions and motions in all cases pending
decision or resolution for a period of thirty days from submission by
the parties have been determined and decided before the date of the
making of the certificate. No leave shall be granted and no salary
shall be paid without such certificate.
SEC. 152. Official Station of Regional District Judges.—

Within thirty days after the approval of this Code, the Executive
Judge shall issue an order designating the official station of the
judges of the branches of each of the Regional Districts.
220
SEC. 153. Time and Place of Molding Court.—Sessions of

the Court shall be convened on all working days when there are
cases ready for trial or other court business to be dispatched. The
hours for the daily session of the Court shall be from nine to twelve
in the morning, and from three to five in the afternoon, except on
Saturdays, when a morning session only shall be required; but the
judge may extend the hours of session whenever in his judgment it
is proper to do so. The judge, in his discretion, may order that but
one session per day shall be held instead of two, at such hours as
he may deem expedient for the convenience both of the Court and
of the public; but the number of hours that the Court shall be in
session per day shall be not less than five.
Sessions of the Court shall be held at the places of the official

station of the respective judges: Provided, however, That whenever
necessary in the interest of speedy and inexpensive justice and
litigation, a judge shall hold court in the municipality where the
subject matter of the dispute is located, utilizing the sala of the local
justice of the peace court for this purpose.
A brief monthly report which shall be submitted within the

first five days of the succeeding month showing the number and
nature of the cases tried in his sala, the place of hearing in each
case, the progress of the litigation with corresponding dates and the
disposition made thereon shall be rendered by every judge under his
signature and copies thereof shall be furnished the Executive Judge,
who shall compile and report in an appropriate form the decisions
promulgated in important cases. A judge who fails or neglects to
make his report shall, upon first offense, be liable to warning by
the Executive Judge, and upon repeated failure or neglect may be
suspended or removed from office.
SEC. 154. Jurisdiction of the Court.—The Court shall have

original and exclusive jurisdiction over:
(1) All cases or actions involving matters, controversies,

disputes, or money claims arising from agrarian relations: Provided,
however, That all cases still pending in the Court of Agrarian
221
Relations, established under Republic Act Numbered Twelve

hundred and sixty-seven, at the time of the effectivity of this Code,
shall be transferred to and continued in the respective Courts of
Agrarian Relations within whose district the sites of the cases are
located;
(2) All cases or actions involving violations of Chapters I and

II of this Code and Republic Act Numbered Eight hundred and nine;
and
(3) Expropriations to be instituted by the Land Authority :

Provided, however, That expropriation proceedings instituted by the
Land Tenure Administration pending in the Court of First Instance
at the time of the effectivity of this Code shall be transferred to
and continued in the respective Courts of Agrarian Relations within
whose district the subject matter or property is located.
SEC. 155. Powers of the Court; Rules of Procedure.—The Courts

of Agrarian Relations shall have all the powers and prerogatives
inherent in or belonging to the Court of First Instance.
The Courts of Agrarian Relations shall be governed by the

Rules of Court: Provided, That in the hearing, investigation and
determination of any question or controversy pending before them,
the Courts without impairing substantial rights, shall not be bound
strictly by the technical rules of evidence, and procedure, except in
expropriation cases.
SEC. 156. Appeals.—Appeals from an order or decision of the

Courts of Agrarian Relations may be taken to the Court of Appeals
on questions of fact and of fact and law or to the Supreme Court on
pure questions of law, as the case may be, in accordance with rules
governing appeals from the Court of First Instance as provided in
the Rules of Court.
SEC. 157. Detail of Judges to Another District.—Whenever

any judge in any of the Court shall certify to the Executive Judge
that the condition of the docket in his Court is such as to require
222
the assistance of an additional judge, or when there is any vacancy

in any Court, the Executive Judge may, in the interest of justice,
with the approval of the Supreme Court, assign any judge of the
Court of Agrarian Relations whose docket permits his temporary
absence from said Court, to hold session in the Court needing such
assistance or where such vacancy exists.
Whenever a judge appointed or assigned in any branch of the

Court shall leave his district by transfer or assignment to another
Court of equal jurisdiction without having decided a case totally
heard by him and which was duly argued or opportunity given for
argument to the parties or their counsel, it shall be lawful for him
to prepare and sign his decision in said case anywhere within the
Philippines and send the same by registered mail to the clerk of court
to be filed in the Court as of the date when the same was received
by the clerk, in the same manner as if the judge had been present
in the Court to direct the filing of the judgment: Provided, however,
That if a case has been heard only in part, the Supreme Court,
upon petition of any of the interested parties to the case and the
recommendation of the respective district judge, may also authorize
the judge who has partly heard the case to continue hearing and
to decide said case notwithstanding his transfer or appointment to
another court of equal jurisdiction.
SEC. 158. Personnel of the Courts of Agrarian Relations.—(1)

Court Commissioners; Qualifications and Compensation.—There
shall be twenty-four Court Commissioners who shall receive an
annual compensation of nine thousand pesos each and shall be
appointed by the President with the consent of the Commission
on Appointments. A Court Commissioner shall be a member of
the Philippine Bar and must have been engaged in the practice of
law for five years or must have held a position in the government
requiring the qualifications of a lawyer for the same period. A Court
Commissioner may be assigned by the Executive Judge to assist
in the hearing and investigation of cases. Subject to the latter’s
direction and supervision, he may hear evidence for the Court on
any disputed point or issue in any given case or cases and shall after
said hearing submit a report of all the cases heard by him together
223
with the records thereof within the period prescribed by the Court.
During the hearing he may rule upon questions of pleading and
procedure but not on the merits of the case.
(2) Clerks of Court; Qualifications, Duties, Compensation and

Bond.—There shall be as many Clerks of Court as there are judges,
who shall be appointed by the President of the Philippines with
the consent of the Commission on Appointments. Deputy Clerks
of Court and such other employees as may be required shall be
appointed by the Executive Judge, subject to Civil Service law, rules
and regulations.
No person shall be eligible for appointment as Clerk of Court

unless he is duly authorized to practice law in the Philippines.
Before entering upon the discharge of the duties of his office,

he shall file a bond in the amount of ten thousand pesos in the same
manner and form as required of the Clerk of the Supreme Court,
such bond to be approved by, and filed with, the Treasurer of the
Philippines and shall be subject to inspection by interested parties.
The Clerk of Court shall require his deputy to give an adequate
bond as security against loss by reason of his wrongdoing or gross
negligence.
The Clerks of Court shall each receive an annual compensation

of seven thousand two hundred pesos. They shall exercise the same
powers and perform the same duties on all matters within the
jurisdiction of the Courts as those exercised by the Clerks of Court
of the Courts of First Instance.
Clerks of Courts and other subordinate employees of the

Courts of Agrarian Relations shall, for administrative purposes,
belong to the Department of Justice; but in the performance of their
duties, they shall be subject to the supervision of the judges of the
Court to which they respectively pertain.
The Commissioners, otherwise known as Hearing Officers of

the Court of Agrarian Relations, as well as the Clerks of Court at
224
the time of the approval of this Code, shall continue as such without
the need of new appointment by the President of the Philippines
and new confirmation by the Commission on Appointments.
SEC. 159. Appropriation.—There is hereby appropriated

the sum of three million five hundred thousand pesos, or so much
thereof as may be necessary, out of the unappropriated funds in the
Philippine Treasury for expenses for courtrooms and court offices,
including equipment for the Courts and their personnel, for salaries,
and for other necessary expenses that may be incurred in carrying
out the provisions of this Chapter. The amount appropriated shall
be carried in succeeding appropriations for the Courts of Agrarian
Relations.
CHAPTER X.—OFFICE OF AGRARIAN COUNSEL
SEC. 160. Creation of Office of Agrarian Counsel.—To

strengthen the legal assistance to agricultural lessees and
agricultural owner-cultivators referred to in this Code, the Tenancy
Mediation Commission is hereby expanded and shall hereafter be
known as the Office of the Agrarian Counsel. The head of the Office
shall hereafter be known as Agrarian Counsel and shall have the
rank, qualifications and salary of First Assistant Solicitor General.
He shall be assisted by a Deputy Agrarian Counsel, who shall have
the rank, qualifications and salary of Assistant Solicitor General.
The Agrarian Counsel and Deputy Agrarian Counsel shall be
Appointments of Congress and shall be under the direct supervision
of the Secretary of Justice.
SEC. 161. Special Attorneys.—There is hereby created in

the Office of the Agrarian Counsel eighty additional positions of
Special Attorneys, who shall be appointed by the President upon
recommendation of the Secretary of Justice and with the consent
of the Commission on Appointments. They shall have the rank,
qualifications and salary provided by law for a solicitor in the Office
of the Solicitor General with the lowest rank.
225
SEC. 162. Appointment of Subordinate Officials.—The

Agrarian Counsel shall appoint the subordinate officials and
employees of the Office of Agrarian Counsel, subject to civil
service rules and regulations, fix their compensation and prescribe
their duties. The compensation of special attorneys transferred
to the Office of Agrarian Counsel shall be fixed on salary scales
corresponding to solicitors of the Office of the Solicitor General:
Provided, That in the fixing of their salary seniority in rank shall be
taken into account.
The Agrarian Counsel shall have the power to organize such

divisions and sections as will insure maximum efficiency of the
Office.
SEC. 163. Functions of the Office of Agrarian Counsel.—It

shall be the responsibility of the Office of the Agrarian Counsel, upon
proper notification by the party concerned or by the association or
organization to which he belongs, to represent agricultural lessees,
agricultural farm workers and agricultural owner-cultivators
referred to in this Code who cannot engage the services of competent
private counsel in cases before the Court of Agrarian Relations.
SEC. 164. Authority to Administer Oath.—The Agrarian

Counsel, the Deputy Agrarian Counsel and the Special Attorneys of
the Office of Agrarian Counsel are hereby authorized to administer
oaths free of charge.
SEC. 165. Appropriation.—There is hereby appropriated, in

addition to the appropriation of the Tenancy Mediation Commission
for Fiscal Year 1964, the sum of three million pesos, or so much
thereof as may be necessary, out of the unappropriated funds in the
National Treasury, for salaries, wages, purchase of motor vehicles,
supplies, equipment, and other sundry expenses. The amount
appropriated herein shall be carried in the appropriations for the
Office of the Agrarian Counsel in the General Appropriations Acts
for succeeding fiscal years.
226
CHAPTER XL.—GENERAL PROVISIONS
SEC. 166. Definition of Terms.—As used in Chapter I of this

Code:
(1) “Agricultural land” means land devoted to any growth,
including but not limited to crop lands, salt beds, fish ponds, idle
land and abandoned land as defined in paragraphs 18 and 19 of this
Section, respectively.
(2) “Agricultural lessee” means a person who, by himself and

with the aid available from within his immediate farm household,
cultivates the land belonging to, or possessed by, another with the
latter’s consent for purposes of production, for a price certain in
money or in produce or both. It is distinguished from civil law lessee
as understood in the Civil Code of the Philippines.
(3) “Agricultural lessor” means a person, natural or juridical,
who, either as owner, civil law lessee, usufructuary, or legal
possessor, lets or grants to another the cultivation and use of his
land for a price certain.
(4) “Agricultural year” means the period of time required for

raising a particular agricultural product, including the preparation
of the land, sowing, planting and harvesting of crops and, whenever
applicable, threshing of said crops: Provided, however, That in
case of crops yielding more than one harvest from one planting,
“agricultural year” shall be the period from the preparation of the
land to the first harvest and thereafter from harvest to harvest.
In both cases, the period may be shorter or longer than a calendar
year.
(5) “Court” means the Court of Agrarian Relations.
(6) “Fair rental value” means the value not in excess of

allowable depreciation plus six per cent interest per annum on the
investment computed at its market value: Provided, That the fair
rental value for work animal or animals and farm implements used
to produce the crop shall not exceed five per cent of the gross harvest
for the work animal or animals and five per cent for implements.
227
(7) “Farm implements” means hand tools or machines

ordinarily employed in a farm enterprise.
(8) “Immediate farm household” means the members of the

family of the lessee or lessor and other persons who are dependent
upon him for support and who usually help him in his activities.
(9) “Incapacity” means any cause or circumstance which

prevents the lessee from fulfilling his contractual and other
obligations under this Code.
(10) “Inspect” means to enter, examine and observe. Under

no circumstance, however, shall such entrance, examination and
observation be utilized to commit any act of intimidation or coercion
nor shall it be utilized to impair the civil rights of the individuals
affected.
(11) “Proven farm practices” means sound farming practices

generally accepted through usage or officially recommended by the
Agricultural Productivity Commission for a particular type of farm.
(12) “Work animals” means animals ordinarily employed in

a farm enterprise, such as carabaos, horses, bullocks, etc.
(13) “Personal cultivation” means cultivation by the lessee

or lessor in person and/or with the aid of labor from within his
immediate household.
As used in Chapter II:
(14) “Farm employer” includes any person acting directly

or indirectly in the interest of a farm employer whether for profit
or not, as well as a labor contractor but shall not include any labor
organization (otherwise than when acting as a farm employer) or
anyone acting in the capacity of an officer or agent of such labor
organization.
228
(15) “Farm worker” includes any agricultural wage, salary

or piece worker but is not limited to a farm worker of a particular
farm employer unless the Code explicitly states otherwise and
any individual whose work has ceased as a consequence of, or in
connection with, a current agrarian dispute or an unfair labor
practice and who has not obtained a substantially equivalent and
regular employment.
Whenever the term “farm worker” is used in this Code, it shall

be understood to include farm laborer and/or farm employee.
(16) “Farm workers’ organization” includes any union or

association of farm workers which exists, in whole or in part, for
the purpose of collective bargaining or dealing with farm employers
concerning terms and conditions of employment.
(17) “Agrarian dispute” means any controversy relating

to terms, tenure or conditions of employment, or concerning an
association or representation of persons in negotiating, fixing,
maintaining, changing, or seeking to arrange terms or conditions
of employment, regardless of whether the disputants stand in the
proximate relation of farm employers and employees.
As used in Chapter III of this Code:
(18) “Idle lands” means land not devoted directly to any

crop or to any definite economic purpose for at least one year prior
to the notice of expropriation except for reasons other than force
majeure or any other fortuitous event but used to be devoted or is
suitable to such crop or is contiguous to land devoted directly to any
crop and does not include land devoted permanently or regularly to
other essential and more productive purpose.
(19) “Abandoned lands” means lands devoted to any crop

at least one year prior to the notice of expropriation, but which was
not utilized by the owner for his benefit for the past five years prior
to such notice of expropriation.
229
(20) “Economic family-size farm units” means an area of

farm land that permits efficient use of labor and capital resources
of the farm family and will produce an income sufficient to provide
a modest standard of living to meet a farm family’s needs for food,
clothing, shelter, and education with possible allowance for payment
of yearly installments on the land, and reasonable reserves to absorb
yearly fluctuations in income.
(21) “Suitability for economic family-size farms” refers to

situations where a parcel of land whose characteristics, such as
climate, soil, topography, availability of water and location, will
support a farm family if operated in economic family-size farm units
and does not include those where large-scale operations will result
in greater production and more efficient use of the land.
(22) “Agricultural owner-cultivator” means any person

who, providing capital and management, personally cultivates his
own land with the aid of his immediate family and household.
(23) “Owner-manager” means the owner of a parcel of land

devoted to agricultural production who provides the capital and
management in the farm enterprise.
(24) “Labor administration” means cases where farm

workers are employed wholly in the agricultural production.
(25) “Share tenancy” as used in this Code means the

relationship which exists whenever two persons agree on a joint
undertaking for agricultural production wherein one party furnishes
the land and the other his labor, with either or both contributing any
one or several of the items of production, the tenant cultivating the
land personally with the aid of labor available from members of his
immediate farm household, and the produce thereof to be divided
between the landholder and the tenant.
(26) “Tax free” in reference to bonds and shares of

stock issued by the Land Bank as payment for acquired private
230
agricultural land shall mean all government taxes except gift tax
and inheritance tax.
SEC. 167. Penal Provisions.—(1) Violation of the provisions

of Sections thirteen and twenty-seven and paragraph 1 of Section
thirty-one of this Code shall be punished by a fine not exceeding one
thousand pesos or imprisonment not exceeding one year or both in
the discretion of the court. In case of juridical persons, the manager
or the person who has charge of the management or administration
of the property or, in his default, the person acting in his stead,
shall be liable under this Section.
(2) Any person, natural or juridical, who induces another,

as tenant, to execute or enter into a share tenancy contract with
himself or with another in violation of this Code shall be punished
by a fine not exceeding five thousand pesos with subsidiary
imprisonment in accordance with the Revised Penal Code: Provided,
That the execution of a share tenancy contract shall be considered
prima facie evidence of such inducement as to the owner, civil law
lessee, usufructuary or legal possessor. In case of juridical persons,
the manager or the person who has charge of the management or
administration of the property or, in his default, the person acting
in his stead, shall be liable under this Section.
(3) Any person who executes an affidavit as required by

Section thirteen of Chapter I, knowing the contents thereof to be
false, shall be punished by a fine not exceeding one thousand pesos
or imprisonment of not more than one year, or both, in the discretion
of the court.
(4) Any person who wilfully violates the provisions of Sections

forty and forty-one of this Code shall be punished by a fine of not
less than one hundred pesos nor more than one thousand pesos or
by imprisonment of not less than one month nor more than one
year, or both such fine and imprisonment, in the discretion of the
court. If any violation of Sections forty and forty-one of this Code is
committed by a corporation, partnership or association, the manager
231
or, in his default, the person acting as such when the violation took
place shall be criminally responsible.
(5) Any person who wilfully violates the provisions of Section

forty-two of this Code shall, upon conviction thereof, be subject to a
fine of not more than two thousand pesos or, upon second conviction,
to imprisonment of not more than one year or both such fine and
imprisonment, in the discretion of the court. If any violation of
the provisions of Section forty-two of this Code is committed by
a corporation, partnership or association, the manager or, in his
default, the person acting as such when the violation took place
shall be criminally responsible.
SEC. 168. Pending Application for Mechanization.—Any

provision of this Code to the contrary notwithstanding, any
application for mechanization where corresponding certifications
for suitability for mechanization and for availability of resettlement
by the Agricultural Tenancy Commission and the National
Resettlement and Rehabilitation Administration, respectively,
have been issued and proper notices served on the tenants at least
two months prior to the approval of this Code shall be given due
course and decided in accordance with the pertinent provisions
and requirements of Republic Act Numbered Eleven hundred and
ninety-nine, as amended.
SEC. 169. Personnel of Reorganized or Abolished Agencies.—

Permanent officials and employees of all existing government
agencies which are abolished or reorganized under this Code,
subject to Civil Service rules and regulations, shall be absorbed
and shall not be divested of their positions except presidential
appointees: Provided, That those presidential appointees who
cannot be absorbed and such officials and employees who prefer to
be laid-off shall be given gratuity equivalent to one month salary for
every year of service but in no case more than twenty-four month’s
salary, in addition to all benefits to which they are entitled under
existing laws and regulations.
232
To carry out the provisions of this Section, there is hereby

appropriated the sum of five hundred thousand pesos out of the
unappropriated funds in the National Treasury.
SEC. 170. Budgeting and Disbursing of Appropriated

Funds.—Any provision of this Code or of any existing law to the
contrary notwithstanding, not more than sixty per centum of
the specific appropriations provided in this Code for operating
expenditures shall be used for personnel services: Provided, That
in the case of the appropriations for the Agricultural Productivity
Commission not more than twenty per centum shall be spent for office
personnel and other administrative expenses thereof: Provided,
further, That the total operating expenditures of the Agricultural
Credit Administration shall not exceed three per centum of its
total capitalization in addition to the allowance for losses granted
under Section one hundred ten: Provided, furthermore, That all
unexpended balances of all appropriations provided in this Code for
operating expenditures shall revert to the National Treasury at the
end of the fiscal year in conformity with the provisions of Section
twenty-three of Republic Act Numbered Nine hundred ninety-two:
And provided, finally, That all the financial requirements of the
various agencies established in this Code for their operation except
the Land Bank and the Agricultural Credit Administration shall be
proposed in the President’s budget in order that such appropriation
as may be necessary therefor may be provided in the General
Appropriation Acts for the succeeding fiscal years.
SEC. 171. Separability of Provisions.—If, for any reason, any

section or provision of this Code shall be questioned in any court,
and shall be held to be unconstitutional or invalid, no other section
or provision of this Code shall be affected thereby.
SEC. 172. Prior Inconsistent Laws.—All laws or parts of

any law inconsistent with the provisions of this Code are hereby
repealed.
233
SEC. 173. Effective Date.—This Code shall take effect upon

its approval.
Approved: August 8, 1963.
RA 3844 was amended by PD 251.

RA 3844 was amended by RA 6389.
RA 3844 (sec. 53) was amended by RA 9700.
RA 3844 (sec. 62) was amended by PD 1817.
RA 3844 (sec. 162, first par.) was amended by RA 5984.
RA 3844 (Chap. IX) was repealed by PD 946.
RA 3844 (sec. 35) was repealed or amended by RA 6657.
234
S. No. 500
AN ACT AMENDING SECTION ONE HUNDRED SIXTY-

THREE OF REPUBLIC ACT NUMBERED THIRTY-EIGHT
HUNDRED FORTY-FOUR, OTHERWISE KNOWN AS THE
“AGRICULTURAL LAND REFORM CODE.”

SECTION 1. Section One hundred and sixty-three of Republic

Act Numbered Thirty-eight hundred and forty-four, otherwise
known as the “Agricultural Land Reform Code” is amended to read
as follows:
“SEC. 163. Functions of the Office of the Agrarian Counsel.

- It shall be responsibility of the Office of Agrarian Counsel, upon
organization to which he belongs, to represent tenants, agricultural
lessees, agricultural farm workers and agricultural owner-
cultivators or the members of their immediate farm household
private counsel in cases before the court of Agrarian Relations. This
responsibility shall include representation before courts, including
appellate, in cases, civil or criminal, instituted by or against said
tenant, agricultural lessees, farm workers or owner-cultivators or
the members of their immediate farm household, where the cases
arise from or are connected with, or results or effects of an agrarian
dispute.
Approved: June 17, 1967
RA 4886 amended RA 3844 (sec. 163).
235
H. No 16114
AN ACT AMENDING THE FIRST PARAGRAPH OF SECTION ONE

HUNDRED SIXTY-TWO OF REPUBLIC ACT NUMBERED
THREE THOUSAND EIGHT HUNDRED FORTY-FOUR,
KNOWN AS THE AGRICULTURAL LAND REFORM CODE
(re appointment of subordinate officials)

SECTION 1. The first paragraph of Section one hundred

sixty-two of Republic Act Numbered Three thousand eight hundred
forty-four is hereby amended to read as follows:
“SEC. 162. Appointment of Subordinate Officials.— The

Agrarian Counsel shall appoint the subordinate officials and
employees of the Office of the Agrarian Counsel, subject to Civil
Service rules and regulations, fix their compensation and prescribe
their duties. The compensation of special attorneys transferred
to the Office of Agrarian Counsel shall be fixed on salary scales
corresponding to solicitors of the Office of the Solicitor General and
the compensation of subordinate officials and employees shall be
based on equivalent positions in the office of the Courts of Agrarian
Relations: Provided, finally, That the compensation of employees
whose positions do not have equivalence in the office of the Courts
of Agrarian Relations shall be increased by thirty per cent of their
salaries.”
SEC. 2. Such sum as may be needed in the adjustment of

salaries herein involved shall be changed to current appropriation
and/or savings of the Office, notwithstanding any provision of law
to the contrary.
236
Enacted without Executive approval, August 4, 1969.
RA 5984 amended RA 3844 (sec. 162, par. 1).
237
7th Congress
S. No. 478
H. No. 3453
AN ACT AMENDING REPUBLIC ACT NUMBERED THIRTY

EIGHT HUNDRED AND FORTY-FOUR, AS AMENDED,
OTHERWISE KNOWN AS THE AGRICULTURAL LAND
REFORM CODE, AND FOR OTHER PURPOSES

SECTION 1. Sections 1, 2, 3 and 4 of Republic Act No. thirty

eight hundred, and forty-four, otherwise known as the Agricultural
Land Reform Code, are hereby amended to read as follows:
“SECTION 1. Title.—This Act shall be known as the Code of

Agrarian Reforms of the Philippines.”
SEC. 2. Declaration of Policy.—It is the policy of the State:
“(1) To establish cooperative-cultivatorship among those who

live and work on the land as tillers, owner-cultivatorship and the
economic family-size farm as the basis of Philippine agriculture and,
as a consequence, divert landlord capital in agriculture to industrial
development;
“(2) To achieve a dignified existence for the small farmers free
from pernicious institutional restraints and practices;
“(3) To create a truly viable social and economic structure
in agriculture conducive to greater productivity and higher farm
income through a cooperative system of production, processing,
marketing, distribution, credit, and services;
“(4) To apply all labor laws equally and without discrimination
to both industrial and agricultural wage earners;
“(5) To provide a more vigorous and systematic land
resettlement program and public land distribution;
238
“(6) To make the small farmers more independent, self-reliant

and responsible citizens, and a source of genuine strength in our
democratic society;
“(7) To give first priority to measures for the adequate and
timely financing of the Agrarian Reform Program pursuant to House
Joint Resolution Numbered Two, otherwise known as the Magna
Carta of Social Justice and Economic Freedom; existing laws;
executive and administrative orders; and rules and regulations to
the contrary notwithstanding;
“(8) To involve local governments in the implementation of
the Agrarian Reform Program; and
“(9) To evolve a system of land use and classification.”
“SEC. 3. Composition of Code.—In pursuance of the policy

enunciated in Section two, the following are established under this
Code:
“(1) An agricultural leasehold system to replace all existing

share tenancy systems in agriculture;
“(2) A system of crediting rental as amortization payment on
purchase price;
“(3) A declaration of rights for agricultural labor;
“(4) A machinery for the acquisition and equitable distribution
“(5) An institution to finance the acquisition and distribution
“(6) A machinery to extend credit and similar assistance
to agricultural lessees, amortizing owners-cultivator, owners-
cultivator, and cooperatives;
“(7) A machinery to provide marketing, management, and
other technical assistance and/or services to agricultural lessees,
amortizing owners-cultivator, owners-cultivator, and cooperatives;
“(8) A machinery for cooperative development;
“(9) A department for formulating and implementing projects
of agrarian reform;
“(10) An expanded program of land capability survey,
classification, and registration;
239
“(11) A judicial system to decide issues arising under this

Code and other related laws and regulations; and
“(12) A machinery to provide legal assistance to agricultural
lessees, amortizing owners-cultivator, and owners-cultivator.”
“SEC. 4. Automatic Conversion to Agricultural Leasehold.

—Agricultural share tenancy throughout the country, as herein
defined, is hereby declared contrary to public policy and shall
be automatically converted to agricultural leasehold upon the
effectivity of this section.
“The credit assistance traditionally extended by a landowner

and a local lender to a tenant under the share tenancy systems in
agriculture for production loans and loans for the purchase of work
animals, tillage equipment, seeds, fertilizers, poultry, livestock,
feed and other similar items, and advances for the subsistence of a
lessee and his family, may be continued by said landowner and local
lender: Provided, That the total charges on these loans, including
interest and service, inspection and insurance fees, shall not exceed
fourteen per cent per calendar year and the principal thereof shall
not be subject to upward adjustment even in case of extraordinary
inflation and/or devaluation: Provided, further, That on all loans or
advances other than money, the interest shall be computed on the
basis of the current price of the goods at the time when the loans or
advances were made.
“Any work animal and tillage equipment in the possession of

a share tenant but owned by a landowner shall automatically be
sold to said tenant on installment for a period not exceeding five
years and at a price agreed upon by the parties: Provided, however,
That the tenant shall pay in advance ten per cent of the price agreed
upon.
“Existing share tenancy contracts may continue in force and

effect in any region or locality, to be governed in the meantime by
the pertinent provisions of Republic Act Numbered Eleven hundred
and ninety-nine, as amended, until the end of the agricultural year
when the President of the Philippines shall have organized by
240
executive order the Department of Agrarian Reform in accordance

with the provisions of this amendatory Act, unless such contracts
provide for a shorter period or the tenant sooner exercises his
option to elect the leasehold system: Provided, That in order not
to jeopardize international commitments, lands devoted to crops
covered by marketing allotments shall be made the subject of a
separate proclamation by the President upon recommendation of the
department head that adequate provisions, such as the organization
of cooperatives, marketing agreement, or other similar workable
arrangements, have been made to insure efficient management on
all matters requiring synchronization of the agricultural with the
processing phases of such crops.
“In case some agricultural share tenants do not want to become

agricultural lessees of their respective land-holding, they shall,
with the assistance of the Bureau of Agrarian Legal Assistance,
notify in writing the landowners concerned. In such a case, they
shall have one agricultural year from the date of the notice to accept
leasehold relationship, otherwise the landowner may proceed to
their ejectment.”
SEC. 2. Sections 11 and 12 of the same Code are hereby

amended to read as follows:
“SEC. 11. Lessee’s Right of Pre-emption.—In case the

agricultural lessor decides to sell the landholding, the agricultural
lessee shall have the preferential right to buy the same under
reasonable terms and conditions: Provided, That the entire
landholding offered for sale must be pre-empted by the Department
of Agrarian Reform upon petition of the lessee or any of them:
Provided, further, That where there are two or more agricultural
lessees, each shall be entitled to said preferential right only to
the extent of the area actually cultivated by him. The right of pre-
emption under this Section may be exercised within one hundred
eighty days from notice in writing, which shall be served by the
owner on all lessees affected and the Department of Agrarian
Reform.
241
“If the agricultural lessee agrees with the terms and conditions
of the sale, he must give notice in writing to the agricultural lessor of
his intention to exercise his right of pre-emption within the balance
of one hundred eighty day’s period still available to him, but in
any case not less than thirty days. He must either tender payment
of, or present a certificate from the land bank that it shall make
payment pursuant to section eighty of this Code on, the price of the
landholding to the agricultural lessor. If the latter refuses to accept
such tender or presentment, he may consign it with the court.
“Any dispute as to the reasonableness of the terms and

conditions may be brought by the lessee or by the Department of
Agrarian Reform to the proper Court of Agrarian Relations which
shall decide the same within sixty days from the date of the filing
thereof: Provided, That upon finality of the decision of the Court of
Agrarian Relations, the Land Bank shall pay to the agricultural
lessor the price fixed by the court within one hundred twenty days:
Provided, further, That in case the Land Bank fails to pay within
that period, the principal shall earn an interest equivalent to the
prime bank rate existing at the time.
“Upon the filing of the corresponding petition or request with

the department or corresponding case in court by the agricultural
lessee or lessees, the said period of one hundred and eighty days
shall cease to run.
“Any petition or request for pre-emption shall be resolved

within sixty days from the filing thereof; otherwise, the said period
shall start to run again.”
“SEC. 12. Lessee’s right of Redemption.—In case the

landholding is sold to a third person without the knowledge of the
agricultural lessee, the latter shall have the right to redeem the
same at a reasonable price and consideration: Provided, That where
there are two or more agricultural lessees, each shall be entitled
to said right of redemption only to the extent of the area actually
cultivated by him. The right of redemption under this Section may
be exercised within one hundred eighty days from notice in writing
242
which shall be served by the vendee on all lessees affected and the
Department of Agrarian Reform upon the registration of the sale,
and shall have priority over any other right of legal redemption.
The redemption price shall be the reasonable price of the land at
the time of the sale.
“Upon the filing of the corresponding petition or request with

the department or corresponding case in court by the agricultural
lessee or lessees, the said period of one hundred and eighty days
shall cease to run.
“Any petition or request for redemption shall be resolved

within sixty days from the filing thereof; otherwise, the said period
shall start to run again.
“The Department of Agrarian Reform shall initiate, while

the Land Bank shall finance, said redemption as in the case of pre-
emption.”
SEC. 3. Section fourteen of the same Code is hereby repealed.
SEC. 4. Section 32 of the same Code is hereby amended to

read as follows:
“SEC. 32. Cost of Irrigation System.—The cost of construction

of a permanent irrigation system, including distributory canals, may
be borne exclusively by the agricultural lessor who shall be entitled
to an increase in rental proportionate to the resultant increase in
production: Provided, That if the agricultural lessor refuses to bear
the expenses of construction the agricultural lessee/or lessees may
shoulder the same, in which case the former shall not be entitled
to an increase in rental and shall, upon the termination of the
relationship, pay the lessee or his heir the reasonable value of the
improvement at the time of the termination: Provided, further, That
if the irrigation system constructed does not work, it shall not be
considered as an improvement within the meaning of this Section:
Provided, furthermore, That the lessees, either as individuals or as
groups, shall undertake the management and control of irrigation
243
systems within their respective jurisdiction. However, those

constructed and operated by the government may be given to the
lessees either as individuals or as groups at their option with the
right to maintain, manage and operate such irrigation systems
and to collect and receive rentals therefrom: Provided, still further,
That the lessees, either as individuals or as groups, shall allocate
not more than twenty-five per cent of their collection for rentals to
the government if the irrigation system has obligations to meet
until paid, otherwise such irrigation system will be maintained,
managed and operated solely by the lessees either as individuals
or as groups, subject to such rules on water rights and water use
promulgated by the National Irrigation Administration or such
other government agencies authorized by law: Provided, finally,
That if the irrigation system is installed and/or constructed at the
expense of the landowner or agricultural lessor, the Department of
Agrarian Reform shall initiate, while the Land Bank shall finance,
the acquisition of such irrigation system at its current fair market
value so that the ownership thereof may be vested in the lessees as
individuals or groups.”

read as follows:
“SEC. 34. Consideration for the Lease of Riceland and

Lands Devoted to Other Crops.—The consideration for the lease of
riceland and lands devoted to other crops shall not be more than the
equivalent of twenty-five per centum of the average normal harvest
or if there have been no harvests, then the estimated normal harvest
during the three agricultural years immediately preceding the date
the leasehold was established after deducting the amount used for
seeds and the cost of harvesting, threshing, loading, hauling and
processing, whichever are applicable: Provided, That if the land
has been cultivated for a period of less than three years, the initial
consideration shall be based on the average normal harvest or if
there have been no normal harvests, then the estimated normal
harvest during the preceding years when the land was actually
cultivated, or on the harvest of the first year in the case of newly
cultivated lands, if that harvest is normal harvests, the final
244
consideration shall be based on the average normal harvest during

these three preceding agricultural years.
“In the absence of any agreement between the parties as

to the rental, the Court of Agrarian Relations shall summarily
determine a provisional rental in pursuance of existing laws, rules
and regulations and production records available in the different
field units of the department, taking into account the extent of the
development of the land at the time of the conversion into leasehold
and the participation of the lessee in the development thereof. This
provisional rental shall continue in force and effect until a fixed
rental is finally determined. The court shall determine the fixed
rental within thirty days after the petition is submitted for decision.
“If capital improvements are introduced on the farm not by

the lessee to increase its productivity, the rental shall be increased
proportionately to the consequent increase in production due to said
improvements. In case of disagreement, the Court shall determine
the reasonable increase in rental.”
SEC. 6. A new section is hereby inserted after Section 34, to

be designated as Section “34-A”, which shall read as follows:
“SEC. 34-A. Rental credited as amortization payment on

purchase price.—The rental paid under the preceding section after
the approval of this amendatory Act shall be credited as amortization
payment on the purchase price of the landholding tilled by the lessee
in any of the following instances:
“(1) When the landholding is expropriated by the government

for the lessee; and
“(2) When it is redeemed.
“The purchase price of the landholding shall be determined

by the parties or the government agencies concerned on the same
basis prescribed under section fifty-six of this Code: Provided, That
whatever balance remains after crediting as amortization the rental
245
paid, the same may be financed by the Land Bank in the same ratio
and mode of payment as provided under section eighty of this Code.
“The provisions of Act Numbered Four hundred ninety-six,

as amended, and other laws to the contrary notwithstanding, the
Land Registration Commission is hereby authorized concurrently
with the Bureau of Lands to approve survey plans of lands intended
for original registration and to issue transfer certificate of title in
favor of the new amortizing-owner-beneficiaries under this section
and the Registries of Deeds to register the same. For this purpose,
the Land Registration Commissioner shall issue the necessary rules
and regulations for the implementation of this provision.
“The Department and/or the Bank, in appropriate cases, shall

facilitate the immediate issuance of the corresponding transfer
certificate of title of the landholding to the new amortizing owner
with the encumbrance thereof duly annotated.
“Provisions of existing laws, rules and regulations to the

contrary notwithstanding, any amortizing owner may use this
transfer certificate of title to obtain a loan from any public or private
lending institution and he shall be entitled to borrow therefor an
amount not less than sixty per centum of the fair market value
of the property: Provided, That the proceeds of such loan shall be
applied as follows: fifty per centum as partial payment of any unpaid
balance on the landholding and the remaining fifty per centum for
the capital improvement of the land and operating capital for farm
operations of the amortizing owner.
“The payment of all loans obtained pursuant to the provisions

of this section shall be guaranteed by the Land Bank and for this
purpose, it shall set aside a sinking fund in such amount as may be
necessary to be determined by its Board of Trustees.
“In case of default in the payment of three consecutive

installments on the loan, the lender shall immediately notify, among
others, the Land Bank and the department of such default, and
thereafter, these agencies shall take the appropriate steps either:
246
“(1) To answer for the default in case the reason therefor is

due to fortuitous event, or
“(2) In any other case, to take over the ownership and

administration of said property.
“In the latter case mentioned under the preceding paragraph,

the government shall endeavor to substitute the defaulting
amortizing owner with a new one who does not own any land
and who shall be subrogated to the rights, and shall assume the
obligations, of the former amortizing owner.
“The rules prescribed in the two immediately preceding

paragraphs shall apply in case the lessee defaults in the payment
of at least three consecutive rental amortizations, with the former
landowner giving the required notice in proper cases.
“In all instances where default is due to fortuitous events the

Land Bank shall be answerable for such default and the farmers
shall be released from the obligations to pay such installment or
installments due together with interest thereon.”
SEC. 7. Section 36(1) of the same Code is hereby amended to

read as follows:
“(1) The landholding is declared by the department head

upon recommendation of the National Planning Commission to be
suited for residential, commercial, industrial or some other urban
purposes: Provided, That the agricultural lessee shall be entitled
to disturbance compensation equivalent to five times the average of
the gross harvests on his landholding during the last five preceding
calendar years;”
SEC. 8. Section 39(2) of the same Code is hereby amended to

read as follows:
“(2) Right to engage in concerted activities as defined under

Republic Act Numbered Eight hundred and seventy-five;”
247
SEC. 9. The Titles of Chapter III and Article I and Sections

49 and 50 of the same Code are hereby amended to read as follows:
“Chapter III.—Department of Agrarian Reform.
“Article I.—Organization and Functions of the Department of

Agrarian Reform.
“SEC. 49. Creation of the Department of Agrarian Reform.—

For the purpose of carrying out the policy of establishing owner-
cultivatorship and the economic family-size farm as the basis of
Philippine agriculture and other policies enunciated in this Code,
there is hereby created a Department of Agrarian Reform, hereinafter
referred to as Department, which shall be directly under the control
and supervision of the President of the Philippines. It shall have
authority and responsibility for implementing the policies of the
state on agrarian reforms as provided in this Code and such other
existing laws as are pertinent thereto.
“The Department shall be headed by a Secretary who shall be

Appointments.
“He shall be assisted by one Undersecretary who shall be

Appointments.
“SEC. 50. Qualifications and Compensations of Secretary

and Undersecretary.—No person shall be appointed Secretary or
Undersecretary of the Department unless he is a natural-born
citizen of the Philippines, with proven executive ability and adequate
background and experience in land reform here and/or elsewhere for
at least five (5) years, and at least thirty-five years of age: Provided,
however, That the Undersecretary shall be a career administrator
and, at the time of his appointment, shall not be more than fifty-
seven (57) years of age, unless the President has determined that he
possesses special qualifications and his services are needed,
248
“The Secretary and the Undersecretary shall have, among

other qualifications, demonstrated interest in, and concern for,
the needs and problems of the rural and farm populations and
the solutions thereto: Provided, That no person who owns any
farmholding shall be appointed as Secretary or Undersecretary
unless such farmholding is under the leasehold system or the system
of agricultural land ownership transfer direct to the tiller.
“The Secretary shall receive an annual compensation

equivalent to any other executive department secretary; the
Undersecretary shall receive an annual compensation equivalent to
any other executive department undersecretary.”
SEC. 10. The following new sections are hereby inserted after
Section 50, to be designated as Sections “50-A to 50-I,” which shall
read as follows:
“SEC. 50-A. Powers and functions of the Secretary.— In

addition to the powers and functions specified in this Code, the
Secretary shall exercise such powers and perform such functions
and duties as are required of any executive department secretary
under existing laws.”
“SEC. 50-B. Powers and functions of the Undersecretary.—

In addition to the powers and functions specified in this Code,
the Undersecretary shall exercise such powers and perform such
functions and duties as are required of any executive Department
Undersecretary under existing laws.”
“SEC. 50-C. Vacancy in office or incapacity.—In case of

vacancy in the office of Secretary or inability of the Secretary to
exercise his powers and perform his functions and duties due to
his illness, absence or any other cause, the Undersecretary shall
temporarily perform the functions of the said office.”
“SEC. 50-D. Office of the Secretary; Appointment of Personnel.—

The office of the Secretary shall be composed of the Secretary, the
249
Undersecretary, the chiefs of the staff services or units directly

under the department proper, together with the personnel thereof.
“All personnel of the department proper shall be appointed

by the Secretary in accordance with applicable civil service law and
rules.”
“SEC. 50-E. Creation of Staff Services; Functions.— There

shall be created in the department a planning service, a financial
and management service, an administrative service, and such other
staff services as the Secretary may deem necessary to establish in
accordance with this section, each to be headed by a chief, which
shall be organized and shall perform the functions as follows:
“(1) Planning Service

“The Planning Service shall be responsible for
providing the department with economical, efficient, and
effective services relating to planning, programming and
project development.
“(2) Financial and Management Service

“The Financial and Management Service shall be
responsible for providing the department with staff
advice and assistance on budgetary, financial, and
management improvement matters.
“(3) Administrative Service

“The Administrative Service shall be responsible for
providing the department with economical, efficient, and
effective services relating to personnel, legal assistance,
information, records, supplies, equipment, collection,
disbursements, security, and custodial work.
“SEC. 50-F. Creation of Bureaus; Functions.—There shall be

under the department the following bureaus each to be headed by
a Director who shall be assisted by an Assistant Director, charged
with the direct implementation of the programs and policies of the
Department:
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“(1) The Bureau of Farm Management which shall be

responsible for the development and implementation of
programs on increased productivity, home improvement, and
rural youth development;
“(2) The Bureau of Land Acquisition, distribution and

development which shall be responsible for the distribution
of lands to bona fide farmers, for conducting land capability
survey and classification, and for the improvement of lands
acquired by the Department;
“(3) The Bureau of Resettlement which shall be

responsible for the resettlement of displaced farmers, landless
families, and urban workers in the settlement projects of the
Department, the construction of houses, roads and other
facilities, and the taking of a census of all proclaimed and
unproclaimed resettlements; and
“(4) The Bureau of Agrarian Legal Assistance which

shall be responsible for extending legal assistance to farmers
including those provided under Republic Act Numbered
Forty-eight hundred and eighty-six, the execution of leasehold
contracts and apprising the farmers with their rights and
duties under the law.
“Each of these bureaus may establish such divisions as are

necessary for the economical, efficient and effective performance of
its functions.”
“SEC. 50-G. Appointment, Qualifications and Compensations

of Directors and Assistant Directors; Appointment of Personnel.—
The Director of a Bureau and his assistant shall each receive the
equivalent compensation, and shall be appointed in the same
manner as any other director or assistant director of a bureau.
“No person shall be appointed director or assistant director of

a bureau unless he is a natural-born citizen of the Philippines, with
proven executive ability and adequate background and experience
251
in land reform here and/or elsewhere for at least three (3) years,
and at (east twenty-five years of age: Provided, That the Director
or Assistant Director shall be a career administrator and, at the
time of his appointment, shall not be more than fifty-seven (57)
years of age, unless the President has determined that he possesses
special qualifications and his services are needed: Provided,
further, That the Director or Assistant Director shall have, among
other qualifications, demonstrated interest in, and concern for,
the needs and problems of the rural and farm population and the
solutions thereto: Provided, finally, That no person who owns any
farmholding shall be appointed as Director or Assistant Director
unless such farmholding is under the leasehold system or the system
of agricultural land ownership-transfer direct to the tiller.
“All personnel of the Bureaus shall be appointed by the

Secretary, upon recommendation of their respective Director, in
accordance with applicable civil service law and rules.”
“SEC. 50-H. Functions of Director and Assistant Director.—

The Director or in his absence, the Assistant Director, shall exercise
such powers and perform such functions and duties as are provided
for under existing laws, in addition to the powers and functions
provided for in this Code.”
“SEC. 50-I. Regional and Field Offices.—The Department

may have regional and other field offices, the number, location and
organization of which shall be determined by the Department in
conformity with the area pattern prescribed hereunder:
“(1) The Department, in the establishment of regional

and other field offices, shall follow the field service area pattern
authorized below. There are established ten regions, each with
definite regional centers within the region as follows:
“a. Region No. 1 is called the Ilocos Region, and comprises

the provinces of Batanes, Ilocos Norte, Ilocos Sur, Abra, La
Union, Benguet, and Mountain Province and the cities of
Baguio, and Laoag, with, the regional center at San Fernando,
La Union;
252
“b. Region No. 2 is called the Cagayan Valley Region, and

comprises the provinces of Cagayan, Isabela, Nueva Vizcaya,
Quirino (Sub-province), Ifugao, and Kalinga-Apayao, with the
regional center at Tuguegarao, Cagayan;
“c. Region No. 3 is called the Central Luzon Region,

and comprises the provinces of Pangasinan, Tarlac, Nueva
Ecija, Pampanga, Zambales, Bulacan, Bataan, and the cities
of Angeles, Cabanatuan, Dagupan, Olongapo, Palayan, San
Carlos (Pangasinan) and San Jose (Nueva Ecija), with the
regional center at San Fernando, Pampanga;
“d. Region No. 4 is called Southern Tagalog Region, and

comprises the provinces of Rizal, Cavite, Laguna, Batangas,
Quezon, Marinduque, Oriental Mindoro, Occidental Mindoro,
Romblon, Aurora (Sub-province), and Palawan, and the cities
of Batangas, Caloocan, Cavite, Lipa, Lucena, Manila, Pasay,
Puerto Princesa, Quezon, San Pablo, Tagaytay, and Trece
Martires with the regional center at greater Manila;
“e. Region No. 5 is called the Bicol Region, and comprises

the provinces of Camarines Norte, Camarines Sur, Albay,
Catanduanes, Masbate, and Sorsogon, and the cities of Iriga,
Legazpi and Naga, with the Regional center at Legazpi City;
“f. Region No. 6 is called the Western Visayas Region,

and comprises the provinces of Negros Occidental, Iloilo,
Guimaras (Sub-province), Antique, Aklan, and Capiz, and the
cities of Bacolod, Bago, Cadiz, Iloilo, La Carlota, Roxas, San
Carlos (Negros Occidental) and Silay, with the regional center
at Iloilo City;
“g. Region No. 7 is called the Central and Eastern Visayas

Region, and comprises the provinces of Negros Oriental,
Siquijor (Sub-province), Cebu, Bohol, Northern Samar,
Eastern Samar, Western Samar, Leyte, Southern Leyte
and Biliran (Sub-province) and the cities of Bais, Calbayog,
Canlaon, Catbalo-gan, Cebu, Danao, Dumaguete, Lapu-Lapu,
253
Ormoc, Mandawe, Tacloban, Tagbilaran, and Toledo, with the

regional center at Cebu City.
“h. Region No. 8 is called the Western Mindanao Region,

and comprises the provinces of Misamis Occidental, Lanao del
Norte, Lanao del Sur, Zamboanga del Norte, Zamboanga del
Sur, and Sulu, and the cities of Basilan, Dapitan, Dipolog,
Iligan, Marawi, Oroquieta, Ozamis, Pagadian, Tangub, and
Zamboanga with the regional center at Zamboanga City;
“i. Region No. 9 is called the Central Mindanao Region,

and comprises the provinces of Camiguin, Misamis Oriental,
Bukidnon, Cotabato, and South Cotabato, and the cities of
Cagayan de Oro, Cotabato, General Santos, and Gingoog,
with the regional center at Cagayan de Oro City;
“j. Region No. 10 is called the Eastern Mindanao Region,

and comprises the provinces of Surigao del Norte, Surigao
del Sur, Agusan del Norte, Agusan del Sur, Davao del Norte,
Davao Oriental, and Davao del Sur, and the cities of Butuan,
Davao and Surigao, with the regional center at Davao City;
“(2) The Department shall organize an integrated and

department-wide field services as the exigencies of the Agrarian
Reform Program may require: Provided, That the Department
shall establish in every regional or other field office organized,
a consultative and coordinating body which shall include in its
membership a tiller-lessee representing the agricultural lessees
and a representative from the local governments of the area where
said office is operating.
“(3) The regional office shall be headed by a Regional Director

who may be assisted, whenever necessary, by an Assistant Regional
Director. The Regional Director and Assistant Director, if any, shall
be appointed by the Secretary in accordance with applicable civil
service law and rules; Provided, however, That the Regional Director
and Assistant Regional Director shall have the same qualifications
as Bureau Director and Assistant Director, respectively.
254
“All personnel of the Regional and other offices shall be

appointed by the Secretary upon recommendation of their respective
regional director, in accordance with applicable civil service law and
rules: Provided, That applicants from the region, who possess the
required qualifications, shall be appointed to vacant positions in the
said region, unless nobody among the said applicants is qualified; in
which case, applicants from other regions may be considered.
“(4) The Regional Director shall be responsible in carrying

out the policies and implementing the plans and programs of the
Department in the regional area under his jurisdiction: Provided,
however, That when the department’s function or activity
transcends regional boundaries and requires central and/or inter-
regional action, said functions may be performed under the direct
supervision and control of the department.
“(5) The Regional offices shall have units on agricultural

extension, credit and legal assistance, as well as cooperative
development; or personnel in which the functional areas of the
department may be represented. There shall be in these regional
units as much combination of related functions as possible.
“(6) The functions of a regional office shall be as follows:
“a. Implement laws, policies, plans, programs, rules and

regulations of the Department in the regional area;
“b. Provide economical, efficient, and effective service to

the people in the area;
“c. Coordinate with regional offices of other departments,

bureaus, agencies in the area;
“d. Coordinate with local government units in the area;

and
“e. Perform such related functions as may be provided by

other existing laws.”
255
SEC. 11. The Land Reform Project Administration and its

governing body, the National Land Reform Council, under the
Office of the President, are hereby abolished; and their functions
are transferred to the Department, together with applicable
appropriations, records, equipment, property and all the organic,
contributed and/or assigned personnel to the Land Reform Project
Administration pursuant to this Code, other existing laws and
Executive Order Numbered Seventy-five, Series of Nineteen hundred
and sixty-four, as well as such personnel as may be necessary from
its governing body, the National Land Reform Council.
SEC. 12. The Land Authority under the Office of the President
and a member-agency of the Land Reform Project Administration
is hereby abolished; and its functions are transferred to the
Department, together with applicable appropriations, records,
equipment, property, and such personnel as may be necessary.
SEC. 13. The Secretary shall, in consultation with the

Undersecretary and Bureau Directors, allocate by Department
Order to the different bureaus, agencies and regional offices of
the Department the functions of the agencies, offices and/or units
abolished and not otherwise assigned by this Amendatory Act or by
the organization plan of the Department to a particular agency or
office.
SEC. 14. The Land Bank of the Philippines is hereby attached

to the Department as its land financing arm and shall devote all of
its resources to agrarian reforms.
The Agricultural Credit Administration under the Office of

the President shall coordinate and cooperate with the Department
as its credit arm and shall devote its resources to agrarian reforms.
The Land Bank of the Philippines and the Agricultural Credit

Administration, in addition to the functions and duties assigned to
them under existing laws, executive and administrative orders, and
rules and regulations, shall be responsible for rendering staff advice
and assistance to the Secretary of the Department. The regional
256
offices or field units of these entities and/or instrumentalities shall

likewise coordinate and cooperate with the regional office or field
units of the Department, respectively.
SEC. 15. Within sixty (60) days from the approval of this
Amendatory Act, the President by Executive Order shall, upon
recommendation of the Special Technical Committee created under
Special Order Numbered Eleven, Series of Nineteen hundred and
seventy-one, of the Land Reform Project Administration, and the
Commission on Reorganization created pursuant to Republic Act
No. 5435, as amended, organize the said Department in accordance
with the provisions of this Amendatory Act with the end in view of
achieving economy and maximum efficiency and effectiveness and of
strictly observing the merit system in the retention and promotion
of the best qualified personnel: Provided, That the administrative
machineries of the entities attached and/or required under this
Code to coordinate and cooperate with the Department, as well as
the agencies servicing the same, shall also be reorganized to enable
them to align their activities with the requirements and objectives
of this Code: Provided, further, That not more than ten per cent of
the personnel of the Department and the bureaus, offices, agencies
and/ or entities under, coordinating or servicing it shall be stationed
in the Central Office; Provided, finally, That not more than five
per cent of the total personnel in the regional, team, resettlement
agency or equivalent field offices shall be stationed in such offices.

read as follows:
“SEC. 51. Powers and Functions.—It shall be the responsibility

of the Department:
“(1) to initiate and prosecute expropriation proceedings for

the acquisition of private agricultural lands as defined
in Section one hundred sixty-six of Chapter XI of this
Code for the purpose of subdivision into economic family-
size farm units and resale of said farm units to bona fide
tenants, occupants and qualified farmers: Provided, That
257
the powers herein granted shall apply only to private

agricultural lands subject to the terms and conditions
and order of priority hereinbelow specified.
“a. all idle or abandoned private agricultural lands,

except those held or purchased within one year from
the approval of this Code by private individuals or
corporations for the purpose of resale and subdivision
into economic family-size farm units of not more
than six (6) hectares each in accordance with the
policies enunciated in this Code: Provided, That the
subdivision and resale shall be substantially carried
out within one year from the approval of this Code;
“b. all private agricultural lands suitable for subdivision

into economic family-size farm units of not more
than six (6) hectares owned by private individuals
or corporation worked by lessees, no substantial
portion of whose landholding in relation to the area
sought to be expropriated, is planted to permanent
crops under labor administration, in excess of
twenty-four hectares except all private agricultural
lands under labor administration: Provided, That
private agricultural lands occupied and cultivated
continuously for not less than ten years by tillers
or their ascendants who are not farm laborers or
lessees may be subject to expropriation under this
Code: Provided, further, That any court action filed
for the ejectment of the tiller shall not interrupt the
running of the ten-year period unless such action is
filed within three years from the date of occupancy:
Provided, finally, That if the final decision rendered
in the court action is favorable to the tiller, the ten-
year period shall be considered as continuous and
uninterrupted; and
“c. in expropriating private agricultural lands declared

by the Department of Agrarian Reform to be
258
necessary for the implementation of the provisions

of this Code, the following order of priority shall be
considered;
1. idle or abandoned lands;
2. those whose area exceeds 1,024 hectares;
3. those whose area exceeds 500 hectares but is
not more than 1,024 hectares;
4. those whose area exceeds 144 hectares but is
not more than 500 hectares;
5. those whose area exceeds 75 hectares but is not
more than 144 hectares; and
6. those whose area exceeds 24 hectares but is not
more than 75 hectares.
“(2) To acquire private agricultural lands regardless of area

through negotiated purchase subject to approval of the court as to
price for distribution and sale at cost to their actual occupants who
are tillers of the land in lots of not more than six hectares: Provided,
That where there are several groups or individuals of such tillers
petitioning for the acquisition of their respective occupancy, priority
shall be given to the group with a greater number of tillers who first
filed the petition over a group with a lesser number of tillers, and
the latter over individual tillers: Provided, further, That the group
or individual who has continuously tilled the land longest shall
have first priority;
“(3) To help bona fide farmers without lands or agricultural

owner-cultivators of uneconomic size farms to acquire and own
economic family-size farm units of not more than six hectares each;
“(4) To administer and dispose of agricultural lands of the

public domain under the custody and administration of the National
Resettlement and Rehabilitation Administration and the Economic
Development Corps of the Armed Forces of the Philippines prior
to the approval of this Amendatory Act and such other public
agricultural lands as may hereafter be reserved by the President of
the Philippines or by law for resettlement and sale, in accordance
with such terms and conditions as are set forth under this chapter:
259
Provided, That the exercise of the authority granted herein, as well

as the preceding sub-paragraph, shall not contravene public policy
on the permanency of forest reserves or other laws intended for the
preservation and conservation of public national and municipal
forests, parks and watersheds: Provided, further, That said authority
shall not be construed to exclude the other modes of disposition of
public agricultural lands under the public land Act or to contravene
the authority granted by law to the Department of Agriculture and
Natural Resources over all public agricultural lands not covered by
the Agrarian Reform Program: Provided, finally, That the Secretary
of the Department of Agriculture and Natural Resources shall
within a period of ten years from the approval of this Amendatory
Act, release to the Department of Agrarian Reform for resettlement
and sale all lands of the public domain reserved for agricultural
resettlement and sale except public agricultural lands which are
reserved as settlements for the national cultural minorities under
the administration of the Commission on National Integration;
“(4) To develop plans and initiate actions for the systematic

opening of alienable and disposable lands of the public domain for
speedy distribution to and development by deserving and qualified
persons who do not own any land in sizes of not more than six
hectares;
“(5) To recommend to the President, from time to time after

previous consultation with the Secretary of Agriculture and Natural
Resources, what portion of the alienable, or disposable public lands
shall be reserved for resettlement or disposition under this Chapter;
“(6) To give economic family-size farms of not more than six

hectares to landless citizens of the Philippines who need, deserve,
and are capable of cultivating the land personally, through organized
resettlement, under the terms and conditions the Department may
prescribe, giving priority to qualified and deserving farmers in the
province where such lands are located;
“(7) To reclaim swamps and marshes for agricultural purposes

only, obtain titles thereto whenever feasible and subdivide them
260
into economic family-size farms of not more than six hectares for
distribution to deserving and qualified farmers;
“(8) To undertake measures which will insure the early

issuance of titles to persons or corporations who have actually settled
and cultivated disposable alienable lands of the public domain;
“(9) To survey, subdivide and set aside lands or areas of land-

holdings under its custody and administration for economic family-
size farms, large-scale farm operations, town sites, roads, parks,
government centers and other civic improvements as circumstances
may warrant: Provided, That the Bureau of Lands and the Land
Registration Commission, as the case may be, shall verify the said
surveys or subdivisions, and after such verifications, approve or
disapprove the same; and issue, in case of approval of said surveys
or subdivisions, the corresponding patents and titles thereto;
“(10) To inform the Agricultural Productivity Commission

and the Department of Agriculture and Natural Resources of the
problems of settlers and farmers on lands under its administration
and in land reform areas: Provided, That it is mandatory for the
said Commission and Department to provide field agricultural
extension service to these areas upon being informed of the problems
obtaining: Provided, further, That settlement projects and land
reform areas, especially private agricultural lands acquired by the
government, shall be given first priority in the diffusion of useful
and practical information, knowledge and skills on agriculture,
soil conservation, livestock, fisheries, forest conservation, public
lands and natural resources laws, home economics and rural life, in
order to encourage their application through field demonstrations,
lectures and conferences, publications and other means of imparting
information, stimulation, promotion and organization of agricultural
cooperatives and encouragement in the formation and growth of
private associations, study clubs, committees and other groups of
farmers and members of their family that will enhance their social
and economic conditions;
261
“(11) To acquire for agricultural lessees exercising their right

of pre-emption and redemption under Chapter I of this Code, any
land-holdings mentioned thereunder;
“(12) To conduct land capability survey and classification of

the entire country and print maps;
“(13) To make such arrangements with the Land Bank with

respect to titles of agricultural lands of the public domain under its
administration as will be necessary to carry out the objectives of
this Code;
“(14) To expropriate home lots occupied by agricultural lessees

outside their landholdings for resale at cost to said agricultural
lessees;
“(15) To see to it that all agricultural lands, either public or

private, distributed by the government to the beneficiaries of the
Agrarian Reform Program shall be sold only by the said beneficiaries
to the government; and
“(16) To submit to the President of the Philippines and to both

Houses of Congress through their presiding officers, to the Secretary
of Finance and to the Auditor General within sixty days of the close
of the fiscal year, an annual report showing its Accomplishments
during the year; the expropriation proceedings it has undertaken;
the expenditures it has incurred and other financial transactions
undertaken with respect thereto.”

read as follows:
“SEC. 56. Just Compensation.—In determining the just

compensation of the land to be expropriated pursuant to this
Chapter, the Court shall consider as basis, the fair market value,
without prejudice to considering the assessed value and other
pertinent factors.
262
“The owner of the land expropriated shall be paid in accordance

with Section eighty of this Code by the Land Bank and pursuant to
an arrangement herein authorized.”

read as follows:
“SEC. 71. Power of the Department of Agrarian Reform to sell

to Holders of Bonds Issued to Former Landowners whose Land have
been Purchased for Redistribution.—The Department of Agrarian
Reform shall sell, for a price not less than the appraised value,
any portion not exceeding one hundred forty-four hectares in the
case of individuals of the public agricultural lands transferred to
the Land Bank which is suitable for large-scale farm operations to
any holder, who is qaulified to acquire agricultural lands through
purchase, of bonds issued to former landowners whose lands
have been purchased for redistribution under this Code, subject
to the condition that the purchaser shall, within two years after
acquisition, place under cultivation at least thirty per centum of
the entire area under plantation administration and the remaining
seventy per centum within five years from the date of acquisition.
The Secretary shall issue the title of said land upon showing that
the purchaser has developed and cultivated at least one-fourth of
his land under plantation administration.
Any public agricultural land sold as hereinabove specified

shall not be the object of any expropriation as long as the same is
developed and cultivated for large-scale production under farm labor
management: Provided, however, That after the capital invested
therein for development, plus a reasonable margin of profit shall
have been fully recovered, or after the lapse of twenty-five years
from the date of acquisition, whichever comes earlier, said land
shall become expropriable.
The selling price of the portion of the public agricultural

land sold under this Section shall be credited to the Land Bank. As
payment for the land sold under this Section, the Land Bank shall
accept as sole instruments of payment the bonds issued pursuant to
263
Section seventy-six. Issued bonds accepted as payment for the land

sold shall be cancelled to the extent of the amount paid.
All sales under this Code shall be subject to the rules

and regulations which the Department of Agrarian Reform in
consultation with the Land Bank, shall prescribe insofar as they
are not inconsistent with the provisions of this Code.

read as follows:
“SEC. 76. Issuance of Bonds.—The Land Bank shall, upon

recommendation by the Board of Trustees and approval of the
Monetary Board of the Central Bank, issue bonds, debentures and
other evidences of indebtedness at such terms, rates and conditions
as the Bank may determine up to an aggregate amount not exceeding,
at any one time, five times its unimpaired capital and surplus. Such
bonds and other obligations shall be secured by the assets of the
Bank and shall be fully tax exempt both as to principal and income.
Said income shall be paid to the bondholders every six (6) months
from the date of issue. These bonds and other obligations shall be
fully negotiable and unconditionally guaranteed by the Government
of the Republic of the Philippines and shall be redeemable at
the option of the Bank at or prior to maturity, which in no case
shall exceed twenty-five years. These negotiable instruments of
indebtedness shall be mortgageable in accordance with established
banking procedures and practice to government institutions,
existing charters and/or laws to the contrary notwithstanding, not
to exceed sixty per centum of their face value to enable the holders
of such bonds to make use of them in investments in productive
enterprises. They are eligible as legal reserves against deposit
liabilities of banks, subject to the terms and conditions which the
Central Bank of the Philippines may impose. They shall also be
accepted as payments for reparation, equipment and materials,
the provisions of Republic Act Numbered Seventeen hundred and
eighty-nine, as amended, to the contrary notwithstanding.
264
The Board of Trustees shall have the power to prescribe

rules and regulations for the registration of the bonds issued by the
Bank at the request of the holders thereof.”

read as follows:
“SEC. 80. Making Payment to Owners of Landed Estates.—

The Land Bank shall make payments in the form herein prescribed
to the owners of the land acquired by the Department of Agrarian
Reform for division and resale under this Code. Such payment shall
be made in the following manner: twenty per centum in cash and
the remaining balance in six per cent, tax-free, redeemable bonds
issued by the Bank in accordance with Section seventy-six, unless
the landowner desires to be paid in shares of stock issued by the
Land Bank in accordance with Section seventy-seven in an amount
not exceeding thirty per centum of the purchase price.
“In the event there is an existing lien or encumbrance on

the land in favor of any Government institution at the time of
acquisition by the Land Bank, the bonds and/or shares, in that
order, shall be accepted as substitute collaterals to secure the
indebtedness, existing charters of these institutions to the contrary
notwithstanding.
“The profits accruing from payment shall be exempt from the

tax on capital gains.”

read as follows:
“SEC. 85. Use of Bonds.—The bonds issued by the Land Bank

may be used by the holder thereof and shall be accepted in the
amount of their face value as any of the following:
“(1) Payment for agricultural lands or other real properties

purchased from the Government;
265
“(2) Payment for the purchase of shares of stock of all or

substantially all of the assets of the following Government owned
or controlled corporations: The National Development Company;
Philippine National Bank; Philippine National Railways; Cebu
Portland Cement Company; National Shipyards and Steel
Corporations; Manila Gas Corporation; and the Manila Hotel
Company.
“Upon offer by the bondholder, the corporation owned or

terms and conditions most favorable to the corporations shall be
be determined by the Committee of Appraisers composed of three
two members, so chosen. The expense of appraisal shall be borne
“Should the Government offer for sale to the public any or all
of the shares of stock or the assets of any of the Government owned
or controlled corporation enumerated herein, the bidder who offers
to pay in bonds of the Land Bank shall be preferred provided that
the various bids be equal in every respect except in the medium of
payment.
“(3) Surety, bail bonds for the provisional release of accused

persons or performance bonds in all cases where the government
may require or accept real property as bonds;
“(4) Payment for reparations goods, the provisions of Republic

Act Numbered Seventeen hundred and eight-nine, as amended, to
the contrary notwithstanding;
“(5) Security for loans applied with the Philippine National

Bank, Development Bank of the Philippines, Government Service
266
Insurance System, Social Security System, and other government

financial institution, existing charters of these institutions to the
contrary notwithstanding; and
“(6) Legal reserves against deposit liabilities of banks,

subject to the terms and conditions which the Central Bank of the
Philippines may impose pursuant to the General Banking Act.”

read as follows:
“SEC. 101. Reorganization of ACA to align its activities.—The

administrative machinery of the Agricultural Credit Administration,
shall be reorganized to enable it to align its activities with the
requirements and objectives of this Code: Provided, That the Board
of Governors established by Republic Act Numbered Eight hundred
and twenty-one, as amended, shall be composed of a chairman and
four (4) members, three (3) of whom shall be the Undersecretary
of Agrarian Reform who shall be the Chairman ex-officio, the
Administrator of the Agricultural Credit Administration who shall
be the Vice-Chairman ex-officio and the Vice-President in charge of
agricultural loans of the Philippine National Bank, who shall be ex-
officio member thereof. The two other members shall be appointed by
the President of the Philippines with the consent of the Commission
on Appointments for a term of three years, one of whom shall
represent the farmers-beneficiary of the Agrarian Reform Program
and shall be appointed upon recommendation of either or both the
farmers and/or cooperatives movement, federation or league existing
at the time such recommendation is submitted, and the other to
represent the political party receiving the second highest number of
votes in the immediately preceding presidential elections: Provided,
however, That the term of the farmers’ representative shall ipso
facto terminate when such member cease to be in the farmers and/
or cooperatives movement, federation or league, and that of the
minority party at the pleasure of the nominating political party.
“The Administrator shall be the Chief Executive of the

Administration and shall serve for a term of six years unless
267
he resigns or is removed for cause. The compensation of the

Administrator shall be fixed by the President but shall not be less
than twenty-four thousand pesos per annum. The members of the
Board shall receive per diems of not more than fifty pesos for each
session of the Board that they attend: Provided, however, That the
total per diems, including all other remunerations, shall not exceed
six hundred pesos a month.
“No person shall be appointed as Administrator unless he

is a natural-born citizen of the Philippines, with proven executive
ability and experience in the field of agricultural cooperatives and/
or banking and finance, adequate background and experience in
land reform here and/or elsewhere for at least five (5) years, and at
least thirty-five years of age: Provided, however, That he shall have,
among other qualifications, demonstrated interest in, and concern
for, the needs and problems of the rural population and/or peasantry
and the solutions thereto: Provided, further, That no person who
owns any farmholding shall be appointed as Administrator unless
such farmholding is under the leasehold system or the system of
agricultural land ownership-transfer direct to the tiller.”
SEC. 23. Sections 105 and 106 of the same Code are hereby
“SEC. 105. Loaning Activities.—Loaning activities of the

Agricultural Credit Administration shall be directed to stimulate
the development and operation of farmers’ cooperatives. The term
“Farmers Cooperatives” shall be taken to include all cooperatives
relating to the production and marketing of agricultural products
and these formed to manage and/or own, on a cooperative basis,
agricultural farmlands, services and facilities, such as irrigation
and transport systems, established to support production and/or
marketing of agricultural products.
“Under such rules and regulations in accordance with

generally accepted banking practices and procedures as may be
promulgated by the Agricultural Credit Administration, Rural
Banks, Cooperative Banks, and Development Banks may, in their
268
respective localities, be designated to act as agents of the Agricultural

Credit Administration in regard to its loaning activities.”
“SEC. 106. Credit to Small Farmers and/or tillers of the

land.—Production loans and loans for the purchase of work
animals, tillage equipment, seeds, fertilizers, poultry, livestock,
feed and other similar items, may be extended to small farmers as
defined in Republic Act Numbered Eight hundred twenty-one and/
or tillers of the land, based upon their paying capacity and such
securities as they can provide, and under such terms and conditions
as the Agricultural Credit Administration may impose, provided
the amount thereof does not exceed two thousand pesos, or such
amount as may be fixed by the President at any given agricultural
year: Provided, That his total outstanding obligations shall not
exceed five thousand pesos, but in no case shall the amount of loan
exceed eighty per centum of the value of the collateral pledged. In
instances where credit is extended for items which are not consumed
in their use, such items may be pledged as security therefor. The
Agricultural Credit Administration shall promulgate such rules
and regulations as may be necessary in the extension of the loans
herein authorized so as to assure their repayment: Provided, That
such rules and regulations shall follow and be in accordance with
generally accepted financing practices and procedures.”

read as follows:
“SEC. 108. Loans to Cooperatives.—The Agricultural Credit

Administration is hereby authorized to extend such types of loans
as it may deem necessary for the effective implementation of this
Code to eligible farmers’ cooperatives as herein defined, under such
terms and conditions as it may impose and with such securities as
it may require: Provided, That the said Administration is hereby
authorized to extend production loans to cooperatives at not more
than eight per cent interest per calendar year and directly to the
farmers at not more than twelve percent per calendar year: Provided,
further, That cooperatives are hereby authorized to extend loans
directly to their members at not more than twelve per cent per
269
calendar year. A farmers’ cooperative that has been registered with

the Agricultural Credit Administration shall be eligible for loans
if, in the judgment of the latter, its organization, management and
business policies are of such, character as will insure the safety and
effective use of such loans.”

read as follows:
“SEC. 110. Total charges on Loans.—The total charges

including interest, insurance fees and inspection, notarization and
other service charges on all kinds of loans shall not be more than
twelve per centum per calendar year: Provided, That if an impairment
of the capitalization of the Agricultural Credit Administration is
imminent by reason of the limitation of the interest herein provided,
there is automatically appropriated out of the unappropriated funds
in the National Treasury such amounts as is necessary to cover the
losses of the Agricultural Credit Administration, but not exceeding
six million pesos for any one year.”

read as follows:
“SEC. 112. Registration of and guidance to Cooperatives,

Associations and Organizations.—The Agricultural Credit
Administration shall have the power to register, finance and
supervise all agricultural cooperatives, including multi-purpose
cooperatives, and farm associations or organizations; and provide
credit guidance or assistance to all agricultural, irrigation, and
other cooperative associations, multi-purpose cooperatives, farm
organizations or fund corporations: Provided, That all cooperatives,
associations or organizations registered under this Section shall
have juridical personality.”

read as follows:
270
“SEC. 124. Function of Extension Workers.—In addition to

their functions under Republic Act Numbered six hundred eighty, it
shall be the duty of extension workers:
“(1) To reside in the locality where they are assigned,

to disseminate technical information to farm families, and to
demonstrate improved farm and home management practices and
techniques;
“(2) To work with individual farmers in farm planning and

budgeting, guide them in the proper conduct of farm business and
work out schedules of re-payment of loans obtained by farmers;
“(3) To assist farmers in securing the services or assistance

of other agencies, or their personnel, having to do with relevant
activities and problems of farmers;
“(4) To visit newly-established independent farm operators

either singly or collectively at least once a month;
“(5) To promote and stimulate the growth and development of

the youth towards improved farm and home management practices
and techniques, as well as the development of their skills for small-
scale industries and the like;
“(6) To encourage the formation and growth of private

associations, study clubs, committees and other organized groups
of farmers, familiarize them with modern methods of farming and
interest them to actively participate, collaborate or take the initiative
in agricultural research, experimentation and implementation
of projects in cooperation with the Agricultural Productivity
Commission and other agencies; and
“(7) To promote, stimulate and assist in the organization of

farmers’ cooperatives, including multi-purpose cooperatives.”
SEC. 28. Sections One hundred twenty-six and One hundred

twenty-seven of the same Code are hereby repealed.
271
SEC. 29. A new section is hereby inserted after Sec. 128, to be

designated herein as “Section 128-A,” which shall read as follows:
“SEC. 128-A. Participation of Local Governments.—The

Department of Agrarian Reform shall, in every way possible to
insure the successful implementation of the Agrarian Reform
Program, involve local governments and secure their participation
in the various aspects of the program, such as the leasehold system,
the acquisition and distribution of private and public agricultural
lands, the development of cooperatives and small-scale industries
and the like, and the other corollary operational activities that
should be carried out through barrio, municipal, provincial and city
governments.
“In pursuing this approach, however, the Department shall

formulate the policies and programs necessary in the implementation
of this Code.
“The Department shall also render technical assistance to

local governments necessary to carry out the objective of agrarian
reforms.”

read as follows:
“SEC. 155. Powers of the Court; Rules of Procedure.—

The Courts of Agrarian Relations shall have all the powers and
prerogatives inherent in or belonging to the Court of First Instance.
“The Courts of Agrarian Relations shall be governed by the

Rules of Court: Provided, That in the hearing, investigation and
determination of any question or controversy pending before them,
the Courts without impairing substantial rights, shall not be bound
strictly by the technical rules of evidence and procedure, except in
expropriation cases: Provided, further, That in case the persons
referred to under Section one hundred sixty-three hereof, are not
represented by a lawyer of their own choice, the duly authorized
leaders of duly registered farmers organizations may enter
272
their appearances as counsel for their respective member and/or

organization before the Court of Agrarian Relations, if the Court is
fully convinced that the said leader could competently protect the
interest of his client subject to the basic duties and obligations as
officers of the Court.
“The Court of Agrarian Relations is hereby authorized

to conduct compulsory arbitration between agricultural labor
and agricultural management, agricultural share tenants and
agricultural landlords, and agricultural lessees and agricultural
lessors in conflicts arising out of, and in connection with, their
agrarian relations upon certification by the Secretary of Justice.
“The rights and duties of the parties to the proceedings, the

functions and responsibilities of the Court, and the binding effect
of awards, orders and processes of the Court shall be covered by
Section six to twenty-four of Commonwealth Act Numbered One
hundred three.
“Where the litigant is an agricultural tenant, tiller or lessee,

he shall be entitled to the rights of a pauper litigant under the rules
of Court and the privileges of an indigent litigant under Republic
Act Numbered Sixty hundred and thirty-five, without further proof
thereof.”
SEC. 31. Section 163 of the same Code, as amended by

Republic Act No. 4886, is further amended to read as follows:
“SEC. 163. Functions of the Office of the Agrarian Counsel.—It

shall be the responsibility of the Office of the Agrarian Counsel upon
organization to which he belongs, to represent tenants, agricultural
lessees, agricultural farm workers and agricultural owner-
cultivators or the members of their immediate farm household
private counsel in cases before the Court of Agrarian Relations. This
responsibility shall include representation before courts, including
appellate, in cases civil or criminal, instituted by or against said
273
tenant, agricultural lessees, farm workers or owners-cultivator or

the members of their immediate farm household, where the cases
arise from or are connected with, or results or effects of an agrarian
dispute. The decision of the Office of the Agrarian Counsel to provide
legal assistance shall be final.”

read as follows:
“SEC. 164. Authority to Administer Oath and Acknowledgment.—

The Agrarian Counsel, the Deputy Agrarian Counsel and the
Special Attorneys of the Office of the Agrarian Counsel are hereby
authorized to administer oaths and acknowledgment free of charge.”
SEC. 33. Section 167 of the same Code is hereby amended by

adding after paragraph (5) thereof, the following two paragraphs
which shall read as follows:
“(6) Any collusion between an agricultural lessee and an

agricultural lessor and between a vendor and a vendee on installment
sales to simulate agricultural contracts, agricultural loans, or any
application for benefits under the Agrarian Reform Program shall
be punishable by imprisonment of not more than five years and a
fine not exceeding five thousand pesos.
“The period for filing the corresponding criminal action for

any criminal violation falling under the foregoing provisions of
this section shall cease to run, whenever a case is filed before the
Court of Agrarian Relations for the determination of a prejudicial
question in relation to the criminal action, until said determination
has become final.”
SEC. 34. To carry out the objectives of this Amendatory Act,

and notwithstanding any provisions of existing laws, rules and
regulations to the contrary, all lending institutions, whether public or
private, shall set aside at least twenty-five per cent of their loanable
funds and make it available for agricultural credit to agricultural
lessees, owners-cultivator, amortizing owners, and cooperatives,
274
including multi-purpose cooperatives and farm associations and

organizations owned and operated by those who live and work
on the land as tillers and registered with the Agricultural Credit
Administration.
SEC. 35. Notwithstanding any provision of existing laws,

rules and regulations to the contrary, the Department of Agrarian
Reform is hereby authorized to segregate any area of three thousand
hectares out of any of its reservations as demonstration farm or
pilot project for the resettlement program of the Department on the
moshave-type of communal agriculture.
SEC. 36. The personnel of the agencies, offices and/or

units abolished, merged, renamed and/or reorganized under this
Amendatory Act shall have the same rights and privileges afforded
to the personnel of abolished or reorganized agencies under the
Agricultural Land Reform Code and in pursuance of Section One
hundred sixty-nine thereof.
To carry out the provisions of this Section, there is hereby

appropriated the sum of One million pesos out of the unappropriated
funds in the National Treasury: Provided, That ten percent of this
appropriation or so much thereof as may be necessary is hereby set
aside for the expenses of the organizing staff created under Section
15 hereof.
SEC. 37. Any reference to the Land Reform Project

Administration, the National Land Reform Council and the Land
Authority in the Agricultural Reform Code or under any other
existing laws shall be understood to refer to the Department of
Agrarian Reform.
SEC. 38. If, for any reason, any section or provisions of this
Amendatory Act shall be held unconstitutional or invalid, no other
section or provision of the same shall be affected thereby.
275
All laws or parts of any law inconsistent with the provisions

of this Amendatory Act are hereby repealed and/or modified
accordingly.
SEC. 39. This Act shall take effect, upon its approval.
Approved,
(Sgd.) GIL J. PUYAT (Sgd.) CORNELIO T. VILLAREAL

President of the Senate Speaker of the House of
Representatives
This Act, which is a consolidation of S. No. 478 and H. No. 3453,

was finally passed by the Senate and the House of Representatives
on September 4, 1971, respectively.
(Sgd.) ELISEO M. TENZA (Sgd.) INOCENCIO B. PAREJA

Secretary of the Senate Secretary of the House of
Representatives
Approved: SEP 10, 1971
(Sgd.) FERDINAND E. MARCOS

President of the Philippines
RA 6389 amended RA 3844.
276
H. No 3463
S. No. 633
AN ACT TO ACCELERATE THE IMPLEMENTATION OF

THE AGRARIAN REFORM PROGRAM BY CREATING
AN AGRARIAN REFORM SPECIAL ACCOUNT IN THE
GENERAL FUND, PROVIDING THE NECESSARY FUNDS

SECTION 1. Purpose. - It is hereby declared to be the purpose

of this Act to accelerate the attainment of the objectives set forth in
Republic Act Numbered Three thousand eight hundred and forty-
four, otherwise known as the Agricultural Land Reform Code, as
amended, by providing an immediate source of funds to finance the
Agrarian Reform Program of the government, transferring certain
assets of the National Government to augment the capital base of
the Land Bank, involving the active participation of rural banks in a
program of supervised credit by creating an Agricultural Guarantee
Fund, providing counterpart funds for existing and new rural banks
and prescribing certain requirements and conditions to stimulate
the continuous establishment of cooperatives among those who
actually till and work upon the land.
SEC. 2. Creation of Agrarian Reform Special Account in

the General Fund. - To carry out the purpose of this Act, there is
hereby created in the General Fund an Agrarian Reform Special
Account, hereinafter referred to as the Account, which shall be
used exclusively to finance the Agrarian Reform Program of the
government.
SEC. 3. Financial Source of the Account. - The Account shall

be constituted out of a portion of the proceeds of the stabilization tax
277
collected under Republic Act Numbered Six thousand one hundred

twenty-five, as amended in Section four of this Act.
SEC. 4. Section four of Republic Act Numbered Sixty-one

hundred and twenty-five is hereby amended to read as follows:
“SEC. 4. The sum of fifty million pesos shall be taken annually

out of the proceeds of the levy under this Act which shall accrue to
and form part of the Agrarian Reform Special Account in the General
Fund: Provided, however, That the balance of such proceeds shall be
used as follows:
“(a) Fifty per centum of the balance of the said collection shall
be deposited with the Central Bank in a Special Account which
shall be used exclusively for (1) servicing domestic and foreign debts
of the National Government, (2) retiring the existing debts of the
National Government held by the Central Bank which includes
treasury notes, government bills or certificates, securities and
bonds, and (3) amortizing the existing budgetary deficit under the
general fund: Provided, however, That no portion of this amount
shall be applied to the payment of the subsequent overdraft of the
National Government;
“(b) Twenty-five per centum of the same balance of the

collection shall be deposited with the Central Bank in a Special
Account which shall provide for (1) the counterpart requirements of
projects financed by the Asian Development Bank, the International
Bank of Reconstruction and Development and other United Nations
agencies, and other projects financed by loans under bilateral
agreements; and (2) the counterpart funds of the government in
the setting up of rural banks and for expanding the capital base of
established existing rural banks: Provided, That the amount of ten
million pesos annually shall be set aside to augment the government
counterpart fund for the establishment of new rural banks and
five million pesos to expand the capital base of established rural
banks existing as of the date of effectivity of this Act: Provided,
further, That the Central Bank may, when necessary, authorize the
278
establishment of more than one rural bank in any municipality or

city; and
“(c) Twenty-four per centum of the same balance of the

collection shall be deposited with the Development Bank of the
Philippines in a Special Account for the purpose of granting loans
to export industries and agricultural development projects in the
private sector, which are directly affected by the levy, including
financing of industries adversely affected by Central Bank Circular
289: Provided, however, That priority shall be given to loans for
the production and processing of indigenous raw materials for
export: Provided, further, That not more than fifty per centum of
the proceeds accruing to this Special Account may be utilized as
advances for foreign loans directly incurred or guaranteed by the
Development Bank of the Philippines in favor of borrowers paying
the stabilization tax. The Development Bank of the Philippines
shall submit a quarterly report on the status and details of the loan
stating among others the name and address of the borrower and
the amount of the loan to the joint committee created under this
Act and the Committee on Banks of Both Houses of Congress upon
request, the provisions of the Charter of the Development Bank of
the Philippines or any law to the contrary notwithstanding;
“(d) One per centum of the same balance, but not to exceed three
million pesos annually, shall accrue to the Board of Investments
to be expended in accordance with Section eleven of Republic Act
Numbered Sixty-one hundred and thirty-five: Provided, That thirty
per centum of the amount shall accrue to and be remitted directly
by the Central Bank to the Joint Congressional Special Account
Committee created in Section nineteen hereof. The balance, if any,
shall accrue to and form part of the Special Account created under
paragraph (c) hereof.”
SEC. 5. Turnover of Funds Accruing to the Account; Release

of Allotments and of Funds, Ministerial. - The Central Bank of
the Philippines shall turn over and deliver the amount accruing
to the Account under Section four of this Act to the Treasurer of
the Philippines within ten days of every succeeding month. It shall
279
likewise turn over the amount accruing to the Committee created in

Section nineteen of this Act within the same period.
The Treasurer of the Philippines shall credit the collections

to the Account which shall not be debited except for withdrawals
pursuant to appropriations made by law.
It shall be the ministerial duty of the Budget Commissioner to

release simultaneously and proportionately the quarterly allotments
from the appropriations of the agencies concerned at least ten days
before each quarter as requested by their respective heads. It shall,
likewise, be the ministerial duty of the National Treasurer to honor
all treasury warrants drawn by the said agencies against the said
allotments provided that the Account has sufficient balance to cover
the same.
SEC. 6. Appropriations. - The funds accruing to the Account

for the fiscal year ending June 30, 1972, are hereby appropriated as
follows:
(a) For additional lending operations of the

Agricultural Credit Administration P 20,000,000
(b For capital contribution of the government
to the Land Bank P 20,000,000
(c) For land development and resettlement,
survey and subdivision and the issuance
of titles by agrarian reform agencies 10,000,000
Total P 50,000,000
SEC. 7. Allocation of Proceeds. - The funds accruing annually

to the Account after June 30, 1972 shall be allocated as follows:
(a) For additional contribution to the Agricultural

Guarantee Fund created under Section twelve
hereof P 20,000,000
(b) For capital contribution of the government
to the Land Bank 10,000,000
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(c) For lending activities of the Agricultural

Credit Administration 10,000,000
(d) For land development and resettlement,
survey and subdivision and the issuance of
titles by agrarian reform agencies 10,000,000
Total P 50,000,000
SEC. 8. Conditions for Expenditures of Funds of the Account. -

The amounts provided in Sections six and seven shall be in addition
to existing appropriations in the annual Appropriations Act and
shall be included in the respective budgets of the agencies concerned.
They shall be spent solely for agrarian reform. No portion of the
proceeds accruing to the Account shall be spent for administrative
expenses, including salaries and wages.
The credit balance, if any, of the Account at the end of each

fiscal year shall be available for appropriation only for activities of
any of the government agencies implementing the agrarian reform
program.
In the expenditure of these funds, the agencies concerned

shall be guided by the requirements and conditions set forth in this
Act.
The agencies receiving these funds shall render a detailed

separate accounting of amounts received and the dispositions
thereof each fiscal year to the Joint Committee created under this
Act within thirty days after the opening of each regular session of
Congress.
The Account or any part thereof shall not be subject to any

provision of any appropriation Act or any other law which grants
the President of the Philippines authority to transfer funds from one
branch, department, office or agency of the government to another,
or from one item to another, or to suspend the appropriation of any
item or utilize the savings thereof to cover the deficits in or augment
the appropriations of any other item.
281
SEC. 9. Transfer of Certain Assets of the National Government.

- The remaining undisposed properties listed in Schedule “A” of
Republic Act Numbered Fifty-one hundred and sixty-nine are hereby
transferred to the Land Bank which shall take steps to have them
titled in the name of the Land Bank in accordance with existing laws.
The provisions of Section four of Republic Act Numbered Fifty-one
hundred and sixty-nine to the contrary notwithstanding, the assets
so transferred shall be credited as payment of the government
capital subscription to the Land Bank, based on the appraised
market value of those properties determined in accordance with
Section three of the same Act.
The shares of stocks of the National Government in the Lepanto

Consolidated Mining Company, Inc., now being administered by
the Board of Liquidators, are hereby transferred to the Agricultural
Guarantee Fund created under Section twelve of this Act.
SEC. 10. Turnover of Assets to the Land Bank. - It shall

be the ministerial duty of the Bureau of Lands, and the Bureau
of Buildings and Real Property Management to turn over to the
Land Bank within six months after the approval of this Act, the
undisposed valuable properties of the National Government listed
in Schedule “A” of Republic Act Numbered Fifty-one hundred and
sixty-nine.
SEC. 11. Disposition of Assets. - The Land Bank shall,

under the rules and regulations it shall promulgate, transfer,
lease or otherwise dispose of the transferred real properties. In
order to achieve the maximum utilization of these assets in the
accomplishment of its objectives, the Land Bank may classify,
develop, and subdivide the transferred real properties, dispose of
them for cash or Land Bank bonds, or enter into joint ventures:
Provided, That priority shall be given to the Government Service
Insurance System, the Social Security System, and any other
financially capable government corporations in the disposition of
these properties. Valuations of government lands under bidding
shall be subject to General Auditing Office rules and regulations.
282
Within thirty days from the date of the opening of the regular
session of Congress, the Land Bank shall submit an annual report to
all the Members of Congress, through the Presiding Officer of both
Houses, on the disposition of the assets herein acquired. All records
in connection with such disposition shall be opened to scrutiny upon
request of the Joint Committee, the provision of any law, executive
order, rule or regulation to the contrary notwithstanding.
SEC. 12. Creation of Agricultural Guarantee Fund. - There is

hereby created an Agricultural Guarantee Fund to be administered
by the Agricultural Guarantee Fund Board established under
Section thirteen of this Act. The Fund shall guarantee seventy per
centum of the losses for production to be extended by the rural banks,
with the remaining thirty per centum of such losses to be absorbed
by the rural banking system. All amounts appropriated for the
Agricultural Guarantee Fund must be kept intact and invested in
safe and high-yielding securities and only the earnings thereof shall
be used to absorb the guaranteed seventy per centum of the losses:
Provided, however, That investments of the funds shall be such that
there shall be a well-balanced portfolio between government and
private securities. The shares of stocks of the National Government
in the Lepanto Consolidated Mining Company, Inc., transferred in
Section nine hereof shall not be sold, and only the earnings hereof
shall be used to absorb guaranteed losses. All expenses for the
administration and operation of this Fund shall be for the account
of the Central Bank.
SEC. 13. Creation of Agricultural Guarantee Fund Board. -

To administer the Agricultural Guarantee Fund, the President is
hereby authorized to create within sixty days after the approval of
this Act, an Agricultural Guarantee Fund Board to be composed
of five members, namely: the Secretary of Finance as ex-officio
chairman, the Secretary of Agriculture and Natural Resources, the
Secretary of Agrarian Reforms, the Governor of the Central Bank,
and the President of the Rural Bankers’ Association, as members.
In the event that the Chairman or any member of the Board cannot
attend any meeting thereof, he shall designate the next ranking
official of the office or agency concerned to represent him in the
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deliberations of the board. The President of the Rural Bankers’

Association shall receive a per diem not exceeding fifty pesos for
each day of meeting actually attended by him, but in no case shall
his per diem exceed five hundred pesos a month.
SEC. 14. Powers and Duties of the Agricultural Guarantee

Fund Board. - The Agricultural Guarantee Fund Board shall lay
down the policies governing the Agricultural Guarantee Fund and
promulgate such rules and regulations as may be necessary to insure
the effective and efficient implementation of such policies. The Board
shall take steps to integrate the existing Agricultural Guarantee
Loan Fund and shall submit proposed legislation to this effect, if
necessary. Within thirty days from the opening of every session of
Congress, it shall submit to the Joint Committee created under this
Act an annual report on the status of the Fund, showing among
others, the total amount of the Fund, the details of investment and
returns on these investments, and amounts actually spent to pay off
the guaranteed losses or uncollectible debts.
SEC. 15. Requirements for Rural Bank Loans. - In order to

avail of the guarantee provided in this Act, rural banks shall extend
loans under the following conditions:
(a) Farmer must agree in writing that he will apply approved

farm practices under a supervised credit program and abide by the
approved farm plan and budget prepared by the farmer with the
assistance of an agricultural extension worker;
(b) The farm plan and budget shall be the basis of the loan
which shall depend on the size of the farm and the crop planted or
to be planted;
(c) Farmer-borrower shall not be tilling more than six hectares;
(d) Priority must be given to: (1) cooperatives, (2) a farmer

with a leasehold contract, and (3) a farmer who is a member of a
cooperative or a “selda” or group and who is a beneficiary of agrarian
reform;
284
(e) Loans shall be granted with any or a combination of the

following collaterals, namely: (1) real estate property, if available;
(2) chattel mortgage on standing crops and/or existing livestock
or poultry; (3) stored crops in bonded warehouses; (4) two co-
makers acceptable to the bank: Provided, That in case a farmer is
a member of a group or “selda” , the cooperative or “selda” may act
as a co-maker: Provided, further, That in the case of multi-purpose
cooperatives, no co-maker shall be required.
SEC. 16. Privileges and Limitations of Rural Banks. - No

loan extended under the preceding section shall be in excess of
five thousand pesos at any one time and at interest not exceeding
twelve percent per annum, including service fees and other charges:
Provided, That the maturity of the loan shall not be earlier than two
months after harvest to provide sufficient time for marketing.
If a rural bank does not avail of the guarantee provided for

in this Act, it shall, nevertheless, extend loans under the same
terms and conditions set forth in the next preceding section to
the beneficiaries of agrarian reform, to the extent of at least the
government contribution to its capital stock.
All existing agricultural loan papers of the rural banking

system as of the date of effectivity of this Act and all those arising
out of this program shall be discounted by the Central Bank at a
preferential rate and at a percentage of the face value thereof to
be determined by the Central Bank: Provided, however, That all
the proceeds thereof shall be channelled only to the beneficiaries of
agrarian reform.
SEC. 17. Requirements for ACA Loans. - The loans shall be

extended by the Agricultural Credit Administration under the
same terms and conditions set forth in Section fifteen of this Act:
Provided, however, That priority shall be given to areas where there
are no rural banks, or where the rural banks therein do not avail of
the guarantee provided in this Act.
285
SEC. 18. Temporary Utilization of the Services of Government

Agricultural Extension Workers to Implement the Supervised
Credit Program. - Such number of agricultural extension workers
of the government, national and local, as may be necessary, shall,
immediately upon the effectivity of this Act but not longer than
three years after such effectivity, and under rules and regulations
to be promulgated by the Secretary of the Department of Agrarian
Reforms in consultation with the head of the department or office
of the National Government or the chief executive of the local
government concerned, certify the necessary farm plans and
budgets, supervise the application of the proceeds of the loans
granted under this Act, and render such other service as may be
required under this Act to enable the rural banking system and the
Agricultural Credit Administration to implement effectivity the
supervised credit program provided herein.
SEC. 19. Joint Congressional Special Account Committee.

- There is hereby created a joint congressional committee to be
known as the Joint Congressional Special Account Committee to be
composed of the Chairman, the next ranking member and ranking
minority member of both the Senate and House Committees on Ways
and Means. It shall be the duty of the said committee to look into the
status of the stabilization tax and its disposition, particularly the
operations and effects of the Account, the utilization of the funds of
the Account by the Land Bank, Agricultural Credit Administration,
Central Bank, Agricultural Guarantee Fund Board and the other
land reform agencies charged with the implementation of this Act,
and to report, from time to time in its discretion, to the Senate
and House of Representatives, through their respective Presiding
Officers, its findings, together with such recommendations on
necessary remedial legislation as it may deem advisable.
The Joint Committee shall elect a Chairman and Vice-

Chairman from among its members. It shall be assisted by a
technical staff the members of which may be named/appointed by
the Chairman from the personnel of the Ways and Means technical
staffs of both Houses of Congress, and it may avail by detail of the
services of the personnel from other offices of the Government as
286
he deems advisable. The provisions of existing laws to the contrary

notwithstanding, and subject to the availability of funds, the Joint
Committee may pay reasonable honorarium to such employees and
officials as may be asked to work with the staff as well as commutable
transportation and representation allowances to its members and
its staff and consultants.
The Joint Committee may call upon any official or employee of

the different government agencies involved in the implementation of
this Act, to render such reports, services or assistance and to supply
such studies, statistics, information, reports, and data as may be
necessary to enable said Committee to perform its functions under
this Act. Provisions of any law to the contrary notwithstanding,
no such officer or employee may refuse to divulge the information
requested or required by the Joint Committee.
Section 20. Rules and Regulations. - Within thirty days

after the approval of this Act, the Governor of the Central Bank,
the Secretary of Finance, upon recommendation of the National
Treasurer; the Secretary, Department of Agrarian Reform, upon
recommendation of the Agricultural Credit Administration and
the Chairman of the Land Bank; and the Secretary of Agriculture
and Natural Resources shall each promulgate such rules and
regulations pertaining to their respective jurisdiction for the
effective enforcement and implementation of the provisions of this
Act and shall cause the same to be published once within fifteen days
from promulgation, in any newspaper of general circulation in the
Philippines and in the Official Gazette. Such rules and regulations
shall take effect fifteen days after the publication in the Official
Gazette.
SEC. 21. Penal Provisions. - Any person who fails to pay or

refuses to turn over the collections of the taxes including surcharges
and penalties, if any, and the properties and assets, mentioned
in this Act within the period fixed in Sections four, nine and ten
hereof, or who delays, obstructs, or prevents the same or who fails
or refuses to effect the release from the Account within the period
fixed in Section five hereof, or who delays, obstructs, or prevents
287
the same, or who orders, causes, or effects the transfer or diversion

of the collections or proceeds of this Account, or any portion
thereof, or otherwise unreasonably delays, prevents, or obstructs
the implementation of the objectives of this Act, shall be punished
with a fine not exceeding ten thousand pesos or imprisonment not
exceeding six years or both in the discretion of the Court.
If the offender is a government official or employee, he

shall, in addition, be dismissed from the service with prejudice to
reinstatement and with disqualification for election or appointment
to any public office.
Any official who orders, causes, or effects the transfer or

diversion of this Account or any portion thereof, or otherwise
unreasonably delays, prevents or obstructs the implementation of
the objectives of this Act, or who violates or neglects to comply with
any circular, order or process issued relative to the implementation
of this Act, shall, likewise, be liable to the penalties hereinabove
imposed.
Any collusion in the extension of credit under this Act between

the farmer-borrower on the one hand, and the rural bank on the
other, prejudicial to the Agricultural Guarantee Fund, shall, after
conviction, be punished by imprisonment of not less than ten years,
and a fine of not less than ten thousand pesos: Provided, That in
the case of a rural bank, the member of the Board of Directors or
Trustees or executive officials thereof found responsible shall be
held liable.
A collusion exists whenever the farmer-borrower and the rural

bank official or officials enter into an agreement for a fraudulent
purpose or whenever said parties conspire secretly to defraud the
government.
SEC. 22. Separability Clause. - The provisions of this Act

are hereby declared to be separable and, if any clause, sentence,
provision or section of this Act or application thereof to any
person or circumstances should for any reason be held invalid and
288
unconstitutional, such invalidity or unconstitutionality shall not

affect other provisions or application of this Act which can be given
force and effect without the invalid or unconstitutional provisions or
application of this Act.
SEC. 23. Repealing Clause. - All acts, executive orders, rules

and regulations, or parts thereof, which are inconsistent with the
provisions of this Act are hereby repealed, amended or modified
accordingly.
SEC. 24. Effectivity. - This Act shall take effect upon its
approval.
Approved: September 10, 1971

289
H. No 5496
S. No 944
AN ACT APPROPRIATING THREE HUNDRED MILLION PESOS

FOR EXPENDITURES OCCASIONED BY THE TYPHOONS,
RAINS AND FLOODS IN THE MONTHS OF JUNE AND
JULY, NINETEEN HUNDRED SEVENTY-TWO, AND FOR
OTHER PURPOSES

SECTION 1. There is hereby appropriated, out of any funds in

the National Treasury not otherwise appropriated, the sum of three
hundred million pesos to defray expenditures for repairs of public
works damaged by and relief to indigent victims of, calamities
which occurred in the Philippines in the months of June and July,
1972, for such items as food, medicines, shelter and clothing at not
exceeding one hundred pesos per head of family and one hundred
pesos for each dependent and assistance for the rehabilitation of
small farms to be released and disbursed pursuant to the provisions
of Sec. 7-1 (4) of Commonwealth Act No. 246, as amended, except
appropriations for the Department of Social Welfare and for other
national offices and agencies intended for relief and rehabilitation,
with priority being given to victims of said calamities in Central
Luzon, Manila and environs, for the foregoing purposes by the
following departments in the amount indicated:
(a) P120,000,000 for the Department of Public Works

and Communications with priority to dams, dikes, bridges and
riprapping: Provided, that thirty million pesos shall be for the
repair of streets and drainage facilities in the Greater Manila Area
comprising the City of Manila, Caloocan City, Quezon City, San
Juan, Mandaluyong, Makati, and Pasay City: Provided, further,
That not more than fifteen million pesos shall be allocated for the
repair and reconstruction of projects in other municipalities or cities
290
which have suffered destruction, losses and damages due to said

typhoons, rains and floods: Provided, furthermore, That the amount
appropriated herein shall be released, spent and actually disbursed
within a period not later than March 31, 1973, and no funds herein
appropriated shall be expended beyond March 31, 1973, any
unexpended balance after March 31, 1973 whether obligated or not
shall automatically revert to the General Fund, except those for
on-going projects started before March 31, 1973, disbursements for
which may be authorized until but not beyond June 30, 1973;
(b) P50,000,000 for the Department of Agriculture and Natural

Resources for the purchase of seedlings, fertilizers and other in-puts
of production for the rehabilitation of farms damaged by floods,
rains and typhoons: Provided, That P20,000,000 shall be set aside
for seedlings and fertilizers and P30,000,000 for loans to farmers
to be administered by the National Food and Agriculture Council ;
(c) P35,000,000 for the Department of Social Welfare;
(d) P40,000,000 for the Central Bank to be made available to

the rural banks in the affected areas for loans and guarantees under
such rules and regulations as the Central Bank may provide so as to
channel the same to the greatest number of persons affected;
(e) P20,000,000 for the Department of Education to repair or

replace books, school equipment, facilities and supplies, including
school buildings, damaged or destroyed;
(f) P20,000,000 for the Department of Health; and
(g) P15,000,000 for the Presidential Assistant on Community

Development, National Irrigation Administration, Agricultural
Productivity Commission, Department of Agrarian Reform,
NACIDA, and Philippine National Railways: Provided, That the
amounts appropriated for relief and/or direct assistance under sub-
items (c) Department of Social Welfare and (g) other national offices
and agencies shall be released, spent and actually disbursed within
a period not later than September 30, 1972.
291
SEC. 2. In the implementation of Section one, the following

rules shall be observed:
(a) That the term “spent and actually disbursed” for the
purposes of Section one refers to the movement of cash from the
Government to the final recipient;
(b) That the relief extended with public funds or officially

by government officials and personnel shall not bear any marking
or identification attributing the same as coming from any public
official or private individual;
(c) That not more than five per centum of the amount
appropriated herein or the total released at any one time shall be
utilized for the payment of personal services, and administrative
and other operational expenses; and
(d) That the Government officials and personnel concerned

shall extend relief as equitably and as fast as possible directly to the
calamity victims based on their need and the resources available at
a given time, without regard for political, religious, social or other
consideration.
SEC. 3. The heads of the government offices and agencies

implementing this Act shall submit a report within the first ten
days of every month on funds released to their offices and agencies
under this Act and within fifteen days from the end of every quarter
another report on the progress or status of the work prosecuted by
them thereunder during the preceding quarter, including therein
all relevant data, to the Joint Senate-House of Representatives
Committee, herein created to watch over the disbursement and
use of the funds herein appropriated. The Joint Committee shall be
composed of the Chairman of the Senate Committee on Finance, as
Co-Chairman, the Chairman of the Committee on Appropriations
of the House, as Co-Chairman, and two Members of each House,
one of whom shall represent the Minority from each House, to be
designated by the presiding officers of each House, respectively.
The Joint Committee shall scrutinize the reports and take such
292
measures as it may deem appropriate to protect the public interest

in relation to the disbursement and expenditures of the funds herein
appropriated, including the taking of necessary measures for the
prosecution of parties responsible for the violation of the provisions
hereof: Provided, however, That any head, chief or employee of any
office, bureau, or agency concerned in the implementation of this
Act who may be found to have violated the provisions of this Act
shall be criminally liable, subject to the provisions of the Penal Code
but where the violation is not covered by the Penal Code, then the
guilty party shall be subject to a penalty of a fine of one thousand
pesos and imprisonment of not less than six (6) months or more
than one (1) year without prejudice to administrative action.
Approved: August 8, 1972
293
8th Congress
S. No. 249
H. No. 400
AN ACT INSTITUTING A COMPREHENSIVE AGRARIAN

REFORM PROGRAM TO PROMOTE SOCIAL JUSTICE AND
INDUSTRIALIZATION, PROVIDING THE MECHANISM
FOR ITS IMPLEMENTATION, AND FOR OTHER PURPOSES

CHAPTER I
PRELIMINARY CHAPTER
SECTION 1. Title.—This Act shall be known as the

Comprehensive Agrarian Reform Law of 1988.
SEC. 2. Declaration of Principles and Policies.—It is the policy

of the State to pursue a Comprehensive Agrarian Reform Program
(CARP). The welfare of the landless farmers and farmworkers
will receive the highest consideration to promote social justice
and to move the nation toward sound rural development and
industrialization, and the establishment of owner cultivatorship of
economic-size farms as the basis of Philippine agriculture.
To this end, a more equitable distribution and ownership of

land, with due regard to the rights of landowners to just compensation
and to the ecological needs of the nation, shall be undertaken to
provide farmers and farmworkers with the opportunity to enhance
their dignity and improve the quality of their lives through greater
productivity of agricultural lands.
The agrarian reform program is founded on the right of

farmers and regular farmworkers, who are landless, to own directly
or collectively the lands they till or, in the case of other farmworkers,
294
to receive a just share of the fruits thereof. To this end, the State shall
encourage and undertake the just distribution of all agricultural
lands, subject to the priorities and retention limits set forth in
this Act, taking into account ecological, developmental, and equity
considerations, and subject to the payment of just compensation.
The State shall respect the right of small landowners, and shall
provide incentives for voluntary land-sharing.
The State shall recognize the right of farmers, farmworkers

and landowners, as well as cooperatives and other independent
farmers’ organizations, to participate in the planning, organization,
and management of the program, and shall provide support to
agriculture through appropriate technology and research, and
adequate financial, production, marketing and other support
services.
The State shall apply the principles of agrarian reform, or

stewardship, whenever applicable, in accordance with law, in the
disposition or utilization of other natural resources, including
lands of the public domain, under lease or concession, suitable
to agriculture, subject to prior rights, homestead rights of small
settlers and the rights of indigenous communities to their ancestral
lands.
The State may resettle landless farmers and farmworkers in

its own agricultural estates, which shall be distributed to them in
the manner provided by law.
By means of appropriate incentives, the State shall encourage

the formation and maintenance of economic-size family farms to be
constituted by individual beneficiaries and small landowners.
The State shall protect the rights of subsistence fishermen,

especially of local communities, to the preferential use of communal
marine and fishing resources, both inland and offshore. It shall
provide support to such fishermen through appropriate technology
and research, adequate financial, production and marketing
assistance and other services. The State shall also protect, develop
295
and conserve such resources. The protection shall extend to offshore

fishing grounds of subsistence fishermen against foreign intrusion.
Fishworkers shall receive a just share from their labor in the
utilization of marine and fishing resources.
The State shall be guided by the principles that land has a

social function and land ownership has a special responsibility.
Owners of agricultural land have the obligation to cultivate directly
or through labor administration the lands they own and thereby
make the land productive.
The State shall provide incentives to landowners to

invest the proceeds of the agrarian reform program to promote
industrialization, employment and privatization of public sector
enterprises. Financial instruments used as payment for lands shall
contain features that shall enhance negotiability and acceptability
in the marketplace.
The State may lease undeveloped lands of the public domain

to qualified entities for the development of capital-intensive farms,
and traditional and pioneering crops especially those for exports
subject to the prior rights of the beneficiaries under this Act.
SEC. 3. Definitions.—For the purpose of this Act, unless the

context indicates otherwise:
(a) Agrarian Reform means redistribution of lands, regardless

of crops or fruits produced, to farmers and regular farmworkers who
are landless, irrespective of tenurial arrangement, to include the
totality of factors and support services designed to lift the economic
status of the beneficiaries and all other arrangements alternative
to the physical redistribution of lands, such as production or profit-
sharing, labor administration, and the distribution of shares of
stock, which will allow beneficiaries to receive a just share of the
fruits of the lands they work.
(b) Agriculture, Agricultural Enterprise or Agricultural

Activity means the cultivation of the soil, planting of crops, growing
296
of fruit trees, raising of livestock, poultry or fish, including the

harvesting of such farm products, and other farm activities and
practices performed by a farmer in conjunction with such farming
operations done by persons whether natural or juridical.
(c) Agricultural Land refers to land devoted to agricultural

activity as defined in this Act and not classified as mineral, forest,
residential, commercial or industrial land.
(d) Agrarian Dispute refers to any controversy relating to

tenurial arrangements, whether leasehold, tenancy, stewardship
or otherwise, over lands devoted to agriculture, including disputes
concerning farmworkers’ associations or representation of persons
in negotiating, fixing, maintaining, changing or seeking to arrange
terms or conditions of such tenurial arrangements.
It includes any controversy relating to compensation of lands

acquired under this Act and other terms and conditions of transfer
of ownership from landowners to farmworkers, tenants and other
agrarian reform beneficiaries, whether the disputants stand in the
proximate relation of farm operator and beneficiary, landowner and
tenant, or lessor and lessee.
(e) Idle or Abandoned Land refers to any agricultural land

not cultivated, tilled or developed to produce any crop nor devoted
to any specific economic purpose continuously for a period of three
(3) years immediately prior to the receipt of notice of acquisition by
the government as provided under this Act, but does not include
land that has become permanently or regularly devoted to non-
agricultural purposes. It does not include land which has become
unproductive by reason of force majeure or any other fortuitous
event, provided that prior to such event, such land was previously
used for agricultural or other economic purpose.
(f) Farmer refers to a natural person whose primary livelihood

is cultivation of land or the production of agricultural crops, either
by himself, or primarily with the assistance of his immediate farm
household, whether the land is owned by him, or by another person
297
under a leasehold or share tenancy agreement or arrangement with

the owner thereof.
(g) Farmworker is a natural person who renders service for

value as an employee or laborer in an agricultural enterprise or
farm regardless of whether his compensation is paid on a daily,
weekly, monthly or “pakyaw” basis. The term includes an individual
whose work has ceased as a consequence of, or in connection with, a
pending agrarian dispute and who has not obtained a substantially
equivalent and regular farm employment.
(h) Regular Farmworker is a natural person who is employed

on a permanent basis by an agricultural enterprise or farm.
(i) Seasonal Farmworker is a natural person who is employed

on a recurrent, periodic or intermittent basis by an agricultural
enterprise or farm, whether as a permanent or a non-permanent
laborer, such as “dumaan”, “sacada”, and the like.
(j) Other Farmworker is a farmworker who does not fall

under paragraphs (g), (h) and (i).
(k) Cooperatives shall refer to organizations composed

primarily of small agricultural producers, farmers, farmworkers,
or other agrarian reform beneficiaries who voluntarily organize
themselves for the purpose of pooling land, human, technological,
financial or other economic resources, and operated on the principle
of one member, one vote. A juridical person may be a member of a
cooperative, with the same rights and duties as a natural person.
CHAPTER II
COVERAGE
SEC. 4. Scope.—The Comprehensive Agrarian reform Law of

1988 shall cover, regardless of tenurial arrangement and commodity
produced, all public and private agricultural lands as provided in
298
Proclamation No. 131 and Executive Order No. 229, including other
lands of the public domain suitable for agriculture.
More specifically, the following lands are covered by the

Comprehensive Agrarian Reform Program:
(a) All alienable and disposable lands of the public domain

devoted to or suitable for agriculture. No reclassification of forest
or mineral lands to agricultural lands shall be undertaken after the
approval of this Act until Congress, taking into account ecological,
developmental and equity considerations, shall have determined by
law, the specific limits of the public domain.
(b) All lands of the public domain in excess of the specific

limits as determined by Congress in the preceding paragraph;
(c) All other lands owned by the Government devoted to or

suitable for agriculture; and
(d) All private lands devoted to or suitable for agriculture

regardless of the agricultural products raised or that can be raised
thereon.
SEC. 5. Schedule of Implementation.—The distribution of all

lands covered by this Act shall be implemented immediately and
completed within ten (10) years from the effectivity thereof.
SEC. 6. Retention Limits.—Except as otherwise provided in

this Act, no person may own or retain, directly or indirectly, any
public or private agricultural land, the size of which shall vary
according to factors governing a viable family-size farm, such as
commodity produced, terrain, infrastructure, and soil fertility as
determined by the Presidential Agrarian Reform Council (PARC)
created hereunder, but in no case shall retention by the landowner
exceed five (5) hectares. Three (3) hectares may be awarded to each
child of the landowner, subject to the following qualifications: (1)
that he is at least fifteen (15) years of age; and (2) that he is actually
tilling the land or directly managing the farm: Provided, That
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landowners whose lands, have been covered by Presidential Decree

No. 27 shall be allowed to keep the area originally retained by them
thereunder: Provided, further, That original homestead grantees or
their direct compulsory heirs who still own the original homestead
at the time of the approval of this Act shall retain the same areas as
long as they continue to cultivate said homestead.
The right to choose the area to be retained, which shall be

compact or contiguous, shall pertain to the landowner: Provided,
however, That in case the area selected for retention by the
landowner is tenanted, the tenant shall have the option to choose
whether to remain therein or be a beneficiary in the same or
another agricultural land with similar or comparable features. In
case the tenant chooses to remain in the retained area, he shall be
considered a leaseholder and shall lose his right to be a beneficiary
under this Act. In case the tenant chooses to be a beneficiary in
another agricultural land, he loses his right as a leaseholder to
the land retained by the landowner. The tenant must exercise this
option within a period of one (1) year from the time the landowner
manifests his choice of the area for retention.
In all cases, the security of tenure of the farmers or farmworkers

on the land prior to the approval of this Act shall be respected.
Upon the effectivity of this Act, any sale, disposition, lease,

management contract or transfer of possession of private lands
executed by the original landowner in violation of this Act shall be
null and void: Provided, however, That those executed prior to this
Act shall be valid only when registered with the Register of Deeds
within a period of three (3) months after the effectivity of this Act.
Thereafter, all Registers of Deeds shall inform the Department of
Agrarian Reform (DAR) within thirty (30) days of any transaction
involving agricultural lands in excess of five (5) hectares.
SEC. 7. Priorities.—The Department of Agrarian Reform

(DAR) in coordination with the Presidential Agrarian Reform
Council (PARC) shall plan and program the acquisition and
distribution of all agricultural lands through a period of ten (10)
300
years from the effectivity of this Act. Lands shall be acquired and
distributed as follows:
Phase One: Rice and corn lands under Presidential Decree

No. 27; all idle or abandoned lands; all private lands voluntarily
offered by the owners for agrarian reform; all lands foreclosed
by government financial institutions; all lands acquired by the
Presidential Commission on Good Government (PCGG) ; and all
other lands owned by the government devoted to or suitable for
agriculture, which shall be acquired and distributed immediately
upon the effectivity of this Act, with the implementation to be
completed within a period of not more than four (4) years;
Phase Two: All alienable and disposable public agricultural

lands; all arable public agricultural lands under agro-forest, pasture
and agricultural leases already cultivated and planted to crops in
accordance with Section 6, Article XIII of the Constitution; all public
agricultural lands which are to be opened for new development and
resettlement; and all private agricultural lands in excess of fifty (50)
hectares, insofar as the excess hectarage is concerned, to implement
principally the rights of farmers and regular farmworkers, who are
landless, to own directly or collectively the lands they till, which
shall be distributed immediately upon the effectivity of this Act,
with the implementation to be completed within a period of not
move than four (4) years.
Phase Three: All other private agricultural lands commencing

with large landholdings and proceeding to medium and small
landholdings under the following schedule:
(a) Landholdings above twenty-four (24) hectares up to fifty

(50) hectares, to begin on the fourth (4th) year from the effectivity
of this Act and to be completed within three (3) years; and
(b) Landholdings from the retention limit up to twenty-four

(24) hectares, to begin on the sixth (6th) year from the effectivity
of this Act and to be completed within four (4) years; to implement
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principally the right of farmers and regular farmworkers who are

landless, to own directly or collectively the lands they till.
The schedule of acquisition and redistribution of all agricultural

lands covered by this program shall be made in accordance with the
above order of priority, which shall be provided in the implementing
rules to be prepared by the Presidential Agrarian Reform Council
(PARC), taking into consideration the following: the need to
distribute lands to the tillers at the earliest practicable time; the
need to enhance agricultural productivity; and the availability of
funds and resources to implement and support the program.
In any case, the PARC, upon recommendation by the

Provincial Agrarian Reform Coordinating Committee (PARCCOM),
may declare certain provinces or regions as priority land reform
areas, in which case the acquisition and distribution of private
agricultural lands therein may be implemented ahead of the above
schedules.
In effecting the transfer within these guidelines, priority must

be given to lands that are tenanted.
The PARC shall establish guidelines to implement the above

priorities and distribution scheme, including the determination
of who are qualified beneficiaries: Provided, That an owner-tiller
may be a beneficiary of the land he does hot own but is actually
cultivating to the extent of the difference between the area of the
land he owns and the award ceiling of three (3) hectares.
SEC. 8. Multinational Corporations.—All lands of the public

domain leased, held or possessed by multinational corporations
or associations, and other lands owned by the government or
by government-owned or controlled corporations, associations,
institutions, or entities, devoted to existing and operational agri-
business or agro-industrial enterprises, operated by multinational
corporations and associations, shall be programmed for acquisition
and distribution immediately upon the effectivity of this Act, with
the implementation to be completed within three (3) years.
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Lands covered by the paragraph immediately preceding,

under lease, management, grower or service contracts, and the like,
shall be disposed of as follows:
(a) Lease, management, grower or service contracts covering

such lands covering an aggregate area in excess of 1,000 hectares,
leased or held by foreign individuals in excess of 500 hectares are
deemed amended to conform with the limits set forth in Section 3 of
Article XII of the Constitution.
(b) Contracts covering areas not in excess of 1,000 hectares in

the case of such corporations and associations, and 500 hectares, in
the case of such individuals, shall be allowed to continue under their
original terms and conditions but not beyond August 29, 1992, or
their valid termination, whichever comes sooner, after which, such
agreements shall continue only when confirmed by the appropriate
government agency. Such contracts shall likewise continue even
after the land has been transferred to beneficiaries or awardees
thereof, which transfer shall be immediately commenced and
implemented, and completed within the period of three (3) years
mentioned in the first paragraph hereof.
(c) In no case will such leases and other agreements now

being implemented extend beyond August 29, 1992, when all lands
subject hereof shall have been distributed completely too qualified
beneficiaries or awardees.
Such agreements can continue thereafter only under a new

contract between the government or qualified beneficiaries or
awardees, on the one hand, and said enterprises, on the other.
Lands leased, held or possessed by multinational corporations,

owned by private individuals and private nongovernmental
corporations, associations, institutions and entities, citizens of the
Philippines, shall be subject to immediate compulsory acquisition
and distribution upon the expiration of the applicable lease,
management, grower or service contract in effect as of August 29,
1987, or otherwise, upon its valid termination, whichever comes
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sooner, but not later than after ten (10) years following the effectivity
of this Act. However, during the said period of effectivity, the
government shall take steps to acquire these lands for immediate
distribution thereafter.
In general, lands shall be distributed directly to the individual

worker- beneficiaries. In case it is not economically feasible and
sound to divide the land, then they shall form a workers’ cooperative
or association which will deal with the corporation or business
association or any other proper party for the purpose of entering
into a lease or growers agreement and for all other legitimate
purposes. Until a new agreement is entered into by and between the
workers’ cooperative or association and the corporation or business
association or any other proper party, any agreement existing at
the time this Act takes effect between the former and the previous
landowner shall be respected by both the workers’ cooperative or
association and the corporation, business association or such other
proper party. In no case shall the implementation or application of
this Act justify or result in the reduction of status or diminution of
any benefits received or enjoyed by the worker-beneficiaries, or in
which they may have a vested right, at the time this Act becomes
effective.
The provisions of Section 32 of this Act, with regard to

production and income-sharing shall apply to farms operated by
multinational corporations.
During the transition period, the new owners shall be

assisted in their efforts to learn modern technology in production.
Enterprises which show a willingness and commitment and good-
faith efforts to impart voluntarily such advanced technology will be
given preferential treatment where feasible.
In no case shall a foreign corporation, association, entity or

individual enjoy any rights or privileges better than those enjoyed
by a domestic corporation, association, entity or individual.
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SEC. 9. Ancestral Lands.—For purposes of this Act, ancestral

lands of each indigenous cultural community shall include, but not
be limited to, lands in the actual, continuous and open possession
and occupation of the community and its members: Provided, That
the Torrens System shall be respected.
The right of these communities to their ancestral lands shall

be protected to ensure their economic, social and cultural well-being.
In line with the principles of self-determination and autonomy, the
systems of land ownership, land use, and the modes of settling land
disputes of all these communities must be recognized and respected.
Any provision of law to the contrary notwithstanding, the

PARC may suspend the implementation of this Act with respect to
ancestral lands for the purpose of identifying and delineating such
lands: Provided, That in the autonomous regions, the respective
legislatures may enact their own laws on ancestral domain subject
to the provisions of the Constitution and the principles enunciated
in this Act and other national laws.
SEC. 10. Exemptions and Exclusions.—Lands actually,

directly and exclusively used and found to be necessary for parks,
wildlife, forest reserves, reforestation, fish sanctuaries and breeding
grounds, watersheds and mangroves, national defense, school sites
and campuses including experimental farm stations operated
by public or private schools for educational purposes, seeds and
seedlings research and pilot production centers, church sites and
convents appurtenant thereto, mosque sites and Islamic centers
appurtenant thereto, communal burial grounds and cemeteries,
penal colonies and penal farms actually worked by the inmates,
government and private research and quarantine centers and all
lands with eighteen percent (18%) slope and over, except those
already developed shall be exempt from the coverage of this Act.
SEC. 11. Commercial Farming.—Commercial farms, which

are private agricultural lands devoted to commercial livestock,
poultry and swine raising, and aquaculture including saltbeds,
fishponds and prawn ponds, fruit farms, orchards, vegetable and
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cut-flower farms, and cacao, coffee and rubber plantations, shall be

subject to immediate compulsory acquisition and distribution after
ten (10) years from the effectivity of this Act. In the case of new farms,
the ten-year period shall begin from the first year of commercial
production and operation, as determined by the DAR. During the
ten-year period, the government shall initiate the steps necessary to
acquire these lands, upon payment of just compensation for the land
and the improvements thereon, preferably in favor of organized
cooperatives or associations, which shall thereafter manage the said
lands for the worker-beneficiaries.
If the DAR determines that the purposes for which this

deferment is granted no longer exist, such areas shall automatically
be subject to redistribution.
The provisions of Section 32 of this Act, with regard to

production and income-sharing, shall apply to commercial farms.
CHAPTER III
IMPROVEMENT OF TENURIAL AND LABOR RELATIONS
SEC. 12. Determination of Lease Rentals.—In order to protect

and improve the tenurial and economic status of the farmers
in tenanted lands under the retention limit and lands not yet
acquired under this Act, the DAR is mandated to determine and fix
immediately the lease rentals thereof in accordance with Section 34
of Republic Act No. 3844, as amended: Provided, That the DAR shall
immediately and periodically review and adjust the rental structure
for different crops, including rice and corn, of different regions in
order to improve progressively the conditions of the farmer, tenant
or lessee.
SEC. 13. Production-Sharing Plan.—Any enterprise adopting

the scheme provided for in Section 32 hereof or operating under a
production venture, lease, management contract or other similar
arrangement and any farm covered by Sections 8 and 11 hereof
is hereby mandated to execute within ninety (90) days from the
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effectivity of this Act, a production-sharing plan, under guidelines

prescribed by the appropriate government agency.
Nothing herein shall be construed to sanction the diminution

of any benefits such as salaries, bonuses, leaves and working
conditions granted to the employee-beneficiaries under existing
laws, agreements, and voluntary practice by the enterprise, nor
shall the enterprise and its employee-beneficiaries be prevented
from entering into any agreement with terms more favorable to the
latter.
CHAPTER IV
REGISTRATION
SEC. 14. Registration of Landowners.—Within one hundred

eighty (180) days from the effectivity of this Act, all persons, natural
or juridical, including government entities, that own or claim to own
agricultural lands, whether in their names or in the name of others,
except those who have already registered pursuant to Executive
Order No. 229, who shall be entitled to such incentives as may be
provided for by the PARC, shall file a sworn statement in the proper
assessor’s office in the form to be prescribed by the DAR, stating the
following information:
(a) the description and area of the property;
(b) the average gross income from the property for at least
three (3) years;
(c) the names of all tenants and farmworkers therein;
(d) the crops planted in the property and the area covered by
each crop as of June 1, 1987;
(e) the terms of mortgages, leases, and management contracts

subsistings, as of June 1, 1987; and
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(f) the latest declared market value of the land as determined

by the city or provincial assessor.
SEC. 15. Registration of Beneficiaries.—The DAR in

coordination with the Barangay Agrarian Reform Committee (BARC)
as organized in this Act, shall register all agricultural lessees,
tenants and farmworkers who are qualified to be beneficiaries of
the CARP. These potential beneficiaries with the assistance of the
BARC and the DAR shall provide the following data:
(a) names and members of their immediate farm household;
(b) owners or administrators of the lands they work on and

the length of tenurial relationship;
(c) location and area of the land they work;
(d) crops planted; and
(e) their share in the harvest or amount of rental paid or

wages received.
A copy of the registry or list of all potential CARP beneficiaries

in the barangay shall be posted in the barangay hall, school or other
public buildings in the barangay where it shall be open to inspection
by the public at all reasonable hours.
CHAPTER V
LAND ACQUISITION
SEC. 16. Procedure for Acquisition of Private Lands.—For

purposes of acquisition of private lands, the following procedures
shall be followed:
(a) After having identified the land, the landowners and the
beneficiaries, the DAR shall send its notice to acquire the land to
the owners thereof, by personal delivery or registered mail, and
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post the same in a conspicuous place in the municipal building and

barangay hall of the place where the property is located. Said notice
shall contain the offer of the DAR to pay a corresponding value in
accordance with the valuation set forth in Sections 17 and 18, and
other pertinent provisions hereof.
(b) Within thirty (30) days from the date of receipt of written
notice by personal delivery or registered mail, the landowner,
his administrator or representative shall inform the DAR of his
acceptance or rejection of the offer.
(c) If the landowner accepts the offer of the DAR the Land
Bank of the Philippines (LBP) shall pay the landowner the purchase
price of the land within thirty (30) days after he executes and delivers
a deed of transfer in favor of the government and surrenders the
Certificate of Title and other muniments of title.
(d) In case of rejection or failure to reply, the DAR shall

conduct summary administrative proceedings to determine the
compensation for the land by requiring the landowner, the LBP
and other interested parties to submit evidence as to the just
compensation for the land, within fifteen (15) days from the receipt
of the notice. After the expiration of the above period, the matter
is deemed submitted for decision. The DAR shall decide the case
within thirty (30) days after it is submitted for decision.
(e) Upon receipt by the landowner of the corresponding

payment or, in case of rejection or no response from the landowner,
upon the deposit with an accessible bank designated by the DAR of
the compensation in cash or in LBP bonds in accordance with this
Act, the DAR shall take immediate possession of the land and shall
request the proper Register of Deeds to issue a Transfer Certificate
of Title (TCT) in the name of the Republic of the Philippines. The
DAR shall thereafter proceed with the redistribution of the land to
the qualified beneficiaries.
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(f) Any party who disagrees with the decision may bring the
matter to the court of proper jurisdiction for final determination of
just compensation.
CHAPTER VI
COMPENSATION
SEC. 17. Determination of Just Compensation.—In

determining just compensation, the cost of acquisition of the land,
the current value of like properties, its nature, actual use and
income, the sworn valuation by the owner, the tax declarations, and
the assessment made by government assessors shall be considered.
The social and economic benefits contributed by the farmers and
the farmworkers and by the Government to the property as well as
the non-payment of taxes or loans secured from any government
financing institution on the said land shall be considered as
additional factors to determine its valuation.
SEC. 18. Valuation and Mode of Compensation.—The LBP

shall compensate the landowner in such amount as may be agreed
upon by the landowner and the DAR and the LBP, in accordance
with the criteria provided for in Sections 16, and 17, and other
pertinent provisions hereof, or as may be finally determined by the
court, as the just compensation for the land.
The compensation shall be paid in one of the following modes,

at the option of the landowner:
1. Cash payment, under the following terms and conditions:
(a) For lands above fifty (50) hectares, insofar as the excess
hectarage is concerned—Twenty five percent (25%) cash, the
balance to be paid in government financial instruments negotiable
at any time.
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(b) For lands above twenty-four (24) hectares and up to fifty

(50) hectare —Thirty percent (30%) cash, the balance to be paid in
government financial instruments negotiable at any time.
(c) For lands twenty four (24) hectares and below —Thirty-five
percent (35%) cash, the balance to be paid in government financial
instruments negotiable at any time.
2. Shares of stock in government-owned or controlled

corporations, LBP preferred shares, physical assets or other qualified
investments in accordance with guidelines set by the PARC;
2. Tax credits which can be used against any tax liability;
3. LBP bonds, which shall have the following features:
(a) Market interest rates aligned with 91-day treasury bill

rates. Ten percent (10%) of the face value of the bonds shall mature
every year from the date of issuance until the tenth (10th) year:
Provided, That should the landowner choose to forego the cash
portion, whether in full or in part, he shall be paid correspondingly
in LBP bonds;
(b) Transferability and negotiability. Such LBP bonds may be

used by the landowner, his successors in interest or his assigns, up
to the amount of their face value, for any of the following:
(i) Acquisition of land or other real properties of the

government, including assets under the Asset Privatization Program
and other assets foreclosed by government financial institutions in
the same province or region where the lands for which the bonds
were paid are situated;
(ii) Acquisition of shares of stock of government-owned or

controlled corporations or shares of stock owned by the government
in private corporations;
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(iii) Substitution for surety or bail bonds for the provisional

release of accused persons, or for performance bonds;
(iv)Security for loans with any government financial

institution, provided the proceeds of the loans shall be invested in
an economic enterprise, preferably in a small-and medium-scale
industry, in the same province or region as the land for which the
bonds are paid;
(v) Payment for various taxes and fees to government:

Provided, That the use of these bonds for these purposes will be
limited to a certain percentage of the outstanding balance of the
financial instruments: Provided, further, That the PARC shall
determine the percentages mentioned above;
(vi)Payment for tuition fees of the immediate family of the

original bondholder in government universities, colleges, trade
schools, and other institutions;
(vii) Payment for fees of the immediate family of the original

bondholder in government hospitals; and
(viii) Such other uses as the PARC may from time to time
allow.
In case of extraordinary inflation, the PARC shall take

appropriate measures to protect the economy.
SEC. 19. Incentives for Voluntary Offers for Sale.—

Landowners, other than banks and other financial institutions, who
voluntarily offer their lands for sale shall be entitled to an additional
five percent (5%) cash payment.
SEC. 20. Voluntary Land Transfer.—Landowners of

agricultural lands subject to acquisition under this Act may enter
into a voluntary arrangement for direct transfer of their lands to
qualified beneficiaries subject to the following guidelines:
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(a) All notices for voluntary land transfer must be submitted

to the DAR within the first year of the implementation of the CARP.
Negotiations between the landowners and qualified beneficiaries
covering any voluntary land transfer which remain unresolved after
one (1) year shall not be recognized and such land shall instead be
acquired by the government and transferred pursuant to this Act.
(b) The terms and conditions of such transfer shall not be

less favorable to the transferee than those of the government’s
standing offer to purchase from the landowner and to resell to the
beneficiaries, if such offers have been made and are fully known to
both parties.
(c) The voluntary agreement shall include sanctions for

non-compliance by either party and shall be duly recorded and its
implementation monitored by the DAR.
SEC. 21. Payment of Compensation by Beneficiaries under

Voluntary Land Transfer.—Direct payment in cash or in kind may
be made by the farmer-beneficiary to the landowner tinder terms
to be mutually agreed upon by both parties, which shall be binding
upon them, upon registration with and approval by the DAR. Said
approval shall be considered given, unless notice of disapproval is
received by the farmer-beneficiary within thirty (30) days from the
date of registration.
In the event they cannot agree on the price of land, the

procedure for compulsory acquisition as provided in Section 16
shall apply. The LBP shall extend financing to the beneficiaries for
purposes of acquiring the land.
CHAPTER VII
LAND REDISTRIBUTION
SEC. 22. Qualified Beneficiaries.—The lands covered by the

CARP shall be distributed as much as possible to landless residents
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of the same barangay, or in the absence thereof, landless residents

of the same municipality in the following order of priority:
(a) agricultural lessees and share tenants;
(b) regular farmworkers
(c) seasonal farmworkers;
(d) other farmworkers;
(e) actual tillers or occupants of public lands;
(f) collectives or cooperatives of the above beneficiaries; and
(g) others directly working on the land.
Provided, however, That the children of landowners who are

qualified under Section 6 of this Act shall be given preference in
the distribution of the land of their parents: and Provided, further,
That actual tenant-tillers in the landholding shall not be ejected or
removed therefrom.
Beneficiaries under Presidential Decree No. 27 who have

culpably sold, disposed of, or abandoned their land are disqualified
to become beneficiaries under this Program.
A basic qualification of a beneficiary shall be his willingness,

aptitude, and ability to cultivate and make the land as productive
as possible. The DAR shall adopt a system of monitoring the record
or performance of each of beneficiary, so that any beneficiary guilty
of negligence or misuse of the land or any support extended to him
shall forfeit his right to continue as such beneficiary. The DAR shall
submit periodic reports on the performance of the beneficiaries to
the PARC.
If, due to the landowner’s retention rights or to the number of

tenants, lessees, or workers on the land, there is not enough land to
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accommodate any or some of them, they may be granted ownership

of other lands available for distribution under this Act, at the option
of the beneficiaries.
Farmers already in place and those not accommodated in

the distribution of privately-owned lands will be given preferential
rights in the distribution of lands from the public domain.
SEC. 23. Distribution Limit.-No qualified beneficiary may

own more than three (3) hectares of agricultural land.
SEC. 24. Award to Beneficiaries.—The rights and

responsibilities of the beneficiary shall commence from the time
the DAR makes an award of the land to him, which award shall
be completed within one hundred eighty (180) days from the time
the DAR takes actual possession of the land. Ownership of the
beneficiary shall be evidenced by a Certificate of Land Ownership
Award, which shall contain the restrictions and conditions provided
for in this Act, and shall be recorded in the Register of Deeds
concerned and annotated on the Certificate of Title.
SEC. 25. Award Ceilings for Beneficiaries.—Beneficiaries

shall be awarded an area not exceeding three (3) hectares, which
may cover a contiguous tract of land or several parcels of land
cumulated up to the prescribed award limits.
For purposes of this Act, a landless beneficiary is one who

owns less than three (3) hectares of agricultural land.
The beneficiaries may opt for collective ownership, such as

co-ownership or farmers cooperative or some other form of collective
organization: Provided, That the total area that may be awarded
shall not exceed the total number of co-owners or members of the
cooperative or collective organization multiplied by the award limit
above prescribed, except in meritorious cases as determined by the
PARC. Title to the property shall be issued in the name of the co-
owners or the cooperative or collective organization as the case may
be.
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SEC. 26. Payment by Beneficiaries.—Lands awarded pursuant

to this Act shall be paid for by the beneficiaries to the LBP in thirty
(30) annual amortizations at six percent (6%) interest per annum.
The payments for the first three (3) years after the award may be at
reduced amounts as established by the PARC: Provided, That the
first five (5) annual payments may not be more than five percent
(5%) of the value of the annual gross production as established by
the DAR. Should the scheduled annual payments after the fifth
year exceed ten percent (10%) of the annual gross production and
the failure to produce accordingly is not due to the beneficiary’s
fault, the LBP may reduce the interest rate or reduce the principal
obligation to make the repayment affordable.
The LBP shall have a lien by way of mortgage on the land

awarded to the beneficiary; and this mortgage may be foreclosed
by the LBP for non-payment of an aggregate of three (3) anual
amortizations. The LBP shall advise the DAR of such proceedings
and the latter shall subsequently award the forfeited landholding to
other qualified beneficiaries. A beneficiary whose land, as provided
herein, has been foreclosed shall thereafter be permanently
disqualified from becoming a beneficiary under this Act.
SEC. 27. Transferability of Awarded Lands.—Lands acquired

by beneficiaries under this Act may not be sold, transferred
or conveyed except through hereditary succession, or to the
government, or to the LBP, or to other qualified beneficiaries for a
period of ten (10) years: Provided, however, That the children or the
spouse of the transferor shall have a right to repurchase the land
from the government or LBP within a period of two (2) years. Due
notice of the availability of the land shall be given by the LBP to
the Barangay Agrarian Reform Committee (BARC) of the barangay
where the land is situated.
The Provincial Agrarian Reform Coordinating Committee

(PARCCOM), as herein provided, shall, in turn, be given due notice
thereof by the BARC.
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If the land has not yet been fully paid by the beneficiary,
the rights to the land may be transferred or conveyed, with prior
approval of the DAR, to any heir of the beneficiary or to any other
beneficiary who, as a condition for such transfer or conveyance, shall
cultivate the land himself. Failing compliance herewith, the land
shall be transferred to the LBP which shall give due notice of the
availability of the land in the manner specified in the immediately
preceding paragraph.
In the event of such transfer to the LBP, the latter shall

compensate the beneficiary in one lump sum for the amounts the
latter has already paid, together with the value of improvements he
has made on the land.
SEC. 28. Standing Crops at the Time of Acquisition.—The

landowner shall retain his share of any standing crops unharvested
at the time the DAR shall take possession of the land under Section
16 of this Act, and shall be given a reasonable time to harvest the
same.
CHAPTER VIII
CORPORATE FARMS
SEC. 29. Farms Owned or Operated by Corporations or Other

Business Association.—In the case of farms owned or operated by
corporations or other business associations, the following rules shall
be observed by the PARC:
In general, lands shall be distributed directly to the individual

worker-beneficiaries.
In case it is not economically feasible and sound to divide the

land, then it shall be owned collectively by the worker-beneficiaries
who shall form a workers’ cooperative or association which will
deal with the corporation or business association. Until a new
agreement is entered into by and between the workers’ cooperative
or association and the corporation or business association, any
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agreement existing at the time this Act takes effect between the
former and the previous landowner shall be respected by both the
workers’ cooperative or association and the corporation or business
association.
SEC. 30. Homelots and Farmlots for Members of

Cooperatives.—The individual members of the cooperatives or
corporations mentioned in the preceding section shall be provided
with homelots and small farmlots for their family use, to be taken
from the land owned by the cooperative or corporation.
SEC. 31. Corporate Landowners.—Corporate landowners may

voluntarily transfer ownership over their agricultural landholdings
to the Republic of the Philippines pursuant to Section 20 hereof or to
qualified beneficiaries, under such terms and conditions, consistent
with this Act, they may agree upon, subject to confirmation by the
DAR.
Upon certification by the DAR, corporations owning

agricultural lands may give their qualified beneficiaries the right to
purchase such proportion of the capital stock of the corporation that
the agricultural land, actually devoted to agricultural activities,
bears in relation to the company’s total assets, under such terms
and conditions as may be agreed upon by them. In no case shall
the compensation received by the workers at the time the shares
of stocks are distributed be reduced. The same principle shall be
applied to associations, with respect to their equity or participation.
Corporations or associations which voluntarily divest a

proportion of their capital stock, equity or participation in favor
of their workers or other qualified beneficiaries under this section
shall be deemed to have complied with the provisions of this Act:
Provided, That the following conditions are complied with:
a) In order to safeguard the right of beneficiaries who own

shares of stocks to dividends and other financial benefits, the books
of the corporation or association shall be subject to periodic audit by
certified public accountants chosen by the beneficiaries;
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b) Irrespective of the value of their equity in the corporation

or association, the beneficiaries shall be assured of at least one (1)
representative in the board of directors, or in a management or
executive committee, if one exists, of the corporation or association;
c) Any shares acquired by such workers and beneficiaries

shall have the same rights and features as all other shares.
d) Any transfer of shares of stock by the original beneficiaries

shall be void ab initio unless said transaction is in favor of a qualified
and registered beneficiary within the same corporation.
If within two (2) years from the approval of this Act, the land
or stock transfer envisioned above is not made or realized or the plan
for such stock distribution approved by the PARC within the same
period, the agricultural land of the corporate owners or corporation
shall be subject to the compulsory coverage of this Act.
SEC. 32. Production-Sharing.—Pending final land transfer,

individuals or entities owning, or operating under lease or
management contract, agricultural lands are hereby mandated
to execute a production-sharing plan with their farmworkers or
farmworkers’ organization, if any, whereby three percent (3%) of
the gross sales from the production of such lands are distributed
within sixty (60) days of the end of the fiscal year as compensation
to regular and other farmworkers’ in such lands over and above
the compensation they currently receive: Provided, That these
individuals or entities realize gross sales in excess of five million
pesos per annum unless the DAR, upon proper application
determines a lower ceiling.
In the event that the individual or entity realizes a profit,

an additional ten percent (10%) of the net profit after tax shall be
distributed to said regular and other farmworkers within ninety
(90) days of the end of the fiscal year.
To forestall any disruption in the normal operation of lands

to be turned over to the farmworker-beneficiaries mentioned above,
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a transitory period, the length of which be determined by the DAR,

shall be established.
During this transitory period, at least one percent (1%) of

the gross sales of the entity shall be distributed to the managerial,
supervisory and technical group in place at the time of the effectivity
of this Act, as compensation for such transitory managerial and
technical functions as it will perform, pursuant to an agreement
that the farmworker-beneficiaries and the managerial, supervisory
and technical group may conclude, subject to the approval of the
DAR.
SEC. 33. Payment of Shares of Cooperative or Association.—

Shares of a cooperative or association acquired by farmers-
beneficiaries or workers-beneficiaries shall be fully paid for in
an amount corresponding to the valuation as determined in the
immediately succeeding section. The landowner and the LBP shall
assist the farmers-beneficiaries and workers-beneficiaries in the
payment for said shares by providing credit financing.
SEC. 34. Valuation of Lands.—A valuation scheme for the land

shall be formulated by the PARC, taking into account the factors
enumerated in Section 17, in addition to the need to stimulate the
growth of cooperatives and the objective of fostering responsible
participation of the workers-beneficiaries in the creation of wealth.
In the determination of a price that is just not only to the

individual but to society as well, the PARC shall consult closely
with the landowner and the workers-beneficiaries.
In case of disagreement, the price as determined by the PARC,

if accepted by the workers-beneficiaries, shall be followed, without
prejudice to the landowner’s right to petition the Special Agrarian
Court to resolve the issue of valuation.
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CHAPTER IX
SUPPORT SERVICES
SEC. 35. Creation of Support Services Office.—There is hereby

created the Office of Support Services under the DAR to be headed
by an Undersecretary.
The Office shall provide general support and coordinative

services in the implementation of the program, particulary in
carrying out the provisions of the following services to farmer-
beneficiaries and affected landowners:
1) Irrigation facilities, especially second crop or dry season

irrigation facilities;
2) Infrastructure development and public works projects in

areas and settlements that come under agrarian reform, and for
this purpose, the preparation of the physical development plan of
such settlements providing suitable barangay sites, potable water
and power resources, irrigation systems and other facilities for a
sound agricultural development plan;
3) Government subsidies for the use of irrigation facilities;
4) Price support and guarantee for all agricultural produce;
5) Extending to small landowners, farmers and famers’

organizations the necessary credit, like concessional and collateral-
free loans, for agro-industrialization based on social collaterals like
the guarantees of farmers’ organizations:
6) Promoting, developing and extending financial assistance

to small and medium-scale industries in agrarian reform areas;
7) Assigning sufficient numbers of agricultural extension

workers to farmers’ organization;
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8) Undertake research, development and dissemination of

information on agrarian reform and low-cost and ecologically sound
farm inputs and technologies to minimize reliance on expensive and
imported agricultural inputs;
9) Development of cooperative management skills through

intensive training;
10) Assistance in the identification of ready markets for

agricultural produce and training in other various aspects of
marketing; and
11) Administration, operation, management and funding of

support services programs and projects including pilot projects and
models related to agrarian reform as developed by the DAR.
SEC. 36. Funding for Support Services.—In order to cover the

expenses and cost of support services, at least twenty-five percent
(25%) of all appropriations for agrarian reform shall be immediately
set aside and made available for this purpose. In addition, the DAR
shall be authorized to package proposals and receive grants, aid and
other forms of financial assistance from any source.
SEC. 37. Support Services to the Beneficiaries.—The PARC

shall ensure that support services to farmer-beneficiaries are
provided, such as:
(a) Land surveys and titling;
(b) Liberalized terms on credit facilities and production loans;
(c) Extension services by way of planting, cropping, production

and post-harvest technology transfer, as well as marketing and
management assistance and support to cooperatives and farmers’
organizations;
(d) Infrastructure such as access trails, mini-dams, public

utilities, marketing and storage facilities; and
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(e) Research, production and use of organic fertilizers and

other local substances necessary in farming and cultivation.
The PARC shall formulate policies to ensure that support

services to farmer-beneficiaries shall be provided at all stages of
land reform.
The Bagong Kilusang Kabuhayan sa Kaunlaran (BKKK)

Secretariat shall be transferred and attached to the LBP, for
its supervision including all its applicable and existing funds,
personnel, properties, equipment and records.
Misuse or diversion of the financial and support services

herein provided shall result in sanctions against the beneficiary
guilty thereof, including the forfeiture of the land transferred to
him or lesser sanctions as may be provided by the PARC, without
prejudice to criminal prosecution.
SEC. 38. Support Services to Landowners.—The PARC with the

assistance of such other government agencies and instrumentalities
as it may direct, shall provide landowners affected by the CARP and
prior agrarian reform programs with the following services:
(a) Investment information, financial and counselling

assistance;
(b) Facilities, programs and schemes for the conversion or

exchange of bonds issued for payment of the lands acquired with
stocks and bonds issued by the National Government, the Central
Bank and other government institutions and instrumentalities;
(c) Marketing of LBP bonds, as well as promoting the

marketability of said bonds in traditional and non- traditional
financial markets and stock exchanges; and
(d) Other services designed to utilize productively the proceeds

of the sale of such lands for rural industrialization.
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A landowner who invests in rural-based industries shall be

entitled to the incentives granted to a registered enterprise engaged
in a pioneer or preferred area of investment as provided for in the
Omnibus Investment Code of 1987, or to such other incentives as
the PARC, the LBP, or other government financial institutions may
provide.
The LBP shall redeem a landowner’s LBP bonds at face

value, provided that the proceeds thereof shall be invested in a
BOI-registered company or in any agri-business or agro-industrial
enterprise in the region where the landowner has previously made
investments, to the extent of thirty percent (30%) of the face value
of said LBP bonds, subject to guidelines that shall be issued by the
LBP.
SEC. 39. Land Consolidation.—The DAR shall carry out land

consolidation projects to promote equal distribution of landholdings,
to provide the needed infrastructures in agriculture, and to conserve
soil fertility and prevent erosion.
CHAPTER X
SPECIAL AREAS OF CONCERN
SEC. 40. Special Areas of Concern.—As an integral part of the

Comprehensive Agrarian Reform Program, the following principles
in these special areas of concern shall be observed:
1) Subsistence Fishing- Small fisherfolk, including seaweed

farmers, shall be assured of greater access to the utilization of water
resources.
2) Logging and Mining Concessions—Subject to the

requirement of a balanced ecology and conservation of water
resources, suitable areas, as determined by the Department of
Environment and Natural Resources (DENR), in logging, mining
and pasture areas, shall be opened up for agrarian settlements
whose beneficiaries shall be required to undertake reforestation
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and conservation production methods. Subject to existing laws,

rules and regulations, settlers and members of tribal communities
shall be allowed to enjoy and exploit the products of the forest other
than timber within the logging concessions.
3) Sparsely Occupied Public Agricultural Lands—Sparsely

occupied agricultural lands of the public domain shall be surveyed,
proclaimed and developed as farm settlements for qualified landless
people based on an organized program to ensure their orderly and
early development.
Agricultural land allocations shall be made for ideal family-

size farms as determined by the PARC. Pioneers and other settlers
shall be treated equally in every respect.
Subject to the prior rights of qualified beneficiaries,

uncultivated lands of the public domain shall be made available
on a lease basis to interested and qualified parties. Parties who
will engage in the development of capital-intensive, traditional or
pioneering crops shall be given priority.
The lease period, which shall not be more than a total of fifty
(50) years, shall be proportionate to the amount of investment and
production goals of the lessee. A system of evaluation and audit
shall be instituted.
4) Idle, Abandoned, Foreclosed and Sequestered Lands—Idle,

abandoned, foreclosed and sequestered lands shall be planned
for distribution as home lots and family-size farmlots to actual
occupants. If land area permits, other landless families shall be
accommodated in these lands.
5) Rural Women—All qualified women members of the

agricultural labor force must be guaranteed and assured equal
rights to ownership of the land, equal shares of the farm’s produce,
and representation in advisory or appropriate decision-making
bodies.
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6) Veterans and Retirees—In accordance with Section 7 of

Article XVI of the Constitution, landless war veterans and veterans
of military campaigns, their surviving spouses and orphans, retirees
of the Armed Forces of the Philippines (AFP) and the Integrated
National Police (INP), returnees, surrenderees, and similar
beneficiaries shall be given due consideration in the disposition of
agricultural lands of the public domain.
7) Agriculture Graduates—Graduates of agricultural schools

who are landless shall be assisted by the government, through the
DAR, in their desire to own and till agricultural lands.
CHAPTER XI
PROGRAM IMPLEMENTATION
SEC. 41. The Presidential Agrarian Reform Council.—The

Presidential Agrarian Reform Council (PARC) shall be composed
of the President of the Philippines as Chairman, the Secretary of
Agrarian Reform as Vice-Chairmain and the following as members:
Secretaries of the Department of Agriculture; Environment and
Natural Resources; Budget and Management; Local Government;
Public Works and Highways; Trade and Industry; Finance; Labor
and Employment; Director-General of the National Economic and
Development Authority; President, Land Bank of the Philippines;
Administrator, National Irrigation Administration; and three
(3) representatives of affected landowners to represent Luzon,
Visayas and Mindanao; six (6) representatives of agrarian reform
beneficiaries, two (2) each from Luzon, Visayas and Mindanao,
provided that one of them shall be from the cultural communities.
SEC. 42. Executive Committee.—There shall be an Executive

Committee (EXCOM) of the PARC composed of the Secretary of
the DAR as Chairman, and such other members as the President
may designate, taking into account Article XIII, Section 5 of the
Constitution. Unless otherwise directed by the PARC, the EXCOM,
may meet and decide on any and all matters in between meetings of
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the PARC: Provided, however, That its decisions must be reported

to the PARC immediately and not later than the next meeting.
SEC. 43. Secretariat.—A PARC Secretariat is hereby

established to provide general support and coordinative services
such as inter-agency linkages; program and project appraisal and
evaluation and general operations monitoring for the PARC.
The Secretariat shall be headed by the Secretary of Agrarian

Reform who shall be assisted by an Undersecretary and supported
by a staff whose composition shall be determined by the PARC
Executive Committee and whose compensation shall be chargeable
against the Agrarian Reform Fund. All officers and employees of the
Secretariat shall be appointed by the Secretary of Agrarian Reform.
SEC. 44. Provincial Agrarian Reform Coordinating Committee

(PARCCOM).—A Provincial Agrarian Reform Coordinating
Committee (PAPCCOM) is hereby created in each province,
composed of a Chairman, who shall be appointed by the President
upon the recommendation of the EXCOM, the Provincial Agrarian
Reform Officer as Executive Officer, and one representative each
from the Departments of Agriculture, and of Environment and
Natural Resources and from the LBP; one representative each
from existing farmers’ organizations, agricultural cooperatives
and non-governmental organizations in the province; two
representatives from landowners, at least one of whom shall be a
producer representing the principal crop of the province, and two
representatives from farmer and farmworker beneficiaries, at least
one of whom shall be a farmer or farmworker representing the
principal crop of the province, as members: Provided, That in areas
where there are cultural communities, the latter shall likewise have
one representative.
The PARCCOM shall coordinate and monitor the

implementation of the CARP in the province. It shall provide
information on the provisions of the CARP, guidelines issued by the
PARC and on the progress of the CARP in the province.
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SEC. 45. Province-by-Province Implementation. — The

PARC shall provide the guidelines for a province-by-province
implementation of the CARP. The ten-year program of distribution
of public and private lands in each province shall be adjusted from
year to year by the province’s PARCCOM in accordance with the
level of operations previously established by the PARC, in every
case ensuring that support services are available or have been
programmed before actual distribution is effected.
SEC. 46. Barangay Agrarian Reform Committee (BARC).—

Unless otherwise provided in this Act, the provisions of Executive
Order No. 229 regarding the organization of the Barangay Agrarian
Reform Committee (BARC) shall be in effect.
SEC. 47. Functions of the BARC.—In addition to those

provided in Executive Order No. 229, the BARC shall have the
following functions:
(a) Mediate and conciliate between parties involved in an

agrarian dispute including matters related to tenurial and financial
arrangements;
(b) Assist in the identification of qualified beneficiaries and

landowners within the barangay;
(c) Attest to the accuracy of the initial parcellary mapping of

the beneficiary’s tillage;
(d) Assist qualified beneficiaries in obtaining credit from

lending institutions;
(e) Assist in the initial determination of the value of the land;
(f) Assist the DAR representative in the preparation of

periodic reports on the CARP implementation for submission to the
DAR;
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(g) Coordinate the delivery of support services to beneficiaries;

and
(h) Perform such other functions as may be assigned by the

DAR.
(2) The BARC shall endeavor to mediate, conciliate and settle

agrarian disputes lodged before it within thirty (30) days from its
taking cognizance thereof. If after the lapse of the thirty day period,
it is unable to settle the dispute, it shall issue a certification of its
proceedings and shall furnish a copy thereof upon the parties within
seven (7) days after the expiration of the thirty day period.
SEC. 48. Legal Assistance.—The BARC or any member thereof

may, whenever necessary in the exercise of any of its functions
hereunder, seek the legal assistance of the DAR and the provincial,
city, or municipal government.
SEC. 49. Rules and Regulations.—The PARC and the DAR

shall have the power to issue rules and regulations, whether
substantive or procedural, to carry out the objects and purposes of
this Act. Said rules shall take effect ten (10) days after publication
in two (2) national newspapers of general circulation.
CHAPTER XII
ADMINISTRATIVE ADJUDICATION
SEC. 50. Quasi-Judicial Powers of the DAR.—The DAR is

hereby vested with primary jurisdiction to determine and adjudicate
agrarian reform matters and shall have exclusive original
jurisdiction over all matters involving the implementation of
agrarian reform, except those falling under the exclusive jurisdiction
of the Department of Agriculture (DA) and the Department of
Environment and Natural Resources (DENR).
329
It shall not be bound by technical rules of procedure and

evidence but shall proceed to hear and decide all cases, disputes
or controversies in a most expeditious manner, employing all
reasonable means to ascertain the facts of every case in accordance
with justice and equity and the merits of the case. Toward this end, it
shall adopt a uniform rule of procedure to achieve a just, expeditious
and inexpensive determination of every action or proceeding before
it.
It shall have the power to summon witnesses, administer

oaths, take testimony, require submission of reports, compel the
production of books and documents and answers to interrogatories
and issue subpoena, and subpoena duces tecum and to enforce its
writs through sheriffs or other duly deputized officers. It shall
likewise have the power to punish direct and indirect contempts in
the same manner and subject to the same penalties as provided in
the Rules of Court.
Responsible farmer leaders shall be allowed to represent

themselves, their fellow farmers, or their organizations in any
proceedings before the DAR: Provided, however, That when there
are two or mere representatives for any individual or group, the
representatives should choose only one among themselves to
represent such party or group before any DAR proceedings.
Notwithstanding an appeal to the Court of Appeals, the

decision of the DAR shall be immediately executory.
SEC. 51. Finality of Determination.—Any case or controversy

before it shall be decided within thirty (30) days after it is submitted
for resolution. Only one (1) motion for reconsideration shall be
allowed. Any order, ruling or decision shall be final after the lapse
of fifteen (15) days from receipt of a copy thereof.
SEC. 52. Frivolous Appeals.—To discourage frivolous or

dilatory appeals from the decisions or orders on the local or provincial
levels, the DAR may impose reasonable penalties, including but not
limited to fines or censures upon erring parties.
330
SEC. 53. Certification of the BARC.—The DAR shall not

take cognizance of any agrarian dispute or controversy unless a
certification from the BARC that the dispute has been submitted to
it for mediation and conciliation without any success of settlement
is presented: Provided, however, That if no certification is issued by
the BARC within thirty (30) days after a matter or issue is submitted
to it for mediation or conciliation the case or dispute may be brought
before the PARC.
CHAPTER XIII
JUDICIAL REVIEW
SEC. 54. Certiorari.—Any decision, order, award or ruling of

the DAR on any agrarian dispute or on any matter pertaining to the
application, implementation, enforcement, or interpretation of this
Act and other pertinent laws on agrarian reform may be brought to
the Court of Appeals by certiorari except as otherwise provided in
this Act within fifteen (15) days from receipt of a copy thereof.
The findings of fact of the DAR shall be final and conclusive if

based on substantial evidence.
SEC. 55. No Restraining Order Or Preliminary Injunction.—

No court in the Philippines shall have jurisdiction to issue any
restraining order or writ of preliminary injunction against the
PARC or any of its duly authorized or designated agencies in
any case, dispute or controversy arising from, necessary to, or in
connection with the application, implementation, enforcement, or
interpretation of this Act and other pertinent laws on agrarian
reform.
SEC. 56. Special Agrarian Court.—The Supreme Court shall

designate at least one (1) branch of the Regional Trial Court (RTC)
within each province to act as a Special Agrarian Court.
The Supreme Court may designate more branches to constitute

such additional Special Agrarian Courts as may be necessary to
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cope with the number of agrarian cases in each province. In the

designation, the Supreme Court shall give preference to the Regional
Trial Courts which have been assigned to handle agrarian cases or
whose presiding judges were former judges of the defunct Court of
Agrarian Relations.
The Regional Trial Court (RTC) judges assigned to said courts

shall exercise said special jurisdiction in addition to the regular
jurisdiction of their respective courts.
The Special Agrarian Courts shall have the powers and

prerogatives inherent in or belonging to the Regional Trial Courts.
SEC. 57. Special Jurisdiction.—The Special Agrarian Courts

shall have original and exclusive jurisdiction over all petitions for
the determination of just compensation to landowners, and the
prosecution of all criminal offenses under this Act. The Rules of
Court shall apply to all proceedings before the Special Agrarian
Courts, unless modified by this Act.
The Special Agrarian Courts shall decide all appropriate

cases under their special jurisdiction within thirty (30) days from
submission of the case for decision.
SEC. 58. Appointment of Commissioners.—The Special

Agrarian Courts, upon their own initiative or at the instance of any
of the parties, may appoint one or more commissioners to examine,
investigate and ascertain facts relevant to the dispute, including
the valuation of properties, and to file a written report thereof with
the court.
SEC. 59. Orders of the Special Agrarian Courts.—No order

of the Special Agrarian Courts on any issue, question, matter or
incident raised before them shall be elevated to the appellate courts
until the hearing shall have been terminated and the case decided
on the merits.
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SEC. 60. Appeals.—An appeal may be taken from the decision

of the Special Agrarian Courts by filing a petition for review with
the Court of Appeals within fifteen (15) days from receipt of notice
of the decision; otherwise, the decision shall become final.
An appeal from the decision of the Court of Appeals, or from

any order, ruling or decision of the DAR, as the case may be, shall
be by a petition for review with the Supreme Court within a non-
extendible period of fifteen (15) days from receipt of a copy of said
decision.
SEC. 61. Procedure on Review.—Review by the Court of

Appeals or the Supreme Court, as the case may be, shall be governed
by the Rules of Court. The Court of Appeals, however, may require
the parties to file simultaneous memoranda within a period of fifteen
(15) days from notice, after which the case is deemed submitted for
decision.
SEC. 62. Preferential Attention in Courts.—All courts in the

Philippines, both trial and appellate, shall give preferential attention
to all cases arising from or in connection with the implementation of
the provisions of this Act.
All cases pending in court arising from or in connection with

the implementation of this Act shall continue to be heard, tried and
decided into their finality, notwithstanding the expiration of the
ten-year period mentioned in Section 5 hereof.
CHAPTER XIV
FINANCING
SEC. 63. Funding Source.—The initial amount needed to

implement this Act for the period of ten (10) years upon approval
hereof shall be funded from the Agrarian Reform Fund created
under Sections 20 and 21 of Executive Order No. 229.
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Additional amounts are hereby authorized to be appropriated

as and when needed to augment the Agrarian Reform Fund in order
to fully implement the provisions of this Act.
Sources of funding or appropriations shall include the

following:
a) Proceeds of the sales of the Assets Privatization Trust;
b) All receipts from assets recovered and from sales of ill-

gotten wealth recovered through the Presidential Commission on
Good Government;
c) Proceeds of the disposition of the properties of the

Government in foreign countries;
d) Portion of amounts accruing to the Philippines from all

sources of official foreign aid grants and concessional financing
from all countries, to be used for the specific purposes of financing
production credits, infrastructures, and other support services
required by this Act;
e) Other government funds not otherwise appropriated.
All funds appropriated to implement the provisions of this Act

shall be considered continuing appropriations during the period of
its implementation.
SEC. 64. Financial Intermediary for the CARP.—The Land

Bank of the Philippines shall be the financial intermediary for the
CARP, and shall insure that the social justice objectives of the CARP
shall enjoy a preference among its priorities.
334
CHAPTER XV
GENERAL PROVISIONS
SEC. 65. Conversion of Lands.—After the lapse of five (5)

years from its award, when the land ceases to be economically
feasible and sound for agricultural purposes, or the locality has
become urbanized and the land will have a greater economic value
for residential, commercial or industrial purposes, the DAR, upon
application of the beneficiary or the landowner, with due notice to
the affected parties, and subject to existing laws, may authorize
the reclassification or conversion of the land and its disposition:
Provided, That the beneficiary shall have fully paid his obligation.
SEC. 66. Exemptions from Taxes and Fees of Land Transfers.—

Transactions under this Act involving a transfer of ownership,
whether from natural or juridical persons, shall be exempted from
taxes arising from capital gains. These transactions shall also be
exempted from the payment of registration fees, and all other taxes
and fees for the conveyance or transfer thereof: Provided, That all
arrearages in real property taxes, without penalty or interest, shall
be deductible from the compensation to which the owner may be
entitled.
SEC. 67. Free Registration of Patents and Titles.—All Registers

of Deeds are hereby directed to register, free from payment of all
fees and other charges, patents, titles and documents required for
the implementation of the CARP.
SEC. 68. Immunity of Government Agencies from Undue

Interference.—No injunction, restraining order, prohibition or
mandamus shall be issued by the lower courts against the Department
of Agrarian Reform (DAR), the Department of Agriculture (DA) ,
the Department of Environment and Natural Resources (DENR),
and the Department of Justice (DOJ) in their implementation of the
program.
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SEC. 69. Assistance of Other Government Entities.—The PARC

in the exercise of its functions, is hereby authorized to call upon the
assistance and support of other government agencies, bureaus and
offices, including government-owned or controlled corporations.
SEC. 70. Disposition of Private Agricultural Lands.—The sale

or disposition of agricultural lands retained by a landowner as a
consequence of Section 6 hereof shall be valid as long as the total
landholdings that shall be owned by the transferee thereof inclusive
of the land to be acquired shall not exceed the landholding ceilings
provided for in this Act.
Any sale or disposition of agricultural lands after the

effectivity of this Act found to be contrary to the provisions hereof
shall be null and void.
Transferees of agricultural lands shall furnish the appropriate

Register of Deeds and the BARC an affidavit attesting that his total
landholdings as a result of the said acq uisition do not exceed the
landholding ceiling. The Register of Deeds shall not register the
transfer of any agricultural land without the submission of this
sworn statement together with proof of service of a copy thereof to
the BARC.
SEC. 71. Bank Mortgages.—Banks and other financial

institutions allowed by law to hold mortgage rights or security
interests in agricultural lands to secure loans and other obligations
of borrowers, may acquire title to these mortgaged properties,
regardless of area, subject to existing laws on compulsory transfer
of foreclosed assets and acquisition as prescribed under Section 16
of this Act.
SEC. 72. Lease, Management, Grower or Service Contracts,

Mortgages and Other Claims.-Lands covered by this Act under
lease, management, grower or service contracts, and the like shall
be disposed of as follows:
336
(a) Lease, management, grower or service contracts covering

private lands may continue under their original terms and
conditions until the expiration of the same even if such land has, in
the meantime, been transferred to qualified beneficiaries.
(b) Mortgages and other claims registered with the Register

of Deeds shall be assumed by the government up to an amount
equivalent to the landowner’s compensation value as provided in
this Act.
SEC. 73. Prohibited Acts and Omissions.—The following are

prohibited:
(a) The ownership or possession, for the purpose of

circumventing the provisions of this Act, of agricultural lands in
excess of the total retention limits of award ceilings by any person,
natural or juridical, except those under collective ownership by
farmer-beneficiaries.
(b) The forcible entry or illegal detainer by persons who are

not qualified beneficiaries under this Act to avail themselves of the
rights and benefits of the Agrarian Reform Program.
(c) The conversion by any landowner of his agricultural land

into any non-agricultural use with intent to avoid the application of
this Act to his landholdings and to dispossess his tenant farmers of
the land tilled by them.
(d) The willful prevention or obstruction by any person,

association or entity of the implementation of the CARP.
(e) The sale, transfer, conveyance or change of the nature of

lands outside of urban centers and city limits either in whole or in
part after the effectivity of this Act. The date of the registration
of the deed of conveyance in the Register of Deeds with respect to
tilted lands and the date of the issuance of the tax declaration to the
transferee of the property with respect to unregistered lands, as the
case may be, shall be conclusive for the purpose of this Act.
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(f) The sale, transfer or conveyance by a beneficiary of the

right to use or any other usufructuary right over the land he
acquired by virtue of being a beneficiary, in order to circumvent the
SEC. 74. Penalties.—Any person who knowingly or willfully

violates the provisions of this Act shall be punished by imprisonment
of not less than one (1) month to not more than three (3) years or a
fine of not less than one thousand pesos (P1,000.00) and not more
than fifteen thousand pesos (P15,000 . 00), or both, at the discretion
of the court.
If the offender is a corporation or association, the officer

responsible therefor shall be criminally liable.
SEC. 75. Suppletory Application of Existing Legislation.—

The provisions of Republic Act No. 3844 as amended, Presidential
Decree Nos. 27 and 266 as amended, Executive Order Nos. 228 and
229, both Series of 1987; and other laws not inconsistent with this
Act shall have suppletory effect.
SEC. 76. Repealing Clause.—Section 35 of Republic Act

No. 3844, Presidential Decree No. 316, the last two paragraphs
of Section 12 of Presidential Decree No. 946, Presidential Decree
No. 1038, and all other laws, decrees, executive orders, rules and
regulations, issuances or parts thereof inconsistent with this Act
are hereby repealed or amended accordingly.
SEC. 77. Separability Clause.—If, for any reason, any section

or provision of this Act is declared null and void, no other section,
provision, or part thereof shall be affected and the same shall remain
in full force and effect.
SEC. 78. Effectivity Cause.—This Act shall take effect

immediately after publication in at least two (2) national newspapers
of general circulation.
338
Approved,
(Sgd.) RAMON V. MITRA (Sgd.) JOVITO R. SALONGA

Speaker of the House President of the Senate
of Representatives
This Act which is a consolidation of Senate Bill No. 249 and

House Bill No. 400 was finally passed by both the Senate and the
House of Representatives, on June 7, 1988.
(Sgd.) QUIRINO D. ABAD SANTOS, JR. (Sgd.) EDWIN P. ACOBA

Secretary of the House of Acting Secretary of the Senate
Representatives
Approved: June 10, 1988
(Sgd.) CORAZON C. AQUINO


RA 6657 (secs. 35, 36, 44, and 45) were amended by RA 7905.
RA 6657 repealed or amended PD 316.
RA 6657 repealed or amended PD 946 (sec. 12).
RA 6657 repealed or amended PD 1038.
RA 6657 repealed or amended RA 3844 (sec. 35).
339
H. No. 13029
S. No. 513
Republic of the Philippines

CONGRESS OF THE PHILIPPINES
Metro Manila
Eight Congress
Third Regular Session
Begun and held in Metro Manila, on Monday, the twenty-fourth day

of July, nineteen hundred and eighty-nine.
AN ACT TO ORDAIN A COOPERATIVE CODE OF THE

PHILIPPINES

CHAPTER I
GENERAL CONCEPTS AND PRINCIPLES
ARTICLE 1. Title. – This Act shall be known as the

“Cooperative Code of the Philippines.”
ART. 2. Declaration of Policy. – It is the declared policy of the

State to foster the creation and growth of cooperatives as a practical
vehicle for promoting self-reliance and harnessing people power
towards the attainment of economic development and social justice.
The State shall encourage the private sector to undertake the
actual formation and organization of cooperatives and shall create
an atmosphere that is conducive to the growth and development of
these cooperatives.
340
Towards this end, the Government and all its branches,

subdivisions, instrumentalities and agencies shall ensure the
provision of technical guidance, financial assistance and other
services to enable said cooperatives to develop into viable and
responsive economic enterprises and thereby bring about a strong
cooperative movement that is free from any conditions that
might infringe upon the autonomy or organizational integrity of
cooperatives.
Further, the State recognizes the principle of subsidiary under

which the cooperative sector will initiate and regulate within its
own ranks the promotion and organization, training and research,
audit and support services relating to cooperatives with government
assistance where necessary;
ART. 3. General Concepts. – A cooperative is a duly registered

association of persons, with a common bond of interest, who have
voluntarily joined together to achieve a lawful common social
or economic end, making equitable contributions to the capital
required and accepting a fair share of the risks and benefits of the
undertaking in accordance with universally accepted cooperative
principles.
ART. 4. Cooperative Principles. – Every cooperative shall

conduct its affairs in accordance with Filipino culture and experience
and the universally accepted principles of cooperation which include
the following:
(1) Open and Voluntary Membership. – Membership in a

cooperative shall be voluntary and available to all individuals
regardless of their social, political, racial or religious background
or beliefs.
(2) Democratic Control. – Cooperatives are democratic

organizations. Their affairs shall be administered by persons elected
or appointed in a manner agreed upon by the members. Members
of primary cooperatives shall have equal voting rights on a one-
member-one-vote principle: Provided, however, That, in the case of
341
secondary and tertiary cooperatives, the provisions of Article 37 of

this Code shall apply.
(3) Limited Interest in Capital. – Share capital shall receive a

strictly limited rate of interest.
(4) Division of Net Surplus. – Net surplus arising out of

the operations of a cooperative belongs to its members and shall
be equitably distributed for cooperative development, common
services, indivisible reserve fund, and for limited interest on capital
and/or patronage refund in the manner provided in this Code and in
the articles of cooperation and bylaws.
(5) Cooperative Education. – All cooperatives shall make

provision for the education of their members, officers and employees
and of the general public based on the principles of cooperation.
(6) Cooperation Among Cooperatives. – All cooperatives, in

order to best the interest of their members and communities, shall
actively cooperate with other cooperatives at local, national, and
international levels.
ART. 5. Definitions of Terms. – The following terms shall

mean:
(1) Member includes a person either natural or juridical who,

adhering to the principles set forth in this Code and in the articles
of cooperation, has been admitted by the cooperative as member;
(2) General Assembly shall mean the full membership of the

cooperative duly assembled for the purpose of exercising all the
rights and performing all the obligations pertaining to cooperatives,
as provided by this Code, its articles of cooperation and bylaws;
(3) Board of Directors shall mean that body entrusted with

the management of the affairs of the cooperative under its articles
of cooperation and bylaws;
342
(4) Committee shall refer to any body entrusted with specific

functions and responsibilities under the bylaws or resolution of the
general assembly or the board of directors;
(5) Articles of Cooperation means the articles of cooperation

registered under this Code and includes a registered amendment
thereof;
(6) Bylaws means the bylaws registered under this Code and
includes any registered amendment thereof;
(7) Registration means the operative act granting juridical

personality to a proposed cooperative and is evidenced by a certificate
of registration;
(8) Cooperative Development Authority means the government

agency in charge of the registration and regulation of cooperatives
as such, hereinafter referred to as the Authority; and
(9) Universally Accepted Principles means that body of

cooperative principles adhered to worldwide by cooperatives in
other jurisdictions.
XXX XXX XXX
CHAPTER XI
SPECIAL PROVISIONS RELATING TO AGRARIAN REFORM

COOPERATIVES
ART. 88. Coverage. – The provisions of this Chapter shall

primarily govern agrarian reform cooperatives: Provided, That the
provisions or other chapters of this Code shall apply suppletorily
except insofar as this Chapter otherwise provides.
ART. 89. Definition and Purposes. – An agrarian reform

cooperative within the meaning of this Code is one where the
majority of the members are agrarian reform beneficiaries and
343
marginal farmers and organized for any or all of the following

purposes:
(1) To develop an appropriate system of land tenure, land

development, and land consolidation or land management in areas
covered by agrarian reform;
(2) To coordinate and facilitate the dissemination of scientific

methods of production, and provide assistance in the storage,
transport, and marketing of farm products for agrarian reform
beneficiaries and their immediate family, hereinafter referred to as
“beneficiaries”;
(3) To provide financial facilities to beneficiaries for provident

or productive purposes at reasonable costs;
(4) To arrange and facilitate the expeditious transfer of

appropriate and suitable technology to beneficiaries and marginal
farmers at the lowest possible cost;
(5) To provide social security benefits, health, medical and

social insurance benefits and other social and economic benefits that
promote the general welfare of the agrarian reform beneficiaries
and marginal farmers;
(6) To provide non-formal education, vocational/technical

training, and livelihood programs to beneficiaries and marginal
farmers;
(7) To act as channels for external assistance and services to

the beneficiaries and marginal farmers;
(8) To undertake a comprehensive and integrated development

program in agrarian reform and resettlement areas with special
concern for the development of agro-based, marine-based and
cottage-based industries;
344
(9) To represent the beneficiaries on any or all matters that

affect their interest; and
(10) To undertake such other economic or social activities

as may be necessary or incidental in the pursuit of the foregoing
purposes.
ART. 90. Cooperative Estates. – Landholdings like plantations,

estates or haciendas acquired by the State for the benefit of the
workers in accordance with the Comprehensive Agrarian Reform
Program shall be owned collectively by the workers-beneficiaries
who shall form a cooperative at their option.
ART. 91. Infrastructure. – In agrarian reform and resettlement

areas, the Government shall grant to agrarian reform cooperatives
preferential treatment, if necessary, the authority to construct,
maintain, and manage with government funding roads, bridges,
canals, wharves, ports, reservoirs, irrigation systems, waterworks
systems, and other infrastructures. For this purpose, government
technical assistance, facilities and equipment shall be made
available to such agrarian reform cooperatives for their use.
ART.92. Lease of Public Lands. – The Government may lease

public lands to any agrarian reform cooperative for a period not
exceeding twenty-five (25) years, subject to renewal for another
twenty-five (25) years only: Provided, That the application for
renewal shall be made one (1) year before the expiration of the
lease: Provided, further, That such lease shall be for the exclusive
use and benefit of the beneficiaries and marginal farmers subject
to the provisions of the Comprehensive Agrarian Reform Program.
ART. 93. Preferential Right. – In agrarian reform areas, an

agrarian reform cooperative shall have the preferential right in the
grant of franchise and certificate of public convenience and necessity
for the operation of public utilities and services: Provided, That it
meets the requirements and conditions imposed by the appropriate
government agency granting the franchise or certificate of public
convenience and necessity.
345
Electric service agencies shall, upon request of agrarian

reform cooperatives, immediately provide electric services to
agrarian reform areas. If the electric service agencies concerned
fails for any reason to provide the services requested within a period
of one (1) year from receipt thereof, the agrarian reform cooperative
concerned may provide the electric services in the agrarian reform
area directly through its own resources and shall continue to do so
until such time that the electric service agency concerned purchases
all the investments made by the agrarian reform cooperative in the
electrification of the agrarian reform areas.
ART. 94. Privileges. – Subject to such reasonable terms and

conditions as the Department of Agrarian Reform and the Authority
may impose, agrarian reform cooperatives may be given the
exclusive right to do any or all of the following economic activities in
agrarian reform and resettlement areas:
(1) Supply and distribution of consumer, agricultural,

aquacultural, and industrial goods, production inputs, and raw
materials and supplies, machinery, equipment, facilities and other
services and requirements of the beneficiaries and marginal farmers
in the agrarian reform areas at reasonable prices;
(2) Marketing of the products and services of the beneficiaries

on the local and foreign markets;
(3) Processing of the members’ products into finished consumer

or industrial goods for domestic consumption or for export;
(4) Provision of essential public services at cost such as power,

irrigation, potable water, passenger and/or cargo transportation by
land, sea, or air, communication services, and public health and
medical care services:
(5) Management, conservation, and commercial development,

of marine, forestry, mineral, water and other natural resources
subject to compliance with the laws and regulations on environmental
and ecological controls;
346
(6) Provision of financial, technological, and other services

and facilities required by the beneficiaries in their daily lives and
livelihood.
The Government shall provide the necessary financial and

technical assistance to agrarian reform cooperatives to enable
them to discharge effectively their purposes under this article. The
Department of Agrarian Reform, the Cooperative Development
Authority and the Central Bank of the Philippines shall draw up
a joint program for the organization and financing of the agrarian
reform cooperatives subject to this Chapter. The joint program
shall be geared towards the beneficiaries gradual assumption of
full ownership and management control of the agrarian reform
cooperatives within ten (10) years from the date of registration of
said cooperatives.
ART. 95. Organization and Registration. – Agrarian reform

cooperatives may be organized and registered under this Code
only upon prior written verification by the Department of Agrarian
Reform to the effect that the same is needed and desired by the
beneficiaries; results of a study that has been conducted fairly
indicate the economic feasibility of organizing the same and that
it will be economically viable in its operations; and that the same
may now be organized and registered in accordance with the
requirements of this Code.
XXX XXX XXX
ART. 127. Repeals. – Except as expressly provided by this

Code, Presidential Decree No. 175 and all other laws, or parts
thereof, inconsistent with any provisions of this Code shall be
deemed repealed: Provided, however, That nothing in this Code shall
be interpreted to mean the amendment of repeal of any provision
of Presidential Decree No. 269: Provided, further, That the electric
cooperatives which qualify as such under this Code shall fall under
the coverage thereof.
347
ART.128. Transitory Provisions. – All cooperatives registered

under Presidential Decree Nos. 175 and 775 and Executive Order
No. 898, and all other laws shall be deemed registered with the
Cooperative Development Authority: Provided, however, That they
shall submit to the nearest Cooperative Development Authority
office their certificate of registration, copies of the articles of
cooperation and bylaws and their latest duly audited financial
statements within one (1) year from the effectivity of this Act,
otherwise their registration shall be cancelled: Provided, further,
That cooperatives created under Presidential Decree No. 269, as
amended by Presidential Decree No. 1645, shall be given three
(3) years within which to qualify and register with the Authority:
Provided, finally, That after these cooperatives shall have qualified
and registered, the provisions of Sections 3 and 5 of Presidential
Decree No. 1645 shall no longer be applicable to said cooperatives.
ART. 129. Separability. – Should any part of this Code be

declared unconstitutional, the rest of the provisions shall not be
affected thereby.
ART. 130. Effectivity. – This Code shall take effect fifteen (15)
days from its publication in a newspaper of general circulation.
Approved,
(Sgd.) JOVITO R. SALONGA (Sgd.) RAMON V. MITRA

President of the Senate Speaker of the House
of Representatives
This Act which is a consolidation of House Bill No. 13029 and

Senate Bill No. 513 was passed by the House of Representatives and
the Senate of the Philippines on March 5, 1990 and March 2, 1990,
respectively.
(Sgd.) JEDWIN P. ASCOBA (Sgd.) MYRA MARIE D. VILLARICA

Secretary of the Senate Secretary of the House of
Representatives
348
Approved: March 10, 1990


RA 6938 repealed PD 175.
349
H. No. 4906
S. No. 356
AN ACT ALLOWING THE LONG-TERM LEASE OF PRIVATE

LANDS BY FOREIGN INVESTORS

SECTION 1. Title. – This Act shall be known as the “Investors’

Lease Act.”
SEC. 2. Declaration of Policy. – It is hereby declared the policy

of the State to encourage foreign investments consistent with the
constitutional mandate to conserve and develop our own patrimony.
Towards this end, the State hereby adopts a flexible and dynamic
policy on the granting of long-term lease on private lands to foreign
investors for the establishment of industrial estates, factories,
assembly or processing plants, agro-industrial enterprises, land
development for industrial, or commercial use, tourism, and other
similar priority productive endeavors.
SEC. 3. Definitions. – For purposes of this Act, unless the

context indicates otherwise, the term:
(1) “Investing in the Philippines” shall mean making an equity

investment in the Philippines through actual remittance of foreign
exchange or transfer of assets, whether in the form of capital goods,
patents, formulae, or other technological rights or processes, upon
registration with the Securities and Exchange Commission; and
(2) “Withdrawal of approved investment” shall mean either;

(a) the failure to operate the investment project for any three (3)
consecutive years; or (b) outright abandonment of the investment
project at any time during the approved lease period: Provided, That
failure to pay lease rental for three (3) consecutive months coupled
350
with the failure to operate the investment project for the same
period shall be deemed an outright abandonment of the project.
SEC. 4. Coverage. – Any foreign investor investing in the

Philippines shall be allowed to lease private lands in accordance
with the laws of the Republic of the Philippines subject to the
following conditions:
(1) No lease contract shall be for a period exceeding fifty (50)

years, renewable once for a period of not more than twenty- five (25)
years;
(2) The leased area shall be used solely for the purpose of the
investment upon the mutual agreement of the parties;
(3) The leased premises shall comprise such area as may

reasonably be required for the purpose of the investment subject
however to the Comprehensive Agrarian Reform Law and the Local
Government Code.
The leasehold right acquired under long-term lease contracts

entered into pursuant to this Act may be sold, transferred, or
assigned: Provided, That when the buyer, transferee, or assignee
is a foreigner or a foreign-owned enterprise, the conditions and
limitations in respect to the use of the leased property as provided
for under this Act shall continue to apply.
SEC. 5. Limitations. – (1) Foreign individuals, corporations,

associations, or partnerships not otherwise investing in the
Philippines as defined herein shall continue to be covered by
Presidential Decree No. 471 and other existing laws in lease of
lands to foreigners.
(2) Withdrawal of the approved investment in the Philippines

within the period of the lease agreement entered into under this Act,
or use of the leased area for the purpose other than that authorized,
shall warrant the ipso facto termination of the lease agreement
351
without prejudice to the right of the lessor to be compensated for

the damages he may have suffered thereby.
(3) Any lease agreement under this Act which is renewable

at the option of the lessee subject to the same terms and conditions
of the original contract shall be interpreted to mean as renewable
upon the mutual agreement of the parties.
(4) In addition to the conditions for the renewal of a lease

agreement after the period of fifty (50) years as provided herein,
the foreign lease shall show that it has made social and economic
contributions to the country.
(5) In the case of tourism projects, lease of private lands by

foreign investors qualified herein shall be limited to projects with
an investment of not less than five million (5M) US dollars, seventy
percent (70%) of which shall be infused in said project within three
years from the signing of the lease contract.
SEC. 6. Termination of Lease Contract. – The Secretary of

Trade and Industry shall terminate any lease contract entered
into under the provisions of this Act, if the investment project is
not initiated within three (3) years from the signing of the lease
contract.
SEC. 7. Penal Provision. – Any contract or agreement made or

executed in violation of any of the following prohibited acts shall be
null and void ab initio and both contracting parties shall be punished
by a fine of not less than One Hundred thousand pesos (P100,000)
nor more than One million pesos (P1,000,000), or imprisonment of
six (6) months to (6) years, or both, at the discretion of the court:
(1) Any provision in the lease agreement stipulating a lease

period in excess of that provided in paragraph (1) of Section 4;
(2) Use of the leased premises for the purpose contrary to

existing laws of the land, public order, public policy, morals, or good
customs;
352
(3) Any agreement or agreements resulting in the lease of

land in excess of the area approved by the DTI: Provided, That,
where the excess of the totality of the area leased is due to the
acts of the lessee, the lessee shall be held solely liable therefor:
Provided, further, That, in the case of corporations, associations, or
partnerships, the president, manager, director, trustee, or officers
responsible for the violation hereof shall bear the criminal liability.
SEC. 8. Separability Clause. – In case any provision of this

Act or the application of such provision is deemed unconstitutional,
the remaining provisions of this Act or the application of such
provisions shall not be affected thereby.
SEC. 9. Repealing Clause. – All acts, rules and regulations

contrary to or inconsistent with this Act are hereby repealed or
modified accordingly.
SEC. 10. Effectivity Clause. – this Act shall take effect

immediately upon its approval.
353
H. No. 10696
S. No. 1509
AN ACT AMENDING REPUBLIC ACT NUMBERED SEVEN

THOUSAND ONE HUNDRED AND EIGHTY-ONE, ENTITLED
“AN ACT EXTENDING THE LIFE OF THE COMMITTEE ON
PRIVATIZATION AND ASSET PRIVATIZATION TRUST”

SECTION 1. Section 1 of Republic Act No. 7181 is hereby

“SECTION. 1. The term of the Committee on Privatization

and the Asset Privatization Trust created by Proclamation No.
50 “Proclaiming and Launching a Program for the Expeditious
Disposition and Privatization of Certain Government Corporations
and/or the Assets thereof, and Creating the Committee on
Privatization and the Asset Privatization Trust” is hereby extended
from December 31, 1993 to June 30, 1995. Provided, That prior to
the beginning of its extended term on January 1, 1994, the President
may appoint new members of the Asset Privatization Trust.
“During the said extension period, the Committee on

Privatization and the Asset Privatization Trust shall continue to
exercise the powers, duties and responsibilities provided under
Proclamation No. 50, as amended, Provided, That all disposition of
any and all assets shall be primarily for cash: Provided, however,
that the use of government financial instruments and sales by
installment may be allowed: Provided, further, That the Committee
on Privatization shall serve as the central agency of the privatization
program and, accordingly, is further empowered:
“(a) To designate the disposition entity for all assets intended

for privatization, including all assets and properties recovered by
354
the Presidential Commission on Good Government (PCGG) and

government idle properties; and
“(b) When necessary, to appoint a representative to the

governing board of a government corporation or corporation with
government transferred assets which has been identified for
privatization who shall, for the purpose of facilitating privatization,
have the powers and privileges of a member of such board, except
the right to vote: Provided, That such appointee shall not receive
any additional salary or emolument by reason of such appointment;
Provided, further, that the appointee shall not be eligible for
employment in any capacity whatsoever in the said corporation
within two (2) years after privatization.
“Upon the effectivity of this Act, all receipts from the sale
of assets of the Asset Privatization Trust shall be remitted to the
National Treasury in the following proportion: sixty percent (60%)
to the special account of the Agrarian Reform Fund and forty percent
(40%) to the general fund: Provided, however, That within the ten
year period of implementation of the Comprehensive Agrarian
Reform Program the total initial amount of Fifty billion pesos
(P50,000,000,000) shall be satisfied and completed from all sources
pursuant to the pertinent provisions of Republic Act No. 6657
and Executive Order No. 229, dated July 1987: Provided, further,
That except for subsidiaries of the Government Service Insurance
System and the Social Security System, all government-owned or-
controlled corporations shall remit to the National Government at
least fifty percent (50%) of the net proceeds derived from the sale of
shares or assets effective October 1, 1992: Provided, finally, That
net proceeds shall mean gross proceeds less related liabilities and
selling expenses.
“All assets held by the Asset Privatization Trust, all moneys

and other properties belonging to it, and all its liabilities outstanding
upon the expiration of its term shall revert to and be assumed by
the National Government. The President of the Philippines shall
designate by an executive order the government office or entity to
355
which the assets and liabilities of the Asset Privatization Trust

shall be transferred.
“All cash advances and all unsettled obligations incurred

after the effectivity of this law by the officers and employees of the
Committee on Privatization or the Asset Privatization Trust as
finally determined by the proper agency or court of law, must be
liquidated on or before June 30, 1995.”
SEC. 2. Section 2 of the same Act is hereby amended to read

as follows:
“SEC. 2. The following conditions shall be adhered to in

privatization:
“(a) In the disposition of assets in corporate form, there shall

be no undue dislocation of labor unless all benefits as provided by
existing laws or Collective Bargaining Agreements (CBA) shall
be complied with: and Provided, That the old qualified personnel
shall be given preference in the hiring of new personnel by the new
owners.
“(b) Assets for disposal shall not revert to previous owners

who after final judgment by the proper agency or a court of law,
have been found to have mismanaged or diverted the resources of
the assets which resulted in loss and bankruptcy: Provided, That if
assets are to be reverted back to the previous owners, the price shall
not be less than the original transfer price.
“(c) Privatization of government assets classified as a strategic

industry by the National Economic and Development Authority
(NEDA) shall first be approved by the President of the Philippines.
“(d) The disposition of assets shall be governed by an abiding

concern to expand the ownership base of property.
356
“(e) In the disposition of assets, due regard for improving

competition in business and preventing the creation or perpetuation
of monopolies and cartels shall be made.
“(f) A minimum of ten percent (10%) of the sale of assets

in corporate form shall first be offered to small local investors,
including Filipino overseas workers and, where practicable, also in
the sale of any physical assets.
“(g) Sale of all assets shall be published in at least three (3)

national newspapers of general circulation for three (3) consecutive
days: Provided, That the first publication shall occur at least ten
(10) days prior to the scheduled bidding date or date of negotiation.”
SEC. 3. The same Act is hereby amended by inserting between

Sections 2 and 3 thereof a new section to read as follows:
SEC. 2-A. No court or administrative agency in the

Philippines shall issue any restraining order or writ of preliminary
injunction against the Asset Privatization Trust or the Committee
on Privatization and any of its duly designated disposition entities
in connection with the acquisition, sale or disposition of assets
pursuant to Proclamation No. 50, nor shall order or writ be issued
against the purchaser of assets sold or disposed by the Trust, the
Committee, or the disposition entities to prevent such purchaser
from taking possession of such assets.
In the event that any court or administrative agency issues a

permanent restraining order or writ of injunction against the Trust,
the Committee, and the disposition entities or the purchaser, as the
case may be, secure the immediate lifting of such order or writ by
filing with the judge or clerk of court a bond in an amount equal to
that of the bond posted by the applicant of the order or writ.

as follows:
357
“SEC. 6. The provisions of Sections 3, 10, 31, and 34 of

Proclamation No. 50, as amended in particular, all other provisions
of the proclamation as well as other laws, orders, promulgations,
rules and regulations or parts thereof, which are inconsistent
herewith, are hereby amended repealed or modified accordingly.
All other provisions of the proclamation which are not otherwise
in conflict with any provision hereof shall remain valid and in full
force and effect.
SEC. 5. Implementing guidelines and regulations shall be

issued by the Committee on Privatization to fully implement this
Act within forty-five (45) days from the date of approval of this Act.
SEC. 6. This Act shall take effect after its publication in two
(2) newspapers of general circulation.
358
S. No. 1924
AN ACT PROVIDING FOR A COMPREHENSIVE AND INTEGRATED

SHELTER AND URBAN DEVELOPMENT FINANCING
PROGRAM BY INCREASING AND REGULARIZING THE
YEARLY APPROPRIATION OF THE MAJOR COMPONENTS
OF THE NATIONAL SHELTER PROGRAM, INCLUDING
THE ABOT-KAYA PABAHAY FUND UNDER REPUBLIC
ACT NO. 6846, AUGMENTING THE AUTHORIZED CAPITAL
STOCK AND PAID-UP CAPITAL OF THE NATIONAL HOME
MORTGAGE FINANCE CORPORATION (NHMFC) AND THE
HOME INSURANCE AND GUARANTY CORPORATION
(HIGC), IDENTIFYING OTHER SOURCES OF FUNDING
AND APPROPRIATING FUNDS FOR THE PURPOSES

SECTION 1. Title. – This Act shall be known as the

“Comprehensive and Integrated Shelter Financing Act of 1994.”
XXX XXX XXX
SEC. 10. Fund Sources. – The National Government is hereby

mandated to allocate and appropriate the necessary funds for the
continuing requirements of this Act, including whatever funds
which may be made available from, but not limited to the following
sources;
(A) Proceeds from documentary stamp tax: Provided, That

Section 22 (a) of Republic Act No. 7660 shall be amended to read as
follows:
359
“SEC. 22. The incremental revenues from the increase in the

documentary stamp taxes under this Act shall be set aside for the
following purposes:
“(a) Twenty-five percent (25%) of the incremental revenues in

1994 and 1995 under this Act shall be automatically appropriated
for the Unified Home Lending Program under Executive Order
No. 90 particularly for mass-socialized housing to be allocated
as follows: fifty percent (50%) for mass-socialized housing; thirty
percent (30%) for the community mortgage program administered
by the National Home Mortgage Finance Corporation; and twenty
percent (20%) for land banking and development to be administered
by the National Housing Authority: Provided, That not more than
one percent (1%) of the respective allocations hereof shall be used for
the administrative expenses: Provided, further, That incremental
revenues not appropriated in 1994 and 1995 shall be carried over to
succeeding years until allocations herein provided shall have been
fully exhausted.”
“x x x”
(B) Forty percent (40%) of the mandatory fifty percent (50%)

share of the National Government from the annual aggregate gross
earnings of the Philippine Amusement and Gaming Corporation
(PAGCOR), as provided for in Section 12 of Presidential Decree No.
1869, beginning 1996.
XXX XXX XXX
SEC. 11. Other Fund Sources. - The following non-budgetary

funding sources shall be used to augment those mentioned in the
preceding section in the implementation of a Comprehensive and
Integrated Shelter and Urban Development Financing Program:
a) Ten percent (10%) of the mandatory annual contributions

by Philippine Charity Sweepstakes Office to the charity fund as
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provided for in Section 6 of R. A. No. 1169 shall be channeled to

socialized and low-cost housing;
b) All unused agri-agra allocation funds from banks in the

preceding year shall be invested in socialized and low-cost housing:
Provided, That the used agri-agra portion has been solely devoted
to agricultural or agrarian reform credit; and
c) The Bangko Sentral ng Pilipinas shall make available

its rediscounting facilities to institutions or entities providing
financing for socialized and low-cost housing in amounts and rates
to be determined by the Monetary Board, taking into consideration
the policy of the State as enunciated in this Act.
XXX XXX XXX
SEC. 16. Repeal. - All laws, decrees, executive orders,

proclamations, rules and regulations and other issuances, or parts
thereof which are inconsistent with the provisions of this Act, are
hereby repealed, amended or modified accordingly.
SEC. 17. Separability. - If for any reason, any provision of this

Act is declared invalid or unconstitutional, the remaining provisions
not affected thereby shall continue to be in full force and effect.
SEC. 18. Effectivity. - This Act shall take effect fifteen (15)
days after its complete publication in at least two (2) national
newspapers of general circulation.
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S. No. 740
H. No. 918
AN ACT AMENDING CERTAIN PROVISIONS OF REPUBLIC

ACT NO. 6657, ENTITLED “AN ACT INSTITUTING A
COMPREHENSIVE AGRARIAN REFORM PROGRAM TO
PROMOTE SOCIAL JUSTICE AND INDUSTRIALIZATION,
PROVIDING THE MECHANISM FOR ITS IMPLEMENTATION,
AND FOR OTHER PURPOSES”

SECTION 1. Section 3, Paragraph (b) of Republic Act No.

6657 is hereby amended to read as follows:
“SEC. 3. Definitions. – For the purpose of this Act, unless

the context indicates otherwise:
“(b) Agriculture, Agricultural Enterprise or Agricultural

Activity means the cultivation of the soil, planting of crops,
growing of fruit trees, including the harvesting of such farm
products, and other farm activities and practices performed
by a farmer in conjunction with such farming operations done
by persons whether natural or juridical.”
SEC. 2. Section 10 of Republic Act No. 6657 is hereby amended

to read as follows:
“SEC. 10. Exemptions and Exclusions.
“a) Lands actually, directly and exclusively used for

parks, wildlife, forest reserves, reforestation, fish sanctuaries
and breeding grounds, watersheds and mangroves shall be
exempt from the coverage of this Act.
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“b) Private lands actually, directly and exclusively

used for prawn farms and fishponds shall be exempt from
the coverage of this Act: Provided, That said prawn farms
and fishponds have not been distributed and Certificate of
Land Ownership Award (CLOA) issued to agrarian reform
beneficiaries under the Comprehensive Agrarian Reform
Program.
“In cases where the fishponds or prawn farms have

been subjected to the Comprehensive Agrarian Reform Law,
by voluntary offer to sell, or commercial farms deferment
or notices of compulsory acquisition, a simple and absolute
majority of the actual regular workers or tenants must consent
to the exemption within one (1) year from the effectivity of
this Act. When the workers or tenants do not agree to this
exemption, the fishponds or prawn farms shall be distributed
collectively to the worker-beneficiaries or tenants who shall
form a cooperative or association to manage the same.
“In cases where the fishponds or prawn farms have not

been subjected to the Comprehensive Agrarian Reform Law
the consent of the farm workers shall no longer be necessary,
however, the provision of Section 32-A hereof on incentives
shall apply.”
“c) Lands actually, directly and exclusively used and

found to be necessary for national defense, school sites and
campuses, including experimental farm stations operated by
public or private schools for educational purposes, seeds and
seedlings research and pilot production center, church sites
and convents appurtenant thereto, mosque sites and Islamic
centers appurtenant thereto, communal burial grounds and
cemeteries, penal colonies and penal farms actually worked by
the inmates, government and private research and quarantine
centers and all lands with eighteen percent (18%) slope and
over, except those already developed, shall be exempt from
the coverage of this Act.”
363
SEC. 3. Section 11, Paragraph 1 is hereby amended to read

as follows:
“SEC. 11. Commercial Farming. – Commercial farms,

which are private agricultural lands devoted to saltbeds, fruit
farms, orchards, vegetable and cut-flower farms, and cacao,
coffee and rubber plantations, shall be subject to immediate
compulsory acquisition and distribution after ten (10) years
from the effectivity of this Act.In the case of new farms, the
ten-year period shall begin from the first year of commercial
production and operation, as determined by the DAR. During
the ten-year period, the Government shall initiate steps
necessary to acquire these lands, upon payment of just
compensation for the land and the improvements thereon,
preferably in favor of organized cooperatives or associations
which shall thereafter manage the said lands for the workers-
beneficiaries.”
SEC. 4. There shall be incorporated after Section 32 of

Republic Act No. 6657 a new section to read as follows:
“SEC. 32-A. Incentives. – Individuals or entities owning

or operating fishponds and prawn farms are hereby mandated
to execute within six (6) months from the effectivity of this
Act an incentive plan with their regular fishpond or prawn
farmworkers or fishpond or prawn farm workers’ organization,
if any, whereby seven point five percent (7.5%) of their net
profit before tax from the operation of the fishpond or prawn
farms are distributed within sixty (60) days at the end of the
fiscal year as compensation to regular and other pond workers
in such ponds over and above the compensation they currently
receive.
“In order to safeguard the right of the regular fishpond

or prawn farm workers under the incentive plan, the books of
the fishpond or prawn farm owners shall be subject to periodic
audit or inspection by certified public accountants chosen by
the workers.
364
“The foregoing provision shall not apply to agricultural

lands subsequently converted to fishpond or prawn farms
provided the size of the land converted does not exceed the
retention limit of the landowner.”

Republic Act No. 6657 new sections to read as follows:
“SEC. 65-A. Conversion into Fishpond and Prawn Farms.

– No conversion of public agricultural lands into fishponds
and prawn farms shall be made except in situations where the
provincial government with the concurrence of the Bureau of
Fisheries and Aquatic Resources (BFAR) declares a coastal
zone as suitable for fishpond development. In such case, the
Department of Environment and Natural Resources (DENR)
shall allow the lease and development of such areas: Provided,
That the declaration shall not apply to environmentally critical
projects and areas as contained in title (A) sub-paragraph
two, (B-5) and (C-1) and title (B), number eleven (11) of
Proclamation No. 2146, entitled “Proclaiming Certain Areas
and Types of Projects as Environmentally Critical and Within
the Scope of the Environmental Impact Statement (EIS)
System established under Presidential Decree No. 1586,’” to
ensure the protection of river systems, aquifers and mangrove
vegetations from pollution and environmental degradation:
Provided, further. That the approval shall be in accordance
with a set of guidelines to be drawn up and promulgated
by the DAR and the BFAR: Provided, furthermore, That
small-farmer cooperatives and organizations shall be given
preference in the award of the Fishpond Lease Agreements
(FLAs).
“No conversion of more than five (5) hectares of private

lands to fishponds and prawn farms shall be allowed after the
passage of this Act, except when the use of the land is more
economically feasible and sound for fishpond and/or prawn
farm, as certified by the Bureau of Fisheries and Aquatic
Resources (BFAR), and a simple and absolute majority of the
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regular farm workers or tenants agree to the conversion, the

Department of Agrarian Reform, may approve applications
for change in the use of the land: Provided, finally, That no
piecemeal conversion to circumvent the provisions of this Act
shall be allowed. In these cases where the change of use is
approved, the provisions of Section 32-A hereof on incentives
shall apply.”
“SECTION 65-B. Inventory. – Within one (1) year from

the effectivity of this Act, the BFAR shall undertake and
finish an inventory of all government and private fishponds
and prawn farms, and undertake a program to promote the
sustainable management and utilization of prawn farms and
fishponds. No lease under Section 65-A hereof may be granted
until after the completion of the said inventory.
“The sustainable management and utilization of

prawn farms and fishponds shall be in accordance with the
effluent standards, pollution charges and other pollution
control measures such as, but not limited to, the quantity
of fertilizers, pesticides and other chemicals used, that may
be established by the Fertilizer and Pesticide Authority
(FPA), the Environmental Management Bureau (EMB),
and other appropriate government regulatory bodies, and
existing regulations governing water utilization, primarily
Presidential Decree No. 1067, entitled “A Decree Instituting
A Water Code, Thereby Revising and Consolidating the
Laws Governing the Ownership, Appropriation, Utilization,
Exploitation, Development, Conservation and Protection of
Water Resources.”
“SEC. 65-C. Protection of Mangrove Areas. – In existing

Fishpond Lease Agreements (FLAs) and those that will be
issued after the effectivity of this Act, a portion of the fishpond
area fronting the sea, sufficient to protect the environment,
shall be established as a buffer zone and be planted to specified
mangrove species to be determined in consultation with the
regional office of the DENR. The Secretary of Environment
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and Natural Resources shall provide the penalties for any

violation of this undertaking as well as the rules for its
implementation.”
“SEC. 65-D. Change of Crops. – The change of crops to

commercial crops or high value crops shall not be considered
as a conversion in the use or nature of the land. The change
in crop should however, not prejudice the rights of tenants or
leaseholders should there be any and the consent of a simple
and absolute majority of the affected farm workers, if any,
shall first be obtained.”

Republic Act No. 6657 a new section to read as follows:
“SEC. 73-A. Exception. –The provisions of Section 73,

paragraph (E), to the contrary notwithstanding, the sale
and/or transfer of agricultural land in cases where such sale,
transfer or conveyance is made necessary as a result of a
bank’s foreclosure of the mortgaged land is hereby permitted.”
SEC. 7. Separability Clause. – If, for any reason, any section

or provision of this Act is declared null and void, no other section,
provision or part thereof shall be affected and the same shall remain
SEC. 8 Effectivity Clause. – This Act shall take effect fifteen

(15) days after its publication in at least two (2) newspapers of
general circulation.
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H. No. 9288
S. No. 1311
AN ACT TO PROMOTE THE PRODUCTION, PROCESSING,

MARKETING, AND DISTRIBUTION OF HIGH-VALUE
CROPS, PROVIDING FUNDS THEREFOR, AND FOR OTHER
PURPOSES

SECTION 1. Title. – This Act shall be known as the “High-

Value Crops Development Act of 1995.”

of the State to accelerate the growth and development of agriculture
in general, enhance productivity and incomes of farmers and the
rural population, improve investment climate, competencies and
efficiency of agribusiness and develop high-value crops as export
crops that will significantly augment the foreign exchange earnings
of the country, through an all-out promotion of the production,
processing, marketing, and distribution of high-value crops in
suitable areas of the country.
The State shall be guided by the principles that land has a

social function and that land ownership has a social responsibility. As
such, owners and lessees of agricultural land, being stewards, have
the obligation to cultivate the lands they own or lease and make the
land economically productive on a sustainable and environmentally
friendly manner. The State has the right to expropriate lands not
utilized for the benefit of the community and the country as a whole.
The State shall effect an efficient use of land and other

productive resources with due regard to ecological balance and
environmental protection, rural development, equity consideration,
368
mobilization of human resources, and increased agro-industrial

production for the alleviation of poverty and sustainable growth
objectives.
SEC. 3. Scope of Application. – This Act shall cover upland

dwellers as well as lowland tenants, indigenous and cultural
communities, Comprehensive Agrarian Reform Program (CARP)
beneficiaries, upland farm owners, farmers, farmers’ organizations/
associations/cooperatives, community associations and farmworkers,
and to the extent herein provided, the departments, offices,
agencies, subdivisions, branches or instrumentalities in the areas
identified by the Department of Agriculture as key commercial crop
production areas.
SEC. 4. Definition of Terms. – For purposes of this Act, the

term:
(a) “Non-traditional crops”- refer to crops other than rice,

corn, coconut, and sugar.
(b) “High-value crops (HVC)”- these are crops other than

traditional crops which include, but are not limited to: coffee
and cacao, fruit crops (citrus, cashew, guyabano, papaya, mango,
pineapple, strawberry, jackfruit, rambutan, durian, mangosteen,
guava, lanzones, and watermelon), root crops (potato and ubi),
vegetable crops (asparagus, broccoli, cabbage, celery, carrots,
cauliflower, radish, tomato, bell pepper, and patola), legumes, pole
sitao (snap beans and garden pea), spices and condiments (black
pepper, garlic, ginger, and onion), and cutflower and ornamental
foliage plants (chrysanthemum, gladiolus, anthuriums, orchids,
and statice).
(c) “Idle and abandoned land” - refers to any agricultural land

not cultivated, titled or developed to produce any crop nor devoted
to any specific economic purpose continuously for a period of three
(3) years immediately prior to the receipt of notice of acquisition by
the government as provided under the CARP.
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(d) “Alienable and disposable lands”- refer to those lands of the

public domain which have been the subject of the present system of
classification and declared as not needed for forest purposes.
(e) “Forest land” - refers to the lands of the public domain

which have not been declared as alienable or disposable, public
forests, permanent forests or forest reserves, forest reservations,
timberlands, grazing lands, game refuge, and bird sanctuaries.
SEC. 5. Site Identification. – The Department of Agrarian

Reform and the Department of Agriculture, in coordination with
the Department of Environment and Natural Resources, and the
municipal government concerned, shall identify the broad areas
suitable for high-value crops production, within six (6) months after
the effectivity of this Act: Provided, That such site identification
shall be reviewed at appropriate intervals to ensure consistency
with the agrarian reform program and the national land use policy.
SEC. 6. Tenurial Arrangement. – Farmer cooperatives may

lease the land for a period of twenty-five (25) years, renewable for
another twenty-five (25) years, and not to exceed one thousand
hectares (1,000 has.) in area.
SEC. 7. Farm Model. – For the program, farmers may adopt

the cooperative system in putting up economically-sized farms for
high-value crop farming. Farmer members shall collectively manage
individual farms which includes contracting process and means of
production; planning and coordinating crop varieties; and raising
breed, hectarage, distribution and some production measures with
reference to the market it shall serve. Said farm models may be
replicated by farmers’ organizations all over the country.
SEC. 8. High-Value Crops Development Fund (HVCDF). – For

the purpose of providing the funding requirements of the production,
marketing, and processing of high-value crops, and the establishment
of low-cost credit to qualified project proponents, there is hereby
created a High-Value Crops Development Fund (HVCDF), with an
initial amount of One billion pesos (P1,000,000,000). The HVCDF
370
shall be sourced from the Comprehensive Agricultural Loan Fund

(CALF) and shall be managed by the Land Bank of the Philippines
(LBP) and the Development Bank of the Philippines (DBP). Other
sources of funds, including but not limited to borrowings from local
and international financial institutions, shall also be considered to
further support the program: Provided, That sixty percent (60%) of
the HVCDF shall be utilized for direct lending to high-value crop
producers while the remaining forty percent (40%) shall be allocated
by the Department of Agriculture to guarantee loans granted by
private financial institutions toward high-value crop production
through existing guarantee institutions. The Department of
Agriculture, which is directly responsible for the management of
the HVCDF, is hereby authorized to designate the Land Bank of the
Philippines and the Development Bank of the Philippines to manage
the direct lending operations of the sixty percent (60%) portion of
the HVCDF through LBP and DBP facilities or their conduits.
All financial institutions, whether public or private, shall

be tapped to support the program. Participating banks are hereby
exempted from the compliance requirement of Presidential Decree
No. 717: Provided, That they shall lend a minimum of five percent
(5%) of their loanable funds without alternative compliance directly
to farmers’ associations or cooperatives.
Other sources of funds, including but not limited to borrowings

from local and international financial institutions, shall also be
considered to further support the program.
SEC.9. Incentives. – The proponents of the program shall be

entitled to the following incentives:
(a) Crop insurance - the insurance program of the Philippine

Crop Insurance Corporation (PCIC) shall be expanded to cover
high-value crops. The premium rates shall be set not on the basis of
the performance of previous programs specifically on rice and corn;
(b) Credit assistance – the HVCDF shall be loaned out to

farmers’ organizations/associations/cooperatives composed of, but
371
not limited to, CARP beneficiaries, subject to the prevailing Land

Bank interest rates;
(c) Credit guarantee - to enhance the bankability of projects, a

credit guarantee cover shall be extended by the Quedan and Rural
Credit Guarantee Corporation (QUEDANCOR) which shall thereby
be provided with a commensurate guarantee fund, in the form of
equity, out of the HVCDF;
(d) Grace period on lease of government lands payments-

project proponents shall effect payment on the lease not earlier than
two (2) years after the lease agreement is signed and approved. The
grace period shall be determined by the gestation periods of the
crops;
(e) Tax exemption - project proponents as defined in Section 7

of this Act shall be entitled to the following tax exemptions:
(1) Exemptions from taxes and duties subject to the provisions

of Article 62 of Republic Act No. 6938 or the Cooperative Code of the
Philippines;
(2) Exemption from the value-added tax in accordance with

Section 103 of the National Internal Revenue Code, as amended;
and
(3) Exemption from taxes, fees and charges under Title One of
Book Two of the Local Government Code of 1991 in accordance with
Section 133(n) of the said Code.
(f) Market linkage - the Department of Agriculture, in

coordination with the Department of Trade and Industry, shall link-
up agribusiness cooperatives directly with consumers cooperatives,
agro-processing companies, or exporters to provide marketing
outlets and assure relatively higher and stable prices. Agro-
processing firms buying directly from project proponents shall be
granted tax rebates.
372
To ensure health and proper trading, the agribusiness

development group of the Department of Agriculture shall establish
and enforce standards in grading, sampling and inspection, tests
and analysis, specifications, nomenclature, units of measurement,
code of practice and packaging, preservation, conservation and
transportation of high-value crops.
(g) Technical and infrastructure support – technical support

on research and extension, infrastructure development, financial
and market information shall be provided by the Department of
Agriculture, Department of Trade and Industry, Department of
Science and Technology, Cooperative Development Authority, state
universities and colleges and other relevant government agencies;
(h) Post-harvest facilities - access to post-harvest facilities,

storage and distribution/transport facilities of existing government
agencies shall be facilitated. Assistance shall be given to qualified
and viable farmers/growers cooperatives in the availment of soft
loans or grants for the construction of post-harvest, processing and
storage facilities. Guidelines for the eventual transfer of ownership
of these facilities to the proponent shall be formulated by the
Department of Agriculture;
(i) Good seeds and planting materials - the Department of

Agriculture, in coordination with the state universities and colleges,
the Department of Trade and Industry, and farmers organizations
shall make good seeds and planting materials readily available to
farmers/farmers’ cooperatives to ensure high yield and good quality
produce.
However, the project proponents may be allowed to import,

free of duties, high quality seeds/planting materials subject to
quarantine laws and Section 15 of Republic Act No. 7083 or the
Seed Industry Development Act of 1992; and
(j) Fiscal incentives - the same fiscal incentives granted by

the Board of Investments shall be automatically granted to project
proponents.
373
SEC. 10. Inter-agency Committee. – A committee, composed of

representatives from the Department of Agriculture, the Department
of Agrarian Reform, the Bangko Sentral ng Pilipinas, the Land
Bank of the Philippines, the Development Bank of the Philippines,
the Cooperative Development Authority, the Department of
Science and Technology, the Department of Trade and Industry,
the Department of Environment and Natural Resources, and the
Department of the Interior and Local Government and one (1)
each from the small farmers and commercial producers sectors to
be designated by the Secretary of Agriculture, shall formulate and
prescribe, after public hearing and publication as required by law,
the implementing rules and regulations in order to carry out the
provisions of this Act. The representatives from the Department of
Agriculture and the Department of Trade and Industry shall be the
chairman and the vice-chairman, respectively, of the committee.
The Secretary of the Department of Agriculture shall report

to both Houses of Congress on the status of the High-Value Crops
Development Program biannually.
SEC. 11. Agribusiness Development Group. – The agribusiness

development group of the Department of Agriculture shall be
strengthened to implement, coordinate and monitor the program
based on the rules and regulations set forth by the inter-agency
committee. Aside from its usual functions, it shall be tasked to
perform the following functions:
(a) Assist in the formulation of general and specific policies for

the development of high-value crops;
(b) Setup the appropriate system to monitor the utilization

of the HVCDF and shall furnish the Bangko Sentral ng Pilipinas
regular reports on the financial institutions’ compliance to the
program;
(c) Extend assistance in marketing and distribution of high-

value crops through monitoring and dissemination of market
374
information, including identification of the local supply-demand

situation, domestic market matching and overseas market
intelligence and promotion activities on high-value crops;
(d) Enjoin the Department of Transportation and

Communications to effect a more efficient, regular, adequate,
suitable, and economical means of transporting and/or shipping
of high-value crops, for purposes of reducing marketing costs and
ensuring stable consumer supply;
(e) Encourage the establishment of wholesale markets in

identified major centers of the country: Provided, That agricultural
produce collection centers may also be established in areas where
feasible, which may also serve as buying stations of farm products,
packaging houses, pick-up points and meeting places of farmers’/
growers’ cooperatives;
(f) Establish linkages with various government and private

research institutions for the conduct of studies and researches
designed to promote the production, marketing, and processing of
high-value crops;
(g) Conduct farmers’ training programs primarily aimed

at increasing their knowledge on production technologies and on
market potentials and prospects for various types of high-value
crops, through the DA-Agricultural Training Institute (ATI), the
DTI or the LGU’s technicians or by contracting agriculturists and
marketing specialists from private or academic institutions;
(h) Establish experimental stations and seed farms for the

development of varieties suitable to the agro-climatic conditions
of the area and markets that will provide greatest value added to
high-value crops; and
(i) Devise and maintain a system for regularly obtaining

information on current and future production, their prices and
movement in trade, to determine and effect a balanced distribution
375
of high-value crops by means of inter-trading or intra-trading among

the established wholesale markets.
Such amount as may be needed for the initial operating

expenses of the group shall be charged to any available funds in the
appropriation for current operating expenditures of the Department
of Agriculture. Thereafter, the amount necessary for its operations
shall be included in the annual General Appropriations Act.
SEC. 12. Repealing Clause. – All laws or parts thereof, decrees,

orders, rules and regulations inconsistent with the provisions of this
Act are hereby repealed or modified accordingly: Provided, however,
That nothing in this Act shall be construed or applied as amending
the CARL and other laws on agrarian reform.
SEC. 13. Separability Clause. – If any of the provisions of this

Act is declared invalid, the other provisions not affected thereby
shall remain in full force and effect.
SEC. 14. Effectivity Clause. – This Act shall take effect

immediately following its publication in a newspaper of general
circulation or in the Official Gazette, whichever comes first.
RA 7900 (sec. 8, par. 2) was repealed by RA 10000.
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S. No. 2019
H. No. 13785
AN ACT TO STRENGTHEN THE IMPLEMENTATION OF THE

COMPREHENSIVE AGRARIAN REFORM PROGRAM, AND
FOR OTHER PURPOSES

SECTION 1. Section 35 of Republic Act No. 6657, otherwise

known as the “Comprehensive Agrarian Reform Law of 1988,” is
hereby amended to read as follows:
“SEC. 35. Creation of Support Services Office. – There is

hereby created the Office of Support Services under the DAR
to be headed by an Undersecretary.
“The Office shall provide general support and coordinative

services in the implementation of the program, particularly in
carrying out the provisions of the following services to farmer
beneficiaries and affected landowners:
“1) Irrigation facilities, especially second crop or dry

season irrigation facilities;
“2) Infrastructure development and public works

projects in areas and settlements that come under agrarian
reform, and for this purpose, the preparation of the physical
development plan of such settlements providing suitable
barangay sites, potable water and power resources, irrigation
systems, seeds and seedling banks, post harvest facilities, and
other facilities for a sound agricultural development plan. For
the purpose of providing the aforecited infrastructure and
facilities, the DAR is authorized to enter into contracts with
377
interested private parties on long term basis or through joint-

venture agreements or build-operate-transfer scheme:
“3) Government subsidies for the use of irrigation

facilities;
“4) Price support and guarantee for all agricultural

produce;
“5) Extending to small landowners, farmers and farmers’

organizations the necessary credit, like concessional and
collateral-free loans, for agro-industrialization based on social
collaterals like the guarantees of farmers’ organizations;
“6) Promoting, developing and extending financial

assistance to small and medium-scale industries in agrarian
reform areas;
“7) Assigning sufficient numbers of agricultural extension

workers to farmers organizations;
“8) Undertake research, development and dissemination

of information on agrarian reform, plants and crops best suited
for cultivation and marketing, and low-cost and ecologically
sound farm inputs and technologies to minimize reliance on
expensive and imported agricultural inputs;
“9) Development of cooperative management skills

through intensive training;
“10) Assistance in the identification of ready markets for

agricultural produce and training in the other various aspects
of marketing;
“11) Conduct an effective information dissemination

system through the Department of Agriculture to promote
marketing and minimize spoilage of agricultural produce and
products;
378
“12) Create a credit guarantee fund for agricultural

landowners that will enhance the collateral value of
agricultural lands that are affected or will be affected by
coverage under the agrarian reform program; and
“13) Administration, operation, management and

funding of support services programs and projects including
pilot projects and models related to agrarian reform as
developed by the DAR.”
SEC.2. Section 36 of the same law is hereby amended to read

as follows:
“SEC. 36. Funding for Support Services. – In order

to cover the expenses and cost of support services, at least
twenty-five percent (25%) of all appropriations for agrarian
reform shall be immediately set aside and made available
for this purpose: Provided, That for the next five (5) years,
a minimum of one (1) Agrarian Reform Community (ARC)
shall be established by the DAR, in coordination with the
local government units, non- governmental organizations
and people organizations in each legislative district with a
predominant agricultural population: Provided, further, That
the areas in which the ARCs are to be established shall have
been fully subjected under this law.
“For this purpose, an Agrarian Reform Community shall

be defined as a barangay or a cluster of barangays primarily
composed and managed by Agrarian Reform Beneficiaries
who shall be willing to be organized and undertake the
integrated development of an area and/or their organizations/
cooperative. In each community, the DAR, together with the
agencies and organizations abovementioned, shall identify the
farmers association, cooperative or their respective federation
approved by the farmers-beneficiaries that shall take the lead
in the agricultural development of the area. In addition, the
DAR shall be authorized to package proposals and receive
379
grants, aid and other forms of financial assistance from any

source.”
SEC.3. Section 44 of the same law is hereby amended as

follows:
“SEC. 44. Provincial Agrarian Reform Coordinating

Committee (PARCCOM). – A Provincial Agrarian Reform
Coordinating Committee is hereby created in each province,
composed of a Chairman, who shall be appointed by the
President upon the recommendation of the EXCOM, the
Provincial Agrarian Reform Officer as Executive Officer,
and one (1) representative each from the Departments of
Agriculture, and of Environment and Natural Resources
and from the LBP; one (1) representative each from existing
farmers’ organizations, agricultural cooperatives and
non-governmental organizations in the province; two (2)
representatives from landowners, at least one (1) of whom
shall be a producer representing the principal crop of the
province, and two (2) representatives from farmers and
farmworkers or beneficiaries, at least one (1) of whom shall be
a farmer or farmworker representing the principal crop of the
province, as members: Provided, That in areas where there
are cultural communities, the latter shall likewise have one
(1) representative.
“The PARCCOM shall coordinate and monitor the

implementation of the CARP in the province. It shall provide
information on the provisions of the CARP, guidelines issued
by the PARC and on the progress of the CARP in the province;
in addition, it shall:
“a) Recommend to the PARC the following:
“1) Market prices to be used in the determination of

the profit sharing obligation of agricultural entities in the
province;
“2) Adoption of the direct payment scheme between the

380
landowner and the farmer and/or farmworker beneficiary:

Provided, That the amount and terms of payment are not more
burdensome to the agrarian reform beneficiary than under the
compulsory coverage provision of the CARL: Provided, further,
That the agrarian reform beneficiary agrees to the amount
and the terms of payment: Provided, furthermore, That the
DAR shall act as mediator in cases of disagreement between
the landowner and the farmer and/or farmworker beneficiary:
Provided, finally, That the farmer and/or farmer beneficiary
shall be eligible to borrow from the LBP an amount equal to
eighty-five percent (85%) of the selling price of the land that
they have acquired;
“3) Continuous processing of application for lease

back arrangements, joint-venture agreements and other
schemes that will optimize the operating size for agricultural
production and also promote both security of tenure and
security of income to farmer beneficiaries: Provided, That
lease back arrangements should be the last resort.”
SEC.4. Section 45 of the same law is hereby amended to read

as follows:
“SEC. 45. Province-by-province Implementation. – The

PARC shall provide the guidelines for the province-by-
province implementation of the CARP, taking into account the
peculiarities and needs of each place, kind of crops needed or
suited, land distribution workload, beneficiaries development
activities and other factors prevalent or obtaining in the area.
In all cases, the implementing agencies at the provincial level
shall promote the development of identified ARCs without
neglecting the needs and problems of other beneficiaries.
The ten-year program of distribution of public and private
land in each province shall be adjusted from year to year
by the province’s PARCCOM in accordance with the level of
operations previously established by the PARC, in every case
ensuring that support services are available or have been
programmed before actual distribution is effected.”
381
SEC.5. This Act shall take effect upon its approval.
RA 7905 amended RA 6657 (secs. 35, 36, 44, and 45).
382
S. No. 1924
AN ACT AMENDING REPUBLIC ACT NUMBERED

THIRTY-EIGHT HUNDRED FORTY-FOUR, AS
AMENDED, OTHERWISE KNOWN AS THE “CODE
OF AGRARIAN REFORM IN THE PHILIPPINES

SECTION 1. Section 75 of Republic Act No. 3844, as amended,

is hereby further amended by adding the following subsections to
read as follows:
“(12) to act as an official government depository with full

authority to maintain deposits of the government, its branches,
subdivisions and instrumentalities, and of government-owned
or controlled corporations which deposits shall be subject to
liquidity floor and/or reserve requirements as may be imposed
by the Monetary Board upon other commercial banks;
“(13) for the strengthening of the capital base of the

bank, to establish a national marketing umbrella for farmers
and fisheries cooperatives to attract massive capital formation
from savings deposits of the cooperative members nationwide.”
The existing subsection 12 is hereby renumbered as

subsection 14.
SEC. 2. Section 78 of the same Act is hereby further amended

by adding a new paragraph thereto to read as follows.
“Apart from the foregoing which pertains to the twenty-

five years bonds previously issued by the bank and pursuant
to its role as the financial intermediary of the Comprehensive
Agrarian Reform Program, mandated under Republic Act
383
No. 6657, the National Government through the Presidential

Agrarian Reform Council (PARC), shall provide and/or
allocate from the existing Agrarian Reform Fund or other
unappropriated funds of the National Treasury an amount
sufficient to pay all maturing bonds, debentures and all other
obligations together with interest due thereon issued and/
or incurred by the bank as compensation to the landowners
including expenses related thereto. In the apportionment
and distribution of funds from the Agrarian Reform Fund,
the PARC shall give priority and preference to the payment
of landowner compensation in the chronological sequence or
order at which the voluntary offers of sale were made by the
landowners.”
SEC. 3. Section 80 of the same Act is hereby further amended

by adding a new subsection thereto to read as follows:
“(7) At least sixty percent (60%) of the proceeds of the sale

of the stocks, securities and other assets of the government
now under administration by the Asset Privatization Trust
(APT) shall be transferred to the Land Bank of the Philippines
for use in the payment of agricultural lands acquired pursuant
to Presidential Decree No. 27 and Republic Act No. 6657.”

as follows:
“Sec. 81. Capital. — The authorized capital stock of the

Bank shall be nine billion pesos, divided into seven hundred
and eighty million common shares with a par value of ten pesos
each, which shall be fully subscribed by the Government, and
one hundred and twenty million preferred shares with a par
value of ten pesos each, which shall be issued in accordance
with the provisions of Sections seventy-seven and eighty-three
of this Code. These preferred shares shall be non-voting. The
Board, upon the recommendation of the Secretary of Finance
and with the approval of the President of the Philippines, may
increase the capitalization of the Bank up to such an amount
384
as may be necessary to attain the objectives of this Act. The

total capital stock subscribed by the Government shall be
paid by the Agrarian Reform Fund Commission created under
Presidential Decree No. 85, hereinafter referred to as the
“Commission,” as follows: four hundred million pesos within
sixty (60) days from the approval of this Decree, and at least
one hundred million pesos every year thereafter until the total
subscription of the Government is fully paid: Provided, That
the common and preferred shares of the Bank which have
been issued, including those already subscribed, shall form
part of the increased capitalization of the Bank: Provided,
further, That the additional common shares subscribed by the
Government shall be paid by the bank through its banking
operations in an amount equivalent to at least ten percent
(10%) of its annual net income or any form of retained earnings
until fully paid: Provided, finally, That the dividends due the
Government shall first be paid”.
SEC. 5. Sec. 86 of the same Act relating to the membership

of its Board of Directors, as amended, is hereby further amended to
read as follows:
“Sec. 86. The Board of Directors; Membership; Per Diem.

— The affairs and business of the Bank shall be directed
and its property managed and preserved by a Board of
Directors consisting of nine (9) members to be composed of
the Secretary of Finance, as Chairman, the President of the
Bank as Vice-Chairman, the Secretary of Agrarian Reform,
the Secretary of Labor, and the Secretary of Agriculture
as ex officio members. The President of the Philippines shall
appoint two (2) members of the Board who shall represent the
agrarian reform beneficiaries and two (2) members who shall
represent the private sector. The two (2) remaining members
shall be elected from the shareholders coming from the public
sector to the extent that they may be entitled to two (2) seats
in proportion to the outstanding capital stock.
385
“Annually, on the first Tuesday after the first Monday

in December, the stockholders shall meet to take up, among
others, the election of two (2) members of the Board of
Directors for the succeeding year. Each shareholder or proxy
shall be entitled to as many votes as he may have shares of
stock registered in his name on the 31st day of October last
preceding and held by him at the time of the election. The
two (2) members of the Board of Directors shall be elected
preferably from the holders of the preferred shares on the
basis of the outstanding amount of shares as follows:
“(a) Not exceeding P100 M - one member
“(b) Exceeding P100 M - two members
“The appointive members of the Board shall hold a term

of office for one (1) year and shall continue to hold office until
their successor shall have been appointed and qualified. The
Board shall convene as often as necessary to discharge its
responsibilities properly, but shall meet at least once every
two (2) weeks. The Board may be convoked either by the
chairman or in his absence, the Vice-Chairman.
“The majority of the Board members shall constitute

a quorum. All decisions of the Board shall require the
concurrence of at least a majority.
“No person shall be elected or appointed director of the

Bank unless he is natural born citizen of the Philippines, not
less than thirty-five (35) years of age, of good moral character,
and has attained proficiency, expertise and recognized
competence in one or more of the following: banking, finance,
economics, law, agriculture, agrarian reform, business
management: Provided, further, That no director, shareholder
or employee of any other bank shall be eligible for election or
appointment as member of the Board of Directors of the Bank.
386
“The chairman and the members of the Board shall

receive a per diem of One thousand five hundred pesos
(P1,500) for each session of the Board attended but in no case
not to exceed Seven thousand five hundred pesos (P7,500) a
month.”
SEC. 6. Section 86-A of the same Act relating to the powers

and responsibilities of the Board is hereby amended by, adding
subsection 6 which reads as follows:
“6. To compromise or release, in whole or in part,

any claim or liability whatsoever for or against the bank,
including interest, penalties, fees and/or other charges, under
such terms and conditions as the board may find acceptable
and practicable subject to their best business judgment and
to the best interest of the corporation in accord with standard
banking practices.”
SEC. 7. A new Section 86-B is hereby added to read as follows:
“Section 86-b foreclosure of collaterals and disposal of

bank acquired properties —
“1. Foreclosure of Mortgage Collaterals — Foreclosure of

mortgage collaterals to loans may be made either judicially or
extrajudicially.
“2. Deputization of Legal Staff — The bank may, with

the approval of the court, deputize any member of its legal
staff to act as special sheriff in foreclosure cases, in the sale
or attachment of debtor’s properties and in the enforcement
of court writs and processes in cases involving the bank. The
Special Sheriff of the bank shall make a report to the proper
court after any action has been taken by him, which court
shall treat such actions as if it were an act of its own sheriffs
in all respect.
387
“3. Disposal of Real Estate and Other Properties in the

Collection of Debt - Real estate and other properties acquired
by the bank in the collection of debts or investment by way
of foreclosure or other means shall be sold or disposed of
in accordance with law, within five (5) years after date of
acquisition. The sale or disposal shall be effected through
public bidding, in accordance with law.
“4. Exemption from Attachment — The provisions of any

law to the contrary notwithstanding, securities on loans and/
or other credit accommodations granted by the bank shall not
be subject to attachment, execution to any other court process,
nor shall they be included in the property of insolvent persons
or institutions, unless all debts and obligations of the debtors
to the bank have been paid, including accrued interest,
penalties, collection expenses, and other charges.
“5. Right of Redemption of Foreclosed Property; Right of

Possession during Redemption Period - Within one (1) year
from the registration of the foreclosure sale of real estate,
the mortgagor shall have the right to redeem the property by
paying all claims of the bank against him on the date of the sale
including all the cost and other expenses incurred by reason
of the foreclosure sale and custody of the property, as well as
charges and accrued interest. The bank may take possession
of the foreclosed property during the redemption period. The
bank shall be eligible to post a bond for the purpose of such
possession.”

as follows:
“Section 87. Executive Officers: Compensation. — The

Chief Executive of the Bank shall be the president, who shall
be chosen and may be removed by the Board of Directors with
the advice and consent of the President of the Philippines.
His salary shall be fixed by the Board of Directors with the
approval of the President of the Philippines. The President
388
shall be assisted by Vice-Presidents as may be required,

whose appointments and removal shall be approved and
whose salaries shall be fixed in accordance with Section 90
hereof by the Board of Directors upon recommendation of the
President of the Bank.”
SEC. 9. Section 88 of the same Act prescribing the qualifications

of Executive Officers is also hereby amended to read as follows:
“No person shall be appointed to any executive position

in the Bank mentioned in the preceding section unless he be
of good moral character and of unquestionable integrity and
responsibility, and who is of recognized competence in the
field of economics, agriculture, industry, law, banking and/or
finance, and possessed of demonstrated administrative skill
and ability.”
SEC. 10. Section 90 of the same Act is hereby amended to

read as follows:
“Section 90. Personnel. — The Board of Directors shall

provide for an organization and staff of officers and employees of
the Bank and upon recommendation of the President of the Bank,
appoint and fix their remunerations and other emoluments,
and remove such officers and employees: Provided, That the
Board shall have exclusive and final authority to promote,
transfer, assign or reassign personnel of the Bank, any
provisions of existing law to the contrary notwithstanding.
“All positions in the Bank shall be governed by a

compensation, position classification system and qualification
standards approved by the Bank’s Board of Directors based on
a comprehensive job analysis and audit of actual duties and
responsibilities. The compensation plan shall be comparable
with the prevailing compensation plans in the private sector
and shall be subject to periodic review by the Board no more
than once every two (2) years without prejudice to yearly merit
reviews or increases based on productivity and profitability.
389
The Bank shall therefore be exempt from existing laws, rules

and regulations on compensation, position classification and
qualification standards. It shall however endeavor to make
its system conform as closely as possible with the principles
under Republic Act No. 6758.
“The Bank officers and employees, including all members

of the Board, shall not engage directly or indirectly in partisan
activities or take part in any election except to vote.
“No officer or employee of the Bank subject to the Civil

Service Law and Regulations shall be removed or suspended
except for cause as provided by law.”
SEC. 11. Separability Clause. — If any provision or part

hereof is held invalid, the other provisions not affected thereby shall
remain and continue in full force and effect.
SEC. 12. Repealing Clause. — All laws, executive orders, rules

and regulations or parts thereof inconsistent with any provision
hereof are hereby repealed or modified accordingly.
SEC. 13. Effectivity. — This Act shall take effect upon its
approval.
390
S. No. 1157
H. No. 5201
AN ACT FURTHER AMENDING PRESIDENTIAL DECREE

NO. 1467, AS AMENDED, OTHERWISE KNOWN AS THE
CHARTER OF THE PHILIPPINE CROP INSURANCE
CORPORATION (PCIC), IN ORDER TO MAKE THE CROP
INSURANCE SYSTEM MORE STABLE AND MORE
BENEFICIAL TO THE FARMERS COVERED THEREBY
AND FOR THE NATIONAL ECONOMY

SECTION 1. Title. – This Act shall be known as the “Revised

Charter of the Philippine Crop Insurance Corporation Act of 1995.”
XXX XXX XXX
SEC. 5. Section 5 of the Presidential Decree No. 1467, as

amended, is hereby further amended, to read as follows:
“SEC. 5. Rate of Premium and Its Sharing. – The rate of

premium, as well as the allocated sharing thereof by the farmers,
the lending institutions, the Government of the Republic of the
Philippines (herein called the Government) and other parties,
shall be determined by the Board of Directors of the Corporation:
Provided, That the share of the Government in the premium cost,
in the form of premium subsidy, shall be limited to subsistence
farmers: Provided, however, That each of these subsistence farmers
is cultivating not more than seven (7) hectares by themselves or
with the help of the labor of the members of their households or
hired labor, the premium rate and sharing to be determined by
the Board of Directors subject to approval by the President of the
Philippines: Provided, further, That the premium share of the
subsistence farmer shall be reasonably affordable by him: Provided,
391
furthermore, That the Government shall share in the premium cost

only in insurance coverage against unforeseen and unavoidable
risks such as, but not limited to typhoons, droughts, outbreaks of
pests and diseases: Provided, finally, That premium subsidy and/or
insurance benefits shall, upon the accumulation of surplus funds,
be increased to such amount as may be determined by the Board,
taking into consideration that the Corporation has been established
not only for profit but mainly to help the insured in their direst
hours of need.”
SEC. 6. Section 6 of Presidential Decree No. 1467, as

amended, is hereby amended by adding three (3) new paragraphs
to be designated as subsections 6.3, 6.4 and 6.5 to read as follows:
“6.3. Unappropriated and/or unreleased government premium

subsidy for policies written for the period from May 1, 1981 up to
the approval of this Act computed on the basis of premium rates
and sharing previously approved by the President as authorized by
law shall be programmed for payment by the Government within
a period of ten (10) years from the approval of this Act, and the
yearly sums shall be included in the budgetary appropriations for
submission to Congress, starting the fiscal year following approval
hereof, in addition to the premium subsidy requirement for the year
involved.
“6.4. Calamity funds earmarked by the Government shall

include a certain percentage for crop insurance and shall be released
to and administered by the Corporation.
“6.5. Ten percent (10%) of the net earnings of the Philippine

Charity Sweepstakes Office (PCSO) from its lotto operation shall be
earmarked for the Crop Insurance Program and said amount shall
be directly remitted by the PCSO to the Corporation every six (6)
months until the amount of government subscription is fully paid.”
XXX XXX XXX
392
SEC. 18. Separability Clause. – If any provision or part hereof

is held unconstitutional or invalid, the remainder of the law, or the
provisions not otherwise affected shall remain valid and subsisting.
SEC. 19. Repealing Clause. – Any provision of Presidential

Decree No. 1467, as amended, and all other laws inconsistent
herewith is hereby repealed or modified accordingly.
SEC. 20. Effectivity. – This Act shall take effect fifteen (15)
days after its complete publication in at least two (2) newspapers of
RA 8175 amended PD 1467.
393
H. No. 9360
S. No. 1731

Metro Manila
Tenth Congress
Begun and held in Metro Manila, on Monday, the twenty-eighth day

of July, nineteen hundred and ninety-seven.
AN ACT INSTITUTIONALIZING THE SOCIAL REFORM AND

POVERTY ALLEVIATION PROGRAM, CREATING FOR THE
PURPOSE THE NATIONAL ANTI-POVERTY COMMISSION,
DEFINING ITS POWERS AND FUNCTIONS, AND FOR
OTHER PURPOSES

SECTION 1. Title. – This Act shall be known as the “Social

Reform and Poverty Alleviation Act.”
SEC. 2. Declaration of Policy.–It is the policy of the State to:
(1) Adopt an area-based, sectoral and focused intervention

to poverty alleviation wherein every poor Filipino family shall be
empowered to meet its minimum basic needs of health, food and
nutrition, water and environmental sanitation, income security,
shelter and decent housing, peace and order, education and
functional literacy, participation in governance, and family care and
psycho-social integrity;
394
(2) Actively pursue asset reform or redistribution of productive

economic resources to the basic sectors including the adoption of a
system of public spending which is targeted towards the poor;
(3) Institutionalize and enhance the Social Reform Agenda,

hereinafter known as the SRA, which embodies the results of the
series of consultations and summits on poverty alleviation;
(4) Adopt and operationalize the following principles and

strategies as constituting the national framework integrating
various structural reforms and anti-poverty initiatives:
(a) Social reform shall be a continuing process that addresses

the basic inequities in Philippine society through a systematic
package of social interventions;
(b) The SRA shall be enhanced by government in equal

partnership with the different basic sectors through appropriate
and meaningful consultations and participation in governance;
(c) Policy, programs and resource commitments from both

government and the basic sectors shall be clearly defined to ensure
accountability and transparency in the implementation of the Social
Reform Agenda;
(d) A policy environment conducive to sustainable social

reform shall be pursued;
(e) The SRA shall address the fight against poverty through
a multi-dimensional and cross-sectoral approach which recognizes
and respects the core values, cultural integrity, and spiritual
diversity of target sectors and communities;
(f) The SRA shall pursue a gender-responsive approach to

fight poverty;
(g) The SRA shall promote ecological balance in the different

ecosystems, in a way that gives the basic sectors a major stake in
395
the use, management, conservation and protection of productive

resources;
(h) The SRA shall take into account the principle and
interrelationship of population and development in the planning
and implementation of social reform programs thereby promoting
self-help and self-reliance; and,
(i) The SRA implementation shall be focused on specific target

areas and basic sectors.
SEC. 3. Definition of Terms. – As used in this Act, the following

terms shall mean:
(a) “Artisanal fisherfolk”- Refers to municipal, small scale or

subsistence fishermen who use fishing gear which do not require
boats or which only require boats below three (3) tons;
(b) “Basic sectors”- Refer to the disadvantaged sectors of

Philippine society, namely: farmer-peasant, artisanal fisherfolk,
workers in the formal sector and migrant workers, workers in the
informal sector, indigenous peoples and cultural communities,
women, differently-abled persons, senior citizens, victims of
calamities and disasters, youth and students, children, and urban
poor;
(c) “Cooperative” - Refers to a duly registered association of

at least fifteen (15) persons, majority of which are poor, having a
common bond of interest, who voluntarily join together to achieve
a lawful common social and economic end. It is organized by the
members who equitably contribute the required share capital and
accept a fair share of the risks and benefits of their undertaking in
accordance with the universally accepted corporate principles and
practices;
(d) “Capability building”-Refers to the process of enhancing

the viability and sustainability of microfinance institutions through
activities that include training in microfinance technologies,
396
upgrading of accounting and auditing systems, technical assistance

for the installation or improvement of management information
systems, monitoring of loans and other related activities. The
term capability building shall in no way refer to the provision of
equity investments, seed funding, partnership’s seed funds, equity
participation, start-up funds or any such activity that connotes the
infusion of capital or funds from the government or from the people’s
development trust fund to microfinance institution as defined in this
Act. Capability building precludes the grant of any loan or equity
funds to the microfinance institution;
(e) “Collateral-free arrangement” - A financial arrangement

wherein a loan is contracted by the debtor without the conventional
loan security of a real estate or chattel mortgage in favor of the
creditor. In lieu of these conventional securities, alternative
arrangements to secure the loans and ensure repayment are offered
and accepted;
(f) “Group character loan” - A loan contracted by a member

and guaranteed by a group of persons for its repayment. The creditor
can collect from any of the members of the group which guaranteed
the said loan, without prejudice to the right of reimbursement of the
member or members of the group who had advanced the payment in
favor of the actual debtor;
(g) “Indigenous cultural communities/indigenous peoples”

- As defined in Republic Act No. 8371, otherwise known as “The
Indigenous Peoples Rights Act of 1997”;
(h) “Migrant workers”-AsdefinedinRepublicActNo.8042,

otherwise known as the “Migrant Workers and Overseas Filipino
Act of 1995”;
(i) “Micro-enterprise” - Any economic enterprise with a capital

of One hundred fifty thousand pesos (P150,000) and below. This
amount is subject to periodic determination of the Department of
Trade and Industry to reflect economic changes;
397
(j) “Microfinance” - A credit and savings mobilization program

exclusively for the poor to improve the asset base of households
and expand the access to savings of the poor. It involves the use of
viable alternative credit schemes and savings programs including
the extension of small loans, simplified loan application procedures,
group character loans, collateral-free arrangements, alternative
loan repayments, minimum requirements for savings, and small
denominated savers’ instruments;
(k) “Minimum basic needs”-Refer to the needs of a Filipino

family pertaining to survival (food and nutrition; health; water
and sanitation; clothing), security (shelter; peace and order; public
safety; income and livelihood) and enabling (basic education and
literacy; participation in community development; family and
psycho-social care);
(l) “Human development index” - Refers to the measure of how

well a country has performed, based on social indicators of people’s
ability to lead a long and healthy life, to acquire knowledge and
skills, and to have access to the resources needed to afford a decent
standard of living. This index looks at a minimum of three outcomes
of development: the state of health (measured by life expectancy at
birth), the level of knowledge and skill (measured by a weighted
average of adult literacy and enrollment rates), and the level of real
income per capita, adjusted for poverty considerations;
(m) “Nongovernment organizations” - Refer to duly registered

nonstock, nonprofit organizations focusing on the upliftment of the
basic or disadvantaged sectors of society by providing advocacy,
training, community organizing, research, access to resources, and
other similar activities;
(n) “People’s organization” - Refers to a self-help group

belonging to the basic sectors and/or disadvantaged groups composed
of members having a common bond of interest who voluntarily join
together to achieve a lawful common social or economic end;
398
(o) “Poor” - Refers to individuals and families whose income

fall below the poverty threshold as defined by the National Economic
and Development Authority and/or cannot afford in a sustained
manner to provide their minimum basic needs of food, health,
education, housing and other essential amenities of life;
(p) “Poverty alleviation”-Refers to the reduction of absolute

poverty and relative poverty;
(q) “Absolute poverty” - Refers to the condition of the household

below the food threshold level;
(r) “Relative poverty” - Refers to the gap between the rich and
the poor;
(s) “Social reform” - Refers to the continuing process of

addressing the basic inequities in Filipino society through a
systematic, unified and coordinated delivery of socioeconomic
programs or packages;
(t) “Small Savers Instrument (SSI)” - Refers to an evidence of

indebtedness of the Government of the Republic of the Philippines
which shall be in small denominations and sold at a discount from
its redemption value, payable to bearer and redeemable on demand
according to a schedule printed on the instrument, with a discount
lower than the full stated rate if not held to maturity. The resources
generated under this scheme shall be used primarily for micro-
credit for the poor. SSIs are not eligible as legal reserve of banks
and legal reserves prescribed of insurance companies operating in
the Philippines;
(u) “Urban poor” - Refers to individuals or families residing

in urban centers and urbanizing areas whose income or combined
household income falls below the poverty threshold as defined by
the National Economic and Development Authority and/or cannot
afford in a sustained manner to provide their minimum basic needs
of food, health, education, housing and other essential amenities of
life;
399
(v) “Workers in the formal sector”-Refers to workers in

registered business enterprises who sell their services in exchange
for wages and other forms of compensation;
(w) “Workers in the informal sector” - Refers to poor

individuals who operate businesses that are very small in scale and
are not registered with any national government agency, and to the
workers in such enterprises who sell their services in exchange for
subsistence level wages or other forms of compensation; and
(x) “Youth”-Refers to persons fifteen(15) to thirty (30) years

old.
SEC.4. Adoption and Integration of Social Reform Agenda

(SRA) in the National Anti-Poverty Action Agenda. – The National
Anti-Poverty Action Agenda shall principally include the core
principles and programs of the Social Reform Agenda (SRA). The
SRA shall have a multi-dimensional approach to poverty consisting
of the following reforms:
(1) Social dimension access to quality basic services.-These

are reforms which refer to equitable control and access to social
services and facilities such as education, health, housing, and other
basic services which enable the citizens to meet their basic human
needs and to live decent lives;
(2) Economic dimension asset reform and access to economic

opportunities. - Reforms which address the existing inequities in
the ownership, distribution, management and control over natural
and man-made resources from which they earn a living or increase
the fruits of their labor;
(3) Ecological dimension sustainable development of productive

resources. - Reforms which ensure the effective and sustainable
utilization of the natural and ecological resource base, thus assuring
greater social acceptability and increased participation of the basic
sectors in environmental and natural resources conservation,
management and development;
400
(4) Governance dimension democratizing the decision- making

and management processes. - Reforms which enable the basic sectors
to effectively participate in decision-making and management
processes that affect their rights, interests and welfare.
The SRA shall focus on the following sector-specific flagship

programs:
(1) For farmers and landless rural workers-agricultural

development;
(2) For the fisherfolk - fisheries and aquatic resources

conservation, management and development;
(3) For the indigenous peoples and indigenous communities -

respect, protection and management of the ancestral domains;
(4) For workers in the informal sector-workers’ welfare and

protection;
(5) For the urban poor-socialized housing; and
(6) For members of other disadvantaged groups such as the

women, children, youth, persons with disabilities, the elderly, and
victims of natural and man-made calamities - the Comprehensive
Integrated Delivery of Social Services (CIDSS).
Additionally, to support the sectoral flagship programs, the

following cross-sectoral flagships shall likewise be instituted:
(1) Institution-building and effective participation in

governance;
(2) Livelihood programs;
(3) Expansion of micro-credit/microfinance services and

capability building; and
401
(4) Infrastructure buildup and development.
TITLE I
NATIONAL ANTI-POVERTY COMMISSION
SEC. 5. The National Anti-Poverty Commission. – To support

the above-stated policy, the National Anti-Poverty Commission,
hereinafter referred to as the NAPC, is hereby created under the
Office of the President, which shall serve as the coordinating and
advisory body for the implementation of the SRA. The Presidential
Commission to Fight Poverty (PCFP), the Social Reform Council
(SRC), and the Presidential Council for Countryside Development
(PCCD) are hereby abolished and the NAPC shall exercise the
powers and functions of these agencies. The NAPC shall be the
successor-in-interest of the three (3) abolished commissions and
councils.
The creation and operationalization of the NAPC shall be

guided by the following principles:
(1) Incorporation of the Social Reform Agenda into the

formulation of development plans at the national, regional, sub-
regional and local levels;
(2) Efficiency in the implementation of the anti-poverty

programs by strengthening and/or streamlining present poverty
alleviation processes and mechanisms, and reducing the duplication
of functions and activities among various government agencies;
(3) Coordination and synchronization of social reform and

poverty alleviation programs of national government agencies;
(4) Exercise of policy oversight responsibilities to ensure the

attainment of social reform and poverty alleviation goals;
(5) Strengthening of local government units to more effectively

operationalize the SRA in local development efforts;
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(6) Institutionalization of basic sectoral and NGO participation

in effective planning, decision-making, implementation, monitoring
and evaluation of the SRA at all levels;
(7) Ensuring adequate, efficient and prompt delivery of basic

services to the poor; and
(8) Enjoining government financial institutions to open credit

and savings windows for the poor, and advocating the creation of
such windows for the poor among private banking institutions.
SEC.6. Composition of the NAPC.–The President of the

Republic of the Philippines shall serve as Chairperson of the NAPC.
The President shall appoint the Lead Convenor of the NAPC, either
from the government or private sector, who shall likewise serve as
the head of the National Anti-Poverty Commission Secretariat, and
shall have the rank of a Cabinet Secretary. There shall be a vice
chairperson for the government sector and a vice chairperson for
the basic sectors; the former to be designated by the President, and
the latter to be elected among the basic sector representatives of the
NAPC as vice chairperson for the basic sector; and the following as
members:
(1) Heads of the following government bodies:
(a) Department of Agrarian Reform (DAR);
(b) Department of Agriculture (DA);
(c) Department of Labor and Employment (DOLE);
(d) Department of Budget and Management

(DBM);
(e) Department of Social Welfare and Development

(DSWD);
(f) Department of Health (DOH);
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(g) Department of Education, Culture and Sports

(DECS);
(h) Department of the Interior and Local

Government (DILG);
(i) Department of Environment and Natural

Resources (DENR);
(j) Department of Finance (DOF);
(k) National Economic and Development Authority

(NEDA);
(l) People’s Credit and Finance Corporation

(PCFC), subject to Section 17 of this Act; and
(m) Presidential Commission on Urban Poor

(PCUP).
(2) Presidents of the Leagues of Local Government

Units:
(a) League of Provinces;
(b) League of Cities;
(c) League of Municipalities; and
(d) Liga ng mga Barangay.
(3) Representatives from each of the following basic

sectors:
(a) Farmers and landless rural workers;
(b) Artisanal fisherfolk;
404
(c) Urban poor;
(d) Indigenous cultural communities/indigenous

peoples;
(e) Workers in the formal sector and migrant

workers;
(f) Workers in the informal sector;
(g) Women;
(h) Youth and students;
(i) Persons with disabilities;
(j) Victims of disasters and calamities;
(k) Senior citizens;
(l) Nongovernment organizations (NGOs);
(m) Children; and
(n) Cooperatives.
Sectoral councils formed by and among the members of

each sector shall respectively nominate three (3) nominees from
each sector within six (6) months after the effectivity of the
implementing rules and regulations of this Act, and every three
(3) years thereafter and in case of vacancy. The President of the
Republic of the Philippines shall, within thirty (30) days after the
submission of the list of nominees, appoint the representatives from
the submitted list. Sectoral representatives shall serve for a term of
three (3) years without reappointment. Appointment to any vacancy
for basic sector representatives shall be only for the unexpired term
of the predecessor.
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The implementing rules and regulations (IRR) of this Act shall

contain the guidelines for the formation of sectoral councils, the
nomination process, recall procedures and such other mechanisms
to ensure accountability of the sectoral representatives.
SEC.7. Powers and Functions.– The NAPC shall exercise the

following powers and functions:
(1) Coordinate with different national and local government

agencies and the private sector to assure full implementation of all
social reform and poverty alleviation programs;
(2) Coordinate with local government units in the formulation

of social reform and poverty alleviation programs for their respective
areas in conformity with the National Anti- Poverty Action Agenda;
(3) Recommend policy and other measures to ensure the

responsive implementation of the commitments under the SRA;
(4) Ensure meaningful representation and active participation

of the basic sectors;
(5) Oversee, monitor and recommend measures to ensure the

effective formulation, implementation and evaluation of policies,
programs and resource allocation and management of social reform
and poverty alleviation programs;
(6) Advocate for the mobilization of funds by the national and

local governments to finance social reform and poverty alleviation
programs and capability building activities of people’s organizations;
(7) Provide financial and non-financial incentives to local

government units with counterpart resources for the implementation
of social reform and poverty alleviation programs; and
(8) Submit an annual report to Congress including, but not

limited to, all aspects of its operations and programs and project
406
implementation, financial status and other relevant data as reflected

by the basic reform indicator.
SEC. 8. Principal Office. – The NAPC shall establish its

principal office in Metro Manila and may establish such branches
within the Philippines as may be deemed necessary by the President
of the Philippines to carry out the powers and functions of the NAPC.
SEC. 9. The NAPC Secretariat. – The NAPC shall be

supported by a Secretariat, which shall be headed by the Lead
Convenor referred to under Section 6 hereof. The Secretariat shall
provide technical and administrative support to the NAPC. It shall
be formed from the unification of the secretariats of the following
bodies:
(1) Presidential Commission to Fight Poverty (PCFP);
(2) Social Reform Council (SRC); and
(3) Presidential Council for Countryside Development (PCCD).
Within three (3) months from the effectivity of this Act, the
Office of the President shall finalize the organizational plan for the
NAPC.
To provide the continuity of existing social reform and poverty

alleviation related programs, all accredited organizations under the
three (3) unified councils and commissions shall be automatically
accredited under the NAPC until such time that additional
accreditation requirements may be provided by the NAPC.
SEC. 10. The People’s Development Trust Fund. – The People’s

Development Trust Fund (PDTF) is hereby established, which shall
be monitored by the NAPC.
The Trust Fund in the amount of Four billion and five hundred
million pesos (P4,500,000,000) shall be funded from the earnings of
the PAGCOR in addition to appropriations by Congress, voluntary
407
contributions, grants, gifts from both local and foreign sources as

may be accepted or decided on by the NAPC. Any additional amount
to the Trust Fund shall form part of the corpus of the Trust Fund,
unless the donor, contributor or grantor expressly provides as a
condition that the amount be included in the disbursible portion of
the Trust Fund.
The President of the Philippines shall assign to any existing

government department or agency the administration of the
Trust Fund, based on the expertise, organizational capability, and
orientation or focus of the department or agency. The NAPC shall
be limited to the function of monitoring the utilization of the PDTF,
while the government departments or agencies designated by the
President shall directly administer the utilization of the earnings
of the PDTF.
Only the fruits of the PDTF shall be used for the purposes
provided in this Act. Any undisbursed fruits for the preceding
year shall form part of the disbursible portion of the PDTF in the
following year.
For the purpose of monitoring the earnings of the PDTF, the

NAPC shall:
(1) Source funds for the establishment of and augmentation

to the Trust Fund;
(2) Recommend to the appropriate government department or

agency the accreditation of organizations and institutions that shall
act as resource partners in conducting institutional development
and capability building activities for accredited organizations and
beneficiaries of microfinance and micro- enterprise programs;
(3) Ensure that validation and monitoring activities are

conducted for funded institutional development and capability
building projects/programs/beneficiaries; and
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(4) Promote research and development work on livelihood

and microfinance technology and publications/communications
programs that assist the poor beneficiaries.
SEC. 11. Purposes of the People’s Development Trust Fund

(PDTF). – The earnings of the PDTF shall be utilized for the
following purposes:
(1) Consultancy and training services for microfinance

institutions and their beneficiaries on the establishment of the
necessary support services, social and financial preparation of
beneficiaries, preparation of plans and programs including fund
sourcing and assistance, establishment of credit and savings
monitoring and evaluation mechanisms;
(2) Scholarships or training grants for microfinance staff and

officers, and selected beneficiaries;
(3) Community organizing for microfinance, livelihood and

micro-enterprises training services;
(4) Livelihood/micro-enterprise project/program feasibility

studies and researches;
(5) Savings mobilization and incentive programs, and other

similar facilities;
(6) Information and communication systems such as baseline

surveys, development monitoring systems, socioeconomic mapping
surveys, organizational assessments, and other similar activities;
(7) Legal and other management support services such as

registration, documentation, contract review and enforcement,
financial audit and operational assessment;
(8) Information dissemination of microfinance technology; and
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(9) Other activities to support microfinance as approved by

the designated agency administering the PDTF.
The PDTF may be accessed by the following:
(a) Registered microfinance organizations engaged in

providing micro-enterprise services for the poor to enable them to
become viable and sustainable;
(b) Local government units providing microfinance and micro-

enterprise programs to their constituents: Provided, That the PDTF
shall not be used by the LGUs for personal services and maintenance
and other operating expenses; and
(c) Local government units undertaking self-help projects

where at least twenty-five percent (25%) of the total earnings of the
PDTF shall be used exclusively for the provision of materials and
technical services.
SEC. 12. The Role of Local Government Units (LGUs). – The

local government units, through the local development councils of
the province, city, municipality, or barangay shall be responsible
for the formulation, implementation, monitoring and evaluation
of the National Anti-Poverty Action Agenda in their respective
jurisdictions. The LGUs shall:
(a) Identify the poor in their respective areas based on

indicators such as the minimum basic needs approach and the
human development index, their location, occupation, nature of
employment, and their primary resource base and formulate a
provincial/city/municipality anti-poverty action agenda;
(b) Identify and source funding for specific social reform and
poverty alleviation projects;
(c) Coordinate, monitor and evaluate the efforts of local

government units with the private sector on planning and
410
implementation of the local action program for social reform and

poverty alleviation; and
(d) Coordinate and submit progress reports to the National

Anti-Poverty Commission regarding their local action programs.
Nothing in this Act shall be construed as diminishing the

powers granted to the local government units under the Local
Government Code.
TITLE II
MICROFINANCE SERVICES FOR THE POOR
SEC. 13. Microfinance Program. – The programs and

implementing mechanisms of the Social Reform Agenda’s Flagship
Program on Credit shall be integrated, adopted and further
enhanced to effectively support the objectives of this Act along the
following thrusts:
(1) Development of a policy environment, especially in the

area of savings generation, supportive of basic sector initiatives
dedicated to serving the needs of the poor in terms of microfinance
services;
(2) Rationalization of existing government programs for credit

and guarantee;
(3) Utilization of existing government financial entities for the

provision of microfinance products and services for the poor; and
(4) Promotion of mechanisms necessary for the implementation

of microfinance services, including indigenous microfinance
practices.
SEC. 14. People’s Credit and Finance Corporation (PCFC). –

The People’s Credit and Finance Corporation (PCFC), a government-
controlled corporation registered with the Securities and Exchange
411
Commission and created in accordance with Administrative Order

No. 148 and Memorandum Order No. 261, shall be the vehicle for
the delivery of microfinance services for the exclusive use of the
poor. As a government-owned and -controlled corporation, it shall be
the lead government entity specifically tasked to mobilize financial
resources from both local and international funding sources for
microfinance services for the exclusive use of the poor.
SEC. 15. Increase in the Capitalization of PCFC. – To facilitate

the increase in the capitalization of the PCFC, the President of
the Republic of the Philippines shall take measures to enable the
amendment of the Articles of Incorporation of the PCFC such that:
(a) The authorized capital stock of the PCFC may be increased

from One hundred million pesos (P100,000,000) to Two billion pesos
(P2,000,000,000) divided into twenty million common shares with a
par value of One hundred pesos (P100) per share;
(b) The subscribed capital stock may be increased from One

hundred million pesos (P100,000,000) to Six hundred million pesos
(P600,000,000) and the national government may subscribe the
difference of Five hundred million pesos (P500,000,000);
(c) The initial paid-up capital may be increased from One

hundred million pesos (P100,000,000) to Two hundred fifty million
pesos (P250,000,000), to be increased subsequently to a total of Six
hundred million pesos (P600,000,000), such that at the end of a
period of four (4) years the subscribed capital shall be fully paid- up,
in the following manner:
For the initial increase in paid-up capital during the first year,
the difference of One hundred fifty million pesos (P150,000,000)
shall be paid and appropriated for by government; for the second
year, One hundred fifty million pesos (P150,000,000); for the third
year, One hundred million pesos (P100,000,000); and for the fourth
year, One hundred million pesos (P100,000,000).
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The appropriations for the additional paid-up capital shall be

sourced from the share of the national government in the earnings
of the PAGCOR, in the manner provided for under Section 18, which
provides for the appropriations under this Act.
SEC. 16. Special Credit Windows in Existing Government

Financing Institutions (GFIs). – The existing government financial
institutions shall provide for the savings and credit needs of the
poor. The GFIs such as the Land Bank of the Philippines, Philippine
Postal Bank, Al Amanah Bank, and the Development Bank of the
Philippines are hereby mandated to coordinate with NAPC and
PCFC in setting up special credit windows and other arrangements,
such as the servicing of Small Savers Instruments (SSIs), that will
promote the microfinance program of this Act.
The private financing institutions may also provide the

savings and credit requirements of the poor by setting up similar
credit windows and other arrangements to promote the savings
component of the microfinance program of this Act.
Special credit windows for the poor shall, as far as practicable,

include an allocation for the basic sectors, as defined in this Act,
particularly those living in the rural areas, agrarian reform
communities, and women in the countryside.
SEC. 17. PCFC Privatization. – In the event that the ownership

of the majority of the issued voting stocks of PCFC shall have
passed to private investors (exclusively qualified nongovernment
organizations, people’s organizations and cooperatives), the
stockholders shall cause the registration with the Securities and
Exchange Commission (SEC) of the revised Articles of Incorporation
and By-laws. The PCFC shall thereafter be considered as a privately
organized entity subject to the laws and regulations generally
applied to private corporations.
The chairman of the PCFC may still be a member of the

National Anti-Poverty Commission (NAPC) upon the privatization
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of the PCFC: Provided, That the PCFC will continue its main
purpose of providing for the savings and credit needs of the poor.
TITLE III
APPROPRIATIONS FOR THE NATIONAL ANTI-POVERTY

COMMISSION (NAPC)
AND THE PEOPLE’S DEVELOPMENT TRUST FUND (PDTF)
SEC. 18. Appropriations. – To carry out the provisions of this

Act, the following amounts are appropriated as follows:
(1) The sum of One hundred million pesos (P100,000,000)

is hereby appropriated as the initial operating fund in addition to
the unutilized funds of the rationalized commission and councils.
The sum shall be sourced from the President’s Contingent Fund.
In subsequent years, the amount necessary to implement this Act
shall be included in the annual appropriations. The said amounts
shall be under the management of the NAPC.
(2) The aggregate sum of Four billion and five hundred million
pesos (P4,500,000,000) for ten (10) years is hereby appropriated for
the establishment of the People’s Development Trust Fund (PDTF)
from the share of the national government in the earnings of the
Philippine Amusement and Gaming Corporation (PAGCOR), in the
following manner: on the first year, Three hundred fifty million pesos
(P350,000,000); on the second year, Three hundred fifty million
pesos (P350,000,000); on the third year, Four hundred million pesos
(P400,000,000); on the fourth year, Four hundred million pesos
(P400,000,000); on the fifth year and every year thereafter until the
tenth year, Five hundred million pesos (P500,000,000) annually.
(3) The aggregate sum of Five hundred million pesos

(P500,000,000) for four years shall be appropriated for the increase
in the capitalization of the PCFC, from the share of the national
government in the earnings of the PAGCOR, at such time that the
414
increase in the capitalization of the PCFC, in the manner provided

for under Section 15 of this Act, shall have been effected. The
appropriation shall be made in the following manner: on the first
year, One hundred fifty million pesos (P150,000,000); on the second
year, One hundred fifty million pesos (P150,000,000); on the third
year, One hundred million pesos (P100,000,000); and on the fourth
year, One hundred million pesos (P100,000,000).
SEC. 19. Transitory Provision. – The Social Reform Council

(SRC) and the representatives therein shall, in temporary capacity,
exercise the powers and assume the duties of the NAPC until such
time that the members of NAPC shall have been duly appointed or
designated.
The Office of the President shall formulate the implementing

rules and regulations (IRR) of this Act within six (6) months after
its effectivity.
The assets, liabilities and personnel of PCFP, SRC and PCCD

are hereby transferred to the NAPC. Personnel who cannot be
absorbed by NAPC shall be entitled to a separation pay of one- and-
a-half (1 1/2) months for every year of service and other benefits
under existing retirement laws, at the option of the personnel
concerned.
SEC. 20. Repealing Clause. – All laws, executive orders, rules

and regulations, or parts thereof, inconsistent with this Act are
hereby repealed, amended or modified accordingly. The provisions of
this Act shall not be repealed, amended or modified unless expressly
provided in subsequent general or special laws.
SEC. 21. Separability Clause. – If any provision of this Act

shall be held invalid or unconstitutional, the remaining provisions
thereof not affected thereby shall remain in full force and effect.
415
SEC. 22. Effectivity Clause. – This Act shall be effective on

June 30, 1998.
(Sgd,) ERNESTO M. MACEDA (Sgd.) JOSE DE VENECIA JR.

of Representatives
This Act which is a consolidation of House Bill No. 9360

and Senate Bill No. 1731 was finally passed by the House of
Representatives and the Senate on December 9, 1997 and December
8, 1997, respectively.
(Sgd.) LORENZO E. LEYNES JR. (Sgd.) ROBERTO P. NAZARENO

Secretary of the Senate Secretary General
House of Representatives
Approved, December 11, 1997
(Sgd.) FIDEL V. RAMOS

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10th Congress
S. No. 2245
H. No. 2
AN ACT PRESCRIBING URGENT RELATED MEASURES TO

MODERNIZE THE AGRICULTURE AND FISHERIES
SECTORS OF THE COUNTRY IN ORDER TO ENHANCE
THEIR PROFITABILITY, AND PREPARE SAID SECTORS
FOR THE CHALLENGES OF GLOBALIZATION THROUGH
AN ADEQUATE, FOCUSED AND RATIONAL DELIVERY
OF NECESSARY SUPPORT SERVICES, APPROPRIATING
FUNDS THEREFOR AND FOR OTHER PURPOSES

SEC. 1. Short Title. – This Act shall be known as the

“Agriculture and Fisheries Modernization Act of 1997.”
SEC. 2. Declaration of Policy. – The goals of the national

economy are a more equitable distribution of opportunities, income
and wealth; a sustained increase in the amount of goods and
services produced by the nation for the benefit of the people; and an
expanding productivity as the key to raising the quality of life for
all, especially the underprivileged.
The State shall promote industrialization and full employment

based on sound agricultural development and agrarian reform,
through industries that make full and efficient use of human and
natural resources, and which are competitive in both domestic and
foreign markets. In pursuit of these goals, all sectors of the economy
and all regions of the country shall be given optimum opportunity to
develop. Private enterprises, including corporations, cooperatives,
and similar collective organizations, shall be encouraged to broaden
the base of their ownership.
417
Thus, it is hereby declared the policy of the State to enable

those who belong to the agriculture and fisheries sectors to
participate and share in the fruits of development and growth in a
manner that utilizes the nation’s resources in the most efficient and
sustainable way possible by establishing a more equitable access to
assets, income, basic and support services and infrastructure.
The State shall promote food security, including sufficiency in

our staple food, namely rice and white corn. The production of rice
and white corn shall be optimized to meet our local consumption
and shall be given adequate support by the State.
The State shall adopt the market approach in assisting the

agriculture and fisheries sectors while recognizing the contribution
of said sectors to food security, environmental protection, and
balanced urban and rural development, without neglecting the
welfare of the consumers, especially the lower income groups.
The State shall promote market-oriented policies in agricultural
production to encourage farmers to shift to more profitable crops.
The State shall empower the agriculture and fisheries sectors

to develop and sustain themselves. Toward this end, the State shall
ensure the development of the agriculture and fisheries sectors in
accordance with the following principles:
a) Poverty Alleviation and Social Equity. – The State shall

ensure that the poorer sectors of society have equitable access to
resources, income opportunities, basic and support services and
infrastructure especially in areas where productivity is low as a
means of improving their quality of life compared with other sectors
of society;
b) Food Security. – The State shall assure the availability,

adequacy, accessibility and affordability of food supplies to all at all
times;
c) Rational Use of Resources. – The State shall adopt a rational

approach in the allocation of public investments in agriculture and
418
fisheries in order to assure efficiency and effectiveness in the use of

scarce resources and thus obtain optimal returns on its investments;
d) Global Competitiveness. – The State shall enhance the

competitiveness of the agriculture and fisheries sectors in both
domestic and foreign markets;
e) Sustainable Development. – The State shall promote

development that is compatible with the preservation of the
ecosystem in areas where agriculture and fisheries activities
are carried out. The State should exert care and judicious use
of the country’s natural resources in order to attain long-term
sustainability;
f) People Empowerment. – The State shall promote people

empowerment by enabling all citizens through direct participation
or through their duly elected, chosen or designated representatives
the opportunity to participate in policy formulation and decision-
making by establishing the appropriate mechanisms and by giving
them access to information; and
g) Protection from Unfair Competition. – The State shall

protect small farmers and fisherfolk from unfair competition such
as monopolistic and oligopolistic practices by promoting a policy
environment that provides them priority access to credit and
strengthened cooperative-based marketing system.
SEC. 3. Statement of Objectives. – This Act shall have the

following objectives:
a) To modernize the agriculture and fisheries sectors by

transforming these sectors from a resource-based to a technology-
based industry;
b) To enhance profits and incomes in the agriculture and

fisheries sectors, particularly the small farmers and fisherfolk, by
ensuring equitable access to assets, resources and services, and
419
promoting higher-value crops, value-added processing, agribusiness

activities, and agro-industrialization;
c) To ensure the accessibility, availability and stable supply

of food to all at all times;
d) To encourage horizontal and vertical integration,

consolidation and expansion of agriculture and fisheries activities,
groups, functions and other services through the organization of
cooperatives, farmers’ and fisherfolk’s associations, corporations,
nucleus estates, and consolidated farms and to enable these entities
to benefit from economies of scale, afford them a stronger negotiating
position, pursue more focused, efficient and appropriate research
and development efforts and enable them to hire professional
managers;
e) To promote people empowerment by strengthening

people’s organizations, cooperatives and NGOs and by establishing
and improving mechanisms and processes for their participation in
government decision-making and implementation;
f) To pursue a market-driven approach to enhance the

comparative advantage of our agriculture and fisheries sectors in
the world market;
g) To induce the agriculture and fisheries sectors to ascend

continuously the value-added ladder by subjecting their traditional
or new products to further processing in order to minimize the
marketing of raw, unfinished or unprocessed products;
h) To adopt policies that will promote industry dispersal and

rural industrialization by providing incentives to local and foreign
investors to establish industries that have backward linkages to the
country’s agriculture and fisheries resource base;
i) To provide social and economic adjustment measures that

increase productivity and improve market efficiency while ensuring
420
the protection and preservation of the environment and equity for

small farmers and fisherfolk; and
j) To improve the quality of life of all sectors.
SEC. 4. Definition of Terms. –
“Agrarian Reform Community” is a barangay at the minimum

or a cluster of contiguous barangays where there is a critical mass
of farmers or farm workers and which features the main thrust
of agrarian development: land tenure improvement and effective
delivery of support services.
“Agricultural Lands” refers to lands devoted to or suitable for

the cultivation of the soil, planting of crops, growing of trees, raising
of livestock, poultry, fish or aquaculture production, including the
harvesting of such farm products, and other farm activities and
practices performed in conjunction with such farming operations
by persons whether natural or juridical and not classified by law
as mineral land, forest land, residential land, commercial land, or
industrial land.
“Agricultural Land Use Conversion” refers to the process of

changing the use of agricultural land to non-agricultural uses.
“Agricultural Sector” is the sector engaged in the cultivation of

the soil, planting of crops, growing of fruit trees, raising of livestock,
poultry, or fish, including the harvesting and marketing of such
farm products, and other farm activities and practices.
“Agricultural Mechanization” is the development, adoption,

manufacture and application of appropriate location-specific,
and cost-effective agricultural technology using human, animal,
mechanical, electrical and other non-conventional sources of energy
for agricultural production and post-harvest operations consistent
with agronomic conditions and for efficient and economic farm
management.
421
“Agriculture and Fisheries Modernization” is the process of

transforming the agriculture and fisheries sectors into one that is
dynamic, technologically advanced and competitive yet centered on
human development, guided by the sound practices of sustainability
and the principles of social justice.
“Agro-Processing Activities” refers to the processing of raw

agricultural and fishery products into semi-processed or finished
products which include materials for the manufacture of food and/or
non-food products, pharmaceuticals and other industrial products.
“Banks”, collectively used, means government banks and

private banks, rural banks and cooperative banks.
“Basic Needs Approach to Development” involves the

identification, production and marketing of wage goods and services
for consumption of rural communities.
“Communal Irrigation System (CIS)” is an irrigation system

that is managed by a bona fide Irrigators Association.
“Competitive Advantage” refers to competitive edge in terms

of product quality and/or price. It likewise refers to the ability to
produce a product with the greatest relative efficiency in the use of
resources.
“Cooperatives” refers to duly registered associations of

persons with a common bond of interest who have voluntarily
joined together to achieve a lawful common social and economic
end, making equitable contributions to the capital required and
accepting a fair share of the risks and benefits of the undertaking in
accordance with universally accepted cooperative principles.
“Department” refers to the Department of Agriculture.
“Economic Scale” refers to the minimum quantity or volume

of goods required to be efficient.
422
“Economies of Scale” refers to the decrease in unit cost as

more units are produced due to the spreading out of fixed costs over
a greater number of units produced.
“Empowerment” involves providing authority, responsibility

and information to people directly engaged in agriculture and fishery
production, primarily at the level of the farmers, fisherfolk and
those engaged in food and non-food production and processing, in
order to give them wider choices and enable them to take advantage
of the benefits of the agriculture and fishery industries.
“Extension Services” refers to the provision of training,

information, and support services by the government and non-
government organizations to the agriculture and fisheries sectors
to improve the technical, business and social capabilities of farmers
and fisherfolk.
“Farmer’s and Fisherfolk’s Organizations or Associations”

refers to farmers and fisherfolk’s cooperatives, associations, or
corporations duly registered with appropriate government agencies
and which are composed primarily of small agricultural producers,
farmers, farm workers, agrarian reform beneficiaries, fisherfolk
who voluntarily join together to form business enterprises or non-
business organizations which they themselves own, control and
patronize.
“Farm-to-Market Roads” refers to roads linking the agriculture

and fisheries production sites, coastal landing points and post-
harvest facilities to the market and arterial roads and highways.
“Fisheries” refers to all systems or networks of interrelated

activities which include the production, growing, harvesting,
processing, marketing, developing, conserving, and managing of all
aquatic resources and fisheries areas.
“Fisheries Sector” is the sector engaged in the production,

growing, harvesting, processing, marketing, developing, conserving
and managing of aquatic resources and fisheries areas.
423
“Fishing” refers to the application of techniques using various

gear in catching fish and other fisheries products.
“Fishing Grounds” refers to areas in any body of water where

fish and other aquatic resources congregate and become target of
capture.
“Food Security” refers to the policy objective, plan and

strategy of meeting the food requirements of the present and
future generations of Filipinos in substantial quantity, ensuring
the availability and affordability of food to all, either through
local production or importation, or both, based on the country’s
existing and potential resource endowment and related production
advantages, and consistent with the overall national development
objectives and policies. However, sufficiency in rice and white corn
should be pursued.
“Fresh Agricultural and Fishery Products” refers to agricultural

and fisheries products newly taken or captured directly from its
natural state or habitat, or those newly harvested or gathered from
agricultural areas or bodies of water used for aquaculture.
“Global Competitiveness” refers to the ability to compete

in terms of price, quality and volume of agriculture and fishery
products relative to those of other countries.
“Gross Value-Added” refers to the total value, excluding the

value of non-agricultural or fishery intermediate inputs, of goods
and services contributed by the agricultural and fisheries sectors.
“Headworks” refers to the composite parts of the irrigation

system that divert water from natural bodies of water such as
rivers, streams, and lakes.
“Industrial Dispersal” refers to the encouragement given to

manufacturing enterprises to establish their plants in rural areas.
Such firms normally use agricultural raw materials either in their
primary or intermediate state.
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“Irrigable Lands” refers to lands which display marked

characteristics justifying the operation of an irrigation system.
“Irrigated Lands” refers to lands serviced by natural irrigation

or irrigation facilities. These include lands where water is not
readily available as existing irrigation facilities need rehabilitation
or upgrading or where irrigation water is not available year-round.
“Irrigation System” refers to a system of irrigation facilities

covering contiguous areas.
“Irrigators’ Association (IA)” refers to an association of farmers

within a contiguous area served by a National Irrigation System or
Communal Irrigation System.
“Land Use” refers to the manner of utilizing the land, including

its allocation, development and management.
“Land Use Plan” refers to a document embodying a set of

policies accompanied by maps and similar illustrations which
represent the community-desired pattern of population distribution
and a proposal for the future allocation of land to the various land-
using activities, in accordance with the social and economic objectives
of the people. It identifies the location, character and extent of the
area’s land resources to be used for different purposes and includes
the process and the criteria employed in the determination of the
land use.
“Land Use Planning” refers to the act of defining the

allocation, utilization, development and management of all lands
within a given territory or jurisdiction according to the inherent
qualities of the land itself and supportive of sustainable, economic,
demographic, socio-cultural and environmental objectives as an aid
to decision-making and legislation.
“Main Canal” refers to the channel where diverted water from

a source flows to the intended area to be irrigated.
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“Market Infrastructure” refers to facilities including, but

not limited to, market buildings, slaughterhouses, holding pens,
warehouses, market information centers, connecting roads,
transport and communication and cold storage used by the farmers
and fisherfolk in marketing their produce.
“National Information Network (NIN)” refers to an information

network which links all offices and levels of the Department with
various research institutions and local end-users, providing easy
access to information and marketing services related to agriculture
and fisheries.
“National Irrigation System (NIS)” refers to a major irrigation

system managed by the National Irrigation Administration.
“Network of Protected Areas for Agricultural and Agro-

industrial Development (NPAAAD)” refers to agricultural areas
identified by the Department through the Bureau of Soils and
Water Management in coordination with the National Mapping
and Resource Information Authority in order to ensure the efficient
utilization of land for agriculture and agro-industrial development
and promote sustainable growth. The NPAAAD covers all irrigated
areas, all irrigable lands already covered by irrigation projects with
firm funding commitments; all alluvial plain land highly suitable for
agriculture whether irrigated or not; agro-industrial croplands or
lands presently planted to industrial crops that support the viability
of existing agricultural infrastructure and agro-based enterprises,
highlands, or areas located at an elevation of five hundred (500)
meters or above and have the potential for growing semi-temperate
and high-value crops; all agricultural lands that are ecologically
fragile, the conversion of which will result in serious environmental
degradation, and mangrove areas and fish sanctuaries.
“On-Farm Irrigation Facilities” refers to composite facilities

that permit entry of water to paddy areas and consist of farm ditches
and turnouts.
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“Primary Processing” refers to the physical alteration of

raw agricultural or fishery products with or without the use of
mechanical facilities.
“Post-Harvest Activities” includes, but is not

limited to, threshing, drying, milling, grading, storing,
and handling of produce and such other activities
as stripping, winnowing, chipping and washing.
“Post-Harvest Facilities” includes, but is not limited to,

threshers, moisture meters, dryers, weighing scales, milling
equipment, fish ports, fish landings, ice plants and cold storage
facilities, processing plants, warehouses, buying stations, market
infrastructure and transportation facilities.
“Premature Conversion of Agricultural Land” refers to the

undertaking of any development activity, the results of which
modify or alter the physical characteristics of the agricultural lands
to render them suitable for non-agricultural purposes, without an
approved order of conversion from the DAR.
“Resource Accounting” is a process of tracking changes in the

environment and natural resources biophysically and economically
(in monetary terms).
“Resource-based” refers to the utilization of natural resources.
“Rural Industrialization” refers to the process by which the

economy is transformed from one that is predominantly agricultural
to one that is dominantly industrial and service-oriented. Agriculture
provides the impetus and push for industry and services through
the market that it creates, the labor that it absorbs, and the income
that it generates which is channeled to industry and services. As
development continues, with agriculture still an important sector,
industry and services begin to generate income and markets and
concomitantly increase their share of total income.
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“Strategic Agriculture and Fisheries Development Zones

(SAFDZ)” refers to the areas within the NPAAAD identified for
production, agro-processing and marketing activities to help develop
and modernize, with the support of government, the agriculture and
fisheries sectors in an environmentally and socio-culturally sound
manner.
“Secondary Canal” refers to the channel connected to the main

canal which distributes irrigation to specific areas.
“Secondary Processing” refers to the physical transformation

of semi-processed agricultural or fishery products.
“Shallow Tube Well (STW)” refers to a tube or shaft vertically

set into the ground for the purpose of bringing ground water to the
soil surface from a depth of less than 20 meters by suction lifting.
“Small Farmers and Fisherfolk” refers to natural persons

dependent on small-scale subsistence farming and fishing activities
as their primary source of income.
“Small and Medium Enterprise (SME)” refers to any business

activity or enterprise engaged in industry, agribusiness and/or
services, whether single proprietorship, cooperative, partnership or
corporation whose total assets, inclusive of those arising from loans
but exclusive of the land on which the particular business entity’s
office, plant and equipment are situated, must have value falling
under the following categories:
Micro : not more than P1,500,000
Small : P1,500,001 to P15,000,000
Medium : P15,000,001 to P60,000,000
The Department, in consultation with the Congressional

Oversight Committee on Agricultural and Fisheries Modernization,
may adjust the above values as deemed necessary.
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“Socio-culturally Sound” means the consideration of the social

structure of the community such as leadership pattern, distribution
of roles across gender and age groups, the diversity of religion
and other spiritual beliefs, ethnicity and cultural diversity of the
population.
“Technology-based” refers to utilization of technology.
“Zoning Ordinance” refers to a local legislation approving the

development/ land use plan and providing for the regulations and
other conditions on the uses of land including the limitation on the
infrastructure that maybe placed within the territorial jurisdiction
of a city or municipality.
TITLE 1
PRODUCTION AND MARKETING SUPPORT

SERVICES
Chapter 1
Strategic Agricultural and Fisheries

Development Zones
SEC. 5. Declaration of Policy. – It is the policy of the State to

ensure that all sectors of the economy and all regions of the country
shall be given optimum opportunity to develop through the rational
and sustainable use of resources peculiar to each area in order to
maximize agricultural productivity, promote efficiency and equity
and accelerate the modernization of the agriculture and fisheries
sectors of the country.
SEC. 6. Network of Areas for Agricultural and Agro-Industrial

Development. – The Department shall, within six (6) months
after the approval of this Act, and in consultation with the local
government units, appropriate government agencies, concerned
non-government organizations (NGOs) and organized farmers’ and
fisherfolk’s groups, identify the Strategic Agriculture and Fisheries
429
Development Zones (SAFDZ) within the network of protected areas

for agricultural and agro-industrial development to ensure that
lands are efficiently and sustainably utilized for food and non-food
production and agro-industrialization.
The SAFDZ, which shall serve as centers where development

in the agriculture and fisheries sectors are catalyzed in an
environmentally and socio-culturally sound manner, shall be
identified on the basis of the following criteria:
a) Agro-climatic and environmental conditions giving the

area a competitive advantage in the cultivation, culture, production
and processing of particular crops, animals and aquatic products;
b) Strategic location of the area for the establishment of

agriculture or fisheries infrastructure, industrial complexes,
production and processing zones;
c) Strategic location of the area for market development and

market networking both at the local and international levels; and
d) Dominant presence of agrarian reform communities

(ARCs) and/or small owner-cultivators and amortizing owners/
agrarian reform beneficiaries and other small farmers and fisherfolk
in the area.
The SAFDZ shall have an integrated development plan

consisting of production, processing, investment, marketing,
human resources and environmental protection components.
SEC. 7. Model Farms. – The Department, in coordination with

the local government units (LGUs) and appropriate government
agencies, may designate agrarian reform communities (ARCs) and
other areas within the SAFDZ suitable for economic scale production
which will serve as model farms.
Farmer-landowners whose lands are located within these

designated areas shall be given the option to enter into a management
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agreement with corporate entities with proven competence in farm

operations and management, high-end quality production and
productivity through the use of up-to-date technology and collateral
resources such as skilled manpower, adequate capital and credit,
and access to markets, consistent with existing laws.
SEC. 8. Mapping. – The Department, through the Bureau of

Soils and Water Management (BSWM), in coordination with the
National Mapping and Resource Information Authority (NAMRIA)
and the Housing and Land Use Regulatory Board (HLURB) shall
undertake the mapping of the network of areas for agricultural
and agro-industrial development for all municipalities, cities at an
appropriate scale. The BSWM may call on other agencies to provide
technical and other logistical support in this undertaking.
SEC. 9. Delineation of Strategic Agriculture and Fisheries

Development Zones. – The Department, in consultation with the
Department of Agrarian Reform, the Department of Trade and
Industry, the Department of Environment and Natural Resources,
Department of Science and Technology, the concerned LGUs,
the organized farmers and fisherfolk groups, the private sector
and communities shall, without prejudice to the development of
identified economic zones and free ports, establish and delineate,
based on sound resource accounting, the SAFDZ within one (1) year
from the effectivity of this Act.
All irrigated lands, irrigable lands already covered by

irrigation projects with firm funding commitments, and lands with
existing or having the potential for growing high-value crops so
delineated and included within the SAFDZ shall not be converted
for a period of five (5) years from the effectivity of this Act: Provided,
however, That not more than five percent (5%) of the said lands
located within the SAFDZ may be converted upon compliance with
existing laws, rules, regulations, executive orders and issuances,
and administrative orders relating to land use conversion: Provided,
further, That thereafter: 1) a review of the SAFDZ, specifically
on the productivity of the areas, improvement of the quality of
life of farmers and fisherfolk, and efficiency and effectiveness of
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the support services shall be conducted by the Department and

the Department of Agrarian Reform, in coordination with the
Congressional Oversight Committee on Agricultural and Fisheries
Modernization; 2) conversion may be allowed, if at all, on a case-
to-case basis subject to existing laws, rules, regulations, executive
orders and issuances, and administrative orders governing land use
conversion; and, 3) in case of conversion, the land owner will pay the
Department the amount equivalent to the government’s investment
cost including inflation.
SEC. 10. Preparation of Land Use and Zoning Ordinance. –

Within one (1) year from the finalization of the SAFDZ, in every city
and municipality, all cities and municipalities shall have prepared
their respective land use and zoning ordinance incorporating the
SAFDZ, where applicable. Thereafter, all land use plans and zoning
ordinances shall be updated every four (4) years or as often as may
be deemed necessary upon the recommendation of the Housing and
Land Use Regulatory Board and must be completed within the first
year of the term of office of the mayor. If the cities/municipalities
fail to comply with the preparation of zoning and land use plans,
the DILG shall impose the penalty as provided for under Republic
Act No. 7160.
SEC. 11. Penalty for Agricultural Inactivity and Premature

Conversion. – Any person or juridical entity who knowingly or
deliberately causes any irrigated agricultural lands seven (7)
hectares or larger, whether contiguous or not, within the protected
areas for agricultural development, as specified under Section 6 in
relation to Section 9 of this Act, to lie idle and unproductive for a
period exceeding one (1) year, unless due to force majeure, shall be
subject to an idle land tax of Three Thousand Pesos (P3,000.00) per
hectare per year. In addition, the violator shall be required to put
back such lands to productive agricultural use. Should the continued
agricultural inactivity, unless due to force majeure, exceed a period
of two (2) years, the land shall be subject to escheat proceedings.
Any person found guilty of premature or illegal conversion

shall be penalized with imprisonment of two (2) to six (6) years, or a
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fine equivalent to one hundred percent (100%) of the government’s

investment cost, or both, at the discretion of the court, and an
accessory penalty of forfeiture of the land and any improvement
thereon.
In addition, the DAR may impose the following penalties,

after determining, in an administrative proceedings, that violation
of this law has been committed:
a) Cancellation or withdrawal of the authorization for land

use conversion; and
b) Blacklisting, or automatic disapproval of pending and

subsequent conversion applications that they may file with the
DAR.
SEC. 12. Protection of Watershed Areas. – All watersheds

that are sources of water for existing and potential irrigable areas
and recharge areas of major aquifers identified by the Department
of Agriculture and the Department of Environment and Natural
Resources shall be preserved as such at all times.
Chapter 2
Agriculture and Fisheries

Modernization Plan
SEC. 13. Agriculture and Fisheries Modernization Plan

(AFMP). – The Department, in consultation with the farmers and
fisherfolk, the private sector, NGOs, people’s organizations and the
appropriate government agencies and offices, shall formulate and
implement a medium- and long-term comprehensive Agriculture
and Fisheries Modernization Plan.
The Agriculture and Fisheries Modernization Plan shall focus

on five (5) major concerns:
a) Food security;
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b) Poverty alleviation and social equity;

c) Income enhancement and profitability, especially for
farmers and fisherfolk;
d) Global competitiveness; and
e) Sustainability.
SEC. 14. Food Security, Poverty Alleviation, Social Equity

and Income Enhancement. – The Department, in coordination with
other concerned departments or agencies, shall formulate medium-
and long-term plans addressing food security, poverty alleviation,
social equity and income enhancement concerns based on, but not
limited to, the following goals and indicators of development:
a) Increased income and profit of small farmers and

fisherfolks;
b) Availability of rice and other staple foods at affordable
prices;
c) Reduction of rural poverty and income inequality;
d) Reduction of the incidence of malnutrition;
e) Reduction of rural unemployment and underemployment;
and
f) Improvement in land tenure of small farmers.
SEC. 15. Global Competitiveness and Sustainability. – The

Department shall formulate medium- and long-term plans aimed
at enhancing the global competitiveness and sustainability of the
country in agriculture and fisheries based on, but not limited to, the
following goals and indicators of development:
a) Increase in the volume, quality and value of agriculture

and fisheries production for domestic consumption and
for exports;
b) Reduction in post-harvest losses;
c) Increase in the number/types and quality of processed
agricultural and fishery products;
d) Increase in the number of international trading partners
in agriculture and fishery products;
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e) Increase in the number of sustainable agriculture

and fisheries firms engaged in domestic production,
processing, marketing and export activities;
f) Increase in and wider level of entrepreneurship among
farmers and fisherfolk in the area;
g) Increase in the number of farms engaged in diversified
farming; and,
h) Reduced use of agro-chemicals that are harmful to health
and the environment.
SEC. 16. Global Climate Change. – The Department, in

coordination with the Philippine Atmospheric, Geophysical and
Astronomical Service Administration (P.A.G.A.S.A.) and such
other appropriate government agencies, shall devise a method of
regularly monitoring and considering the effect of global climate
changes, weather disturbances, and annual productivity cycles for
the purpose of forecasting and formulating agriculture and fisheries
production programs.
SEC. 17. Special Concerns. – The Department shall consider

the following areas of concerns, among others, in formulating the
AFMP:
a) Strategies and programs aimed to achieve growth and

profitability targets in the context of the constraints and challenges
of the World Trade Organization (WTO);
b) Programs arising from the implementation of the Agrarian
Reform Program;
c) Identification of SAFDZ;
d) Infrastructure and market support for the SAFDZs;
e) Infrastructure support to make agriculture and fisheries
production inputs, information and technology readily available to
farmers, fisherfolk, cooperatives and entrepreneurs;
f) Credit programs for small farmers and fisherfolk, and
agricultural graduates;
g) Comprehensive and integrated agriculture and fisheries
research, development and extension services;
435
h) Preservation of biodiversity, genetic materials and the

environment;
i) Adequate and timely response against environmental
threats to agriculture and fisheries;
j) Rural non-farm employment;
k) Access to aquatic resources by fisherfolk;
l) Basic needs program for the impoverished sectors of
society who will be affected by liberalization;
m) Indigenous peoples;
n) Rural youth;
o) Women;
p) Handicapped persons; and
q) Senior citizens.
SEC. 18. Monitoring and Evaluation. – The Department shall

develop the capability of monitoring the AFMP through a Program
Benefit Monitoring and Evaluation System (PBMES). In addition,
it can secure the services of independent consultants and external
evaluators in order to assess its over-all impact. The Department
shall make periodic reports to the Congressional Oversight
Committee on Agriculture and Fisheries Modernization.
SEC. 19. Role of Other Agencies. – All units and agencies of the
government shall support the Department in the implementation of
the AFMP.
In particular, the Department of Public Works and Highways

shall coordinate with the Department with respect to the
infrastructure support aspect of the plan in order to accomplish
networking of related infrastructure facilities.
The Department of Interior and Local Government shall

provide assistance to the Department in mobilizing resources under
the control of local government units.
The Departments of Trade and Industry, Agrarian Reform,

Science and Technology, and Environment and Natural Resources
436
shall coordinate their investment programs and activities to

complement the Department’s implementation of the AFMP.
The Department of Education, Culture and Sports, the

Technical Education and Skills Development Authority, the
Department of Health and the Department of Social Services and
Development shall coordinate with the Department to determine
the financial requirements of small farmers and fisherfolk to adjust
to the effects of modernization as envisioned in the Agriculture and
Fisheries Modernization Plan.
The Department of Environment and Natural Resources shall

provide technical assistance and advice on the delineation of the
SAFDZ and on the development of the Department’s environmental
protection plans.
The departments referred to above shall be required to

identify in their budget proposals the allocation intended for the
improvement of the environmental and other conditions affecting
agriculture and fisheries.
Congressional initiatives shall also be coordinated by the

Committees on Agriculture of both Houses to complement and
enhance the programs and activities of the Department in the
implementation of the AFMP.
Chapter 3
Credit
SEC. 20. Declaration of Policy. – It is hereby declared the

policy of the State to alleviate poverty and promote vigorous growth
in the countryside through access to credit by small farmers,
fisherfolk, particularly the women involved in the production,
processing and trading of agriculture and fisheries products and the
small and medium scale enterprises (SMEs) and industries engaged
in agriculture and fisheries.
437
Interest rates shall be determined by market forces, provided

that existing credit arrangements with agrarian reform beneficiaries
are not affected. Emphasis of the credit program shall be on proper
management and utilization.
In this regard, the State enjoins the active participation of the

banking sector and government financial institutions in the rural
financial system.
SEC. 21. Phase Out of the Directed Credit Programs (DCPs)

and Provision for the Agro-Industry Modernization Credit and
Financing Program (AMCFP). – The Department shall implement
existing DCPs; however, the Department shall, within a period of
four (4) years from the effectivity of this Act, phase-out all DCPs
and deposit all its loanable funds including those under the
Comprehensive Agricultural Loan Fund (CALF) including new funds
provided by this Act for the AMCFP and transfer the management
thereof to cooperative banks, rural banks, government financial
institutions and viable NGOs for the Agro-Industry Modernization
Credit Financing Program (AMCFP). Interest earnings of the said
deposited loan funds shall be reverted to the AMCFP.
SEC. 22. Coverage. – An agriculture, fisheries and agrarian

reform credit and financing system shall be designed for the use
and benefit of farmers, fisherfolk, those engaged in food and non-
food production, processing and trading, cooperatives, farmers’/
fisherfolk’s organization, and SMEs engaged in agriculture and
fisheries, hereinafter referred to in this chapter as the “beneficiaries.”
SEC. 23. Scope of the Agro-Industry Modernization Credit and

Financing Program (AMCFP). – The Agro-industry Modernization
Credit and Financing Program shall include the packaging and
delivery of various credit assistance programs for the following:
a) Agriculture and fisheries production including processing

of fisheries and agri-based products and farm inputs;
b) Acquisition of work animals, farm and fishery equipment
and machinery;
438
c) Acquisition of seeds, fertilizer, poultry, livestock, feeds

and other similar items;
d) Procurement of agriculture and fisheries products for
storage, trading, processing and distribution;
e) Acquisition of water pumps and installation of tube wells
for irrigation;
f) Construction, acquisition and repair of facilities for
production, processing, storage, transportation, communication,
marketing and such other facilities in support of agriculture and
fisheries;
g) Working capital for agriculture and fisheries graduates to
enable them to engage in agriculture and fisheries-related economic
activities;
h) Agribusiness activities which support soil and water
conservation and ecology-enhancing activities;
i) Privately-funded and LGU-funded irrigation systems that
are designed to protect the watershed;
j) Working capital for long-gestating projects; and
k) Credit guarantees on uncollateralized loans to farmers
and fisherfolk.
SEC. 24. Review of the mandates of Land Bank of the

Philippines, Philippine Crop Insurance Corporation, Guarantee
Fund For Small and Medium Enterprises, Quedan and Rural Credit
Guarantee Corporation, Agricultural Credit Policy Council. – The
Department of Finance shall commission an independent review of
the charters and the respective programs of the Land Bank of the
Philippines (LBP), Philippine Crop Insurance Corporation (PCIC),
Guarantee Fund for Small and Medium Enterprises (GSFME),
Quedan and Rural Credit Guarantee Corporation (Quedancor),
and Agricultural Credit Policy Council (ACPC), and recommend
policy changes and other measures to induce the private sector’s
participation in lending to agriculture and to improve credit access
by farmers and fisherfolk: Provided, That agriculture and fisheries
projects with long gestation period shall be entitled to a longer grace
period in repaying the loan based on the economic life of the project.
439
The Land Bank of the Philippines, shall, in accordance with

its original mandate, focus primarily on plans and programs in
relation to the financing of agrarian reform and the delivery of
credit services to the agriculture and fisheries sectors, especially to
small farmers and fisherfolk.
The review shall start six (6) months after the enactment of
this Act. Thereafter, the review shall make recommendations to
the appropriate Congressional Committees for possible legislative
actions and to the Executive Branch for policy and program changes
within six (6) months after submission.
SEC. 25. Rationalization of Credit Guarantee Schemes and

Funds. – All existing credit guarantee schemes and funds applicable
to the agriculture and fishery sectors shall be rationalized and
consolidated into an Agriculture and Fisheries Credit Guarantee
Fund. The rationalization and consolidation shall cover the credit
guarantee schemes and funds operated by the Quedancor, the
GFSME and the Comprehensive Agricultural Loan Fund. The
Agriculture and Fisheries Credit Guarantee Fund shall be managed
and implemented by the Quedancor: Provided, That representation
to the Quedancor Board shall be granted to cooperatives, local
government units and rural financial institutions: Provided, further,
That credit guarantee shall be given only to small-scale agriculture
and fisheries activities and to countryside micro-, small, and medium
enterprises. It may also cover loan guarantees for purchase orders
and sales contracts.
The Agriculture and Fisheries Credit Guarantee Fund shall

be funded by at least ten percent (10%) of the funding allocation for
the AMCFP.
Chapter 4
Irrigation
SEC. 26. Declaration of Policy. – It is the policy of the State to

use its natural resources rationally and equitably. The State shall
440
prevent the further destruction of watersheds, rehabilitate existing

irrigation systems and promote the development of irrigation
systems that are effective, affordable, appropriate, and efficient.
In the choice of location-specific irrigation projects, the

economic principle of comparative advantage shall always be
adhered to.
SEC. 27. Research and Development. – Irrigation Research

and Development (R&D) shall be pursued and priority shall be given
to the development of effective, appropriate and efficient irrigation
and water management technologies.
The Department shall coordinate with the Department of

Environment and Natural Resources concerning the preservation
and rehabilitation of watersheds to support the irrigation systems.
SEC. 28. Criteria for Selection of Irrigation Development

Scheme. – The selection of appropriate scheme of irrigation
development shall be location-specific and based on the following
criteria:
a) Technical feasibility;
b) Cost-effectiveness;
c) Affordability, low investment cost per unit area;
d) Sustainability and simplicity of operation;
e) Recovery of operation and maintenance cost;
f) Efficiency in water use;
g) Length of gestation period; and
h) Potential for increasing unit area productivity.
All irrigation projects shall, in addition to the criteria

enumerated above, be subjected to a social cost-benefit analysis.
SEC. 29. Simplified Public Bidding. – The construction,

repair, rehabilitation, improvement, or maintenance of irrigation
projects and facilities shall follow the Commission on Audit (COA)
rules on simplified public bidding.
441
Irrigation projects undertaken by farmers, farmers’

organizations and other private entities whose funding is partly
or wholly acquired by way of loan from government financial
institutions shall not be subject to the bidding requirements of the
government.
SEC. 30. National Irrigation Systems (NIS). – The National

Irrigation Administration (NIA) shall continue to plan, design,
develop, rehabilitate and improve the NISs. It shall continue to
maintain and operate the major irrigation structures including the
headwork’s and main canals.
In addition, the NIA is mandated to gradually turn over

operation and maintenance of the National Irrigation System’s
secondary canals and on-farm facilities to Irrigators’ Associations.
SEC. 31. Communal Irrigation Systems (CIS). – The

Department shall, within five (5) years from the effectivity of
this Act, devolve the planning, design and management of CISs,
including the transfer of NIA’s assets and resources in relation to
the CIS, to the LGUs. The budget for the development, construction,
operation and maintenance of the CIS and other types of irrigation
systems shall be prepared by and coursed through the LGUs. The
NIA shall continue to provide technical assistance to the LGUs even
after complete devolution of the Irrigation Systems to the LGUs, as
may be deemed necessary.
SEC. 32. Minor Irrigation Schemes. – The Department shall

formulate and develop a plan for the promotion of a private sector-
led development of minor irrigation systems, such as Shallow
Tube Wells (STWs), Low-Lift pumps (LLPs) and other inundation
systems. The plan shall be included in the Short-term Agriculture
and Fisheries Modernization Plan.
SEC. 33. Other Irrigation Construction Schemes. – The

Government shall also encourage the construction of irrigation
facilities through other viable schemes for the construction of
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irrigation such as build-operate-transfer, build-transfer and other

schemes that will fast-track the development of irrigation systems.
SEC. 34. Guarantee of the National Government. – To make

build-operate-transfer (BOT) projects for irrigation attractive
to proponents, the national government shall issue the needed
payment guarantee for BOT projects which shall answer for default
of the National Irrigation Administration. Such amounts needed to
answer for the payment guarantee is hereby to be appropriated.
SEC. 35. Irrigation Service Fees (ISF). – Upon effectivity

of this Act, the NIA shall immediately review the ISF rates and
recommend to the Department reasonable rates within six (6)
months from the effectivity of this Act.
SEC. 36. Monitoring and Evaluation. – The Department

shall monitor the implementation of R & D programs and irrigation
projects. The Department shall review all existing irrigation systems
every four (4) years, to determine their viability or ineffectiveness.
The Department shall employ the services of independent evaluators
to assess the over-all impact of the country’s irrigation development.
SEC. 37. Exemption from Election Ban. – The repair,

maintenance and rehabilitation of irrigation facilities as well as
BOT irrigation projects shall be exempted from the scope of the
election ban on public works.
Chapter 5
Information and Marketing

Support Service

policy of the State to empower Filipino farmers and fisherfolk,
particularly the women, involved in agriculture and fisheries
through the provision of timely, accurate and responsive business
information and efficient trading services which will link them to
profitable markets for their products. They shall likewise be given
443
innovative support toward the generation of maximum income

through assistance in marketing.
SEC. 39. Coverage. – A market information system shall be

installed for the use and benefit of, but not limited to, the farmers
and fisherfolk, cooperatives, traders, processors, the LGUs and the
Department.
SEC. 40. The Marketing Assistance System. – The Department

shall establish a National Marketing Assistance Program that will
immediately lead to the creation of a national marketing umbrella
in order to ensure the generation of the highest possible income
for the farmers and fisherfolk or groups of farmers and fisherfolk,
matching supply and demand in both domestic and foreign markets.
SEC. 41. National Information Network. – A National

Information Network (NIN) shall be set up from the Department
level down to the regional, provincial and municipal offices within
one (1) year from the approval of this Act taking into account existing
information networks and systems.
The NIN shall likewise link the various research institutions

for easy access to data on agriculture and fisheries research
and technology. All departments, agencies, bureaus, research
institutions, and local government units shall consolidate and
continuously update all relevant information and data on a periodic
basis and make such data available on the Internet.
SEC. 42. Information and Marketing Service. – The NIN shall

provide information and marketing services related to agriculture
and fisheries which shall include the following:
a) Supply data;
b) Demand data;
c) Price and price trends;
d) Product standards for both fresh and processed agricultural
and fisheries products;
444
e) Directory of, but not limited to, cooperatives, traders, key

market centers, processors and business institutions concerned with
agriculture and fisheries at the provincial and municipal levels;
f) Research information and technology generated from
research institutions involved in agriculture and fisheries;
g) International, regional and local market forecasts; and
h) Resource accounting data.
SEC. 43. Initial Set-up. – The Department shall provide

technical assistance in setting-up the NIN at the local level through
the cooperatives and the LGUs: Provided, That, at the local level, a
system that will make marketing information and services related
to agriculture and fisheries will be readily available in the city/
municipal public market for the benefit of the producers, traders
and consumers.
SEC. 44. Role of Government Agencies. – The Bureau of

Agricultural Statistics will serve as the central information server
and will provide technical assistance to end-users in accessing and
analyzing product and market information and technology.
The Department of Transportation and Communications shall

provide technical and infrastructure assistance to the Department
in setting up the NIN.
LGUs shall coordinate with the Department for technical

assistance in order to accelerate the establishment and training of
information end-users in their respective jurisdictions.
The Cooperative Development Authority shall coordinate

with the Department for technical assistance in order to provide
training assistance to cooperatives in the use and analysis of market
information and technology.
SEC. 45. Role of Private Sector. – The NIN shall likewise be

accessible to the private sector engaged in agriculture and fisheries
enterprises. The Department shall formulate guidelines and
determine fees for private sector entities that use the NIN.
445
Chapter 6
Other Infrastructure
SEC. 46. Agriculture and Fisheries Infrastructure Support

Services. – The Department of Public Works and Highways,
the Department of Transportation and Communications, the
Department of Trade and Industry and the LGUs shall coordinate
with the Department to address the infrastructure requirements in
accordance with this Act: Provided, That, the Department and the
LGUs shall also strengthen its agricultural engineering groups to
provide the necessary technical and engineering support in carrying
out the smooth and expeditious implementation of agricultural
infrastructure projects.
SEC. 47. Criteria for Prioritization. – The prioritization of

government resources for rural infrastructure shall be based on the
following criteria:
a) Agri-industrial potential of the area;

b) Socio-economic contributions of the investments in the
area;
c) Absence of public investment in the area; and
d) Presence of agrarian reform beneficiaries and other small
farmers and fisherfolk in the area.
SEC. 48. Public Infrastructure Facilities. – Public

infrastructure investments shall give preference to the kind, type,
and model of infrastructure facilities that are cost-effective and will
be useful for the production, conservation, and distribution of most
commodities and should benefit the most number of agriculture and
fisheries producers and processors.
SEC. 49. Private Infrastructure Facilities. – For infrastructure

facilities primarily benefiting private investors, the State shall
facilitate the purchase and use of such facilities and shall keep
to the minimum the bureaucratic requirements for these types of
446
investments. Private investors include cooperatives or corporations

of agriculture of fisheries producers and processors.
SEC. 50. Public Works Act. – The Department of Public Works

and Highways shall coordinate with the Department for the purpose
of determining the order of priorities for public works funded under
the Public Works Act which directly or indirectly affect agriculture
and fisheries.
SEC. 51. Fishports, Seaports and Airports. – The Department

of Transportation and Communications, Philippine Ports Authority
and Philippine Fisheries Development Authority shall coordinate
with the Department for the purpose of determining priority
fishports, seaports and airports and facilitating the installation of
bulk-handling and storage facilities, and other post-harvest facilities
needed in order to enhance the marketing of agriculture and fisheries
products: Provided, That fishports, seaports and airports are also
equipped with quarantine, sanitary and phytosanitary centers. The
Department of Transportation and Communications (DOTC) shall
have the mandate to cancel arrastre and cargo handling franchises
among operators whom it deems inefficient and/or ineffective
owing, but not limited to, a past history of undercapitalization, lack
of equipment and lack of professional expertise. The DOTC shall
recommend to the Philippine Ports Authority and consult with
ship-owners and ship-operators in assessing the cargo-handling
capabilities of cargo operators prior to extending new franchises or
awards.
SEC. 52. Farm-to-Market Roads. – The Department shall

coordinate with the LGUs and the resident-farmers and fisherfolk
in order to identify priority locations of farm-to-market roads that
take into account the number of farmers and fisherfolk and their
families who shall benefit therefrom and the amount, kind and
importance of agricultural products produced in the area.
Construction of farm-to-market roads shall be a priority

investment of the LGUs which shall provide a counterpart of not
447
less than ten percent (10%) of the project cost subject to their IRA
level.
SEC. 53. Rural Energy. – The Department shall coordinate

with the Department of Energy (DOE), the Department of Public
Works and Highways (DPWH), the National Electrification
Administration (NEA) and the National Power Corporation
(NAPOCOR) for the identification and installation of appropriate
types of energy sources particularly in the use of non-conventional
energy sources for the locality in order to enhance agriculture and
fisheries development in the area.
SEC. 54. Communications Infrastructure. – The Department

shall coordinate with the DOTC to facilitate the installation of
telecommunication facilities in priority areas, in order to enhance
agriculture and fisheries development.
SEC. 55. Water Supply System. – The Department shall

coordinate with the DPWH and the LGUs for the identification and
installation of water supply system in the locality for agro-industrial
uses to enhance agriculture and fisheries development in the area.
SEC. 56. Research and Technology Infrastructure. – The

Department in coordination with other government agencies shall
give priority and facilitate the funding of infrastructure necessary
for research ventures such as farm laboratories and demonstration
farms with state colleges and universities that derive their core
funds from the Department.
SEC. 57. Post-Harvest Facilities. – The Department shall

coordinate with the Bureau of Post-Harvest for Research and
Extension and the Post-Harvest Horticulture, Training and
Research Center of the University of the Philippines Los Baños, to
identify appropriate post-harvest facilities and technology needed
to enhance agriculture and fisheries development in the area.
SEC. 58. Public Market and Abattoirs. – The Department shall

encourage the LGUs to turn over the management and supervision
448
of public markets and abattoirs to market vendors’ cooperatives and

for that purpose, the appropriation for post-harvest facilities shall
include the support for market vendors’ cooperatives.
The Department shall coordinate with the LGUs in the

establishment of standardized market systems and use of sanitary
market facilities, and abattoirs, intended to ensure food safety and
quality.
All markets shall have a sanitation unit, proper and adequate

drainage and sewerage system, ample water supply, public toilets
with lavatories, garbage receptacles, ice plants and cold storage,
adequate lighting and ventilation and supply of electricity to ensure
cleanliness and sanitation. Price monitoring bulletin boards for
selected commodities and weighing scales accessible to the public
shall also be established.
Proper protection and preservation of agriculture and

fisheries products being sold in the market shall also be observed.
All foods which require no further cooking shall be wrapped,
covered, or enclosed in containers to preserve the freshness and
prevent contamination. Selling or products on market floors shall
be prohibited.
SEC. 59. Agricultural Machinery. – The Department shall give

priority to the development and promotion of appropriate agricultural
machinery and other agricultural mechanization technologies to
enhance agricultural mechanization in the countryside.
Chapter 7
Product Standardization
and Consumer Safety
SEC. 60. Declaration of Policy. – It is the policy of the State that

all sectors involved in the production, processing, distribution and
marketing of food and non-food agricultural and fisheries products
shall adhere to, and implement the use of product standards in
449
order to ensure consumer safety and promote the competitiveness

of agriculture and fisheries products.
SEC. 61. Bureau of Agriculture and Fisheries Product

Standards. – The Department, within six (6) months after the
approval of this Act, and in consultation with the Department of Trade
and Industry and the Bureau of Food and Drug, shall establish the
Bureau of Agriculture and Fisheries Product Standards (BAFPS).
SEC. 62. Coverage. – The BAFPS shall set and implement

standards for fresh, primary- and secondary-processed agricultural
and fishery products.
SEC. 63. Powers and Functions. – The BAFPS shall have the
following powers and functions:
a) Formulate and enforce standards of quality in the

processing, preservation, packaging, labeling, importation,
exportation, distribution, and advertising of agricultural and
fisheries products;
b) Conduct research on product standardization, alignment
of the local standards with the international standards; and
c) Conduct regular inspection of processing plants, storage
facilities, abattoirs, as well as public and private markets in order
to ensure freshness, safety and quality of products.
SEC. 64. Pool of Experts and Advisers. – The BAFPS may

coordinate, seek the services of, and consult with both private
and governmental agencies, research institutes, educational
establishments and such other individuals and entities with
expertise in the field of product standards and consumer safety.
The Department of Trade and Industry, the Food and

Nutrition Research Institute, and the Bureau of Food and Drug
Administration shall provide technical advice and form part of the
pool of experts/advisers of the BAFPS.
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TITLE 2
HUMAN RESOURCE DEVELOPMENT

policy of the State to give priority to education and training on
science and technology in order to accelerate social progress and
promote total human liberation and development.
The State shall promote industrialization and full employment,

based on sound agriculture and fisheries development and agrarian
reform, through industries that make full and efficient use of human
and natural resources.
SEC. 66. National Agriculture and Fisheries Education

System (NAFES). – The Commission on Higher Education (CHED),
in coordination with the Department and appropriate government
agencies, shall establish a National Agriculture and Fisheries
Education System (NAFES) which shall have the following
objectives:
a) to establish, maintain and support a complete and

integrated system of agriculture and fisheries education relevant to
the needs of the economy, the community and society;
b) to modernize and rationalize agriculture and fisheries
education from the elementary to the tertiary levels;
c) to unify, coordinate and improve the system of
implementation of academic programs that are geared toward
achieving agriculture and fisheries development in the country; and
d) to upgrade the quality, ensure sustainability and promote
global competitiveness, at all levels, of agriculture and fisheries
education.
SEC. 67. Education Program for Elementary and Secondary

Levels. – There is hereby established an Agriculture and Fisheries
Education Program, under the NAFES, specially designed for
elementary and secondary levels. The program shall be formulated,
451
organized and implemented by the DECS with the following

objectives:
a) to develop appropriate values that form the foundation for

sustained growth in agriculture and fisheries modernization;
b) to increase the attractiveness of agriculture and fisheries
education, so that more young and talented persons will look at
agriculture and fisheries as an acceptable option for career and
livelihood;
c) to promote appreciation of science in agriculture and
fisheries development;
d) to develop among students, positive attitudes towards
entrepreneurship and global competition in the agriculture and
fisheries business;
e) to improve the present curriculum in the elementary
and secondary levels by emphasizing the core values necessary for
agriculture and fisheries modernization; and
f) to develop an outreach program where students, parents
and the schools become instruments in effecting positive changes in
the pupil’s home and community.
SEC. 68. Post-Secondary Education Program. – There is hereby

established a Post-Secondary Education Program for Agriculture
and Fisheries under the NAFES, which shall be formulated
and developed by TESDA in coordination with the appropriate
government agencies and the private sector. The program shall
include, among others, the following:
a) a mechanism for a flexible process of curriculum

development;
b) integration of the dual training system in the various
agricultural curricula and training programs;
c) integration of entrepreneurship and global competitiveness
in the agro-fisheries curricula;
d) institutionalizing agriculture and fisheries skills standards
and technician testing and certification;
e) regular upgrading of learning/training facilities, school
buildings, laboratory equipment; and
452
f) development of a system for the strict enforcement of

school regulations regarding standards and requirements.
SEC. 69. Network of National Centers of Excellence for Tertiary

Education. – There is hereby established a Network of National
Centers of Excellence in Agriculture and Fisheries Education,
composed of qualified public and private colleges and universities,
duly accredited as National Centers of Excellence (NCE) in the field
of agriculture and fisheries.
For this purpose, the CHED shall formulate and implement a

system of accreditation: Provided, That not more than one provincial
institute in every province and no more than one national university
in each field in every region shall be accredited as such: and Provided,
further, That the system shall be based on the following criteria:
a) institutional accessibility, population, economic

contribution of agriculture and fisheries in the community, and the
needs or unique requirements of the area;
b) quantity and quality of research studies conducted;
c) degree of utilization of research results;
d) quantity and quality of faculty members;
e) type of facilities;
f) linkage with international organizations; and
g) potential contribution to agriculture and fisheries
development in the target area.
SEC. 70. Rationalization Plan. – For the purpose of upgrading

and maintaining a high degree of academic excellence in the fields
of agriculture and fisheries, all existing public and private colleges
and universities that are not hereinafter designated and accredited
as centers of excellence shall be given adequate time to redirect its
program to non-agriculture and/or non-fisheries areas needed by the
province or region and/or merge their program with accredited NCEs
in accordance with the Rationalization Plan to be jointly formulated
by CHED and the Philippine Association of State Universities and
Colleges (PASUC) upon consultation with the institution concerned.
453
The Rationalization Plan shall include a policy for the

effective utilization of affected personnel and facilities, and shall
not be construed as to result in the decrease of the budget allocation
for the state universities and colleges concerned.
SEC. 71. Counterpart Funding from LGUs. – The LGUs shall,

within two (2) years from the effectivity of this Act, provide at least
ten percent (10%) of the Maintenance and Other Operating Expenses
(MOOE) budget for the operation of the provincial institutes within
their area of responsibility.
In consultation with the LGUs, the CHED shall develop a

provincial-national partnership scheme for a reasonable sharing of
financial support taking into account social equity factors for poor
provinces.
SEC. 72. National Integrated Human Resource Development

Plan in Agriculture and Fisheries. – The CHED, in coordination
with the Department and appropriate government agencies, shall
formulate, develop and implement an integrated human resource
development plan in agriculture and fisheries which shall serve
as an instrument that will provide over-all direction in setting
priorities in curricular programs, enrollment, performance targets,
and investment programs.
SEC. 73. Output-Oriented Performance Standards. – In order

to ensure institutional accountability, efficiency, and quality, there
shall be formulated and developed an Output-Oriented Performance
Standards which shall serve as the primary instrument for
institutional evaluation.
For this purpose, all public and private universities and

colleges, that are designated as centers of excellence, shall cause
to be installed a computerized monitoring and evaluation system
that periodically collects and regularly measures variables
indicating institutional performance based on the Output-Oriented
Performance Standards.
454
SEC. 74. Evaluation System. – Not later than one (1) year
from the effectivity of this Act, the CHED shall establish a baseline
information using the Output-Oriented Performance Standards
referred to in Section 73 of this Title. Once every five (5) years
thereafter, all designated NCEs in agriculture and fisheries shall
be subject to a third party evaluation.
The evaluation shall include, among others, management

and educational experts of national stature and representatives of
key sectors of the agriculture and fisheries industries, as well as
representatives of the Department, the Department of Environment
and Natural Resources, the Department of Science and Technology,
and the National Economic and Development Authority.
SEC. 75. Agriculture and Fisheries Board. – There shall be

created an Agriculture and Fisheries Board in the Professional
Regulation Commission to upgrade the Agriculture and Fisheries
profession.
Those who have not passed the Civil Service Examination for
Fisheries and Agriculture but have served the industry in either
private or public capacity for not less than five (5) years shall be
automatically granted eligibility by the Board of Examiners.
The first board examination for B.S. Fisheries and/or

Agriculture Graduates shall be conducted within one (1) year from
the approval of this Act.
SEC. 76. Continuing Agriculture and Fisheries Education

Program. – The Commission on Higher Education, the Department
of Education, Culture and Sports and Technical Education and
Skills Development Authority, in coordination with the Department
and the public and private universities and colleges, shall formulate
and develop a National and Integrated Continuing Agriculture and
Fisheries Education Program, which shall address the current
education and training requirements of teachers, professors and
educators in agriculture and fisheries.
455
For this purpose, pre-service and in-service training of

teachers in Home Economics Livelihood Education (HELE) for the
primary level and Technology and Home Economics (THE) for the
secondary level, shall be upgraded.
SEC. 77. Scholarship Program. – The CHED, in coordination

with public and private universities and colleges, TESDA and the
DBM, shall develop a national scholarship program that provides
opportunities for deserving academic staff to pursue advanced
degrees in agriculture and fisheries. Where appropriate, such
scholarship program shall also provide opportunities for graduate
work in foreign universities.
SEC. 78. Merit System. – To promote the development of

scientific excellence and academic scholarship, the public and
private universities and colleges, in cooperation with the CHED
and the DBM, shall institute an output-oriented unified system of
promotion for academic personnel.
SEC. 79. Budgetary Allocation Scheme. – The Budgetary

Allocation Scheme for NAFES shall be as follows:
a) The current appropriation or budgets of state universities

and colleges, that are herein designated as NCEs, shall continue and
shall be modified and adjusted in succeeding years in order to meet
the standards of the rationalized programs of the institutions as
approved by Congress and shall be included in the annual General
Appropriations Act;
b) NCEs that are created under this Act shall likewise be

provided with budgetary support based on their programs and new
staffing pattern as approved by DBM and shall be included in the
annual General Appropriations Act.
456
TITLE 3
RESEARCH DEVELOPMENT AND EXTENSION
Chapter 1
Research and Development

policy of the State to promote science and technology as essential
for national development and progress.
The State shall likewise give priority to research and

development, invention, innovation, and their utilization and to
science and technology education, training, and services. In addition
to appropriate and relevant technology, the State shall support
indigenous and self-reliant scientific and technological capabilities,
and their application to the country’s productive system and
national life.
SEC. 81. The National Research and Development System in

Agriculture and Fisheries. – The Department, in coordination with
the Department of Science and Technology and other appropriate
agencies and research institutions shall enhance, support and
consolidate the existing National Research and Development System
in Agriculture and Fisheries within six (6) months from the approval
of this Act: Provided, That fisheries research and development shall
be pursued separately, from but in close coordination with that of
agriculture.
SEC. 82. Special Concerns in Agriculture and Fisheries

Research Services. – Agriculture and Fisheries Research and
Development activities shall be multidisciplinary and shall involve
farmers, fisherfolk and their organizations, and those engaged in
food and non-food production and processing, including the private
and public sectors.
457
Research institutions and centers shall enjoy autonomy

and academic freedom. The Department, in collaboration with
the Department of Science and Technology and other appropriate
agencies, shall harmonize its merit and output-oriented promotion
system governing the scientific community in order to promote
increased research excellence and productivity and provide the
government research system a competitive edge in retaining its
scientific personnel.
Appropriate technology shall be used to protect the

environment, reduce cost of production, improve product quality
and increase value-added for global competitiveness.
SEC. 83. Funds for Research and Development. – Considering

the nature of research, development and extension activities,
funding shall be based on the following guidelines:
a) Allocation of multi-year budgets which shall be treated as

research and development grants.
b) The budget for agriculture and fisheries research and
development shall be at least one percent (1%) of the Gross Value
Added (GVA) by year 2001 allocating at least one percent (1%)
of the total amount by 1999. The Department of Finance (DOF)
in consultation with the Department shall formulate revenue
enhancement measures to fund this facility.
c) At least twenty percent (20%) shall be spent in support
of basic research and not more than eighty percent (80%) shall be
used for applied research and technology development, of which at
least ten percent (10%) shall be used for technology packaging and
transfer activities.
d) A science fund shall be established from which the
scientific community in agriculture and fisheries shall draw its
financial resource for sustained career development: Provided, That
only the interest earnings of the funds shall be used.
The Department and other research agencies, in the national

interest, are encouraged to go into co-financing agreements with the
private sector in the conduct of research and development provided
458
that the terms and conditions of the agreement are beneficial to the
country.
SEC. 84. Excellence and Accountability in Research and

Development. – The Department, in collaboration with the
Department of Science and Technology and other appropriate
government agencies, shall formulate the national guidelines in
evaluating research and development activities and institutions,
which shall involve an independent and interdisciplinary team of
collegial reviewers and evaluators.
SEC. 85. Communication of Research Results and Research-

Extension Linkage. – Research information and technology shall be
communicated through the National Information Network (NIN).
All government agencies including the State colleges and

universities and private educational institutions selected as NCEs
shall be computerized, networked, provided with regular updated
information, and shall likewise provide, through the NIN, results
of research and development activities and current available
technology relating agriculture and fisheries.
Chapter 2
Extension Services

policy of the State to promote science and technology as essential
for national development and progress. The State shall give priority
to the utilization of research results through formal and non-formal
education, extension, and training services. It shall support the
development of a national extension system that will help accelerate
the transformation of Philippine agriculture and fisheries from a
resource-based to a technology-based industry.
SEC. 87. Extension Services. – Agriculture and Fisheries

extension services shall cover the following major services to the
farming and fishing community:
459
a) Training services;
b) Farm or business advisory services;
c) Demonstration services; and
d) Information and communication support services through
tri-media.
SEC. 88. Special Concerns in the Delivery of Extension Services.

– The delivery of Agriculture and Fisheries Extension Services
shall be multidisciplinary and shall involve the farmers, fisherfolk,
and their organizations, and those engaged in food and non-food
production and processing, including the private and public sectors.
There shall be a national merit and promotion system

governing all extension personnel, regardless of source of funding,
to promote professionalism and achieve excellence and productivity
in the provision of the government extension services.
SEC. 89. The National Extension System for Agriculture

and Fisheries (NESAF). – The Department, in coordination with
the appropriate government agencies, shall formulate a National
Extension System for Agriculture and Fisheries.
The National Extension System for Agriculture and Fisheries

shall be composed of three (3) subsystems:
a) The national government subsystem which directly

complements;
b) The local government subsystems; and
c) The private sector subsystem.
SEC. 90. The Role of Local Government Units. – The LGUs

shall be responsible for delivering direct agriculture and fisheries
extension services.
The provincial governments shall integrate the operations for

the agriculture extension services and shall undertake an annual
evaluation of all municipal extension programs.
460
The extension program of state colleges and universities shall

primarily focus on the improvement of the capability of the LGU
extension service by providing
a) Degree and non-degree training programs;

b) Technical assistance;
c) Extension cum research activities;
d) Monitoring and evaluation of LGU extension projects; and
e) Information support services through the tri-media and
electronics.
SEC. 91. Role of the Private Sector in Extension. – The

Department shall encourage the participation of farmers and
fisherfolk cooperatives and associations and others in the private
sector in training and other complementary extension services
especially in community organizing, use of participatory approaches,
popularization of training materials, regenerative agricultural
technologies, agribusiness and management skills.
The Department is hereby authorized to commission and

provide funding for such training and extension services undertaken
by the private sector.
SEC. 92. The Role of Government Agencies. – The Department,

together with state colleges and universities shall assist in the LGUs’
extension system by improving their effectiveness and efficiency
through capability-building and complementary extension activities
such as:
a) technical assistance;
b) training of LGU extension personnel;
c) improvement of physical facilities;
d) extension cum research; and
e) information support services.
SEC. 93. Funding for Extension Activities. – Extension

activities shall be supported by the following measures:
461
a) allocation of multi-year budgets that shall be treated as

grants;
b) allow transfer of funds from the Department to the local
government units as extension grants, and
c) the budget for agriculture and fisheries extension services
shall be at least one percent (1%) of the gross value added (GVA) by
year 2001.
SEC. 94. Excellence and Accountability in Extension. – The

Department shall formulate the guidelines in evaluating extension
activities and institutions, which shall involve and independent and
interdisciplinary team of collegial reviewers and evaluators.
SEC. 95. Extension Communication Support for LGUs. – The

Department, in coordination with the public and private universities
and colleges, shall develop an integrated multimedia support for
national and LGU extension programs. The Department shall
assist the LGUs in the computerization of communication support
services to clients and linkages to the NIN.
TITLE 4
RURAL NON-FARM EMPLOYMENT
Chapter 1

policy of the State to promote full employment. Economic history,
however, shows that as an economy modernizes the number of
workers employed in its agricultural sector declines. It is therefore
necessary to formulate policies and implement programs that will
employ workers efficiently in rural areas in order to improve their
standard of living, and reduce their propensity to migrate to urban
areas.
SEC. 97. Objectives. – Rural non-farm employment aims to
a) promote a basic needs approach to rural development;
462
b) make rural workers more adaptable and flexible through

education and training;
c) promote rural industrialization and the establishment of
agro-processing enterprises in rural communities; and
d) increase the income of rural workers.
Chapter 2
The Basic Needs Program
SEC. 98. Principles. – The Department, in coordination with

the appropriate government agencies, shall formulate the Basic
Needs Program to create employment and cushion the effects of
liberalization based on the following principles:
a) No credit subsidies shall be granted. The normal rules

of banking shall apply to all enterprises involved, provided that
existing credit arrangements with ARBs shall not be affected.
b) Enterprises can use training, information, advisory and
related services of the Government free of charge.
c) The participation of the private sector shall be voluntary.
Teams composed of specialists from government agencies and

the private sectors shall develop pilot programs in selected locales to
establish the planning, implementation and evaluation procedures.
SEC. 99. Participation of Government Agencies. – The

replication of the program shall be the responsibility of the local
government units concerned in collaboration with the appropriate
government agencies, and the private sector. The local government
units shall bear the costs of promoting and monitoring the basic
needs program for which their IRA shall be increased accordingly
as recommended by the Secretary of the Department: Provided,
That the appropriate national government agencies shall continue
to provide the necessary technical as well as financial assistance to
the LGUs in the replication of the program.
463
The Cooperatives Development Authority shall encourage

the establishment and growth of associations and cooperatives
as vehicles for the stable expansion of basic needs enterprises.
The Department of Education, Culture and Sports, Department

of Health, and the Technical Education and Skills Development
Authority shall coordinate with the Department and Congress in
the review, rationalization and reallocation of their regular budgets
as well as their budgets under the GATT-related measures fund to
finance education, training, health and other welfare services for
farmers and fisherfolks.
Chapter 3
Rural Industrialization
Industry Dispersal Program
SEC. 100. Principles. – Rural industrialization and industry

dispersal programs shall be based on the interplay of market forces.
The Board of Investments (BOI) is hereby required to give the
highest priority to the grant of incentives to business and industries
with linkages to agriculture.
SEC. 101. Role of Government Agencies. – The appropriate

government agencies, under the leadership of the LGUs concerned,
shall provide integrated services and information to prospective
enterprises under the one-stop-shop concept.
Local government units are authorized to undertake

investment and marketing missions provided that the costs of such
missions are borne by the LGUs concerned. In making their land use
plans, the LGUs, in consultation with the appropriate government
agencies concerned, shall identify areas for industrial parks.
The Department shall coordinate with the Department of

Trade and Industry, in particular, the Board of Investments, in the
formulation of investment priorities for rural areas.
464
The Regional Wage Boards shall consult participating

enterprises in this program before they issue wage orders.
SEC. 102. Participating Enterprises. – Participating

enterprises may request any government agency for training,
technical and advisory services free of cost.
A set of incentives shall be given to enterprises that subcontract

part of their production to farmers, fisherfolks and landless workers
during periods when they are not engaged in agricultural activities.
SEC. 103. Financing. – Except for basic infrastructure and

other goods that benefit all citizens, the facilities of this program
should be undertaken and financed by the private sector.
Chapter 4
Training of Workers
SEC. 104. Role of TESDA. – TESDA shall organize local

committees that will advise on the scope, nature and duration of
training for the above-mentioned programs.
TESDA is authorized to request the additional budgetary

resources for these programs: Provided, that after a reasonable
period, the task of coordinating the training is transferred to the
LGUs concerned.
SEC. 105. Role of the DENR. – The Department and the

DENR shall organize the training of workers in coastal resources
management and sustainable fishing techniques.
SEC. 106. Role of the Technology and Livelihood Resource

Center (TLRC). – The TLRC shall undertake field training in
entrepreneurship and management of workers involved in the basic
needs program.
465
SEC. 107. Special Training Projects for Women. – The

Department, in collaboration with the appropriate government
agencies concerned, shall plan and implement special training
projects for women for absorption in the basic needs and rural
industrialization programs.
TITLE 5
TRADE AND FISCAL INCENTIVES
SEC. 108. Taxation policies must not deter the growth of

value-adding activities in the rural areas.
SEC. 109. All enterprises engaged in agriculture and

fisheries as duly certified by the Department in consultation with
the Department of Finance and the Board of Investments, shall,
for five (5) years after the effectivity of this Act, be exempted from
the payment of tariff and duties for the importation of all types of
agriculture and fisheries inputs, equipment and machinery such as,
but not limited to, fertilizer, insecticide, pesticide, tractor, trailers,
trucks, farm implements and machinery, harvesters, threshers,
hybrid seeds, genetic materials, sprayers, packaging machinery
and materials, bulk-handling facilities such as conveyors and mini
loaders, weighing scales, harvesting equipment, spare parts of
all agricultural equipment, fishing equipment and parts thereof,
refrigeration equipment, and renewable energy systems such as
solar panels: Provided, however, That the imported agricultural and
fishery inputs, equipment and machinery shall be for the exclusive
use of the importing enterprise.
The Department, in consultation with the Department of

Finance and the Board of Investments, shall, within ninety (90)
days from the effectivity of this Act, formulate the implementing
rules and regulations governing the importation of agriculture and
fishery inputs, equipment and machinery.
SEC. 110. Any person, partnership, corporation, association

and other juridical entity found circumventing the provisions of
466
Section 109 of this Act shall suffer the penalty of imprisonment for a
period of not less than six (6) months but not more than one (1) year,
or a fine equivalent to two hundred percent (200%) of the value of
the imported materials, or both, at the discretion of the court, and
the accessory penalties of confiscation of the imported goods in favor
of the government and revocation of the privileges given under this
title.
In cases where the violator is a juridical entity, the officers

responsible in the violation of Section 109 shall suffer the penalty of
imprisonment prescribed in this section.
The importation of goods equivalent to or exceeding the

declared assets of the enterprise, partnership, or the authorized
capital stock in case of corporations, and/or the resale of the
imported goods shall be a prima facie evidence of the violation of
the provisions of Section 109 of this Act.
GENERAL PROVISIONS
SEC. 111. Initial Appropriation. – For the first year of

implementation of this Act, the amount of Twenty billion pesos
(P20,000,000,000.00) is hereby appropriated. The Department is
hereby authorized to re-align its appropriations in the current year
of the date of effectivity of this Act to conform with the requirements
of this Act: Provided, That the amount shall be allocated and
disbursed as follows:
1) Thirty percent (30%) for irrigation;
2) Ten percent (10%) for post-harvest facilities: Provided,

That the Secretary of Agriculture may invest up to fifty percent (50%)
of the said amount to fund post-harvest facilities of cooperatives,
especially market vendors’ cooperatives, where said cooperatives
exist and are operational: Provided, further, That if no cooperatives
are operational, said amount shall fund the post-harvest facilities of
the market-assistance system;
467
3) Ten percent (10%) for other infrastructure including

fishports, seaports, and airports, farm-and-coast-to-market
roads, rural energy, communications infrastructure, watershed
rehabilitation, water supply system, research and technology
infrastructure, public markets and abattoirs;
4) Ten percent (10%) for the Agro-industry Modernization

Credit and Financing Program (AMCFP) to be deposited by the
Department in participating rural-based public and private financial
institutions provided that no less than fifty percent (50%) of said
funds shall be deposited in rural banks and cooperative banks;
5) Eight percent (8%) for the implementation of the Farmer-

Fisherfolk Marketing Assistance System and support of market
vendors’ cooperatives.
6) Ten percent (10%) for research and development, four

percent (4%) of which shall be used to support the Biotechnology
Program;
7) Five percent (5%) for capability-building of farmers and

fisherfolk organizations and LGUs for the effective implementation
of the agriculture and fisheries programs at the local level;
8) Six percent (6%) for salary supplement of Extension

Workers under the LGUs;
9) Five percent (5%) for NAFES, for the upgrading of the

facilities of State Universities and Colleges that will be chosen as
national centers of excellence in agriculture and fisheries education;
10) Four percent (4%) for the National Information Network

(NIN) consisting of both the national and local levels;
11) One-and-three-fourth percent (1.75%) for SUC- and

TESDA- administered Rural Non-Farm Employment Training; and
468
12) One-fourth percent (0.25%) for the identification of the

SAFDZs.
SEC. 112. Continuing Appropriation. – The Department of

Budget and Management (DBM) is hereby mandated to include
annually in the next six (6) years, in the President’s program of
expenditures for submission to Congress, and release, an amount
not less than Seventeen billion pesos (P17,000,000,000.00), for the
implementation of this Act.
Additional funds over and above the regular yearly budget of

the Department shall be sourced from twenty percent (20%) of the
proceeds of the securitization of government assets, including the
Subic, Clark and other special economic zones.
Other sources of funds shall be from the following:
a) Fifty percent (50%) of the net earnings of the Public

Estates Authority;
b) Loans, grants, bequest, or donations, whether from local
or foreign sources;
c) Forty Percent (40%) of the TESDA Skills Development
Fund;
d) Net proceeds from the privatization of the Food Terminal,
Inc. (FTI), the Bureau of Animal Industry (BAI), the Bureau of Plant
Industry (BPI), and other assets of the Department that will be
identified by the DA Secretary and recommended to the President
for privatization;
e) Proceeds from the Minimum Access Volume (MAV) in
accordance with the provisions of Republic Act No. 8178;
f) Poverty Alleviation Fund; and
g) Fifty percent (50%) of the Support Facilities and Services
Fund under Republic Act No. 6657.
SEC. 113. Implementing Rules and Regulations. – The

Secretary, within ninety (90) working days after the effectivity of
this Act, together with the Department of Agrarian Reform (DAR),
Department of Environment and Natural Resources (DENR),
469
Department of Finance (DOF), Department of Science and Technology

(DOST), Department of Trade and Industry (DTI), Commission
on Higher Education (CHED), Technical Education and Skills
Development Authority (TESDA), Department of Education, Culture
and Sports (DECS), Department of Social Services and Development
(DSSD), National Economic and Development Authority (NEDA),
Department of Budget and Management (DBM), Department of
Labor and Employment (DOLE), Commission on Audit (COA), Civil
Service Commission (CSC), in consultation with other agencies
concerned, farmers, fisherfolk and agri-business organizations,
and in coordination with the Congressional Oversight Committee
on Agriculture and Fisheries Modernization, shall promulgate the
rules and regulations for the effective implementation of this Act.
The Secretary shall submit to the Committee on Agriculture

of both Houses of Congress copies of the implementing rules and
regulations within thirty (30) days after their promulgation.
Any violation of this section shall render the official/s

concerned liable under Republic Act No. 6713 otherwise known as
the “Code of Conduct and Ethical Standards for Public Officials and
Employees” and other existing administrative and/or criminal laws.
SEC. 114. Congressional Oversight Committee on Agricultural

and Fisheries Modernization. – A Congressional Oversight
Committee on Agricultural and Fisheries Modernization is hereby
created to be composed of the Chairs of the Committee on Agriculture
of both Houses, six (6) members of the House of Representatives and
six (6) members of the Senate, to be designated respectively by the
Speaker of the House and the President of the Senate, who shall
endeavor to have the various sectors and regions of the country
represented.
The Chairs of the Committees on Agriculture in the Senate

and House of Representatives, shall be, respectively, the Chair and
Co-Chair of the Oversight Committee. The other members shall
receive no compensation; however, traveling and other necessary
expenses shall be allowed.
470
The Committee shall oversee and monitor the implementation

of the Congressional Commission on Agricultural Modernization
(AGRICOM) recommendations as well as all programs, projects
and activities related to agriculture and fisheries, and its allied
concerns in both public and private sectors, with a view to
providing all legislative support and assistance within the powers
of Congress to ensure their inclusion, wherever feasible, in the
national, regional, provincial, municipal, and sectoral development
plans, to recommend the disposal of assets no longer needed by the
Department to fund the modernization program, and to see them
through their successful implementation.
SEC. 115. Powers and Functions of the Committee. – The

Congressional Oversight Committee on Agriculture and Fisheries
Modernization shall have the following powers and functions:
a) Prescribe and adopt guidelines that will govern its work;

b) Hold hearings, receive testimonies and reports pertinent
to its specified concerns;
c) Secure from any department, bureau, office or
instrumentality of the Government such assistance as may be
needed, including technical information, preparation and production
of reports and submission of recommendations or plans as it may
require;
d) Summon by subpoena any public or private citizen to testify
before it, or require by subpoena duces tecum to produce before it
such records, reports or other documents as may be necessary in the
performance of its functions;
e) Use resource persons from the public and private sectors
as may be needed;
f) Carry on the winding-up work of AGRICOM, such as
editing and printing all technical reports and studies as well as
bibliographic cataloguing of its collection of source materials,
continue its information and advocacy work;
g) Cause to be transferred to the Committee all works,
outputs, source materials and assets, funds, supplies and equipment
of AGRICOM;
471
h) Approve the budget for the work of the Committee and all
disbursements therefrom, including compensation of all personnel;
i) Organize its staff and hire and appoint such employees
and personnel whether temporary, contractual or on consultancy,
subject to applicable rules; and
j) Generally, to exercise all the powers necessary to attain
the purposes for which it is created.
SEC. 116. Periodic Reports. – The Committee shall submit

periodic reports on its findings and make recommendations on actions
to be taken by Congress and the appropriate departments, and that
in order to carry out the objectives of this Act, an initial amount of
Twenty million pesos (P20,000,000.00) is hereby appropriated for
the Oversight Committee for the first year of its operation.
SEC. 117. Automatic Review. – Every five (5) years after the
effectivity of this Act, an independent review panel composed of
experts to be appointed by the President shall review the policies
and programs in the Agriculture and Fisheries Modernization Act
and shall make recommendations, based on its findings, to the
President and to both Houses of Congress.
SEC. 118. Repealing Clause. – All laws, decrees, executive

issuance, rules and regulations inconsistent with this Act are hereby
repealed or modified accordingly.
SEC. 119. Separability Clause. – The provisions of this Act

are hereby declared to be separable, and in the event one or more of
such provisions are held unconstitutional, the validity of the other
SEC. 120. Effectivity. – This Act shall take effect thirty (30)
days from the date of its publication in the Official Gazette or in at
least two (2) newspapers of general circulation.
472
Approved,
(Sgd.) JOSE DE VENECIA, JR. (Sgd.) ERNESTO M. MACEDA

of Representatives
This Act, which is a consolidation of Senate Bill No. 2245 and

House Bill No. 2 was finally passed by the Senate and the House
of Representatives on December 15, 1997 and December 16, 1997,
respectively.
(Sgd.) ROBERTO P. NAZARENO (Sgd.) LORENZO E. LEYNES, JR.

Secretary General Secretary of the Senate
Approved: DECEMBER 22, 1997

473
10th Congress
S. No. 556
H. No. 6861

Metro Manila
Tenth Congress
AN ACT MERGING THE PHILIPPINE COTTON CORPORATION

AND THE COTTON RESEARCH AND DEVELOPMENT
INSTITUTE INTO A COTTON DEVELOPMENT
ADMINISTRATION, VESTING IT WITH REGULATORY
POWERS AND APPROPRIATING FUNDS FOR THE
PURPOSE

SECTION 1. Title. – This Act shall be known as the “Cotton

Industry Development Law of 1998.”
SEC. 2. Declaration of Principles and Policy. – Consistent with

the priority placed by Government on developing the agricultural
sector as the cornerstones of the Philippine economy, and cognizant
of the potential contribution of cotton-growing to the nation, it is
hereby declared a policy of the State to develop the cotton industry
in the country to its fullest potential. In this connection, the State
shall safeguard the interest of small cotton farmers.
The State shall provide the necessary support to cotton

industry development through appropriate services in cotton
production, research, extension and training, financial assistance
and other support services. It shall prescribe and strictly enforce
474
regulations and quality control standards needed to safeguard

cotton-growers.
The State shall fully exploit the industry’s potentials to

increase the farmers’ income, reduce imports of cotton lint and
generate foreign exchange revenues.
SEC. 3. Merger of the Philippine Cotton Corporation (PCC)

and the Cotton Research and Development Institute (CRDI) into a
Cotton Development Administration (CODA). – The PCC is hereby
merged with the CRDI to form a single entity to be known as
the Cotton Development Administration (CODA) to serve as the
country’s cotton development authority. The CODA shall be an
attached agency of the Department of Agriculture.
SEC. 4. Objectives. – The CODA shall have the following

objectives:
a. To improve the quality of life of Filipino farmers through

cotton-growing in the areas suitable for the crop;
b. To safeguard the profitability of cotton farmers through

their adoption of prescribed technology; and
c. To ensure that cotton is planted only during the times

prescribed and only in areas specifically identified as suitable for
cotton-growing; and that only properly certified seed is used.
SEC. 5. Functions. – The CODA shall have the following

functions:
a. To undertake research studies on all aspects of the industry,

including pilot studies, and to ensure strong and effective linkages
between research and extension;
b. To package and disseminate recommended production

technology to guide cotton production activities in the country;
475
c. To design and implement a specialized extension program

on cotton production, and other training and communications
program for manpower development in the various aspects of
industry operations;
d. To promulgate and enforce rules and regulations to govern

cotton production, particularly with regard to closed season planting;
the production, distribution, and use of planting seeds; the areas for
cotton-growing; pest control, and other quarantine measures;
e. To identify suitable areas for cotton-growing and promote

production in such areas;
f. To support and enhance efforts of cotton farmers in

organizing themselves into cotton farmers’ association;
g. To produce breeder, foundation and registered seeds; set

and enforce standards and procedures for seed production and
marketing; supervise certified seed production by private cotton
seed growers;
h. To provide ginning services to small cotton farmers;
i. To provide assistance to small farmers in the marketing of

their cotton produce;
j. To design and implement an industry monitoring and

information system;
k. To undertake industry manpower development;
l. To assist farmers in sourcing funds for cotton production;
m. To conduct regular consultations with the cotton farmers,

growers, and all other sectors involved in the cotton industry;
n. To design and administer a package of incentives to promote

private sector investments in the cotton industry;
476
o. To develop the export potentials of cotton; and
p. In general, to undertake all other functions as may be

necessary to ensure the success of the cotton industry and promote
the interests of small cotton growers.
SEC. 6. Powers. – The CODA shall have the following powers:
1. To administer and regulate the cotton industry in the

Philippines;
2. To incur any obligation or enter into contract with any

person, material or juridical, domestic or foreign, essential to the
proper administration of its affairs and the accomplishment of its
purposes and objectives;
3. To own, purchase, lease, mortgage, encumber or otherwise

dispose of real and personal property in accordance with its purposes
and objectives;
4. To accept and receive financial and other support from

private and other sources for the development and promotion of the
cotton industry;
5. To promulgate and enforce rules and regulations on the

production of cotton;
6. To impose administrative sanctions for violation of the

rules and regulations issued by the CODA;
7. To establish, operate and maintain testing and experimental

stations;
8. To accredit associations/confederations of cotton farmers,

growers, textile millers, ginners and other associations involved
with the cotton industry; and
477
9. To undertake measures to ensure that small farmers receive

a fair price for their produce.
SEC. 7. The Governing Board of the CODA. – The CODA shall

be governed by a Board, composed as follows:
a. Secretary of Agriculture, as ex-officio Chairman;
b. Secretary of Trade and Industry;
c. Secretary of Agrarian Reform;
d. Executive Director, Philippine Textile Research Institute;
e. Director, Philippine Council for Agriculture and Resources

Research and Development;
f. One (1) representative from among the government financial

institutions to be appointed by the President of the Philippines upon
the recommendation of the Secretary of Agriculture;
g. One (1) representative from among the textile millers

to be appointed by the President of the Philippines upon the
recommendation of the association of textile millers duly accredited
by the CODA;
h. One (1) representative from among the ginners appointed

by the President of the Philippines upon the recommendation of the
association of ginners duly accredited by the CODA; and
i. Three (3) representatives from the cotton farmers

associations to be appointed by the President of the Philippines
upon the recommendation of their respective confederations in
Luzon, Visayas and Mindanao duly accredited by the CODA.
SEC. 8. Term of office of the members of the Governing Board.

– Unless sooner removed for cause by their respective associations,
478
appointed members of the Governing Board shall hold office for a

period of two (2) years from the date of their appointments.
Section 9. Powers and functions of the Board. – The Governing

Board shall act as the policy making body of CODA to formulate
policies, promulgate regulations and prescribe rules to attain
CODA’s purposes and objectives.
SEC. 10. Organization. – An Administrator who shall

be appointed by the President of the Philippines, upon the
recommendation of the Secretary of Agriculture shall be the
Chief Executive Officer of CODA. He shall be assisted by two (2)
Deputy Administrators to be appointed by the President upon
recommendation of the Secretary of Agriculture.
The Board shall determine and create the organizational

structure of CODA to achieve its objectives, and shall appoint all
other officers of the CODA.
SEC. 11. Promulgation of Rules and Regulations. – The

Governing Board shall promulgate rules and regulations for the full
implementation of this Act within ninety (90) days of its effectivity.
Such rules and regulations shall take effect upon publication in
a newspaper of general circulation and shall be amended by the
Governing Board from time to time as it may deem appropriate.
SEC.12. Prohibited Acts. – The following acts are expressly

prohibited:
(a) Planting of cotton at times other than those prescribed by

CODA; and
(b) Sale, distribution, and planting of cotton seeds not

previously certified by the Bureau of Plant Industry.
SEC. 13. Authority to Cut and Burn. – For the purpose of

safeguarding the interest of other affected farmers and the long-term
survival of the industry, the CODA, after thorough investigation
479
and upon observance of due process, shall cut and burn all cotton
planted outside the prescribed planting season or with seeds not
previously certified by the Bureau of Plant Industry.
SEC. 14. Dissolution of the Philippine Cotton Corporation

(PCC) and the Cotton Research and Development Institute (CRDI).
– Subject to the provisions of existing laws, the PCC and the CRDI,
are hereby dissolved. All functions, assets, liabilities, records,
appropriation, properties, facilities and equipment of PCC and
the CRDI are hereby transferred to CODA except those under the
administration of the APT.
SEC. 15. Transitory Provisions. – Upon approval of this Act, the

officers and employees of the Philippine Cotton Corporation (PCC)
and the Cotton Research and Development Institute (CRDI) shall
continue to serve in a hold-over capacity, perform their respective
duties and responsibilities, and receive the corresponding salaries
and benefits, until a new staffing pattern shall have been approved
by the Governing Board.
The new position structure and staffing pattern of CODA shall

be approved and implemented by the Governing Board within one
hundred twenty (120) days from the approval of this Act, and the
authorized positions created thereunder shall be filled with regular
appointments by the Board or by the Administrator, as the case may
be. Those incumbents whose positions are not included therein or
are not reappointed shall be paid retirement or separation benefits
equivalent to one and one-fourth (1¼) month basic salary for every
year of their respective government service or the nearest equivalent
fraction thereof favorable to them on the basis of the highest salary
which they respectively received in the course of their employment
in the government: Provided, That in no case shall the benefit to
be paid to any official or employee be less than Ten thousand pesos
(P10,000.00): Provided, further, That any official or employee who
has previously been found guilty in an administrative proceeding
and whose rank or salary has been reduced shall be paid on the
basis of his last salary.
480
In addition to the benefits herein authorized, the covered

officials and employees shall be entitled to the return of GSIS
personnel contributions pertaining to the retirement only and the
payment of the corresponding share of the Government with the
interest earned pursuant to existing rules and regulations of the
Government Service Insurance System. They shall likewise be
entitled to the commutation of unused vacation and sick leaves
in accordance with existing rules and regulations: Provided, That
those who retire after rendering government services for thirty-one
(31) years or more and avail themselves of the incentive benefits
provided in this Act shall be entitled to an additional ten percent
(10%) of the amount corresponding to what they receive from thirty-
first year onward.
The application for retirement or voluntary separation shall

be accepted unless the services of the applicant shall be deemed
necessary.
SEC. 16. Appropriation. – There is hereby authorized

to be appropriated from the National Treasury not otherwise
appropriated, the sums necessary to carry into effect the provisions
of this Act: Provided, That thereafter, it shall be included in the
General Appropriations Act.
SEC. 17. Separability Clause. – If, for any reason, any

section or provision of this Act shall be held unconstitutional, other
provisions hereof shall not be affected and shall remain in full force
and effect.
SEC. 18. Suppletory Application of Existing Legislation. – All

existing legislation regarding the cotton industry, not inconsistent
with this law shall have suppletory effect.
SEC. 19. Repealing Clause. – All laws, issuances, decrees or

parts thereof inconsistent with the provisions of this Act are hereby
repealed.
481
SEC. 20. Effectivity Clause. – This Act shall take effect upon
its approval.
Approved: February 11, 1998
482
10th Congress
S. No. 2170
H. No. 4808
AN ACT STRENGTHENING FURTHER THE COMPREHENSIVE

AGRARIAN REFORM PROGRAM (CARP), BY PROVIDING
AUGMENTATION FUND THEREFOR, AMENDING FOR
THE PURPOSE SECTION 63 OF REPUBLIC ACT NO. 6657,
OTHERWISE KNOWN AS “THE CARP LAW OF 1988”
Be it enacted by the Senate and House of Representatives

of the Philippines in Congress assembled:
SECTION 1. Section 63 of Republic Act No. 6657, otherwise

known as the Comprehensive Agrarian Reform Law of 1988 is
“SECTION 63. Funding Source. - The amount needed to

implement this Act until the year 2008 shall be funded from
the Agrarian Reform Fund.
“Additional amounts necessary for this purpose are

hereby authorized to be appropriated in excess of the initial
funds, amounting to Fifty billion pesos (P50,000,000,000)
provided under Sections 20 and 21 of Executive Order No.
229.
“The additional amount hereby authorized to be

appropriated shall in no case exceed Fifty billion pesos
(P50,000,000,000).
“Sources of funding or appropriations shall include the

following:
“a) Proceeds of the sales of the Assets Privatization

Trust;
483
“b) All receipts from assets recovered and from sales

of ill-gotten wealth recovered through the Presidential
Commission on Good Government;
“c) Proceeds of the disposition of the properties of the

Government in foreign countries, for the specific purposes of
financing production credits, infrastructure and other support
services required by this Act;
“d) All income and collections arising from the

agrarian reform operations, projects and programs of CARP
implementing agencies;
“e) Portion of amounts accruing to the Philippines from

all sources of official foreign aid grants and concessional
financing from all countries, to be used for the specific
purposes of financing production, credits, infrastructures, and
other support services required by this Act;
“f) Yearly appropriations of no less than Three billion

pesos (P3,000,000,000) from the General Appropriations Act;
“g) Other government funds not otherwise appropriated.”
SEC. 2. This Act shall take effect within fifteen (15) days
following the completion of its publication in at least two (2)
484
13th Congress
S. No. 1136
H. No. 5992
AN ACT AMENDING REPUBLIC ACT NO. 7916, OTHERWISE

KNOWN AS THE “SPECIAL ECONOMIC ZONE ACT OF
1995”

SECTION 1. Chapter II, Section 11 of Republic Act No. 7916

is hereby amended to read as follows:
“SEC. 11. The Philippine Economic Zone Authority (PEZA)

Board. — There is hereby created a body corporate to be known
as the Philippine Economic Zone Authority (PEZA) attached to the
Department of Trade and Industry. The Board shall have a director
general with the rank of department undersecretary who shall be
appointed by the President. The director general shall be at least
forty (40) years of age, of proven probity and integrity, and a degree
holder in any of the following fields: economics, business, public
administration, law, management or their equivalent, and with at
least ten (10) years relevant working experience preferably in the
field of management or public administration.
“The director general shall be assisted by three (3) deputy

directors general each for policy and planning, administration
and operations, who shall be appointed by the PEZA Board, upon
the recommendation of the director general. The deputy directors
general shall be at least thirty-five (35) years old, with proven
probity and integrity and a degree holder in any of the following
fields: economics, business, public administration, law, management
or their equivalent.
“The Board shall be composed of thirteen (13) members as

follows: the Secretary of the Department of Trade and Industry as
485
Chairman, the Director General of the Philippine Economic Zone

Authority as Vice chairman, the undersecretaries of the Department
of Finance, the Department of Labor and Employment, the
Department of the Interior and Local Government, the Department
of Environment and Natural Resources, the Department of
Agriculture, the Department of Public Works and Highways,
the Department of Science and Technology, the Department of
Energy, the Deputy Director General of the National Economic
and Development Authority, one (1) representative from the labor
sector, and one (1) representative from the investors/business sector
in the ECOZONE. In case of the unavailability of the Secretary of
the Department of Trade and Industry to attend a particular board
meeting, the Director General of PEZA shall act as Chairman.”
xxx
SEC. 2. Chapter II, Section 15 of Republic Act No. 7916 is

likewise amended to read as follows:
“SEC. 15. Administration of Each ECOZONE. — Except

for privately-owned, managed or operated ECOZONES, each
ECOZONE shall be organized, administered, managed and operated
by the ECOZONE executive committee composed of the following:
xxx
“Privately-owned ECOZONES shall retain autonomy

and independence but shall be monitored by the PEZA for the
implementation of incentives and operations for adherence to the
law.”
SEC. 3. Chapter II, Section 16 of Republic Act No. 7916 is

likewise amended to read as follows:
“SEC. 16. Personnel. — The PEZA Board of Directors shall

provide for an organization and staff of officers and employees of the
PEZA, and upon recommendation of the director general with the
approval of the Secretary of the Department of Trade and Industry,
486
appoint and fix the remunerations and other emoluments: Provided,

That the Board shall have exclusive and final authority to promote,
transfer, assign or reassign officers of the PEZA, any provision of
existing law to the contrary notwithstanding: Provided, further,
That the director general may carry out removal of such officers and
employees.
“All positions in the PEZA shall be governed by a

compensation, position classification system and qualification
standards approved by the director general with the concurrence
of the Board of Directors based on a comprehensive job analysis
and audit of actual duties and responsibilities. The compensation
plan shall be comparable with the prevailing compensation plans in
the Subic Bay Metropolitan Authority (SBMA), Clark Development
Corporation (CDC), Bases Conversion and Development Authority
(BCDA) and the private sector and shall be subject to periodic
review by the Board no more than once every two (2) years without
prejudice to yearly merit reviews or increases based on productivity
and profitability. The PEZA shall therefore be exempt from existing
laws, rules and regulations on compensation, position classification
and qualification standards. It shall however endeavor to make
its system conform as closely as possible with the principles under
Republic Act No. 6758.
“The PEZA officers and employees including all Members

of the Board shall not engage directly or indirectly in partisan
activities or take part in any election, except to vote.
“No officer or employee of the PEZA subject to Civil Service

laws and regulations shall be removed or suspended except for
cause, as provided by law.”
SEC. 4. Chapter III, Section 24 of Republic Act No. 7916 is

“SEC. 24. Exemption from National and Local Taxes. — Except

for real property taxes on land owned by developers, no taxes, local
and national, shall be imposed on business establishments operating
487
within the ECOZONE. In lieu thereof, five percent (5%) of the gross
income earned by all business enterprises within the ECOZONE
shall be paid and remitted as follows:
“(a) Three percent (3%) to the National Government;
“(b) Two percent (2%) which shall be directly remitted by the

business establishments to the treasurer’s office of the municipality
or city where the enterprise is located.”
SEC. 5.Chapter III, Section 25 of Republic Act No. 7916 is

“SEC. 25. Applicable National and Local Taxes. — All persons

and service establishments in the ECOZONE shall be subject to
national and local taxes under the National Internal Revenue Code
and the Local Government Code.”
SEC. 6. Chapter III, Section 29 of Republic Act No. 7916 is

“SEC. 29. Eminent Domain. — x x x
“If in the establishment of a publicly-owned ECOZONE,

any person or group of persons who has been occupying a parcel
of land within the Zone has to be evicted, the PEZA shall provide
the person or group of persons concerned with proper disturbance
compensation: Provided, however, That in the case of displaced
agrarian reform beneficiaries, they shall be entitled to the benefits
under the Comprehensive Agrarian Reform Law, including but
not limited to Section 36 of Republic Act No. 3844, in addition to a
homelot in the relocation site, and preferential employment in the
project being undertaken.”
SEC. 7. Chapter VI, Section 50 of Republic Act No. 7916 is

488
“SEC. 50. Non-Applicability on Areas Covered by Republic

Act No. 7227. — This Act shall not be applicable to economic zones
and areas already created or to be created under Republic Act No.
7227 or other special laws, and governed by authorities constituted
pursuant thereto.”
SEC. 8. Effectivity Clause. — This Act shall take effect after

fifteen (15) days following its publication in the Official Gazette or in
two (2) newspapers of general circulation whichever comes earlier.
Approved, June 1, 1999
489
S. No. 1582
H. No. 8879

Metro Manila
Eleventh Congress
Second Regular Session
AN ACT EXTENDING THE TERM OF THE COMMITTEE ON

PRIVATIZATION AND THE ASSET PRIVATIZATION
TRUST AMENDING FOR THE PURPOSE REPUBLIC ACT
NUMBERED SEVEN THOUSAND ONE HUNDRED EIGHTY-
ONE, AS AMENDED

SECTION 1. Section 1 of Republic Act No. 7181, as amended

by Republic Act No. 7661 and Republic Act No. 7886, is hereby
further amended to read as follows:
“SECTION 1. The term of the Committee on Privatization

and the Asset Privatization Trust created by Proclamation No.
50 ‘Proclaiming and Launching a Program for the Expeditious
Disposition and Privatization of Certain Government Corporations
and/or the Assets thereof, and Creating the Committee on
Privatization and the Asset Privatization Trust’ is hereby extended
from January 01, 2000 to December 31, 2000.
“During the said extension period, the Committee on

Privatization and the Asset Privatization Trust shall continue to
exercise the powers, duties and responsibilities provided under
Proclamation No. 50, as amended: Provided, That all disposition of
any and all assets shall be primarily for cash: Provided, however,
490
That the use of government financial instruments and sales by

installment may be allowed: Provided, further, That the Committee
on Privatization shall serve as the central agency of the privatization
program and, accordingly, is further empowered:
“(a) To designate the disposition entity for all assets intended

for privatization, including all assets and properties recovered by
the Presidential Commission on Good Government (PCGG) and
government idle properties; and
“(b) When necessary, to appoint a representative to the

governing board of a government corporation or corporation with
government transferred assets which has been identified for
privatization who shall, for all purpose of facilitating privatization,
have the powers and privileges of a member of such board, except
the right to vote: Provided, That such appointee shall not receive
any additional salary or emolument by reason of such appointment:
Provided, further, That the appointee shall not be eligible for
employment in any capacity whatsoever in the said corporation
within two (2) years after privatization.
“Upon the effectivity of this Act, all receipts from the sale
of assets of the Asset Privatization Trust shall be remitted to
the National Treasury in the following proportion: sixty percent
(60%) to the special account of the Agrarian Reform Fund and
forty percent (40%) to the general fund: Provided, however, That
within the ten-year period of implementation of the Comprehensive
Agrarian Reform Program the total initial amount of Fifty billion
pesos (P50,000,000,000.00) shall be satisfied and completed from
all sources pursuant to the pertinent provisions of Republic Act
No. 6657 and Executive Order No. 229, dated July 1987: Provided,
further, That except for subsidiaries of the Government Service
Insurance System and the Social Security System, all government-
owned and -controlled corporations shall remit to the National
Government at least fifty percent (50%) of the net proceeds derived
from the sale of shares or assets effective October 1, 1992: Provided,
finally, That net proceeds shall mean gross proceeds less related
liabilities and selling expenses.
491
“Upon approval of this Act, the Commission on Audit shall

undertake an examination of all the assets and liabilities remaining
with Asset Privatization Trust. The Commission on Audit shall
complete the examination within one hundred eighty (180) days.
“The financial assets shall, upon the expiration of the term

of the Asset Privatization Trust, be transferred for disposition
by the President of the Philippines to a trust department of the
appropriate government financial institution. The physical assets
remaining at the end of the term of the Asset Privatization Trust
shall immediately be transferred to the appropriate government
agency for disposition.
“There shall be no disposition of properties during the last

thirty (30) days of the term which shall be devoted exclusively to the
liquidation of the Asset Privatization Trust and the Committee on
Privatization and the preparation for turnover of its assets, records
and properties to the appropriate government office which will
handle its disposition.
“All assets held by the Asset Privatization Trust, all moneys

and other properties belonging to it, and all its liabilities outstanding
upon the expiration of its term shall revert to and be assumed by
the National Government.
“All cash advances and unsettled obligations incurred after

the effectivity of this law by the officers and employees of the
Committee on Privatization and the Asset Privatization Trust, as
finally determined by the proper agency or court of law, must be
liquidated on or before December 31, 2000.
“(c) The decision of the Asset Privatization Trust and the

Committee on Privatization on the sale and disposition of assets
shall be final without need of concurrence by the owner and/or the
custodian agency or corporation of the asset.”
SEC. 2. Upon the expiration of the terms of the Committee on

Privatization and the Asset Privatization Trust, all their powers,
492
function, duties and responsibilities, all properties, real or personal

assets, equipment and records, as well as their obligations and
liabilities, shall devolve upon the National Government.
SEC. 3. All laws, orders, decrees, proclamations, rules and

regulations or parts thereof which are inconsistent with any of the
provisions of this Act are hereby repealed or modified accordingly.
SEC. 4. This Act shall take effect after its publication in two
(2) newspaper of general circulation.
Approved, December 28, 1999

.
493
S. No. 2129
H. No. 7883

Metro Manila
Eleventh Congress
Begun and held in Metro Manila, on Monday, the twenty-fourth day

of July, two thousand.
AN ACT TO STRENGTHEN AND EXPAND THE ORGANIC

ACT FOR THE AUTONOMOUS REGION IN MUSLIM
MINDANAO, AMENDING FOR THE PURPOSE REPUBLIC
ACT NO. 6734, ENTITLED ‘AN ACT PROVIDING FOR THE
AUTONOMOUS REGION IN MUSLIM MINDANAO’, AS
AMENDED

PREAMBLE
The people of the Autonomous Region in Muslim Mindanao,

imploring the aid of Almighty God, in order to develop a just and
humane society and establish a Regional Autonomous Government
that is truly reflective of their ideals and aspirations within the
framework of the Constitution and national sovereignty, as well as
the territorial integrity of the Republic of the Philippines, and to
secure to themselves and their posterity the blessings of autonomy,
democracy, peace, justice and equality, do ordain and promulgate
this Organic Act through the Congress of the Philippines.
494
ARTICLE I
Name and Purpose
SECTION 1. The name of the Autonomous Region shall be the

Autonomous Region in Muslim Mindanao unless provided otherwise
by the Regional Assembly.
The Autonomous Region in Muslim Mindanao shall be

governed by the Regional Government.
ARTICLE II
THE AUTONOMOUS REGION
Area and Seat of Government
SECTION 1. Expanded Autonomous Region. — (1) The

Autonomous Region in Muslim Mindanao which, under the
provisions of Republic Act No. 6734, the Organic Act for the
Autonomous Region in Muslim Mindanao, is composed of the four
provinces of Lanao del Sur, Maguindanao, Sulu and Tawi-Tawi, is
hereby expanded to include the provinces and cities, enumerated
hereunder, which vote favorably to be included in the expanded
area of the autonomous region and for other purposes, in a plebiscite
called for that purpose in accordance with Section. 18, Article X of
the Constitution.
The new area of autonomy shall then be determined by the

provinces and cities that will vote/choose to join the said autonomy.
It is understood that Congress may by law which shall be consistent
with the Constitution and in accordance with the provisions of
Republic Act No. 7160, the Local Government Code of 1991, provide
that clusters of contiguous-Muslim-dominated municipalities
voting in favor of autonomy be merged and constituted into a new
province(s) which shall become part of the new Autonomous Region.
495
(2) Plebiscite Coverage. The plebiscite shall be conducted

in the provinces of Basilan, Cotabato, Davao del Sur, Lanao del
Norte, Lanao del Sur, Maguindanao, Palawan, Sarangani, South
Cotabato, Sultan Kudarat, Sulu, Tawi-Tawi, Zamboanga del Norte,
Zamboanga del Sur and the newly created Province of Zamboanga
Sibugay, and (b) in the cities of Cotabato, Dapitan, Dipolog, General
Santos, Iligan, Kidapawan, Marawi, Pagadian, Puerto Princesa,
Digos, Koronadal, Tacurong and Zamboanga.
(a) PLEBISCITE QUESTION FOR VOTERS OF THE FOUR

ORIGINAL PROVINCES OF THE AUTONOMOUS REGION. For
the voters of the provinces of Maguindanao, Lanao del Sur, Sulu
and Tawi-Tawi which are already members of the autonomous
region under the provisions of Republic Act No. 6734, the Organic
Act for the Autonomous Region in Muslim Mindanao, the question
to be asked in the plebiscite of the voters therein shall be as follows:
Do you vote in favor of the amendments to Republic Act No. 6734,
the Organic Act for the Autonomous Region in Muslim Mindanao,
as proposed under this Organic Act, which includes, among other
things, the expansion of the area of the autonomous region?
(b) PLEBISCITE QUESTION FOR THE VOTERS OF THE

PROVINCES AND CITIES PROPOSED FOR INCLUSION IN
THE EXPANDED AUTONOMOUS REGION. For the voters of the
provinces of Basilan, Cotabato, Davao del Sur, Lanao del Norte,
Palawan, Sarangani, South Cotabato, Sultan Kudarat, Zamboanga
del Norte, Zamboanga del Sur, and the newly created Province of
Zamboanga Sibugay, and the cities of Cotabato, Dapitan, Dipolog,
Digos, Koronadal, Tacurong, General Santos, Iligan, Kidapawan,
Marawi, Pagadian, Puerto Princesa, and Zamboanga, which
compose the provinces and cities that are proposed for inclusion
in the expanded area of the autonomous region, the question to be
asked in the plebiscite of the voters therein shall be as follows: Do
you vote in favor of the inclusion of your province or city in the
Autonomous Region in Muslim Mindanao?
SEC. 2. Results of the Plebiscite. — (a) In the four provinces.

If the majority of the voters of the four provinces of Lanao del Sur
496
Maguindanao, Sulu, and Tawi-Tawi vote in favor of the above-

mentioned proposed amendments, the amendments are deemed
ratified. Otherwise, the amendments are deemed rejected except as
regards the inclusion of the provinces and cities that vote for their
inclusion in the autonomous region as provided in this Organic Act,
in which case, the said provinces and cities shall become members
of the autonomous region.
(b) In the provinces or cities proposed for inclusion in the

expanded area of the autonomous region. A majority of the votes
cast in the plebiscite in every province or city in favor of the
inclusion of the province or city as members of the expanded area of
the autonomous region as provided in this Organic Act shall effect
their membership in the autonomous region.
SEC. 3. Seat of Autonomous Government. — The regional

legislative assembly, hereinafter referred to as the Regional
Assembly, shall by law, fix the permanent seat of government of
the regional government in any province or city that is a member
of the autonomous region, taking into consideration accessibility
and efficiency in which its mandate may be carried out under this
Organic Act.
Until the seat of the regional government is transferred as

provided above, its provisional seat shall be in Cotabato City. The
Regional Assembly elected after the plebiscite mentioned in this
Organic Act, shall, within its term, identify the site of the permanent
seat of the regional government. The central government which shall
also mean the national government shall appropriate funds for the
transfer of the provisional seat to its permanent site as determined
by the Regional Assembly.
ARTICLE III
Guiding Principles and Policies
SECTION 1. Integral Part of the Republic. — The Autonomous

Region in Muslim Mindanao shall remain an integral and
497
inseparable part of the national territory of the Republic as defined

by the Constitution and existing laws.
The autonomous region shall be governed and administered

in accordance with the laws enacted by the Regional Assembly and
by this Organic Act.
SEC. 2. Peaceful Settlement of Conflicts. — The Regional

Autonomous Government shall adopt the policy of settlement
of conflicts by peaceful means, and renounce any form of lawless
violence as an instrument of redress.
SEC. 3. Devolution of Powers. — The regional government

shall adopt a policy on local autonomy whereby regional powers
shall be devolved to local government units particularly in areas
of education, health, human resource, science and technology and
people empowerment. Until a law implementing this provision is
enacted by the Regional Assembly, Republic Act No. 7160, the Local
Government Code of 1991, shall continue to apply to all the provinces,
cities, municipalities, and barangay within the autonomous region.
The Regional Assembly may not pass any law to diminish,

lessen, or reduce the powers, functions, and shares in the internal
revenue taxes of the said local government units as provided by
Republic Act No. 7160, the Local Government Code of 1991.
SEC. 4. Charters Govern Cities. — All chartered cities within

the autonomous region shall continue to be governed by their
charters. Nothing in this Organic Act shall be construed as to
diminish the powers and functions already enjoyed by these cities.
SEC. 5. Customs, Traditions, Religious Freedom Guaranteed.

— The beliefs, customs, and traditions of the people in the autonomous
region and the free exercise of their religions as Muslims, Christians,
Jews, Buddhists, or any other religious denomination in the said
region are hereby recognized, protected and guaranteed.
498
The Regional Assembly shall adopt measures to ensure

mutual respect for and protection of the distinct beliefs, customs, and
traditions and the respective religions of the inhabitants thereof, be
they Muslims, Christians, Jews, Buddhists, or any other religious
denomination. The Regional Assembly, in consultation with the
Supreme Court and consistent with the Constitution may formulate
a Shari’ah legal system including the criminal cases which shall
be applicable in the region, only to Muslims or those who profess
the Islamic faith. The representation of the regional government in
the various central government or national government bodies as
provided for by Article V, Section 5 shall be effected upon approval
of the measures herein provided.
The Shari’ah courts shall have jurisdiction over cases

involving personal, family and property relations, and commercial
transactions, in addition to their jurisdiction over criminal cases
involving Muslims.
The Regional Assembly shall, in consultation with the

Supreme Court, determine the number and specify the details of
the jurisdiction of these courts.
No person in the autonomous region shall be subjected to any

form of discrimination on account of creed, religion, ethnic origin,
parentage or sex.
The regional government shall ensure the development,

protection, and well-being of all indigenous tribal communities.
Priority legislation in this regard shall be enacted for the benefit of
those tribes that are in danger of extinction as determined by the
Southern Philippines Cultural Commission.
SEC. 6. Filipino and Islamic Values In Educational Policies.

— The regional government shall adopt educational policies
that shall perpetuate Filipino and Islamic values and ideals and
the just aspirations of the Bangsa Moro with due respect to the
beliefs, customs, traditions, and religions of the other non-Muslim
499
inhabitants of the region be they Christians, Jews, Buddhists, or of

any other religious denomination.
SEC. 7. Improving Status of the Marginalized. — The regional

government shall devote its resources to the improvement of the
well-being of all its constituents, particularly the marginalized,
deprived, disadvantaged, underprivileged, disabled, and the elderly.
SEC. 8. Regional Government Authority Over Natural

Resources. — Subject to the provisions of the Constitution and this
Organic Act, the Regional Government shall have the authority,
power and right to explore, develop and utilize the natural
resources including surface and sub-surface rights, in-land and
coastal waters, and renewable and non-renewable resources in the
autonomous region. Muslims and the other indigenous cultural
communities shall, however, have priority rights to explore, develop
and utilize the said resources in the areas designated as parts of
their respective ancestral domains.
SEC. 9. Preferential Rights of Inhabitants and Their

Safeguards. — The autonomous region shall provide manpower
training programs, create livelihood and job opportunities, allocate
equitable preferential rights to its inhabitants, and adopt laws that
will safeguard the rights of workers.
SEC. 10. Protection Of Women and Children. — The Regional

Government shall uphold and protect the fundamental rights of
women and children including the right of women to engage in lawful
employment. Women and children, especially orphans of tender age,
shall be protected from exploitation, abuse or discrimination.
SEC. 11. Enhancement of Quality of Life. — The Regional

Government shall provide, maintain, and ensure the delivery of,
among other things, basic and responsive health programs, quality
education, appropriate services, livelihood opportunities, affordable
and progressive housing projects, and water resource development.
500
It shall maintain appropriate disaster-preparedness units

for immediate and effective relief services to victims of natural
and man-made calamities. It shall also ensure the rehabilitation of
calamity areas and victims of calamities.
SEC. 12. Progressive Tax System. — The Regional Assembly

shall adopt an efficient and progressive system of taxation which,
among other things, shall provide incentives for the prompt payment
of taxes and penalize tax evasion and delinquency.
SEC. 13. Equitable Share In National Budget and Development

Assistance. — The central government or national government
shall provide the autonomous region a proportionate and equitable
share in the annual national budget and foreign assisted projects
in addition to other financial assistance, support, and subsidies to
accelerate its development. Whenever the Commission on Audit
finds that the internal controls set up in the region are inadequate,
it may require pre-audit and shall likewise conduct seminars in the
communities concerned explaining the benefits and proper use of
internal revenue allotments.
SEC. 14. Rights to Initiatives, Consultations, Referenda and

Plebiscites. — Without prejudice to other rights guaranteed by the
Constitution, the rights of the people of the autonomous region to
initiate measures for the passage, amendment or repeal of regional
or local legislation; to be consulted on matters that affect their
environment; to call for a referendum on important issues affecting
their lives, and, to recall regional or local officials as provided by
Republic Act No. 7160, the Local Government Code of 1991, are
hereby recognized.
The Regional Assembly shall enact priority legislation to

define such rights. Until such priority legislation is enacted, existing
laws shall govern the exercise of the rights mentioned above.
SEC. 15. Fundamental Rights and Duties of People. — The

fundamental rights and duties of the people in the autonomous
region are those defined in the Constitution and this Organic Act,
501
the Geneva Convention, the United Nations Charter, the United

Nations Declaration on the Rights of Indigenous Communities,
the International Declaration on Human Rights, as well as those
prescribed in all the laws, practices, and principles binding upon
members of the community of nations.
SEC. 16. Human Rights Commission. — There is hereby

created a Regional Human Rights Commission. The chair and
two commissioners of the commission shall be appointed by the
President upon recommendation of the Regional Governor. The
composition of the commission shall reflect the ethnic distribution
of the population of the autonomous region. The chair shall be a
lawyer and shall be a resident of the autonomous region. The two
commissioners shall, preferably, be lawyers or, at least, holders
of bachelor degrees from colleges or universities recognized by
the Department of Education, Culture and Sports of the central
government or national government.
The Regional Human Rights Commission shall perform within

the autonomous region, the functions of the commission on human
rights of the central government or national government. Decisions
of the commission may be appealed to the Court of Appeals on
questions of law.
Initially, the Regional Assembly shall fix the salaries,

perquisites, and privileges of the chair and the commissioners of
the Commission at a level not lower than those fixed for the chair
and members of the National Labor Commission. The Commission
may provide additional functions to enhance and protect the human
rights of all the people in the autonomous region. Thereafter,
subject to availability of funds, the Regional Assembly may raise the
salaries, perquisites, and privileges of the chair and commissioners.
SEC. 17. Environment Protection and Sustainable

Development. — The protection, rehabilitation, and the sustainable
development of forests, coastal, and marine resources, including
the adoption of programs and projects to ensure the maintenance of
ecological balance, shall be given priority.
502
XXX XXX XXX
ARTICLE X
ANCESTRAL DOMAIN, ANCESTRAL LANDS AND AGRARIAN

REFORM
SECTION 1. Ancestral Domain; Lands of Indigenous Cultural

Communities. — Subject to the Constitution and existing laws,
the Regional Government shall undertake measures to protect
the ancestral domain and ancestral lands of indigenous cultural
communities.
All lands and natural resources in the autonomous region

that have been possessed or occupied by indigenous cultural
communities since time immemorial, except when prevented by
war, force majeure or other forms of forcible usurpation, shall form
part of the ancestral domain. Such ancestral domain shall include
pasture lands, worship areas, burial grounds, forests and fields,
mineral resources, except strategic minerals such as uranium, coal,
petroleum; and other fossil fuels, mineral oils, and all sources of
potential energy; lakes, rivers, and lagoons; and national reserves
and marine parks, as well as forest and watershed reservations.
Until laws are enacted that provide otherwise, fifty (50%) percent of
the revenues derived from the utilization and development of such
strategic materials shall accrue to the Regional Government and the
provinces, cities, municipalities, and barangay in the autonomous
region. The sharing between the Regional Government and the
local government units in the revenues derived from the strategic
materials mentioned above shall be apportioned according to the
formula set out in SEC. 5, Article XIII of this Organic Act.
Lands in the actual, open, public, and uninterrupted

possession and occupation by an indigenous cultural community for
at least thirty (30) years are ancestral lands.
SEC. 2. The constructive or traditional possession of lands

and resources by an indigenous cultural community may also be
503
recognized subject to judicial affirmation, the petition for which shall

be instituted within a period of ten (10) years from the effectivity of
this Organic Act. The procedure for judicial affirmation of imperfect
titles under existing laws shall, as far as practicable, apply to the
judicial affirmation of titles to ancestral lands.
The foregoing provisions notwithstanding, titles secured

under the Torrens System, and rights already vested under the
provisions of existing laws shall be respected.
SEC. 3. As used in this Organic Act, the phrase “indigenous

cultural community” refers to Filipino citizens residing in the
autonomous region who are:
(a) Tribal peoples. These are citizens whose social, cultural

and economic conditions distinguish them from other sectors of the
national community; and
(b) Bangsa Moro people. These are citizens who are believers
in Islam and who have retained some or all of their own social,
economic, cultural, and political institutions.
SEC. 4. Cultural Communities. — The customary laws,

traditions, and practices of indigenous cultural communities on
land claims and ownership and settlement of land dispute shall be
implemented and enforced among the members of such communities.
SEC. 5. Ecological Balance. — The proclamations issued by

the central government or national government declaring old growth
or natural forests and all watersheds within the autonomous region
as forest reserves are hereby reiterated. The forest reserves shall
not be subjected to logging operations of any nature or kind.
Forest concessions, timber licenses, contracts, or agreements

of any kind or nature whatsoever granted by the central government
or national government or by the Regional Government as of the
date of the approval of this Organic Act, are hereby cancelled,
504
nullified and voided, and shall not be renewed until thirty (30) years
after the approval of this Organic Act.
If the said forest reserves are logged over or are mined by

authority or neglect of the Regional Government, the funds provided
by the central government or national government including
the internal revenue shares of the Regional Government may be
withheld, reduced, cancelled, or forfeited by order of the President.
Ten (10%) percent of the shares of the internal revenue taxes of

the Regional Government and of the provinces, cities, municipalities,
and barangay of the autonomous region and all allocations for the
development of the autonomous region by the central government
or national government shall be devoted to reforestation projects
and other environmental activities to enhance the protection and
development of the environment in the autonomous region.
The Regional Government shall require corporations,

companies and other entities within the ancestral domain of the
indigenous cultural communities whose operations adversely affect
the ecological balance to take the necessary preventive measures
and safeguards to restore, enhance, and maintain such a balance.
SEC. 6. Unless authorized by the Regional Assembly, lands of

the ancestral domain titled to or owned by an indigenous cultural
community shall not be disposed of to non-members.
SEC. 7. No portion of the ancestral domain shall be open

to resettlement by non-members of the indigenous cultural
communities.
SEC. 8. Regional Land Reform. — Subject to the provisions

of the Constitution, the Regional Assembly may enact an agrarian
reform law suitable to the special circumstances prevailing in the
autonomous region.
XXX XXX XXX
505
SEC. 17. Separability Clause. — The provisions of this Organic

Act are hereby declared to be separate and in the event one or more
of such provisions are held unconstitutional, the validity of other
SEC. 18. Repealing Clause. — All laws, decrees, orders, rules

and regulations, and other issuances or parts thereof, which are
inconsistent with this Organic Act, are hereby repealed or modified
accordingly.
SEC. 19. Effectivity Clause. — This Organic Act shall take

effect after fifteen (15) days following its complete publication in at
least two national newspapers of general circulation and one local
newspaper of general circulation in the autonomous region.
Lapsed into law on March 31, 2001 without the President’s

signature, pursuant to Sec. 27 (1), Article VI of the Constitution.
506
13th Congress
H. No. 786

Congress of the Philippines
Metro Manila
Thirteenth Congress
Third Special Session
Begun and held in Metro Manila, on Monday, the nineteenth day of

February, two thousand seven.
AN ACT DECLARING THE ISLAND-TOWNS OF BIRI, CAPUL, SAN

ANTONIO AND SAN VICENTE, ALL IN THE PROVINCE OF
NORTHERN SAMAR AS ECO-TOURISM ZONES

SECTION 1. This Act hereby declares the Island-towns of Biri,

Capul, San Antonio and San Vicente in the Province of Northern
Samar as national tourism zones.
SEC 2. Until comprehensive legislation rationalizing the

national tourism program is adopted, the following principles shall
govern the planning, development, promotion and management of
these tourism zones:
(a) The Department of Tourism (DOT) and its attached

agencies, and the provincial government of Northern Samar shall
coordinate in the formulation of a tourism development plan for
these tourism zones: Provided, That said plan is consistent with,
or may be integrated into, the national tourism master plan of the
DOT.
507
(b) The plan shall protect and enhance the natural features and
cultural heritage of the tourism zone, while providing sustainable
economic opportunities for the local community.
(c) The relevant local government shall utilize its powers

provided under the Local Government Code to implement and
enforce the tourism development plan.
(d) The DOT and its attached agencies may provide necessary
technical and financial assistance for the development of tourism
infrastructure and skills development in the local government while
endeavoring, when practicable, to promote the tourism zones both
locally and internationally.
(e) The DOT and the local government shall create a forum by
which the private sector, nongovernment organizations and other
interest groups, can interact with one another and the government
to create an atmosphere that shall encourage investment, and the
development of a culture of tourism.
(f) The land embraced by the tourism zone shall be exempt

from the coverage of the Comprehensive Agrarian Reform Program,
and shall be determined by the concerned sanggunian.
SEC 3. The DOT, in consultation with the local government

concerned, shall adopt appropriate rules and regulations, and enter
into agreements to implement this Act.
SEC 4. This Act shall take effect after fifteen (15) days of
completion of its publication.
Approved,
(Sgd.) MANNY VILLAR (Sgd.) JOSE DE VENECIA JR.

of Representatives
508
This Act which originated in the House of Representatives

was finally passed by the House of Representatives and the Senate
on February 20, 2007 and February 19, 2007, respectively.
(Sgd.) OSCAR G. YABES (Sgd.) ROBERTO P. NAZARENO

Approved: MAY 15 2007
(Sgd.) GLORIA MACAPAGAL-ARROYO

509
H. No. 4312

Metro Manila
Fourteenth Congress
Begun and held in Metro Manila, on Monday, the twenty-eight day

of July, two thousand eight.
AN ACT AMENDING THE COOPERATIVE CODE OF THE

PHILIPPINES TO BE KNOWN AS THE “PHILIPPINE
COOPERATIVE CODE OF 2008”

SECTION 1. Articles 1, 2, 3, 4 and 5 of Chapter I on General

Concepts and Principles of Republic Act No. 6938, otherwise known
as the “Cooperative Code of the Philippines” are hereby amended to
read as follows:
CHAPTER I
GENERAL CONCEPTS AND PRINCIPLES
“ARTICLE 1. Title. – This Act shall be known as

the “Philippine Cooperative Code of 2008”.
“ART. 2. Declaration of Policy. – It is the declared

policy of the State to foster the creation and growth of
cooperatives as a practical vehicle for promoting self-
reliance and harnessing people power towards the
attainment of economic development and social justice.
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The State shall encourage the private sector to undertake

the actual formation and organization of cooperatives
and shall create an atmosphere that is conducive to the
growth and development of these cooperatives.
“Toward this end, the Government and all its

branches, subdivisions, instrumentalities and agencies
shall ensure the provision of technical guidance,
financial assistance and other services to enable said
cooperatives to develop into viable and responsive
economic enterprises and thereby bring about a strong
cooperative movement that is free from any conditions
that might infringe upon the autonomy or organizational
integrity of cooperatives.
“Further, the State recognizes the principle

of subsidiarity under which the cooperative sector
will initiate and regulate within its own ranks the
promotion and organization, training and research,
audit and support services relating to cooperatives with
government assistance where necessary.
“ART. 3. General Concepts. – A cooperative is an

autonomous and duly registered association of persons,
with a common bond of interest, who have voluntarily
joined together to achieve their social, economic, and
cultural needs and aspirations by making equitable
contributions to the capital required, patronizing their
products and services and accepting a fair share of the
risks and benefits of the undertaking in accordance with
universally accepted cooperative principles.
“ART. 4. Cooperative Principles. – Every

cooperative shall conduct its affairs in accordance with
Filipino culture, good values and experience and the
universally accepted principles of cooperation which
include, but are not limited to, the following:
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“(1) Voluntary and Open Membership –

Cooperatives are voluntary organizations, open to all
persons able to use their services and willing to accept the
responsibilities of membership, without gender, social,
racial, cultural, political or religious discrimination.
“(2) Democratic Member Control – Cooperatives

are democratic organizations that are controlled by
their members who actively participate in setting their
policies and making decisions. Men and women serving
as elected representatives, directors or officers are
accountable to the membership. In primary cooperatives,
members have equal voting rights of one-member, one-
vote. Cooperatives at other levels are organized in the
same democratic manner.
“(3) Member Economic Participation – Members

contribute equitably to, and democratically control, the
capital of their cooperative. At least part of that capital
is the common property of the cooperative. They shall
receive limited compensation or limited interest, if
any, on capital subscribed and paid as a condition of
membership. Members allocate surpluses for any or all
of the following purposes: developing the cooperative
by setting up reserves, part of which should at least be
indivisible; benefitting members in proportion to their
patronage of the cooperative’s business; and, supporting
other activities approved by the membership.
“(4) Autonomy and Independence – Cooperatives

are autonomous, self-help organizations controlled
by their members. If they enter into agreements with
other organizations, including government, or raise
capital from external sources, they shall do so on terms
that ensure democratic control of their members and
maintain their cooperative autonomy.
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“(5) Education, Training and Information –

Cooperatives shall provide education and training for
their members, elected and appointed representatives,
managers, and employees, so that they can contribute
effectively and efficiently to the development of their
cooperatives.
“(6) Cooperation Among Cooperatives – Cooperatives

serve their members most effectively and strengthen
the cooperative movement by working together through
local, national, regional and international structures.
(7) Concern for Community – Cooperatives work

for the sustainable development of their communities
through policies approved by their members.
“ART. 5. Definition of Terms. – The following terms

shall mean:
“(1) Member includes a person either natural or

juridical who, adhering to the principles set forth in
this Code and in the articles of cooperation, has been
admitted by the cooperative as member;
“(2) General Assembly shall mean the full

membership of the cooperative duly assembled for the
purpose of exercising all the rights and performing all
the obligations pertaining to cooperatives, as provided
by this Code, its articles of cooperation and bylaws:
Provided, That for cooperatives with numerous and
dispersed membership, the general assembly may be
composed of delegates elected by each sector, chapter
or district of the cooperative in accordance with the
rules and regulations of the Cooperative Development
Authority;
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“(3) Board of Directors shall mean that body

entrusted with the management of the affairs of the
cooperative under its articles of cooperation and bylaws;
“(4) Committee shall refer to any body entrusted

with specific functions and responsibilities under the
bylaws or resolution of the general assembly or the
board of directors;
“(5) Articles of Cooperation means the articles of

cooperation registered under this Code and includes a
registered amendment thereof;
“(6) Bylaws means the bylaws registered under

this Code and includes any registered amendment
thereof;
“(7) Registration means the operative act granting

juridical personality to a proposed cooperative and is
evidenced by a certificate of registration;
“(8) Cooperative Development Authority refers to

the government agency in charge of the registration and
regulation of cooperatives as such hereinafter referred
to as the Authority;
“(9) Universally Accepted Principles mean that

body of cooperative principles adhered to worldwide by
cooperatives;
“(10) Representative Assembly means the full

membership of a body of representatives elected by each
of the sectors, chapter or district of the cooperative duly
assembled for the purpose of exercising such powers
lawfully delegated unto them by the general assembly
in accordance with its bylaws;
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“(11) Officers of the Cooperative shall include the

members of the board of directors, members of the
different committees created by the general assembly,
general manager or chief executive officer, secretary,
treasurer and members holding other positions as may
be provided for in their bylaws;
“(12) Social Audit is a procedure wherein the

cooperative assesses its social impact and ethical
performance vis-à-vis its stated mission, vision, goals
and code of social responsibility for cooperatives to
be established by the Authority in consultation with
the cooperative sector. It enables the cooperatives to
develop a process whereby it can account for its social
performance and evaluate its impact in the community
and be accountable for its decisions and actions to its
regular members;
“(13) Performance Audit shall refer to an audit on

the efficiency and effectiveness of the cooperative as
a whole; its management and officers; and its various
responsibility centers as basis for improving individual,
team or overall performance and for objectively informing
the general membership on such performance;
“(14) A Single-Line or Single-Purpose Cooperative

shall include cooperative undertaking activities which
are related to its main line of business or purpose;
“(15) Service Cooperatives are those which provide

any type of service to its members, including but not
limited to, transport, information and communication,
insurance, housing, electric, health services, education,
banking, and savings and credit;
“(16) Subsidiary Cooperative refers to any

organization all or majority of whose membership or
shareholders come from a cooperative, organized for
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any other purpose different from that of, and receives

technical, managerial and financial assistance from, a
cooperative, in accordance with the rules and regulations
of the Authority; and
“(17) Federation of Cooperatives refers to three

or more primary cooperatives, doing the same line of
business, organized at the municipal, provincial, city,
special metropolitan political subdivision, or economic
zones created by law, registered with the Authority to
undertake business activities in support of its member-
cooperatives,”
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“ART. 23. Types and Categories of Cooperatives. –

(1) Types of Cooperatives – Cooperatives may fall under
any of the following types:
“(a) Credit Cooperative is one that promotes

and undertakes savings and lending services among
its members. It generates a common pool of funds in
order to provide financial assistance and other related
financial to its members for productive and provident
purposes;
“(b) Consumers Cooperative is one the primary

purpose of which is to procure and distribute commodities
to members and non-members;
“(c) Producers Cooperative is one that undertakes

joint production whether agricultural or industrial. It
is formed and operated by its members to undertake
the production and processing of raw materials or goods
produced by its members into finished or processed
products for sale by the cooperative to its members and
non-members. Any end product or its derivative arising
from the raw materials produced by its members, sold in
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the name and for the account of the cooperative, shall be

deemed a product of the cooperative and its members;
“(d) Marketing Cooperative is one which engages

in the supply of production inputs to members and
markets their products;
“(e) Service Cooperative is one which engages in

medical and dental care, hospitalization, transportation,
insurance, housing, labor, electric light and power,
communication, professional and other services;
“(f) Multipurpose Cooperative is one which

combines two (2) or more of the business activities of
these different types of cooperatives;
“(g) Advocacy Cooperative is a primary cooperative

which promotes and advocates cooperativism among
its members and the public through socially-oriented
projects, education and training, research and
communication, and other similar activities to reach
out to its intended beneficiaries;
“(h) Agrarian Reform Cooperative is one organized

by marginal farmers majority of which are agrarian
reform beneficiaries for the purpose of developing an
appropriate system of land tenure, land development,
land consolidation or land management in areas covered
by agrarian reform;
“(i) Cooperative Bank is one organized for the

primary purpose of providing a wide range of financial
services to cooperatives and their members;
“(j) Dairy Cooperative is one whose members are

engaged in the production of fresh milk which may be
processed and/or marketed as dairy products;
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“(k) Education Cooperative is one organized for

the primary purpose of owning and operating licensed
educational institutions notwithstanding the provisions
of Republic Act No. 9155, otherwise known as the
Governance of Basic Education Act of 2001;
“(l) Electric Cooperative is one organized for the

primary purpose of undertaking power generation,
utilizing renewable energy sources, including hybrid
systems, acquisition and operation of subtransmission
or distribution to its household members;
“(m) Financial Service Cooperative is one organized

for the primary purpose of engaging in savings and
credit services and other financial services;
“(n) Fishermen Cooperative is one organized by

marginalized fishermen in localities whose products are
marketed either as fresh or processed products;
“(o) Health Services Cooperative is one organized

for the primary purpose of providing medical, dental
and other health services;
“(p) Housing Cooperative is one organized to assist

or provide access to housing for the benefit of its regular
members who actively participate in the savings
program for housing. It is co-owned and controlled by
its members;
“(q) Insurance Cooperative is one engaged in the

business of insuring life and poverty of cooperatives and
their members;
“(r) Transport Cooperative is one which includes

land and sea transportation, limited to small vessels,
as defined or classified under the Philippine maritime
laws, organized under the provisions of this Code;
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“(s) Water Service Cooperative is one organized

to own, operate and manage waters systems for the
provision and distribution of potable water for its
members and their households;
“(t) Workers Cooperative is one organized by

workers, including the self-employed, who are at
same time the members and owners of the enterprise.
Its principal purpose is to provide employment and
business opportunities to its members and manage it in
accordance with cooperative principles; and
“(u) Other types of cooperative as may be

determined by the Authority.
“(2) Categories of Cooperative – Cooperatives shall

be categorized according to membership and territorial
considerations as follows:
“(a) In terms of membership, cooperative shall be

categorized into:
“(i) Primary – The members of which are natural

persons;
“(ii) Secondary – The members of which are

primaries; and
“(iii) Tertiary – The members of which are

secondary cooperatives; and
“(b) In terms of territory, cooperatives shall be

categorized according to areas of operations which may
or may not coincide with the political subdivisions of the
country.
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“ART. 24. Functions of a Federation of Cooperatives.

– A federation of cooperatives shall undertake the
“(a) To carry on any cooperative enterprise

authorized under Article 6 that complements augments,
or supplements but does not conflict, complete with,
nor supplant the business or economic activities of its
members;
“(b) To carry on, encourage, and assist educational

and advisory work relating to its member cooperatives;
“(c) To render services designed to encourage

simplicity, efficiency, and economy in the conduct of the
business of its member cooperatives and to facilitate the
implementation of their bookkeeping, accounting, and
other systems and procedures;
“(d) To print, publish, and circulate any newspaper

or other publication in the interest of its member
cooperatives and enterprises;
“(e) To coordinate and facilitate the activities of its

member cooperatives;
“(f) To enter into joint ventures with national or

international cooperatives of other countries in the
manufacture and sale of products and/or services in the
Philippines and abroad; and
“(g) To perform such other functions as may be

necessary to attain its objectives.
“A federation of cooperatives may be registered

by carrying out the formalities for registration of a
cooperative.
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“Registered cooperatives may organize a federation

according to the type of business activity engaged in by
the cooperatives.
“ART. 25. Cooperative Unions. – Registered

cooperatives and federations at the appropriate levels
may organize or join cooperative unions to represent
the interest and welfare of all types of cooperatives
at the provincial, city, regional, and national levels.
Cooperative unions may have the following purposes:
“(a) To represent its member organizations;
“(b) To acquire, analyze, and disseminate,

economic, statistical, and other information relating to
its members and to all types of cooperatives within its
area of operation;
“(c) To sponsor studies in the economic, legal,

financial, social and other phases of cooperation, and
publish the results thereof;
“(d) To promote the knowledge of cooperative

principles and practices;
“(e) To develop the cooperative movement in their

respective jurisdictions;
“(f) To advise the appropriate authorities on all

questions relating to cooperatives;
“(g) To raise funds through membership fees, dues

and contributions, donations, and subsidies from local
and foreign sources whether private or government;
and
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“(h) To do and perform such other non-business

activities as may be necessary to attain the foregoing
objectives.
“Cooperative unions may assist the national and
local governments in the latter’s development activities
in their respective jurisdictions.”
SEC. 3. Articles 26, 27, 28, 29, 30, 31 and 32 of Chapter

III on Membership of the same Code are hereby renumbered and
amended to read, as follows:
CHAPTER III
MEMBERSHIP
“ART. 26. Kinds of Membership. – A cooperative

may have two (2) kinds of members, to wit: (1) regular
members and (2) associate members.
“A regular member is one who has complied with

all the membership requirements and entitled to all
the rights and privileges of membership. An associate
member is one who has no right to vote nor be voted upon
and shall be entitled only to such rights and privileges
as the bylaws may provide: Provided, That an associate
member who meets the minimum requirements
of regular membership, continues to patronize the
cooperative for two (2) years, and signifies his/her
intention to remain a member shall be considered a
regular member.
“A cooperative organized by minors shall be

considered a laboratory cooperative and must be
affiliated with a registered cooperative. A laboratory
cooperative shall be governed by special guidelines to
be promulgated by the Authority.
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“ART. 27. Government Officers and Employees.

– (1) Any officer or employee of the Authority shall be
disqualified to be elected or appointed to any position in
a cooperative: Provided, That the disqualification does
not extend to a cooperative organized by the officers or
employees of the Authority.
“(2) All elective officials of the Government

shall be ineligible to become officers and directors of
cooperatives: Provided, That the disqualification does
not extend to a party list representative being an officer
of a cooperative he or she represents; and
“(3) Any government employee or official may,

in the discharge of is duties as a member in the
cooperative, be allowed by the end of office concerned to
use official time for attendance at the general assembly,
board and committee meetings of cooperatives as well
as cooperative seminars, conferences, workshops,
technical meetings, and training courses locally or
abroad: Provided, That the operations of the office
concerned are not adversely affected.
“ART. 28. Application. – An applicant for

membership shall be deemed a member after approval
of his membership by the board of directors and shall
exercise the rights of member after having made such
payments to the cooperative in respect to membership
or acquired interest in the cooperative as may be
prescribed in the bylaws. In case membership is refused
or denied by the board of directors, an appeal may be
made to the general assembly and the latter’s decision
shall be final. For this purpose, the general assembly
may opt to create an appeal and grievance committee,
the members of which shall serve for a period of one
(1) year and shall decide appeals on membership
application within thirty (30) days upon receipt thereof.
If the committee fails to decide within the prescribed
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period, the appeal is deemed approved in favor of the

applicant.
“ART. 29. Liability of Members. – A member shall

be liable for the debts of the cooperative to the extent of
his contribution to the share capital of the cooperative.
“ART. 30. Termination of Membership. – (1) A

member of a cooperative may, for any valid reason,
withdraw his membership from the cooperative by
giving a sixty (60) day notice to the board of directors.
Subject to the bylaws of the cooperative, the withdrawing
member shall be entitled to a refund of his share capital
contribution and all other interests in the cooperative:
Provided, That such fund shall not be made if upon such
payment the value of the assets of the cooperative would
be less than the aggregate amount of its debts and
liabilities exclusive of his share capital contribution.
“(2) The death or insanity of a member in a

primary cooperative, and the insolvency or dissolution
of a member in a secondary or tertiary cooperative
may be considered valid grounds for termination of
membership: Provided, however, That in case of death
or insanity of an agrarian reform beneficiary-member
of a cooperative, the next-of-kin may assume the duties
and responsibilities of the original member
“(3) Membership in the cooperative may be

terminated by a vote of the majority of all the members
of the board of directors for any of the following causes:
“(a) When a member has not patronized any of the

services of the cooperative for an unreasonable period of
time as may be previously determined by the board of
directors;
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“(b) When a member has continuously failed to

comply with his obligations;
“(c) When a member has acted in violation of the

bylaws and the rules of the cooperative; and
“(d) For any act or omission injurious or prejudicial

to the interest or the welfare of the cooperative.
“A member whose membership the board of

directors may wish to terminate shall be informed of
such intended action in writing and shall be given an
opportunity to be heard before the said board makes its
decision. The decision of the board shall be in writing and
shall be communicated in person or by registered mail
to said member and shall be appealable within thirty
(30) days from receipt thereof to the general assembly
whose decision shall be final. The general assembly
may create an appeal and grievance committee whose
members shall serve for a period of one (1) year and
shall decide appeals on membership termination. The
committee is given thirty (30) days from receipt thereof
to decide on the appeal. Failure to decide within the
prescribed period, the appeal is deemed approved in
favor of the member. Pending a decision by the general
assembly, the membership remains in force.
“ART. 31. Refund of Interests. – All sums

computed in accordance with the bylaws to be due from
a cooperative to a former member shall be paid to him
either by the cooperative or by the approved transferee,
as the case may be, in accordance with this Code.”
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SEC. 11. Articles 88, 89, 90, 91, 92, 93, 94 and 95 of Chapter XI
on the Special Provisions Relating to Agrarian Reform Cooperatives
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of the same Code are hereby renumbered retitled and amended to

read, as follows:
CHAPTER XI
AGRARIAN REFORM COOPERATIVES
“ART. 87. Coverage. – The provisions of this

Chapter shall primarily govern agrarian reform
cooperatives: Provided, That the provisions of the other
chapters of this Code shall apply suppletorily except
insofar as this Chapter otherwise provides.
“ART. 88. Definition and Purpose. – An agrarian

reform cooperative is one organized by marginal farmers,
majority of which are agrarian reform beneficiaries, for
the purpose of developing an appropriate system of land
tenure, land development, land consolidation or land
management in areas covered by agrarian reform.
“An agrarian reform cooperative as defined shall

be organized for any or all of the following purposes:
“(1) To develop an appropriate system of land

tenure, land development, land consolidation or land
management in areas covered by agrarian reform;
“(2) To coordinate and facilitate the dissemination

of scientific methods of production, and provide
assistance in the storage, transport, and marketing of
farm products for agrarian reform beneficiaries and
their immediate family, hereinafter referred to as
‘beneficiaries’;
“(3) To provide financial facilities to beneficiaries

for provident or productive purposes at reasonable
costs;
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“(4) To arrange and facilitate the expeditious

transfer of appropriate and suitable technology to
beneficiaries and marginal farmers at the lowest
possible cost;
“(5) To provide social security benefits, health,

medical and social insurance benefits and other social
and economic benefits that promote the general welfare
of the agrarian reform beneficiaries and marginal
farmers;
“(6) To provide non-formal education, vocational/

technical training, and livelihood programs to
beneficiaries and marginal farmers;
“(7) To act as conduits for external assistance and

services to the beneficiaries and marginal farmers;
“(8) To undertake a comprehensive and

integrated development program in agrarian reform
and resettlement areas with special concern for the
development of agro-based, marine-based, and cottage-
based industries;
“(9) To represent the beneficiaries on any or all

matters that affect their interest; and
“(10) To undertake such other economic or social

activities as may be necessary or incidental in the
pursuit of the foregoing purposes.
“ART. 89. Cooperative Estate. – Landholdings like

plantations, estates or haciendas acquired by the State
for the benefit of the workers in accordance with the
Comprehensive Agrarian Reform Program which shall
be collectively owned by the worker-beneficiaries under
a cooperative set-up.
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“ART. 90. Infrastructure. – In agrarian reform

and resettlement areas, the Government shall grant
to agrarian reform cooperatives preferential treatment
in the construction, maintenance and management
of roads, bridges, canals, wharves, ports, reservoirs,
irrigation systems, waterworks systems, and other
infrastructures with government funding. For this
purpose, the Government shall provide technical
assistance, facilities and equipment to such agrarian
reform cooperatives.
“ART. 91. Lease of Public Lands. – The

Government may lease public lands to any agrarian
reform cooperative for a period not exceeding twenty-
five (25%) years, subject to renewal for another twenty-
five (25) years only: Provided, That the application for
renewal shall be made one (1) year before the expiration
of the lease: Provided, further, That such lease shall be
for the exclusive use and benefit of the beneficiaries
and marginal farmers subject to the provisions of the
Comprehensive Agrarian Reform Program.
“ART. 92. Preferential Right. – In agrarian reform

areas, an agrarian reform cooperative shall have
the preferential right in the grant of franchise and
certificate of public convenience and necessity for the
operation of public utilities and services: Provided, That
it meets the requirements and conditions imposed by the
appropriate government agency granting the franchise
or certificate of public convenience and necessity. If
there is an electric service provider in the area, it shall
upon the request of an agrarian reform cooperative,
immediately provide electric services to the agrarian
reform areas. If the electric service provider fails to
provide the services requested within a period of one (1)
year, the agrarian reform cooperative concerned may
undertake to provide the electric services in the area
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through its own resources. All investments made by the

said agrarian reform cooperative for the electrification
of the agrarian reform resettlement areas shall be the
subject of sale to the electric service provider once it
takes on the service.
“ART. 93. Privileges. – Subject to such reasonable

terms and conditions as the Department of Agrarian
Reform (DAR) and the Authority may impose, agrarian
reform cooperatives may be given the exclusive right
to do any or all of the following economic activities in
agrarian reform and resettlement areas;
“(1) Supply and distribution of consumer,

agricultural, aqua-cultural, and industrial goods,
production inputs, and raw materials and supplies,
machinery, equipment, facilities and other services and
requirements of the beneficiaries and marginal farmers
at reasonable prices;
“(2) Marketing of the products and services of the

beneficiaries in local and foreign markets;
“(3) Processing of the members’ products into

finished consumer or industrial goods for domestic
consumption or for export;
“(4) Provision of essential public services at cost

such as power, irrigation, potable water, passenger and/
or cargo transportation by land or sea, communication
services, and public health and medical care services;
“(5) Management, conservation, and commercial

development of marine, forestry, mineral, water, and
other natural resources subject to compliance with the
laws and regulations on environmental and ecological
controls; and
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“(6) Provision of financial, technological, and other

services and facilities required by the beneficiaries in
their daily lives and livelihood.
“The Government shall provide the necessary

financial and technical assistance to agrarian reform
cooperatives to enable them to discharge effectively
their purposes under this article. The DAR, the
Authority and the BSP shall draw up a joint program
for the organization and financing of the agrarian
reform cooperatives subject of this Chapter. The joint
program shall be geared towards the beneficiaries’
gradual assumption of full ownership and management
control of the agrarian reform cooperatives.
“ART. 94. Organization and Registration. –

Agrarian reform cooperatives may be organized and
registered under this Code only upon prior written
verification by the DAR to the effect that the same is
needed and desired by the beneficiaries; results of
a study that has been conducted fairly indicate the
economic feasibility of organizing the same and that
it will be economically viable in its operations; and
that the same may now be organized and registered in
accordance with requirements of this Code.
“The Authority, in consultation with the concerned

government agencies and cooperative sector, shall issue
appropriate rules and regulations pertaining to the
provisions of this Chapter.”
SEC. 12. Articles 96, 97 and 98 of Chapter XII on the Special

Provisions on Public Services Cooperatives of the same Code are
hereby transferred to another chapter. Chapter XII as amended
shall now read, as follows:
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CHAPTER XII
COOPERATIVE BANKS
“ART. 95. Governing Law. – The provisions of

this Chapter shall primarily govern cooperative banks
registered under this Code and the other provisions of
this Code shall apply to them only insofar as they are
not inconsistent with the provisions contained in this
Chapter.
“ART. 96. Supervision. – The cooperative

banks registered under this Code shall be under the
supervision of the BSP. The BSP, upon consultation
with the Authority and the concerned cooperative sector,
shall formulate guidelines regarding the operations and
the governance of cooperative banks. These guidelines
shall give due recognition to the unique nature and
character of cooperative banks. To this end, cooperative
banks shall provide financial and banking services to its
members.
“ART. 97. Organization, Membership and

Establishment of a Cooperative Bank. – (1) Cooperative
organizations duly established and registered under
this Code may organize a cooperative bank, which shall
likewise be considered a cooperative registrable under
the provisions of this Code subject to the requirements
and requisite authorization from the BSP. Only one
cooperative bank may be established in each province:
Provided, That an additional cooperative bank may be
established in the same province to cater to the needs of
the locality depending on the economic conditions of the
province as may be determined by the BSP: Provided,
further, That the additional cooperative bank shall be
located in the City or municipality other that the city or
municipality where the first cooperative bank is located.
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“(2) Membership in a cooperative bank shall either

be regular or associate. Regular membership shall be
limited to cooperative organizations which are holders
of common shares of the bank. Associate members are
those subscribing and holding preferred shares of the
bank, which may include but are not limited to the
following:
“(a) Individual members of the bank’s member-

primary cooperatives; and
“(b) Samahang Nayon and Municipal Katipunan

ng mga Samahang Nayon (MKSN) which held common
shares of cooperative banks prior to the effectivity of this
Act shall apply for conversion to full-fledged cooperatives
in order to maintain their status as regular members of
cooperative banks: Provided, That they shall notify the
cooperative bank concerned of their intention to convert
within a period of ninety (90) days from the effectivity of
this Act. Samahang Nayon and MKSN are hereby given
a period of one (1) year from the effectivity of this Act to
complete their conversion as cooperatives. Cooperative
banks shall exert reasonable efforts to inform their
member Samahang Nayon and MKSN to finally convert
or to give the notice of conversion within the prescribed
period. Upon the failure of the Samahang Nayon and
MKSN to finally convert to a full-pledged cooperative
within the maximum period of one (1) year, the
cooperative bank concerned may convert the common
shares held by such associations to preferred shares.
“(3) The articles of cooperation and bylaws of a

cooperative bank, or any amendment thereto, shall be
registered with the Authority only when accompanied
by a certificate of authority issued by the BSP, under its
official seal.
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“ART. 98. Administration of Cooperative Banks.

– To maintain the quality of bank management and
accord appropriate protection to depositors and the
public in general, the BSP shall prescribed the fit and
proper qualifications of bank directors and officers for
the purposes of this article, giving due recognition to
the unique nature and character of cooperative banks.
“Notwithstanding the provisions of this Code, the

number, composition and term of the board of directors
shall be defined in the articles of cooperation and bylaws
of the cooperative bank.
“ART. 99. Quorum and Voting Rights. – The

quorum requirement for general assembly meetings,
whether special or regular, shall be one half plus one
of the number of voting shares of all the members in
good standing. In the meetings of the board of directors,
whether special or regular, the quorum requirement
shall be one-half plus one of all the members of the
board of directors. Each director shall only have one
vote.
“Notwithstanding the provisions of this Code to

the contrary, the quorum requirement for amendments
of articles of cooperation and bylaws shall be three-
fourths (3/4) vote of all the members with voting rights,
present and constituting a quorum. All other voting
requirements shall be as prescribed by the BSP.
“The voting rights of the members shall be

proportionate to the number of their paid-up shares.
“ART. 100. Powers, Functions and Allied

Undertakings of Cooperative Banks. – A cooperative
bank shall primarily provide financial, banking and
credit services to cooperative organizations and their
533
members. However, the BSP may prescribe appropriate

guidelines, ceilings and conditions on borrowing of a
cooperative organization from a cooperative bank.
“The powers and functions of a cooperative bank

shall be subject to such rules and regulations as may be
promulgated by the BSP.
“In addition to the powers granted by this Code

and other existing laws, any cooperative bank may
perform any or all of the banking services offered by
other types of banks subject to the prior approval of the
BSP.
“ART. 101. Capital Requirements of Cooperative

Banks. – (1) A cooperative bank shall have a minimum
paid-up capital in such amount as may be required by
the BSP.
“The BSP may prescribe rules and regulations

on the types of shares a cooperative bank may issue,
including the terms thereof and rights appurtenant
thereto to determine compliance with laws and
regulations governing capital and equity structure of
banks: Provided, That cooperative banks shall issue par
value shares only.
“(2) The Barrio Savings Fund (BSF) and Barrio

Guarantee Fund (BGF) collected/deducted by various
banks throughout the country from the loan proceeds
of farmer-borrowers who were members of cooperatives
and Samahang Nayon in compliance with Presidential
Decree No. 175 and accompanying letters of instruction,
which are still floating and outstanding either as active
or dormant deposit accounts in the books of those banks,
shall be deposited to the cooperative bank located in
the province where the depository banks of BSF and
BGF are located, or if there is no cooperative bank in
534
the province, to the cooperative bank nearest to the

province. The BSP, in coordination with the Authority,
shall come up with the implementing guidelines on how
to credit the owners of the funds.
“Those funds whose owners could not be located or

identified shall be subject to escheat.
“ART. 102. Privileges and Incentives of Cooperative

Banks. – The cooperative banks registered under this
Code shall be given the same privileges and incentives
granted to the rural banks, private development banks,
commercial banks, and all other banks to rediscount
notes with the BSP, the Land Bank of the Philippines,
and other government banks without affecting in any
way the provisions of this Code.
“(1) Subject to the approval of the BSP, a cooperative

bank shall publish a statement of its financial condition,
including those of its subsidiaries and affiliates, in
such terms understandable to the layman and in such
frequency as may be prescribed by the BSP, in English
or Filipino, at least once every quarter in a newspaper
of local circulation in the city or province where the
principal office is located or, if no newspaper is published
in the same province, then in a newspaper published in
the nearest city or province or in a newspaper of general
circulation. The BSP, however, may allow the posting
of the financial statements of the cooperative bank
in conspicuous places it may determine in lieu of the
publication required in the preceding sentence when
warranted by the circumstances.
“However, in cases of foreclosure of mortgages

covering loans granted by a cooperative bank, and
the execution of judgments thereon involving real
properties and levied upon by a sheriff, it shall be
exempt from publication requirement where the total
535
amount of the loan, excluding interest and other

charges due and unpaid, does not exceed Two hundred
fifty thousand (P250,000.00) or such amount as the BSP
may prescribe, as may be warranted by the prevailing
economic conditions and by the nature and character of
the cooperative banks. It shall be sufficient publication
in such cases if the notice of foreclosure and execution
of judgment are posted in conspicuous areas of the
cooperative bank’s premises, the municipal hall, the
municipal public market, the barangay hall, or the
barangay public market, if there be any, where the
property mortgaged is situated, within a period of sixty
(60) days immediately preceding the public auction
or the execution of judgment. Proof of publication as
required herein shall be accomplished by an affidavit
of the sheriff or officer conducting the foreclosure sale
or execution of judgment, and shall be attached to the
record of the case.
“(2) A cooperative bank shall be allowed to foreclose

lands mortgaged to it subject to the provisions of Republic
Act No. 6657, otherwise known as Comprehensive
Agrarian Reform Law of 1988.
XXX XXX XXX
SEC. 21. Article 122 is hereby deleted. Articles 123, 124, 125,
126, 127, 128, 129 and 130 of Chapter XVII on Final Provisions of
this Code are amended to read, as follows:
CHAPTER XIX
FINAL PROVISIONS
“ART. 139. Implementing Rules and Regulations.

– The Authority shall issue rules and regulations to
implement those provisions of this Code which expressly
call for the issuance thereof. This paragraph shall not
536
apply to those cases wherein a specific provision of

this Code expressly designates particular government
agencies which shall issue the regulations called for by
any provision of this Code.
“ART. 140. Penal Provisions. – The following acts or

omissions affecting cooperatives are hereby prohibited:
“(1) The use of the word ‘cooperative’ by any person

or of persons or organizations, unless duly registered
as a cooperative under this Code except as provided
for under Article 130 hereof. In case of violation, the
individual or individuals concerned, or in the case of
an organization, its officers and directors shall, upon
conviction, each suffer the penalty of imprisonment
of not less than two (2) years nor more than five (5)
years and a fine not exceeding Twenty thousand pesos
(P20,000.00) or both at the discretion of the court;
“The Authority may motu proprio, initiate

complaints for violations of this provision.
“(2) Any person who willfully attempts in any

manner to evade or defeat tax in violation of the
provisions of Articles 60 and 61 of this Code shall,
in addition to other penalties provided by law, upon
conviction thereof, be punished by a fine of not less than
Thirty thousand pesos (P30,000.00) but not more than
One hundred thousand pesos (P100,000.00) and suffer
imprisonment of not less than two (2) years but not
more than four (4) years: Provided, That the conviction
or acquittal obtained under this article shall not be a
bar to the filing of a civil suit for the collection of taxes;
“(3) Direct or indirect violation or circumvention

of the provisions of Articles 60 and 61 of this Code
committed by any public official or employee of any
bureau, office or agency of the government that deprives,
537
diminishes or in any manner hinders or restricts any

duly registered cooperative from the full enjoyment of
the exemption from the payment of the taxes, fees and
charges enumerated therein, shall upon conviction,
suffer a penalty of not less that one (1) year but not
more than five (5) years imprisonment or a fine in the
amount of not less than Five thousand pesos (P5,000.00)
or both at the discretion of the court and shall further be
disqualified to hold any other office;
“(4) Direct or indirect interference or intervention

by any public official or employee into the internal
affairs of a cooperative of which he is not a member,
such as, but not limited to, the following:
“(a) Influencing the election or appointment of

officers, directors, committee members and employees
through public or private endorsement or campaign for
or against any person or group of persons;
“(b) Requiring prior clearance for any policy or

decision within the cooperative;
“(c) Requesting or demanding for the creation of

positions or organizational units, or recommending any
person for appointment, transfer, or removal from his
position; or
“(d) Any other acts inimical or adverse to the

autonomy and independence of cooperatives.
“(5) A director, officer or committee member who

violated the provisions of Article 45 on the Liability of
Directors, Officers and Committee Members, Article
48 on the Disloyalty of a Director, and Article 49 on
the Illegal Use of Confidential Information shall upon
conviction suffer a fine of not less than Five thousand
pesos (P5,000.00) nor more than Five hundred thousand
538
pesos (P500,000.00) or imprisonment of not less than

five (5) years but not more than ten (10) years or both at
the court’s discretion;
“(6) The following are considered offenses

punishable by a penalty of imprisonment of not less
than one (1) year nor more than five (5) years or a fine
of not more than Fifty thousand pesos (P50,000.00) or
both at the discretion of the court:
“(a) Omission or refusal to furnish any information,

report or other document that is required under this
Code;
“(b) Providing information, reports or other

documents to the Authority that are required under this
Code which the person knows to be false or misleading;
“(c) Omission or refusal to keep a book or register

under this Code or to make the required entry therein;
“(d) Making an entry required under this Code in

a book or register, which the person knows to be false or
misleading;
“(e) Hindering an authorized person from making

an inspection, audit, examination or investigation
required under this Code;
“(f) Failure to comply with an order or written

instructions issued or given by the Authority;
“(g) Violation of the provisions regarding

transactions with a restricted party; and
“(h) Abetting, counseling, allowing, authorizing

or commanding another person to commit an offense
punishable by this Code: Provided, That in case the
539
violator is a cooperative or juridical person, the penalty

shall be imposed on its directors and officers.
“(7) Any violation of any provision of this Code

for which no penalty is imposed shall be punished
by imprisonment of not less than six (6) months nor
more than one (1) year and a fine of not less than One
thousand pesos (P1,000.00), or both at the discretion of
the court.
“The cooperative or any of its members can file a

case against any officer or employee of the Bureau of
Internal Revenue or of any other government agency
with the Ombudsman, Civil Service Commission, other
appropriate government agency or the courts of law.
“In case of violation of any provision of this

Code, the individual or individuals, and in the case of
organizations or government agencies, its officers, and
directors shall, upon conviction by a Court, each suffer a
penalty of not less than two (2) years but not more than
five (5) years imprisonment or a fine in the amount of
not less than Twenty thousand pesos (P20,000.00), or
both at the discretion of the court. In the case of a public
official or employee, the offender shall upon conviction,
suffer the accessory penalty of temporary absolute
disqualification.
“ART. 141. Printing and Distribution. – (1) The

National Printing Office shall publish this Code in the
Official Gazette in full within sixty (60) days from the
date of approval thereof. Copies of this Code shall be
given to every department, agency and instrumentality
of the National Government, including regional,
provincial offices and local governments including
government-owned and controlled corporations.
540
“(2) All duly registered cooperatives and their

federations, unions and associations, and cooperative
corporations shall be given one (1) copy each at cost.
Thereafter, every newly registered cooperative shall be
issued at cost a copy of this Code and the regulations
promulgated thereon together with its certificate of
registration.
“ART. 142. Interpretation and Construction. – In

case of doubt as to the meaning of any provision of this
Code or the regulations issued in pursuance thereof,
the same shall be resolved liberally in favor of the
cooperatives and their members.
“ART. 143. Repealing Clause. – Except as expressly

provided by this Code, Presidential Decree No. 175
and all other laws, or parts thereof, inconsistent with
any provision of this Code shall be deemed repealed:
Provided, That the provisions of Sections 3, 5, and 7 of
Presidential Decree No. 1645, Executive Order No. 623,
series of 2007, Revenue Regulation No. 20-2001, and
all laws, decrees, executive orders, implementing rules
and regulations, BIR circulars, memorandum orders,
letters of instruction, local government ordinances, or
parts thereof inconsistent with any of the provisions
of this Act are hereby repealed, amended or modified
accordingly.
“ART. 144. Transitory Provisions. – (1) All

cooperatives registered and confirmed with the
Authority under Republic Act No. 6938 and Republic
Act No. 6939, are hereby deemed registered under this
code, and a new certificate of registration shall be issued
by the Authority: Provided, That such cooperatives
shall submit to the nearest office of the authority a
copy of their certificate of registration or certificate of
confirmation, the articles of cooperation, their bylaws,
and their latest audited financial statement within one
541
(1) year from the effectivity of this code, otherwise the

shall be deemed cancelled motu proprio.
“(2) Following the issuance of the new certificate

of registration, the registered cooperatives shall secure
their certificate of tax exemption from the nearest office
of the Bureau of Internal Revenue (BIR): Provided,
That such exemptions shall be valid for a period of
five (5) years from the date of issue: Provided, further,
That all unpaid assessments of previously registered
cooperatives shall be the subject of compromise
settlement on terms favorable to such cooperative;
and: Provided, finally, That the BIR and the authority
shall jointly issue the necessary regulations on this
exemption and compromise within ninety (90) days
from the effectivity from this Code.
“(3) Registration of electric cooperatives with

the Authority shall not be considered as a transfer
of ownership of its assets and liabilities nor shall
it constitute a change in the nature, structure, and
status of the cooperative. Said registration shall not
result in the revocation of the condoned loans under
Republic Act No. 9136, otherwise known as the Electric
Power Industry Reform Act: Provided, That electric
cooperatives with existing loans shall not be subject to
the control and supervision of its creditors and shall
only be limited to the fulfillment of its civil obligations.
“ART. 145. Separability Clause. - Should any part

of this Code be declared unconstitutional, the validity
of remaining provisions hereof shall remain in full force
and effect.
“ART. 146. Effectivity Clause. - This Code shall

take effect fifteen (15) days from its publication in a
newspaper of general circulation.”
542
Approved,
(Sgd.) PROSPERO C. NOGRALES (Sgd.) JUAN PONCE ENRILE

of Representatives

of Representatives on December 16, 2008.
(Sgd.) MARILYN B. BARUA-YAP (Sgd.) EMMA LIRIO-REYES

Approved: FEB 17 2009


RA 9520 repealed, amended or modified BIR Revenue Regulation No. 20-2001.
RA 9520 repealed, amended or modified EO 623 s. 2007.
RA 9520 repealed, amended or modified PD 1645 (secs. 3, 5, and 7).
543
S. No. 2213
H. No. 5229

Metro Manila
Fourteenth Congress

of July, two thousand eight.
AN ACT DECLARING A NATIONAL POLICY FOR TOURISM AS

AN ENGINE OF INVESTMENT, EMPLOYMENT, GROWTH
AND NATIONAL DEVELOPMENT, AND STRENGTHENING
THE DEPARTMENT OF TOURISM AND ITS ATTACHED
AGENCIES TO EFFECTIVELY AND EFFICIENTLY
IMPLEMENT THAT POLICY, AND APPROPRIATING
FUNDS THEREFOR

CHAPTER I
General Provisions
SECTION 1. Short Title. — This Act shall be known as “The

Tourism Act of 2009”.
SEC. 2. Declaration of Policy. — The State declares tourism as

an indispensable element of the national economy and an industry
of national interest and importance, which must be harnessed as an
engine of socioeconomic growth and cultural affirmation to generate
544
investment, foreign exchange and employment, and to continue to

mold an enhanced sense of national pride for all Filipinos.
Towards this end, the State shall seek to:
(a) Ensure the development of Philippine tourism that is for

and by the Filipino people, conserve and promote their heritage,
national identity and sense of unity;
(b) Recognize sustainable tourism development as integral

to the national socioeconomic development efforts to improve the
quality of life of the Filipino people, providing the appropriate
attention and support for the growth of this industry;
(c) Promote a tourism industry that is ecologically sustainable,

responsible, participative, culturally sensitive, economically viable,
and ethically and socially equitable for local communities;
(d) Create a favorable image of the Philippines within the

international community, thereby strengthening the country’s
attraction as a tourism destination and eventually paving the way
for other benefits that may result from a positive global view of the
country;
(e) Develop the country as a prime tourist hub in Asia, as

well as a center of world congresses and conventions, by promoting
sustainable tourism anchored principally on the country’s history,
culture and natural endowments, and ensuring the protection,
preservation and promotion of these resources; and
(f) Encourage private sector participation and agri-tourism

for countryside development and preservation of rural life.
SEC. 3. Objectives. — Pursuant to the above declaration, the

State shall adopt the following objectives:
(a) Develop a national tourism action plan and work for its
adoption and implementation by national and local governments;
545
(b) Encourage activities and programs which promote tourism

awareness, preserve the country’s diverse cultures and heritage,
and instill a sense of history and a culture of tourism among the
youth and the populace;
(c) All things being equal, grant preferential treatment to the

employment of Filipino nationals in tourism-related enterprises;
(d) Provide full government assistance by way of competitive

investment incentives, long-term development fund and other
financing schemes extended to tourism-related investments;
(e) Ensure that tourism development protects and promotes

the general well-being of the Filipino people, particularly in the
area of investment, to include the monitoring and prevention of any
act of profiteering or speculation to the detriment of local residents,
as well as the exploitation of women and children in tourism;
(f) Encourage competition in the tourism industry and

maximize consumer choice by enhancing the continued viability of
the retail travel industry and independent tour operation industry;
(g) Enhance the collection, analysis and dissemination of

data which accurately measure the economic and social impact
of tourism in the country to facilitate planning in the public and
private sectors;
(h) Ensure the right of the people to a balanced and healthful

ecology through the promotion of activities geared towards
environmental protection, conservation and restoration;
(i) Develop responsible tourism as a strategy for

environmentally sound and community participatory tourism
programs, enlisting the participation of local communities, including
indigenous peoples, in conserving bio-physical and cultural
diversity, promoting environmental understanding and education,
providing assistance in the determination of ecotourism sites and
546
ensuring full enjoyment of the benefits of tourism by the concerned

communities;
(j) Strengthen the role of tourism councils and encourage the

participation of nongovernment organizations (NGOs), people’s
organizations (POs) and the private sector in initiating programs
for tourism development and environmental protection;
(k) Promote the progressive development of existing civil

aviation, land and sea transportation policies as they relate to
tourism, in consonance with existing bilateral agreements and
inter-agency pronouncements;
(l) Promote and ensure the convention-handling capability of

the country as a world-class convention center;
(m) Achieve a balance in tourism development between

urban and rural areas in order to spread the benefits of tourism and
contribute to poverty alleviation, better access to infrastructure and
to a reduction in regional imbalances;
(n) Enhance capability-building of local government units

(LGUs), in partnership with the private sector, in the management
of local tourism projects and initiatives, thereby ensuring accessible
and affordable destinations throughout the country, especially in
areas which have shown strong comparative advantage;
(o) Maintain international standards of excellence in all

tourism facilities and services, and promote the country as a safe
and wholesome tourist destination;
(p) Enhance international business relations for the support

of tourism projects of the private sector, through partnerships, joint
ventures and other cooperative undertakings involving local and
foreign investors;
(q) Support the establishment of tourism enterprise zones

(TEZs), which will provide the necessary vehicle to coordinate
547
actions of the public and private sectors to address development

barriers, attract and focus investment on specific geographic areas
and upgrade product and service quality; and
(r) Ensure a sustainable funding mechanism for the

implementation of tourism policies, plans, programs, projects and
activities.
SEC. 4. Definition of Terms. — The following terms, as used in

this Act, are defined as follows:
(a) “Department” refers to the Department of Tourism created

pursuant to Presidential Decree No. 189 (1973), as amended.
(b) “Secretary” refers to the Secretary of Tourism.
(c) “Duty Free Philippines (DFP)” refers to the government

agency created pursuant to Executive Order No. 46 (1986).
(d) “Duty Free Philippines Corporation (DFPC)” refers to the

corporate entity created out of DFP pursuant to this Act.
(e) “Philippine Conventions and Visitors Corporation (PCVC)”

refers to the corporate entity created pursuant to Presidential
Decree No. 867, as amended.
(f) “Intramuros Administration (IA)” refers to the government

agency created pursuant to Presidential Decree No. 1616 (1979), as
amended.
(g) “Philippine Retirement Authority (PRA)” refers to the

government agency created pursuant to Executive Order No. 1037
(1985).
(h) “Tourism Infrastructure and Enterprise Zone Authority

(TIEZA)” refers to the government agency created pursuant to this
Act.
548
(i) “Tourism Enterprise Zone (TEZ)” refers to tourism

enterprise zones created pursuant to this Act.
(j) “TEZ overseer” refers to any person who shall be appointed

by the TIEZA in specific zones to perform such functions as may be
delegated by the TIEZA in accordance with law.
(k) “TEZ operator” refers to an entity duly incorporated under

Batas Pambansa Blg. 68, otherwise known as The Corporation
Code of the Philippines, and other relevant laws, whose capital
may be provided by LGUs and/or private entities, and which shall
administer and supervise each TEZ.
(l) “TEZ Administrator” refers to the person appointed by the

Board of Directors of a TEZ operator who shall be responsible for
implementing the policies, plans and projects of the TEZ operator.
(m) “Registered enterprise” refers to an enterprise located

within a TEZ that is duly-registered with the TIEZA.
(n) “Philippine Tourism Authority (PTA)” refers to the

existing implementation arm of the Department of Tourism created
pursuant to Presidential Decree No. 189 (1973), as amended.
(o) “Tourism Promotions Board (TPB)” refers to the body

corporate created under this Act.
(p) “Tourism enterprises” refers to facilities, services and

attractions involved in tourism, such as, but not limited to: travel
and tour services; tourist transport services, whether for land, sea or
air transportation; tour guides; adventure sports services involving
such sports as mountaineering, spelunking, scuba diving and
other sports activities of significant tourism potential; convention
organizers; accommodation establishments, including, but not
limited to, hotels, resorts, apartelles, tourist inns, motels, pension
houses and home stay operators; tourism estate management
services, restaurants, shops and department stores, sports and
549
recreational centers, spas, museums and galleries, theme parks,

convention centers and zoos.
(q) “Primary tourism enterprises” refers to travel and tour

services; land, sea and air transport services exclusively for tourist
use; accommodation establishments; convention and exhibition
organizers; tourism estate management services; and such other
enterprises as may be identified by the Secretary, after due
consultation with concerned sectors.
(r) “Secondary tourism enterprises” refers to all other tourism

enterprises not covered by the preceding subsection.
(s) “Greenfield Tourism Zone” refers to a new or pioneer

development, as determined by the TIEZA.
(t) “Brownfield Tourism Zone” refers to an area with existing

infrastructure or development as determined by the TIEZA.
(u) “Foreign visitors” refers to all passengers using foreign

passports.
(v) “Sustainable tourism development” refers to the

management of all resources that meets the needs of tourists and
host regions while protecting the opportunities for the future, in
such a way that economic, social and aesthetic needs can be fulfilled
while maintaining cultural integrity, essential ecological processes,
biological diversity and life support systems.
XXX XXX XXX
550
CHAPTER IV
Tourism Enterprise Zones
SUBCHAPTER IV-A. Tourism Enterprise Zones
SEC. 59. Tourism Enterprise Zones. — Any geographic area

with the following characteristics may be designated as a Tourism
Enterprise Zone:
(a) The area is capable of being defined into one contiguous

territory;
(b) It has historical and cultural significance, environmental

beauty, or existing or potential integrated leisure facilities within
its bounds or within reasonable distances from it;
(c) It has, or it may have, strategic access through

transportation infrastructure, and reasonable connection with
utilities infrastructure systems;
(d) It is sufficient in size, such that it may be further utilized

for bringing in new investments in tourism establishments and
services; and
(e) It is in a strategic location such as to catalyze the

socioeconomic development of neighboring communities.
SEC. 60. Designation of TEZs. — The TIEZA shall designate

TEZs, upon the recommendation of any LGU or private entity, or
through joint ventures between the public and the private sectors.
Such designation shall be subject to the provisions of this Act and
to minimum requirements which the TIEZA shall subsequently
promulgate.
TEZs shall not proliferate in a manner that diminishes

their strategic economic and developmental value to the national
economy.
551
SEC. 61. Development Planning. — Each application for

designation as a TEZ shall be accompanied by a development plan
which shall, consistent with principles of economic, cultural and
environmentally sustainable development, specifically identify:
(a) Tourism focal points and resources available within the

proposed TEZ and adjoining areas;
(b) Features which satisfy the requisites for the designation of

a TEZ enumerated under Section 59 of this Act;
(c) Areas for infrastructure development, for investment,

and for preservation, as well as the kind of development, nature
of investment or sustainable activities allowed within preserved
areas, respectively;
(d) Medium- and long-term studies on market trends, and

corresponding development strategies for the TEZ;
(e) Studies on the economic impact of development within the

TEZ and in surrounding communities;
(f) Studies on the environmental, cultural and social carrying

capacity of the TEZ and surrounding communities;
(g) Design plans for structures which incorporate design and

sustainability principles from local architecture and the surrounding
environment; and
(h) Such other information that the TIEZA may require.
No TEZ shall be designated without a development plan duly

approved by the TIEZA and without the approval, by resolution, of the
LGU concerned. Any deviation or modification from the development
plan shall require the prior authorization of the TIEZA. The TIEZA
may cause the suspension of granted incentives and withdrawal of
recognition as a TEZ operator. It may likewise impose reasonable
552
fines and penalties upon TEZ operators and responsible persons for
any failure to properly implement the approved development plan.
Lands identified as part of a TEZ shall qualify for exemption

from the coverage of Republic Act No. 7279, otherwise known as
the Urban Development and Housing Act of 1992, and Republic Act
No. 6657, otherwise known as the Comprehensive Agrarian Reform
Law, subject to rules and regulations to be crafted by the TIEZA,
the Housing and Urban Development Coordinating Council and the
Department of Agrarian Reform.
SEC. 62. Operation of TEZs. — The TEZ proponent shall

establish a corporate entity, to be known as the TEZ operator,
which shall administer the TEZ and supervise its activities. The
designation of a TEZ does not vest ownership of the resources
therein upon the TEZ operator. Where the TEZ operator possesses
rights to land or other resources within the TEZ, the TEZ operator
shall be entitled to exercise such rights as allowed by existing laws
in a manner consistent with the duly-approved development plan as
provided above.
Where rights to land and other resources within the TEZ are
vested in a private third party, the TEZ operator shall encourage
the private third party to participate in policy making, planning
and program development and implementation by encouraging its
registration as a tourism enterprise where appropriate, and through
the judicious administration of incentives and provision of services.
Except as herein provided, the LGUs which comprise, overlap,

embrace or include a TEZ in their territorial jurisdictions shall
retain their basic autonomy and identity in accordance with the
Local Government Code.
The government shall encourage, facilitate and provide

incentives for private sector participation in the construction and
operation of public utilities and infrastructure in the TEZs using any
of the schemes allowed under Republic Act No. 6957, as amended,
otherwise known as the Build-Operate-and-Transfer Law.
553
XXX XXX XXX
CHAPTER IX
Miscellaneous Provisions
SEC. 105. Personnel and Compensation. — The employees

and management of the TIEZA, the TPB and the DFPC shall be
exempt from the coverage of the Salary Standardization Law.
Subject to existing constitutional and legal prohibitions on

double compensation for Board members in an ex officio capacity,
the members of the TIEZA Board, the Tourism Board and the
DFPC Board shall not be entitled to compensation but may receive
reasonable per diems for attendance at regular and special Board
meetings.
SEC. 106. Budgetary Approval. — All attached agencies of

the Department shall submit their annual budgets to the Secretary
for approval, and shall furnish copies of the same to the Oversight
Committee.
The budgets of the TPB, the TIEZA and the DFPC reported to
the Oversight Committee shall contain detailed information on the
compensation and benefits received by their employees.
SEC. 107. Implementing Rules and Regulations. — Upon

consultation with stakeholders, the Secretary shall promulgate
the implementing rules and regulations of this Act within ninety
(90) days after its effectivity. The Oversight Committee shall be
furnished a copy thereof immediately after promulgation.
SEC. 108. Review. — This Act shall be subject to congressional

review by Congress three (3) years after its approval and every three
(3) years thereafter.
SEC. 109. Transitory Provisions. — The transfer of powers

and functions in the Department and agencies attached thereto, as
554
herein provided for, shall take effect within six (6) months after the
effectivity of this Act. The foregoing transfer of powers and functions
shall include all applicable funds, personnel, records, property and
equipment, as may be necessary. The same shall apply to agencies
which have been attached to the Department by virtue of this Act.
As such, all offices under the Department and all attached

agencies affected by the provisions of this Act shall continue to
function under their present mandates until transition is effected
as provided for under this Act.
All officers currently serving in the PCVC, the PTA and the
DFP Boards shall continue to serve the unexpired portion of the
term of the position in the Boards of the TPB, the TIEZA and the
DFPC, respectively.
The heads of the agencies shall continue to serve until replaced

as provided for under this Act.
SEC. 110. Transfer of Rights and Liabilities. — The TPB, the

TIEZA and the DFPC shall, by virtue of this Act, be subrogated
to all rights and assume all liabilities of the PCVC, the PTA and
the DFP, respectively, in accordance with pertinent laws, rules and
regulations.
SEC. 111. Repealing Clause. — The provisions of Executive

Order No. 120 (Reorganizing the Ministry of Tourism, Defining its
Powers and Functions and for Other Purposes); Executive Order No.
292, as amended (The Administrative Code of 1987); Presidential
Decree No. 189, as amended, (Creating the Philippine Tourism
Authority); Presidential Decree No. 1448, as amended, (Creating
the Philippine Convention and Visitors Corporation); Executive
Order No. 46 (Granting the Department of Tourism, Through the
Philippine Tourism Authority, Authority to Establish and Operate
a Duty- and Tax-Free Merchandising System); Executive Order No.
30 (Creating an Executive Committee for the Development of Quezon
Memorial, Luneta and Other National Parks); Presidential Decree
No. 37 (Creating the Nayong Pilipino Foundation); Presidential
555
Decree No. 1616 (Creating the Intramuros Administration);

Presidential Decree No. 442, as amended (Labor Code); Republic
Act No. 7160 (The Local Government Code); Republic Act No. 7722
(Creating the Commission on Higher Education); Republic Act No.
9497 (Creating the Civil Aviation Authority of the Philippines); and
all other laws, presidential decrees, executive orders, proclamations
and administrative regulations inconsistent with the provisions
of this Act are hereby amended, modified, superseded or repealed
accordingly.
SEC. 112. Separability Clause. — In the event that any

provision of this Act or parts thereof be declared unconstitutional,
such declaration shall not affect the validity of the other provisions.
SEC. 113. Effectivity Clause. — This Act shall take effect

thirty (30) days after its publication in the Official Gazette or in at
least two (2) newspapers of national circulation.
Approved,

of Representatives
This Act, which is a consolidation of Senate Bill No. 2213

and House Bill No. 5229 was finally passed by the Senate and the
House of Representatives on March 6, 2009 and March 4, 2009,
respectively.

556

RA 9593 amended, modified, superseded or repealed EO 20 s. 1987.

RA 9593 amended, modified, superseded or repealed PD 37.
RA 9593 amended, modified, superseded or repealed RA 7160.
557
S. No. 2666
H. No. 4077

Metro Manila
Fourteenth Congress
Begun and held in Metro Manila, on Monday, the twenty-seventh

day of July, two thousand nine.
AN ACT STRENGTHENING THE COMPREHENSIVE

AGRARIAN REFORM PROGRAM (CARP), EXTENDING
THE ACQUISITION AND DISTRIBUTION OF ALL
AGRICULTURAL LANDS, INSTITUTING NECESSARY
REFORMS, AMENDING FOR THE PURPOSE CERTAIN
PROVISIONS OF REPUBLIC ACT NO. 6657, OTHERWISE,
KNOWN AS THE COMPREHENSIVE AGRARIAN REFORM
LAW OF 1988, AS AMENDED, AND APPROPRIATING
FUNDS THEREFOR

SEC. 1. Section 2 of Republic Act No. 6657, as amended,

otherwise known as the Comprehensive Agrarian Reform Law of
1988, is hereby further amended to read as follows:
“SEC. 2. Declaration of Principles and Policies. — It is

the policy of the State to pursue a Comprehensive Agrarian
Reform Program (CARP). The welfare of the landless farmers
and farmworkers will receive the highest consideration
to promote social justice and to move the nation toward
sound rural development and industrialization, and the
558
establishment of owner cultivatorship of economic-size farms

as the basis of Philippine agriculture.
“The State shall promote industrialization and full

employment based on sound agricultural development and
agrarian reform, through industries that make full and
efficient use of human and natural resources, and which are
competitive in both domestic and foreign markets: Provided,
That the conversion of agricultural lands into industrial,
commercial or residential lands shall take into account, tillers’
rights and national food security. Further, the State shall
protect Filipino enterprises against unfair foreign competition
and trade practices.
“The State recognizes that there is not enough

agricultural land to be divided and distributed to each farmer
and regular farmworker so that each one can own his/her
economic-size family farm. This being the case, a meaningful
agrarian reform program to uplift the lives and economic
status of the farmer and his/her children can only be achieved
through simultaneous industrialization aimed at developing
a self-reliant and independent national economy effectively
controlled by Filipinos.
“To this end, the State may, in the interest of national

welfare or defense, establish and operate vital industries.
“A more equitable distribution and ownership of land, with

due regard to the rights of landowners to just compensation,
retention rights under Section 6 of Republic Act No. 6657,
as amended, and to the ecological needs of the nation, shall
be undertaken to provide farmers and farmworkers with the
opportunity to enhance their dignity and improve the quality
of their lives through greater productivity of agricultural
lands.
“The agrarian reform program is founded on the right

of farmers and regular farmworkers, who are landless, to
559
own directly or collectively the lands they till or, in the case
of other farmworkers, to receive a just share of the fruits
thereof. To this end, the State shall encourage and undertake
the just distribution of all agricultural lands, subject to the
priorities and retention limits set forth in this Act, taking into
account ecological, developmental, and equity considerations,
and subject to the payment of just compensation. The State
shall respect the right of small landowners, and shall provide
incentive for voluntary land-sharing.
“As much as practicable, the implementation of the

program shall be community-based to assure, among others,
that the farmers shall have greater control of farmgate prices,
and easier access to credit.
“The State shall recognize the right of farmers,

farmworkers and landowners, as well as cooperatives and
other independent farmers’ organizations, to participate in
the planning, organization, and management of the program,
and shall provide support to agriculture through appropriate
technology and research, and adequate financial, production,
marketing and other support services.
“The State shall recognize and enforce, consistent with

existing laws, the rights of rural women to own and control
land, taking into consideration the substantive equality
between men and women as qualified beneficiaries, to receive
a just share of the fruits thereof, and to be represented in
advisory or appropriate decision-making bodies. These rights
shall be independent of their male relatives and of their civil
status.
“The State shall apply the principles of agrarian

reform, or stewardship, whenever applicable, in accordance
with law, in the disposition or utilization of other natural
resources, including lands of the public domain, under lease
or concession, suitable to agriculture, subject to prior rights,
560
homestead rights of small settlers and the rights of indigenous

communities to their ancestral lands.
“The State may resettle landless farmers and

farmworkers in its own agricultural estates, which shall be
distributed to them in the manner provided by law.
“By means of appropriate incentives, the State shall

encourage the formation and maintenance of economic-size
family farms to be constituted by individual beneficiaries and
small landowners.
“The State shall protect the rights of subsistence

fishermen, especially of local communities, to the preferential
use of communal marine and fishing resources, both inland
and offshore. It shall provide support to such fishermen
through appropriate technology and research, adequate
financial, production and marketing assistance and other
services. The State shall also protect, develop and conserve
such resources. The protection shall extend to offshore fishing
grounds of subsistence fishermen against foreign intrusion.
Fishworkers shall receive a just share from their labor in the
utilization of marine and fishing resources.
“The State shall be guided by the principles that

land has a social function and land ownership has a social
responsibility. Owners of agricultural land have the obligation
to cultivate directly or through labor administration the lands
they own and thereby make the land productive.
“The State shall provide incentives to landowners to

invest the proceeds of the agrarian reform program to promote
industrialization, employment and privatization of public
sector enterprises. Financial instruments used as payment for
lands shall contain features that shall enhance negotiability
and acceptability in the marketplace.
561
“The State may lease undeveloped lands of the public

domain to qualified entities for the development of capital-
intensive farms, and traditional and pioneering crops
especially those for exports subject to the prior rights of the
beneficiaries under this Act.”
SEC. 2. Section 3 of Republic Act No. 6657, as amended, is

“SEC. 3. Definitions. — For the purpose of this Act,

unless the context indicates otherwise:
“xxx
“(f) Farmer refers to a natural person whose primary

livelihood is cultivation of land or the production of
agricultural crops, livestock and/or fisheries either by himself/
herself, or primarily with the assistance of his/her immediate
farm household, whether the land is owned by him/her, or by
another person under a leasehold or share tenancy agreement
or arrangement with the owner thereof.
“xxx
“(l) Rural women refer to women who are engaged

directly or indirectly in farming and/or fishing as their source
of livelihood, whether paid or unpaid, regular or seasonal, or
in food preparation, managing the household, caring for the
children, and other similar activities.”

“SEC. 4. Scope. — The Comprehensive Agrarian Reform

Law of 1988 shall cover, regardless of tenurial arrangement and
commodity produced, all public and private agricultural lands
as provided in Proclamation No. 131 and Executive Order No.
229, including other lands of the public domain suitable for
562
agriculture: Provided, That landholdings of landowners with

a total area of five (5) hectares and below shall not be covered
for acquisition and distribution to qualified beneficiaries.
“More specifically, the following lands are covered by the

CARP:
“(a) All alienable and disposable lands of the

public domain devoted to or suitable for agriculture. No
reclassification of forest or mineral lands to agricultural
lands shall be undertaken after the approval of this Act until
Congress, taking into account ecological, developmental and
equity considerations, shall have determined by law, the
specific limits of the public domain;
“(b) All lands of the public domain in excess of the specific

limits as determined by Congress in the preceding paragraph;
“(c) All other lands owned by the Government devoted to

or suitable for agriculture; and
“(d) All private lands devoted to or suitable for agriculture

regardless of the agricultural products raised or that can be
raised thereon.
“A comprehensive inventory system in consonance

with the national land use plan shall be instituted by the
Department of Agrarian Reform (DAR), in accordance with
the Local Government Code, for the purpose of properly
identifying and classifying farmlands within one (1) year from
effectivity of this Act, without prejudice to the implementation
of the land acquisition and distribution.”
SEC. 4. There shall be incorporated after Section 6 of Republic

Act No. 6657, as amended, new sections to read as follows:
“SEC. 6-A. Exception to Retention Limits. — Provincial,

city and municipal government units acquiring private
563
agricultural lands by expropriation or other modes of

acquisition to be used for actual, direct and exclusive public
purposes, such as roads and bridges, public markets, school
sites, resettlement sites, local government facilities, public
parks and barangay plazas or squares, consistent with the
approved local comprehensive land use plan, shall not be
subject to the five (5)-hectare retention limit under this
Section and Sections 70 and 73(a) of Republic Act No. 6657,
as amended: Provided, That lands subject to CARP shall first
undergo the land acquisition and distribution process of the
program: Provided, further, That when these lands have been
subjected to expropriation, the agrarian reform beneficiaries
therein shall be paid just compensation.”
“SEC. 6-B. Review of Limits of Land Size. — Within

six (6) months from the effectivity of this Act, the DAR shall
submit a comprehensive study on the land size appropriate
for each type of crop to Congress for a possible review of limits
of land sizes provided in this Act.”

“SEC. 7. Priorities. — The DAR, in coordination with

the Presidential Agrarian Reform Council (PARC) shall plan
and program the final acquisition and distribution of all
remaining unacquired and undistributed agricultural lands
from the effectivity of this Act until June 30, 2014. Lands
shall be acquired and distributed as follows:
“Phase One: During the five (5)-year extension period

hereafter all remaining lands above fifty (50) hectares shall be
covered for purposes of agrarian reform upon the effectivity
of this Act. All private agricultural lands of landowners
with aggregate landholdings in excess of fifty (50) hectares
which have already been subjected to a notice of coverage
issued on or before December 10, 2008; rice and corn lands
under Presidential Decree No. 27; all idle or abandoned
564
lands; all private lands voluntarily offered by the owners for

agrarian reform: Provided, That with respect to voluntary
land transfer, only those submitted by June 30, 2009 shall
be allowed: Provided, further, That after June 30, 2009, the
modes of acquisition shall be limited to voluntary offer to
sell and compulsory acquisition: Provided, furthermore, That
all previously acquired lands wherein valuation is subject
to challenge by landowners shall be completed and finally
resolved pursuant to Section 17 of Republic Act No. 6657, as
amended: Provided, finally, as mandated by the Constitution,
Republic Act No. 6657, as amended, and Republic Act No.
3844, as amended, only farmers (tenants or lessees) and
regular farmworkers actually tilling the lands, as certified
under oath by the Barangay Agrarian Reform Council
(BARC) and attested under oath by the landowners, are the
qualified beneficiaries. The intended beneficiary shall state
under oath before the judge of the city or municipal court that
he/she is willing to work on the land to make it productive
and to assume the obligation of paying the amortization for
the compensation of the land and the land taxes thereon;
all lands foreclosed by government financial institutions;
all lands acquired by the Presidential Commission on Good
Government (PCGG); and all other lands owned by the
government devoted to or suitable for agriculture, which shall
be acquired and distributed immediately upon the effectivity
of this Act, with the implementation to be completed by June
30, 2012;
“Phase Two: (a) Lands twenty-four (24) hectares up

to fifty (50) hectares shall likewise be covered for purposes
of agrarian reform upon the effectivity of this Act. All
alienable and disposable public agricultural lands; all arable
public agricultural lands under agro-forest, pasture and
agricultural leases already cultivated and planted to crops in
accordance with Section 6, Article XIII of the Constitution;
all public agricultural lands which are to be opened for new
development and resettlement; and all private agricultural
lands of landowners with aggregate landholdings: above
565
twenty-four (24) hectares up to fifty (50) hectares which have

already been subjected to a notice of coverage issued on or
before December 10, 2008, to implement principally the rights
of farmers and regular farmworkers, who are landless, to
own directly or collectively the lands they till, which shall be
distributed immediately upon the effectivity of this Act, with
the implementation to be completed by June 30, 2012; and
“(b) All remaining private agricultural lands of

landowners with aggregate landholdings in excess of twenty-
four (24) hectares, regardless as to whether these have been
subjected to notices of coverage or not, with the implementation
to begin on July 1, 2012 and to be completed by June 30, 2013;
“Phase Three: All other private agricultural lands

commencing with large landholdings and proceeding to
medium and small landholdings under the following schedule:
“(a) Lands of landowners with aggregate landholdings

above ten (10) hectares up to twenty-four (24) hectares, insofar
as the excess hectarage above ten (10) hectares is concerned,
to begin on July 1, 2012 and to be completed by June 30, 2013;
and
“(b) Lands of landowners with aggregate landholdings

from the retention limit up to ten (10) hectares, to begin on July
1, 2013 and to be completed by June 30, 2014; to implement
principally the right of farmers and regular farmworkers who
are landless, to own directly or collectively the lands they till.
“The schedule of acquisition and redistribution of all

agricultural lands covered by this program shall be made in
accordance with the above order of priority, which shall be
provided in the implementing rules to be prepared by the PARC,
taking into consideration the following: the landholdings
wherein the farmers are organized and understand the
meaning and obligations of farmland ownership; the
distribution of lands to the tillers at the earliest practicable
566
time; the enhancement of agricultural productivity; and the

availability of funds and resources to implement and support
the program: Provided, That the PARC shall design and
conduct seminars, symposia, information campaigns, and
other similar programs for farmers who are not organized or
not covered by any landholdings. Completion by these farmers
of the aforementioned seminars, symposia, and other similar
programs shall be encouraged in the implementation of this
Act particularly the provisions of this Section.
“Land acquisition and distribution shall be completed

by June 30, 2014 on a province-by-province basis. In any
case, the PARC or the PARC Executive Committee (PARC
EXCOM), upon recommendation by the Provincial Agrarian
Reform Coordinating Committee (PARCCOM), may declare
certain provinces as priority land reform areas, in which case
the acquisition and distribution of private agricultural lands
therein under advanced phases may be implemented ahead
of the above schedules on the condition that prior phases
in these provinces have been completed: Provided, That
notwithstanding the above schedules, phase three (b) shall not
be implemented in a particular province until at least ninety
percent (90%) of the provincial balance of that particular
province as of January 1, 2009 under Phase One, Phase Two
(a), Phase Two (b), and Phase Three (a), excluding lands
under the jurisdiction of the Department of Environment and
Natural Resources (DENR), have been successfully completed.
“The PARC shall establish guidelines to implement

the above priorities and distribution scheme, including the
determination of who are qualified beneficiaries: Provided,
That an owner-tiller may be a beneficiary of the land he/she
does not own but is actually cultivating to the extent of the
difference between the area of the land he/she owns and the
award ceiling of three (3) hectares: Provided, further, That
collective ownership by the farmer beneficiaries shall be
subject to Section 25 of Republic Act No. 6657, as amended:
Provided, furthermore, That rural women shall be given the
567
opportunity to participate in the development planning and

implementation of this Act: Provided, finally, That in no
case should the agrarian reform beneficiaries’ sex, economic,
religious, social, cultural and political attributes adversely
affect the distribution of lands.”
SEC. 6. The title of Section 16 of Republic Act No. 6657, as

amended, is hereby further amended to read as follows:
“SEC. 16. Procedure for Acquisition and Distribution of

Private Lands.”

“SEC. 17. Determination of Just Compensation. — In

determining just compensation, the cost of acquisition of
the land, the value of the standing crop, the current value of
like properties, its nature, actual use and income, the sworn
valuation by the owner, the tax declarations, the assessment
made by government assessors, and seventy percent (70%)
of the zonal valuation of the Bureau of Internal Revenue
(BIR), translated into a basic formula by the DAR shall be
considered, subject to the final decision of the proper court.
The social and economic benefits contributed by the farmers
and the farmworkers and by the Government to the property
as well as the nonpayment of taxes or loans secured from any
government financing institution on the said land shall be
considered as additional factors to determine its valuation.”

Republic Act No. 6657, as amended, a new section to read as follows:
“SEC. 22-A. Order of Priority. — A landholding of a

landowner shall be distributed first to qualified beneficiaries
under Section 22, subparagraphs (a) and (b) of that same
landholding up to a maximum of three (3) hectares each.
568
Only when these beneficiaries have all received three (3)

hectares each, shall the remaining portion of the landholding,
if any, be distributed to other beneficiaries under Section 22,
subparagraphs (c), (d), (e), (f), and (g).”

“SEC. 24. Award to Beneficiaries. — The rights and

responsibilities of the beneficiaries shall commence from their
receipt of a duly registered emancipation patent or certificate
of land ownership award and their actual physical possession
of the awarded land. Such award shall be completed in not
more than one hundred eighty (180) days from the date of
registration of the title in the name of the Republic of the
Philippines: Provided, That the emancipation patents, the
certificates of land ownership award, and other titles issued
under any agrarian reform program shall be indefeasible
and imprescriptible after one (1) year from its registration
with the Office of the Registry of Deeds, subject to the
conditions, limitations and qualifications of this Act, the
property registration decree, and other pertinent laws. The
emancipation patents or the certificates of land ownership
award being titles brought under the operation of the
torrens system, are conferred with the same indefeasibility
and security afforded to all titles under the said system, as
provided for by Presidential Decree No. 1529, as amended by
“It is the ministerial duty of the Registry of Deeds to

register the title of the land in the name of the Republic of
the Philippines, after the Land Bank of the Philippines
(LBP) has certified that the necessary deposit in the name of
the landowner constituting full payment in cash or in bond
with due notice to the landowner and the registration of the
certificate of land ownership award issued to the beneficiaries,
and to cancel previous titles pertaining thereto.
569
“Identified and qualified agrarian reform beneficiaries,

based on Section 22 of Republic Act No. 6657, as amended,
shall have usufructuary rights over the awarded land as
soon as the DAR takes possession of such land, and such
right shall not be diminished even pending the awarding of
the emancipation patent or the certificate of land ownership
award.
“All cases involving the cancellation of registered

emancipation patents, certificates of land ownership award,
and other titles issued under any agrarian reform program are
within the exclusive and original jurisdiction of the Secretary
of the DAR.”

“SEC. 25. Award Ceilings for Beneficiaries. —

Beneficiaries shall be awarded an area not exceeding three (3)
hectares, which may cover a contiguous tract of land or several
parcels of land cumulated up to the prescribed award limits.
The determination of the size of the land for distribution shall
consider crop type, soil type, weather patterns and other
pertinent variables or factors which are deemed critical for
the success of the beneficiaries.
“For purposes of this Act, a landless beneficiary is one

who owns less than three (3) hectares of agricultural land.
“Whenever appropriate, the DAR shall encourage

the agrarian reform beneficiaries to form or join farmers’
cooperatives for purposes of affiliating with existing
cooperative banks in their respective provinces or localities,
as well as forming blocs of agrarian reform beneficiaries,
corporations, and partnerships and joining other farmers’
collective organizations, including irrigators’ associations:
Provided, That the agrarian reform beneficiaries shall be
570
assured of corresponding shares in the corporation, seats in

the board of directors, and an equitable share in the profit.
“In general, the land awarded to a farmer-beneficiary

should be in the form of an individual title, covering one (1)
contiguous tract or several parcels of land cumulated up to a
maximum of three (3) hectares.
“The beneficiaries may opt for collective ownership,

such as coorkers or farmers cooperative or some other form
of collective organization and for the issuance of collective
ownership titles: Provided, That the total area that may
be awarded shall not exceed the total number of co-owners
or members of the cooperative or collective organization
multiplied by the award limit above prescribed, except in
meritorious cases as determined by the PARC.
“The conditions for the issuance of collective titles are as

follows:
“(a) The current farm management system of the land

covered by CARP will not be appropriate for individual
farming of farm parcels;
“(b) The farm labor system is specialized, where the

farmworkers are organized by functions and not by specific
parcels such as spraying, weeding, packing and other similar
functions;
“(c) The potential beneficiaries are currently not farming

individual parcels but collectively work on large contiguous
areas; and
“(d) The farm consists of multiple crops being farmed in

an integrated manner or includes non-crop production areas
that are necessary for the viability of farm operations, such
as packing plants, storage areas, dikes, and other similar
571
facilities that cannot be subdivided or assigned to individual

farmers.
“For idle and abandoned lands or underdeveloped

agricultural lands to be covered by CARP, collective
ownership shall be allowed only if the beneficiaries opt for
it and there is a clear development plan that would require
collective farming or integrated farm operations exhibiting
the conditions described above. Otherwise, the land awarded
to a farmer-beneficiary should be in the form of an individual
title, covering one (1) contiguous tract or several parcels of
land cumulated up to a maximum of three (3) hectares.
“In case of collective ownership, title to the property shall

be issued in the name of the co-owners or the cooperative or
collective organization as the case may be. If the certificates
of land ownership award are given to cooperatives then the
names of the beneficiaries must also be listed in the same
certificate of land ownership award.
“With regard to existing collective certificates of land

ownership award, the DAR should immediately undertake
the parcelization of said certificates of land ownership award,
particularly those that do not exhibit the conditions for
collective ownership outlined above. The DAR shall conduct
a review and redocumentation of all the collective certificates
of land ownership award. The DAR shall prepare a prioritized
list of certificates of land ownership award to be parcelized.
The parcelization shall commence immediately upon approval
of this Act and shall not exceed a period of three (3) years.
Only those existing certificates of land ownership award
that are collectively farmed or are operated in an integrated
manner shall remain as collective.”

572
“SEC. 26. Payment by Beneficiaries. — Lands awarded

pursuant to this Act shall be paid for by the beneficiaries to
the LBP in thirty (30) annual amortizations at six percent
(6%) interest per annum. The annual amortization shall start
one (1) year from the date of the certificate of land ownership
award registration. However, if the occupancy took place
after the certificate of land ownership award registration, the
amortization shall start one (1) year from actual occupancy.
The payments for the first three (3) years after the award shall
be at reduced amounts as established by the PARC: Provided,
That the first five (5) annual payments may not be more than
five percent (5%) of the value of the annual gross production
as established by the DAR. Should the scheduled annual
payments after the fifth (5th) year exceed ten percent (10%)
of the annual gross production and the failure to produce
accordingly is not due to the beneficiary’s fault, the LBP shall
reduce the interest rate and/or reduce the principal obligation
to make the repayment affordable.
“The LBP shall have a lien by way of mortgage on the

land awarded to the beneficiary; and this mortgage may be
foreclosed by the LBP for non-payment of an aggregate of
three (3) annual amortizations. The LBP shall advise the DAR
of such proceedings and the latter shall subsequently award
the forfeited landholding to other qualified beneficiaries. A
beneficiary whose land, as provided herein, has been foreclosed
shall thereafter be permanently disqualified from becoming a
beneficiary under this Act.”

“SEC. 27. Transferability of Awarded Lands. — Lands

acquired by beneficiaries under this Act or other agrarian
reform laws shall not be sold, transferred or conveyed except
through hereditary succession, or to the government, or to the
LBP, or to other qualified beneficiaries through the DAR for a
period of ten (10) years: Provided, however, That the children
573
or the spouse of the transferor shall have a right to repurchase

the land from the government or LBP within a period of two
(2) years. Due notice of the availability of the land shall be
given by the LBP to the BARC of the barangay where the land
is situated. The PARCCOM, as herein provided, shall, in turn,
be given due notice thereof by the BARC.
“The title of the land awarded under the agrarian reform

must indicate that it is an emancipation patent or a certificate
of land ownership award and the subsequent transfer title
must also indicate that it is an emancipation patent or a
certificate of land ownership award.
“If the land has not yet been fully paid by the beneficiary,
the rights to the land may be transferred or conveyed, with
prior approval of the DAR, to any heir of the beneficiary or to
any other beneficiary who, as a condition for such transfer or
conveyance, shall cultivate the land himself/herself. Failing
compliance herewith, the land shall be transferred to the LBP
which shall give due notice of the availability of the land in the
manner specified in the immediately preceding paragraph.
“In the event of such transfer to the LBP, the latter

shall compensate the beneficiary in one lump sum for the
amounts the latter has already paid, together with the value
of improvements he/she has made on the land.”

“SEC. 36. Funding for Support Services. — In order

to cover the expenses and cost of support services, at least
forty percent (40%) of all appropriations for agrarian reform
during the five (5)-year extension period shall be immediately
set aside and made available for this purpose: Provided,
That the DAR shall pursue integrated land acquisition
and distribution and support services strategy requiring
a plan to be developed parallel to the land acquisition and
574
distribution process. The planning and implementation for

land acquisition and distribution shall be hand-in-hand with
support services delivery: Provided, further, That for the next
five (5) years, as far as practicable, a minimum of two (2)
Agrarian Reform Communities (ARCs) shall be established by
the DAR, in coordination with the local government units, non-
governmental organizations, community-based cooperatives
and people’s organizations in each legislative district with a
predominant agricultural population: Provided, furthermore,
That the areas in which the ARCs are to be established shall
have been substantially covered under the provisions of this
Act and other agrarian or land reform laws: Provided, finally,
That a complementary support services delivery strategy
for existing agrarian reform beneficiaries that are not in
barangays within the ARCs shall be adopted by the DAR.
“For this purpose, an Agrarian Reform Community

is composed and managed by agrarian reform beneficiaries
who shall be willing to be organized and to undertake the
integrated development of an area and/or their organizations/
cooperatives. In each community, the DAR, together with the
agencies and organizations abovementioned, shall identify
the farmers’ association, cooperative or their respective
federations approved by the farmers-beneficiaries that shall
take the lead in the agricultural development of the area. In
addition, the DAR, in close coordination with the congressional
oversight committee created herein, with due notice to the
concerned representative of the legislative district prior to
implementation shall be authorized to package proposals and
receive grants, aids and other forms of financial assistance
from any source.”

“SEC. 37. Support Services for the Agrarian Reform

Beneficiaries. — The State shall adopt the integrated policy
of support services delivery to agrarian reform beneficiaries.
575
To this end, the DAR, the Department of Finance, and the

Bangko Sentral ng Pilipinas (BSP) shall institute reforms to
liberalize access to credit by agrarian reform beneficiaries.
The PARC shall ensure that support services for agrarian
reform beneficiaries are provided, such as:
“(a) Land surveys and titling;
“(b) Socialized terms on agricultural credit facilities;
“Thirty percent (30%) of all appropriations for support

services referred to in Section 36 of Republic Act No. 6657,
as amended, shall be immediately set aside and made
available for agricultural credit facilities: Provided, That
one-third (1/3) of this segregated appropriation shall be
specifically allocated for subsidies to support the initial
capitalization for agricultural production to new agrarian
reform beneficiaries upon the awarding of the emancipation
patent or the certificate of land ownership award and the
remaining two-thirds (2/3) shall be allocated to provide access
to socialized credit to existing agrarian reform beneficiaries,
including the leaseholders: Provided, further, the LBP and
other concerned government financial institutions, accredited
savings and credit cooperatives, financial service cooperatives
and accredited cooperative banks shall provide the delivery
system for disbursement of the above financial assistance to
individual agrarian reform beneficiaries, holders of collective
titles and cooperatives.
“For this purpose, all financing institutions may accept

as collateral for loans the purchase orders, marketing
agreements or expected harvests: Provided, That loans
obtained shall be used in the improvement or development
of the farmholding of the agrarian reform beneficiary or the
establishment of facilities which shall enhance production or
marketing of agricultural products or increase farm income
therefrom: Provided, further, That of the remaining seventy
percent (70%) for the support services, fifteen percent (15%)
576
shall be earmarked for farm inputs as requested by the duly

accredited agrarian reform beneficiaries’ organizations, such
as, but not limited to: (1) seeds, seedlings and/or planting
materials; (2) organic fertilizers; (3) pesticides; (4) herbicides;
and (5) farm animals, implements/machineries; and five
percent (5%) for seminars, trainings and the like to help
empower agrarian reform beneficiaries.
“(c) Extension services by way of planting, cropping,

production and post-harvest technology transfer, as well
as marketing and management assistance and support to
cooperatives and farmers’ organizations;
“(d) Infrastructure such as, but not limited to, access

trails, mini-dams, public utilities, marketing and storage
facilities;
“(e) Research, production and use of organic fertilizers

and other local substances necessary in farming and
cultivation; and
“(f) Direct and active DAR assistance in the education

and organization of actual and potential agrarian reform
beneficiaries, at the barangay, municipal, city, provincial,
and national levels, towards helping them understand their
rights and responsibilities as owner-cultivators developing
farm-related trust relationships among themselves and their
neighbors, and increasing farm production and profitability
with the ultimate end of empowering them to chart their
own destiny. The representatives of the agrarian reform
beneficiaries to the PARC shall be chosen from the nominees
of the duly accredited agrarian reform beneficiaries’
organizations, or in its absence, from organizations of actual
and potential agrarian reform beneficiaries as forwarded to
and processed by the PARC EXCOM.
“The PARC shall formulate policies to ensure that

support services for agrarian reform beneficiaries shall be
577
provided at all stages of the program implementation with the

concurrence of the concerned agrarian reform beneficiaries.
“The PARC shall likewise adopt, implement, and monitor

policies and programs to ensure the fundamental equality of
women and men in the agrarian reform program as well as
respect for the human rights, social protection, and decent
working conditions of both paid and unpaid men and women
farmer-beneficiaries.
“The Bagong Kilusang Kabuhayan sa Kaunlaran (BKKK)

Secretariat shall be transferred and attached to the LBP, for
its supervision including all its applicable and existing funds,
personnel, properties, equipment and records.
“Misuse or diversion of the financial and support

services herein provided shall result in sanctions against the
beneficiary guilty thereof, including the forfeiture of the land
transferred to him/her or lesser sanctions as may be provided
by the PARC, without prejudice to criminal prosecution.”

Republic Act No. 6657, as amended, a new section to read as follows:
“SEC. 37-A. Equal Support Services for Rural Women. —

Support services shall be extended equally to women and men
agrarian reform beneficiaries.
“The PARC shall ensure that these support services, as

provided for in this Act, integrate the specific needs and well-
being of women farmer-beneficiaries taking into account the
specific requirements of female family members of farmer-
beneficiaries.
“The PARC shall also ensure that rural women will be

able to participate in all community activities. To this effect,
rural women are entitled to self-organization in order to obtain
equal access to economic opportunities and to have access
578
to agricultural credit and loans, marketing facilities and

technology, and other support services, and equal treatment
in land reform and resettlement schemes.
“The DAR shall establish and maintain a women’s

desk, which will be primarily responsible for formulating and
implementing programs and activities related to the protection
and promotion of women’s rights, as well as providing an
avenue where women can register their complaints and
grievances principally related to their rural activities.”

“SEC. 38. Support Services for Landowners. — The PARC,

with the assistance of such other government agencies and
instrumentalities as it may direct, shall provide landowners
affected by the CARP and prior agrarian reform programs
with the following services:
“(a) Investment information, financial and counseling

assistance, particularly investment information on
government-owned and/or -controlled corporations and
disposable assets of the government in pursuit of national
industrialization and economic independence:
“(b) Facilities, programs and schemes for the conversion

or exchange of bonds issued for payment of the lands acquired
with stocks and bonds issued by the National Government, the
BSP and other government institutions and instrumentalities;
“(c) Marketing of agrarian reform bonds, as well as

promoting the marketability of said bonds in traditional and
non-traditional financial markets and stock exchanges; and/
or
“(d) Other services designed to utilize productively the

proceeds of the sale of such lands for rural industrialization.
579
“A landowner who invests in rural-based industries shall

be entitled to the incentives granted to a registered enterprise
engaged in a pioneer or preferred area of investment as
provided for in the Omnibus Investment Code of 1987, or
to such other incentives as the PARC, the LBP, or other
government financial institutions shall provide.
“The LBP shall redeem a landowner’s agrarian reform

bonds at face value as an incentive: Provided, That at least
fifty percent (50%) of the proceeds thereof shall be invested in a
Board of Investments (BOI)-registered company or in any agri-
business or agro-industrial enterprise in the region where the
CARP-covered landholding is located. An additional incentive
of two percent (2%) in cash shall be paid to a landowner who
maintains his/her enterprise as a going concern for five (5)
years or keeps his/her investments in a BOI-registered firm
for the same period: Provided, further, That the rights of the
agrarian reform beneficiaries are not, in any way, prejudiced
or impaired thereby.
“The DAR, the LBP and the Department of Trade and

Industry shall jointly formulate the program to carry out
these provisions under the supervision of the PARC: Provided,
That in no case shall the landowners’ sex, economic, religious,
social, cultural and political attributes exclude them from
accessing these support services.”

“SEC. 41. The Presidential Agrarian Reform Council. —

The Presidential Agrarian Reform Council (PARC) shall be
composed of the President of the Philippines as Chairperson,
the Secretary of Agrarian Reform as Vice-Chairperson and
the following as members: Secretaries of the Departments
of Agriculture; Environment and Natural Resources; Budget
and Management; Interior and Local Government; Public
Works and Highways; Trade and Industry; Finance; and
580
Labor and Employment; Director-General of the National

Economic and Development Authority; President, Land
Bank of the Philippines; Administrator, National Irrigation
Administration; Administrator, Land Registration Authority;
and six (6) representatives of affected landowners to represent
Luzon, Visayas and Mindanao; six (6) representatives of
agrarian reform beneficiaries, two (2) each from Luzon, Visayas
and Mindanao: Provided, That at least one (1) of them shall be
from the indigenous peoples: Provided, further, That at least
one (1) of them shall come from a duly recognized national
organization of rural women or a national organization of
agrarian reform beneficiaries with a substantial number
of women members: Provided, finally, That at least twenty
percent (20%) of the members of the PARC shall be women
but in no case shall they be less than two (2).”

“SEC. 50. Quasi-Judicial Powers of the DAR. — The

DAR is hereby vested with primary jurisdiction to determine
and adjudicate agrarian reform matters and shall have
exclusive original jurisdiction over all matters involving the
implementation of agrarian reform, except those falling under
the exclusive jurisdiction of the Department of Agriculture
(DA) and the DENR.
“It shall not be bound by technical rules of procedure

and evidence but shall proceed to hear and decide all cases,
disputes or controversies in a most expeditious manner,
employing all reasonable means to ascertain the facts of every
case in accordance with justice and equity and the merits
of the case. Toward this end, it shall adopt a uniform rule
of procedure to achieve a just, expeditious and inexpensive
determination of every action or proceeding before it.
“It shall have the power to summon witnesses, administer

oaths, take testimony, require submission of reports, compel
581
the production of books and documents and answers to

interrogatories and issue subpoena, and subpoena duces
tecum and to enforce its writs through sheriffs or other duly
deputized officers. It shall likewise have the power to punish
direct and indirect contempts in the same manner and subject
to the same penalties as provided in the Rules of Court.
“Responsible farmer leaders shall be allowed to represent

themselves, their fellow farmers, or their organizations in any
proceedings before the DAR: Provided, however, That when
there are two or more representatives for any individual or
group, the representatives should choose only one among
themselves to represent such party or group before any DAR
proceedings.
“Notwithstanding an appeal to the Court of Appeals, the

decision of the DAR shall be immediately executory except a
decision or a portion thereof involving solely the issue of just
compensation.”

hereby further amended by adding Section 50-A to read as follows:
“SEC. 50-A. Exclusive Jurisdiction on Agrarian Dispute.

— No court or prosecutor’s office shall take cognizance of
cases pertaining to the implementation of the CARP except
those provided under Section 57 of Republic Act No. 6657,
as amended. If there is an allegation from any of the parties
that the case is agrarian in nature and one of the parties is a
farmer, farmworker, or tenant, the case shall be automatically
referred by the judge or the prosecutor to the DAR which shall
determine and certify within fifteen (15) days from referral
whether an agrarian dispute exists: Provided, That from the
determination of the DAR, an aggrieved party shall have
judicial recourse. In cases referred by the municipal trial court
and the prosecutor’s office, the appeal shall be with the proper
regional trial court, and in cases referred by the regional trial
court, the appeal shall be to the Court of Appeals.
582
“In cases where regular courts or quasi-judicial bodies

have competent jurisdiction, agrarian reform beneficiaries or
identified beneficiaries and/or their associations shall have
legal standing and interest to intervene concerning their
individual or collective rights and/or interests under the
CARP.
“The fact of non-registration of such associations with

the Securities and Exchange Commission, or Cooperative
Development Authority, or any concerned government agency
shall not be used against them to deny the existence of their
legal standing and interest in a case filed before such courts
and quasi-judicial bodies.”

“SEC. 55. No Restraining Order or Preliminary

Injunction. — Except for the Supreme Court, no court in the
Philippines shall have jurisdiction to issue any restraining
order or writ of preliminary injunction against the PARC,
the DAR, or any of its duly authorized or designated agencies
in any case, dispute or controversy arising from, necessary
to, or in connection with the application, implementation,
enforcement, or interpretation of this Act and other pertinent
laws on agrarian reform.”

“SEC. 63. Funding Source. — The amount needed to

further implement the CARP as provided in this Act, until
June 30, 2014, upon expiration of funding under Republic
Act No. 8532 and other pertinent laws, shall be funded
from the Agrarian Reform Fund and other funding sources
in the amount of at least One hundred fifty billion pesos
(P150,000,000,000.00).
583
“Additional amounts are hereby authorized to be

appropriated as and when needed to augment the Agrarian
Reform Fund in order to fully implement the provisions of this
Act during the five (5)-year extension period.
“Sources of funding or appropriations shall include the

following:
“(a) Proceeds of the sales of the Privatization and

Management Office (PMO);
“(b) All receipts from assets recovered and from sales of

ill-gotten wealth recovered through the PCGG excluding the
amount appropriated for compensation to victims of human
rights violations under the applicable law;
“(c) Proceeds of the disposition and development of the

properties of the Government in foreign countries, for the
specific purposes of financing production credits, infrastructure
and other support services required by this Act;
“(d) All income and collections of whatever form and

nature arising from the agrarian reform operations, projects
and programs of the DAR and other CARP implementing
agencies;
“(e) Portion of amounts accruing to the Philippines from

all sources of official foreign aid grants and concessional
financing from all countries, to be used for the specific
purposes of financing productions, credits, infrastructures,
and other support services required by this Act;
“(f) Yearly appropriations of no less than Five billion

pesos (P5,000,000,000.00) from the General Appropriations
Act;
“(g) Gratuitous financial assistance from legitimate

sources; and
584
(h) Other government funds not otherwise appropriated.
“All funds appropriated to implement the provisions

of this Act shall be considered continuing appropriations
during the period of its implementation: Provided, That
if the need arises, specific amounts for bond redemptions,
interest payments and other existing obligations arising from
the implementation of the program shall be included in the
annual General Appropriations Act: Provided, further, That
all just compensation payments to landowners, including
execution of judgments therefor, shall only be sourced from
the Agrarian Reform Fund: Provided, however, That just
compensation payments that cannot be covered within the
approved annual budget of the program shall be chargeable
against the debt service program of the national government,
or any unprogrammed item in the General Appropriations
Act: Provided, finally, That after the completion of the land
acquisition and distribution component of the CARP, the yearly
appropriation shall be allocated fully to support services,
agrarian justice delivery and operational requirements of the
DAR and the other CARP implementing agencies.”

“SEC. 65. Conversion of Lands. — After the lapse of five (5)

years from its award, when the land ceases to be economically
feasible and sound for agricultural purposes, or the locality has
become urbanized and the land will have a greater economic
value for residential, commercial or industrial purposes, the
DAR, upon application of the beneficiary or the landowner
with respect only to his/her retained area which is tenanted,
with due notice to the affected parties, and subject to existing
laws, may authorize the reclassification or conversion of
the land and its disposition: Provided, That if the applicant
is a beneficiary under agrarian laws and the land sought to
be converted is the land awarded to him/her or any portion
thereof, the applicant, after the conversion is granted, shall
585
invest at least ten percent (10%) of the proceeds coming from

the conversion in government securities: Provided, further,
That the applicant upon conversion shall fully pay the price of
the land: Provided, furthermore, That irrigated and irrigable
lands, shall not be subject to conversion: Provided, finally,
That the National Irrigation Administration shall submit a
consolidated data on the location nationwide of all irrigable
lands within one (1) year from the effectivity of this Act.
“Failure to implement the conversion plan within five

(5) years from the approval of such conversion plan or any
violation of the conditions of the conversion order due to the
fault of the applicant shall cause the land to automatically be
covered by CARP.”

“SEC. 68. Immunity of Government Agencies from Undue

Interference. — In cases falling within their jurisdiction, no
injunction, restraining order, prohibition or mandamus shall
be issued by the regional trial courts, municipal trial courts,
municipal circuit trial courts, and metropolitan trial courts
against the DAR, the DA, the DENR, and the Department of
Justice in their implementation of the Program.”

“SEC. 73. Prohibited Acts and Omissions. — The

following are prohibited:
“(a) The ownership or possession, for the purpose of

circumventing the provisions of this Act, of agricultural lands
in excess of the total retention limits or award ceilings by
any person, natural or juridical, except those under collective
ownership by farmer-beneficiaries;
586
“(b) The forcible entry or illegal detainer by persons

who are not qualified beneficiaries under this Act to avail
themselves of the rights and benefits of the Agrarian Reform
Program;
“(c) Any conversion by any landowner of his/her

agricultural land into any non-agricultural use with intent to
avoid the application of this Act to his/her landholdings and to
dispossess his/her bonafide tenant farmers;
“(d) The malicious and willful prevention or obstruction

by any person, association or entity of the implementation of
the CARP;
“(e) The sale, transfer, conveyance or change of the

nature of lands outside of urban centers and city limits either
in whole or in part after the effectivity of this Act, except after
final completion of the appropriate conversion under Section
65 of Republic Act No. 6657, as amended. The date of the
registration of the deed of conveyance in the Register of Deeds
with respect to titled lands and the date of the issuance of the
tax declaration to the transferee of the property with respect
to unregistered lands, as the case may be, shall be conclusive
for the purpose of this Act;
“(f) The sale, transfer or conveyance by a beneficiary of

the right to use or any other usufructuary right over the land
he/she acquired by virtue of being a beneficiary, in order to
circumvent the provisions of this Act;
“(g) The unjustified, willful, and malicious act by a

responsible officer or officers of the government through the
following:
“(1) The denial of notice and/or reply to landowners;
“(2) The deprivation of retention rights;
587
“(3) The undue or inordinate delay in the preparation of

claim folders; or
“(4) Any undue delay, refusal or failure in the payment

of just compensation;
“(h) The undue delay or unjustified failure of the DAR,

the LBP, the PARC, the PARCCOM, and any concerned
government agency or any government official or employee to
submit the required report, data and/or other official document
involving the implementation of the provisions of this Act,
as required by the parties or the government, including the
House of Representatives and the Senate of the Philippines
as well as their respective committees, and the congressional
oversight committee created herein;
“(i) The undue delay in the compliance with the obligation

to certify or attest and/or falsification of the certification or
attestation as required under Section 7 of Republic Act No.
6657, as amended; and
“(j) Any other culpable neglect or willful violations of the

“In the case of government officials and employees, a

conviction under this Act is without prejudice to any civil case
and/or appropriate administrative proceedings under civil
service law, rules and regulations.
“Any person convicted under this Act shall not be

entitled to any benefit provided for in any agrarian reform
law or program.”

“SEC. 74. Penalties. — Any person who knowingly or

willfully violates the provisions of this Act shall be punished
588
by imprisonment of not less than one (1) month to not more

than three (3) years or a fine of not less than One thousand
pesos (P1,000.00) and not more than Fifteen thousand pesos
(P15,000.00), or both, at the discretion of the court: Provided,
That the following corresponding penalties shall be imposed
for the specific violations hereunder:
“(a) Imprisonment of three (3) years and one (1) day to

six (6) years or a fine of not less than Fifty thousand pesos
(P50,000.00) and not more than One hundred fifty thousand
pesos (P150,000.00), or both, at the discretion of the court
upon any person who violates Section 73, subparagraphs (a),
(b), (f), (g), and (h) of Republic Act No. 6657, as amended; and
“(b) Imprisonment of six (6) years and one (1) day to

twelve (12) years or a fine of not less than Two hundred
thousand pesos (P200,000.00) and not more than One million
pesos (P1,000,000.00), or both, at the discretion of the court
upon any person who violates Section 73, subparagraphs (c),
(d), (e), and (i) of Republic Act No. 6657, as amended.
“If the offender is a corporation or association, the officer

responsible therefor shall be criminally liable.”
SEC. 26. Congressional Oversight Committee. — A

Congressional Oversight Committee on Agrarian Reform (COCAR)
is hereby created to oversee and monitor the implementation of this
Act. It shall be composed of the Chairpersons of the Committee on
Agrarian Reform of both Houses of Congress, three (3) Members of
the House of Representatives, and three (3) Members of the Senate
of the Philippines, to be designated respectively by the Speaker of
the House of Representatives and the President of the Senate of the
Philippines.
The Chairpersons of the Committees on Agrarian Reform of

the House of Representatives and of the Senate of the Philippines
shall be the Chairpersons of the COCAR. The Members shall receive
589
no compensation; however, traveling and other necessary expenses

shall be allowed.
In order to carry out the objectives of this Act, the COCAR

shall be provided with the necessary appropriations for its operation.
An initial amount of Twenty-five million pesos (P25,000,000.00) is
hereby appropriated for the COCAR for the first year of its operation
and the same amount shall be appropriated every year thereafter.
The term of the COCAR shall end six (6) months after the
expiration of the extended period of five (5) years.
SEC. 27. Powers and Functions of the COCAR. — The COCAR

shall have the following powers and functions:
(a) Prescribe and adopt guidelines which shall govern its work;
(b) Hold hearings and consultations, receive testimonies and

reports pertinent to its specified concerns;
(c) Secure from any department, bureau, office or

instrumentality of the government such assistance as may be
needed, including technical information, preparation and production
of reports and submission of recommendations or plans as it may
require, particularly a yearly report of the record or performance
of each agrarian reform beneficiary as provided under Section 22 of
Republic Act No. 6657, as amended;
(d) Secure from the DAR or the LBP information on the

amount of just compensation determined to be paid or which has
been paid to any landowner;
(e) Secure from the DAR or the LBP quarterly reports on the
disbursement of funds for the agrarian reform program;
(f) Oversee and monitor, in such a manner as it may deem

necessary, the actual implementation of the program and projects
by the DAR;
590
(g) Summon by subpoena any public or private citizen to testify

before it, or require by subpoena duces tecum to produce before it
such records, reports, or other documents as may be necessary in
the performance of its functions;
(h) Engage the services of resource persons from the public

and private sectors as well as civil society including the various
agrarian reform groups or organizations in the different regions of
the country as may be needed;
(i) Approve the budget for the work of the Committee and all
disbursements therefrom, including compensation of all personnel;
(j) Organize its staff and hire and appoint such employees
and personnel whether temporary, contractual or on consultancy,
subject to applicable rules; and
(k) Exercise all the powers necessary and incidental to attain

the purposes for which it is created.
SEC. 28. Periodic Reports. — The COCAR shall submit to the

Speaker of the House of Representatives and to the President of
the Senate of the Philippines periodic reports on its findings and
recommendations on actions to be undertaken by both Houses of
Congress, the DAR, and the PARC.
SEC. 29. Access to Information. — Notwithstanding the

provisions of Republic Act No. 1405 and other pertinent laws,
information on the amount of just compensation paid to any
landowner under Republic Act No. 6657, as amended, and other
agrarian reform laws shall be deemed public information.
SEC. 30. Resolution of Cases. — Any case and/or proceeding

involving the implementation of the provisions of Republic Act No.
6657, as amended, which may remain pending on June 30, 2014
shall be allowed to proceed to its finality and be executed even
beyond such date.
591
SEC. 31. Implementing Rules and Regulations. — The PARC

and the DAR shall provide the necessary implementing rules and
regulations within thirty (30) days upon the approval of this Act.
Such rules and regulations shall take effect on July 1, 2009 and
it shall be published in at least two (2) newspapers of general
circulation.
SEC. 32. Repealing Clause. — Section 53 of Republic Act No.

3844, otherwise known as the Agricultural Land Reform Code,
is hereby repealed and all other laws, decrees, executive orders,
issuances, rules and regulations, or parts thereof inconsistent with
this Act are hereby likewise repealed or amended accordingly.
SEC. 33. Separability Clause. — If, for any reason, any section
or provision of this Act is declared unconstitutional or invalid, the
other sections or provisions not affected thereby shall remain in full
force and effect.
SEC. 34. Effectivity Clause. — This Act shall take effect on

July 1, 2009 and it shall be published in at least two (2) newspapers
Approved,

of Representatives
This Act, which is a consolidation of Senate Bill No. 2666

and House Bill No. 4077 was finally passed by the Senate and the
House of Representatives on August 3, 2009 and July 29, 2009,
respectively.

592
Approved: AUG 07 2009


RA 9700 amended or repealed RA 3844 (sec. 53).
593
S. No. 3431
H. No. 6095

Metro Manila
Fourteenth Congress

AN ACT PROVIDING FOR AN AGRICULTURE AND AGRARIAN

REFORM CREDIT AND FINANCING SYSTEM THROUGH
BANKING INSTITUTIONS

ARTICLE I
GENERAL PROVISIONS
SECTION 1. Short Title. - This Act shall be known as “The

Agri-Agra Reform Credit Act of 2009”.
SEC. 2. Declaration of Policy. - It is hereby declared the

policy of the State to promote equal access to opportunities under
an environment of sustained growth and expanding productivity as
the key to raising the quality of life for all. Towards this end, the
State shall promote rural development by enhancing access of the
rural agricultural sector to financial services and programs that
increase market efficiency and promote modernization in the rural
agricultural sector.
594
SEC. 3. Definition of Terms. - As used in this Act, the term:
(a) Accredited Rural Financial Institution refers to any

financial institution accredited by the Bangko Sentral ng Pilipinas
(BSP) whose portfolios are substantially agri-agra related as defined
by the implementing rules and regulations.
(b) Agrarian Reform Beneficiary refers to farmers who

were granted lands under Presidential Decree No. 27, the
Comprehensive Agrarian Reform Law and Republic Act No. 9700
or the “Comprehensive Agrarian Reform Extension with Reforms”
and regular farm workers who are landless, irrespective of tenurial
arrangement, who benefited from the redistribution of lands,
regardless of crops or fruits produced, to include the totality of
factors and support services designed to lift the economic status
of the beneficiaries and all other alternative arrangements to the
physical distribution of lands, such as production or profit sharing,
labor administration, and the distribution of shares of stock which
will allow beneficiaries to receive a just share of the fruits of the
lands they work.
(c) Agricultural Guarantee Fund Pool (AGFP) refers to the

five percent (5%) of the 2007 surplus of the government-owned and/
or -controlled corporations and government financial institutions
including the Philippine Amusement and Gaming Corporation
(PAGCOR), the Philippine Charity Sweepstakes Office (PCSO),
the Social Security System (SSS), and the Government Service
Insurance System (GSIS) as mandated by Administrative Order
No. 225-A, series of 2008, and the penalties collected from banking
institutions for noncompliance and undercompliance as provided
under this Act.
(d) Agricultural Lessee refers to any person who, with or

without help from his/her immediate farm household, cultivates the
land owned by another for a certain price in money, in produce, or
in both.
595
(e) Agro-Industry Modernization Credit and Financing

Program (AMCFP) refers to the umbrella credit/financing program
of the government for the agriculture and fisheries sector created
under Republic Act No. 8435, otherwise known as the “Agriculture
and Fisheries Modernization Act of 1997”. By design, AMCFP
funds are provided as loans to government financial institutions
(GIFs) called ‘credit wholesalers’, which in turn relend them to
qualified ‘credit retailers’ that include rural banks, thrift banks,
cooperative banks, nongovernment organizations (NGOs), National
Food Authority (NFA) and other associations/people’s organizations
engaged in lending to small farmers and fisherfolk.
(f) Amortizing Owners refer to landowners who still amortize

payment for the land to a private individual or to the State.
(g) Compact Farmers refer to those farmers with adjoining

farms operating as a single unit under one management, farm plan
and budget.
(h) Farmer refers to a natural person whose primary livelihood

is cultivation of land or the production of agricultural crops, agroforest
products, livestock and/or fisheries, either by himself/herself, or
primarily with the assistance of his/her immediate farm household,
whether the land is owned by him/her or by another person under
a leasehold or share tenancy agreement or arrangement with the
owner thereof.
(i) Farmworker refers to a natural person who renders service

for value as an employee or laborer in an agricultural enterprise or
farm regardless of whether his/her compensation is paid on daily,
weekly, monthly or “pakyaw” basis. The term includes an individual
whose work has ceased as a consequence of, or in connection with,
a pending agrarian dispute who has not obtained a substantially
equivalent and regular farm employment.
(j) Farmer’s Cooperatives refer to organizations composed

primarily of small agricultural producers, farmers, farmworkers,
or other agrarian reform beneficiaries who voluntarily organize
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themselves for the purpose of pooling land, manpower, technological,

financial or other economic resources, and operate on the principle
of one member, one vote. A juridical person may be a member of a
cooperative, with the same rights and duties as a natural person.
(k) Farmer’s and Fisherfolk’s Organization or Associations

refers to farmer’s and fisherfolk’s cooperatives, associations or
corporations duly registered with appropriate government agencies
and which are composed primarily of small agricultural producers,
farmers, farmworkers, agrarian reform beneficiaries, fisherfolk
who voluntarily join together to form business enterprises or non-
business organizations which they themselves own, control and
patronize.
(l) Financial Services refer to services extended by banks/

financial institutions such as, but not limited to, credit/lending,
deposits and rediscounting.
(m) Fisherfolk refers to people directly or personally and

physically engaged in taking and/or culturing and processing fishery
and/or aquatic resources.
(n) Fishworker refers to a person whether or not regularly

employed in commercial fishing and related industries, whose
income is either from wages, profit sharing or stratified sharing
basis, including those working in fishpens, fish corral/traps,
fishponds, prawn farms, sea farms, salt beds, fish ports, fishing boat
or trawlers, or fish processing and/or packing plants, but excluding
administrators, security guards and overseers.
(o) Owner-Cultivators refer to natural persons who own lands

by purchase, inheritance, or land distribution by the State. Owner-
Cultivators can operate the farm themselves, supervise wage labor
or delegate operations to farmers.
(p) Philippine Crop Insurance Corporation (PCIC) refers to

a government-owned and -controlled corporation which provides
insurance protection to the country’s agricultural producers,
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particularly the subsistence farmers against crop losses Arising

from natural calamities such as typhoons, rising sea levels, floods,
drought, earthquakes, volcanic eruptions, plant diseases and pest
infestation, and non-crop agricultural asset losses due to perils for
which the asset has been insured against.
(q) Quedan and Rural Credit Guarantee Corporation

(QUEDANCOR) refers to a non-bank government financing
institution (GFI) under the policy supervision of the Department
of Agriculture (DA) created under Republic Act No. 7393 geared
towards the establishment of an effective credit delivery system
and a guarantee facility that would promote inventory financing
of agri-aqua commodities, production and post-harvest production
facilities, farm and fishery machineries and equipment, investment
in production inputs and labor and the development of rural
livelihood enterprise.
(r) Settlers refer to persons who range from the forest-clearing

pioneers, including indigenous people, with a subsistence economy
to the better equipped and more experienced farmers.
(s) Tenant Farmer refers to one who cultivates another’s land

under a sharing or leasehold agreement.
ARTICLE II
AGRICULTURAL CREDIT, INSURANCE AND FINANCING

SYSTEM
SEC. 4. Agriculture, Fisheries and Agrarian Reform Credit,

Insurance and Financing System. - There shall be evolved an
agriculture, fisheries and agrarian reform credit, insurance and
financing system to improve the productivity of the agriculture and
fisheries sectors, particularly the farmers, fisherfolk and agrarian
reform beneficiaries, settlers, agricultural lessees, amortizing
owners, farmworkers, fishworkers, owner-cultivators, compact
farmers, farmer’s and fisherfolk’s cooperatives, organizations and
associations, through government and private banking institutions.
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Agriculture and agrarian reform credit, as used herein, shall

consist of loans activities and purposes including, but not limited
to, agricultural production, promotion of agribusiness and exports,
acquisition of work animals, farm and fishery equipment and
machinery, seeds, fertilizers, poultry, livestock, feeds and other
similar items, acquisition of lands authorized under the Agrarian
Reform Code of the Philippines and its amendments; construction,
acquisition and repair of facilities for production, processing, storage
and marketing and such other facilities in support of agriculture and
fisheries; and efficient and effective merchandising of agricultural
and fishery commodities stored and/or processed by the facilities
aforecited in domestic and foreign commerce.
SEC. 5. Agriculture and Agrarian Reform Credit Beneficiaries.

- The credit mentioned in the preceding section shall be extended to
the beneficiaries named therein or to cooperatives and associations
in good standing of such beneficiaries regardless of capitalization
based on the feasibility of the project and their paying capacity,
their estimated production, and/or securities they can provide from
the proceeds of the loan.
SEC. 6. Credit Quota. - All banking institutions, whether

government or private, shall set aside at least twenty-five percent
(25%) of their total loanable funds for agriculture and fisheries
credit in general, of which at least ten percent (10%) of the loanable
funds shall be made available for agrarian reform beneficiaries
mentioned in Section 5 hereof: Provided, however, That total
loanable funds as used in the section shall refer to funds generated
from the date of effectivity of this Act: Provided, further, That the
twenty -five percent (25%) credit quota is subject to a joint review by
the Department of Agriculture (DA), the Department of Agriculture
Reform (DAR) and the Bangko Sentral ng Pilipinas (BSP) after
three (3) years of implementation to determine whether the law
has been effective in accomplishing its goals. The findings shall be
submitted to Congress.
SEC. 7. Modes of Compliance. - The BSP, the DA and the

DAR, in consultation with concerned agencies and sectors, shall
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promulgate such rules and regulations as may be necessary to

implement the provisions of this Act within ninety (90) days after
the approval of this Act. Such rules and regulations shall take effect
fifteen (15) days after its publication in a newspaper of general
circulation in the Philippines. Subject to such rules and regulations,
banking institutions may be allowed to:
(a) Invest in bonds issued by the Development Bank of the

Philippines (DBP) and the Land Bank of the Philippines (LBP)
and/or open special deposit accounts (SDAs) with accredited rural
financial institutions defined by the implementing rules and
regulations: Provided, That the proceeds from said bonds and SDAs
shall be used exclusively for on-lending to the agriculture and
agrarian reform sector: Provided, further, That proceeds from said
bonds and SDAs shall be separately accounted for by the DBP, the
LBP and the depository thrift banks, cooperative banks and rural
banks and shall not be considered for purposes of computing the
loanable funds under Section 6 hereof of the said banks: Provided,
furthermore, That loanable funds channelled as compliance under
subsections (b), (c), (d), (e) and (f) even if said funds are later used
by conduit banks in activities similar to those provided for in
subsections (b), (c), (d), (e) and (f);
(b) Rediscount with the universal banks and commercial

banks, including local branches of foreign banks eligible paper
covering agriculture, fisheries and agrarian reform credits, including
loans covered by guarantees of the QUEDANCOR, and the PCTC:
Provided, That rediscounted paper shall no longer be eligible as
compliance on the part of the originating bank;
(c) Lend for the construction and upgrading of infrastructure

including, but not limited to, farm-to-market roads, as well as the
provision of post harvest facilities and other public infrastructure
that will benefit the agriculture, fisheries and agrarian reform
sector.
(d) Invest directly in preferred shares of stock in rural

financial institutions like rural banks, cooperative banks, farmer’s
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cooperatives and farmer’s cooperatives and farmer’s cooperative

insurance or mutual benefit associations or lend wholesale to rural
financial institutions accredited by the BSP: Provided, That credit
facility shall be exclusively used for on-lending to the agriculture,
fisheries and agrarian reform sector: Provided, further, That the
wholesale loans shall be credited as compliance of the wholesale
lender alone: Provided, finally, That allowable alternative modes
of compliance should directly target the agriculture, fisheries and
agrarian reform sector;
(e) Invest in shares of stock of the QUEDANCOR and the

PCIC; and
(f) Loans or investments in the activities identified under the

AMCFP as enumerated under Chapter 3 Credit Section 23 of Republic
Act No. 8435 or the Agriculture and Fisheries Modernization Act
(AFMA).
SEC. 8. The alternative compliance enumerated in the

preceding section shall also be subject to joint review by the DA,
the DAR and the BSP after three (3) years of the implementation
to determine whether the modes of compliance directly target the
agriculture, fisheries and agrarian reform sector. The Findings
shall be submitted to Congress.
ARTICLE III
SEC. 9. Annual Reports. - The BSP shall furnish reports on

the compliance with the mandatory credit allocation to the DA, the
DAR and Congress on a yearly basis.
SEC. 10. Penalty Clause. - The BSP shall impose administrative

sanctions and other penalties on the lending institutions for
noncompliance with the provisions of this Act. Penalties on
noncompliance shall be computed at one-half of one percent (0.5%)
of noncompliance and undercompliance and shall be directed to the
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development of the agri-agra sector. Ninety percent(90%) of the

penalties collected shall be allocated between the AGFP and PCIC
according to the needs of the agri-agra sector as provided for in
implementing rules and regulations of this Act and the remaining
ten percent (10%) shall be given to the BSP to cover administrative
expenses.
SEC. 11. Repealing Clause. - Presidential Decree 717, the

second paragraph under Section 8 of Republic Act No. 7900, otherwise
known as High-Value Crops Development Act of 1995, and Section
9 of Republic Act No. 7721, otherwise known as liberalizing the
Entry and Scope of Operations of Foreign Banks in the Philippines,
are all hereby repealed. Other laws, presidential decrees, executive
orders, rules and regulations, or parts thereof inconsistent with the
provisions of this Act are hereby repealed or modified accordingly.
SEC. 12. Separability Clause. - If any part, section or provision

of this Act is held invalid or unconstitutional, other provisions not
affected thereby shall remain in force and effect.
SEC. 13. Transitory Provision. - Prior to the effectivity of the

implementing rules and regulations of this Act, the provisions of
Presidential Decree No. 717 shall remain in force.
days after its publication in the Official Gazette or in a newspaper
Approved,

of Representatives
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of Representatives on December 16, 2009 and December 15, 2009,
respectively.



RA 10000 repealed RA 7721 (sec. 9).
RA 10000 repealed RA 7900 (sec. 8, par. 2).
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S. No. 3264
H. No. 7066

Metro Manila
Fourteenth Congress

AN ACT PROVIDING FOR THE DEVELOPMENT AND PROMOTION

OF ORGANIC AGRICULTURE IN THE PHILIPPINES AND
FOR OTHER PURPOSES

SECTION 1. Title. — This Act shall be known as the “Organic

Agriculture Act of 2010”.
SEC. 2. Declaration of Policy. — It is hereby declared the

policy of the State to promote, propagate, develop further and
implement the practice of organic agriculture in the Philippines
that will cumulatively condition and enrich the fertility of the soil,
increase farm productivity, reduce pollution and destruction of the
environment, prevent the depletion of natural resources, further
protect the health of farmers, consumers and the general public, and
save on imported farm inputs. Towards this end, a comprehensive
program for the promotion of community-based organic agriculture
systems which include, among others, farmer-produced purely
organic fertilizers such as compost, pesticides and other farm inputs,
together with a nationwide educational and promotional campaign
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for their use and processing, as well as the adoption of organic

agricultural system as a viable alternative shall be undertaken.
The State recognizes and supports the central role of the

farmers, indigenous people and other stakeholders at the grassroots
in this program.
SEC. 3. Definition of Terms. — For purposes of this Act, the

following terms shall be defined as follows:
(a) Organic refers to the particular farming and processing

systems, described in the standards and not in the classical chemical
sense. The term “organic” is synonymous in other languages to
“biological” or “ecological”. It is also a labeling term that denotes
products considered organic based on the Philippine National
Standards for organic agriculture.
(b) Organic agriculture includes all agricultural systems that

promote the ecologically sound, socially acceptable, economically
viable and technically feasible production of food and fibers. Organic
agriculture dramatically reduces external inputs by refraining from
the use of chemical fertilizers, pesticides and pharmaceuticals.
It also covers areas such as, but not limited to, soil fertility
management, varietal breeding and selection under chemical and
pesticide-free conditions, the use of biotechnology and other cultural
practices that are consistent with the principles and policies of
this Act, and enhance productivity without destroying the soil and
harming farmers, consumers and the environment as defined by
the International Federation of Organic Agriculture Movement
(IFOAM): Provided, That the biotechnology herein referred to shall
not include genetically modified organisms or GMOs.
(c) Organic production system is a system designed to:
(1) enhance biological diversity within the whole system;
(2) increase solid biological activity;
605
(3) maintain long-term solid fertility;
(4) recycle wastes of plant and animal origin in order to return

nutrients to the land, thus minimizing the use of nonrenewable
resources;
(5) rely on renewable resources in locally organized agricultural

systems;
(6) promote the healthy use of soil, water and air as well
as minimize all forms of pollution thereto that may result from
agricultural practices;
(7) develop and promote the use of biotechnology in agriculture;
(8) handle agricultural products with emphasis on careful

processing methods in order to maintain the organic integrity and
vital qualities of the product at all stages; and
(9) become established on any existing farm through a period

of conversion, the appropriate length of which is determined by site-
specific factors such as the history of the land, and type of crops and
livestock to be produced.
(d) Conversion period refers to the time between the start

of the organic management and the certification of crops, animal
husbandry or aquaculture products as organic.
(e) Biodegradable wastes refer to organic matter for compost/

organic fertilizer for the organic cultivation, farming of food crops
and include discards segregated farm nonbiodegradable wastes
coming from the kitchen/household (leftovers, vegetables and fruit
peelings and trims, fish/fowl cleanings, seeds, bones, soft paper used
as food wrap and the like), yard or garden (leaves, grasses, weeds
and twigs), market (wilted, decayed or rotten vegetables and fruits,
fish/fowl cleanings, bones) and farm wastes (grass clippings, dead
or decayed plants, leaves, fruits, vegetables, branches, twigs and
the like).
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(f) Ecologically-sound refers to a state, quality or condition of a

product, practice, system, development mode, culture, environment
and the like, in accord with the 1987 Philippine Constitution, and
as expounded in the above definition of organic agriculture.
(g) Commercialization is a process of introducing a new

agricultural and fishery technology either as product, process or
service that has undergone the intensive innovative activities of
assessment, promotion and transfer for economic benefit.
(h) Certification is the procedure by which official certification

bodies or officially recognized certification bodies provide written or
equivalent assurance that foods or food control systems conform to
requirements.
(i) Accreditation is the procedure by which a government

agency having jurisdiction formally recognizes the competence of
an inspection and/or certification body to provide inspection and
certification services.
(j) First party certification is defined as when the certification

criteria and rules are set and monitored/enforced by the producer or
company itself.
(k) Second party certification is defined as when the certification

criteria and rules are set by buyers or industry organizations.
(l) Third party certification or independent certification is

defined as when a firm requires that its suppliers meet a certain
standard and requests an independent organization that is not
involved in the business relationship to control the compliance of
the suppliers.
(m) Organic food establishment refers to an entity, whether

local or foreign, that produces fresh or processed organic food.
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(n) Organic input establishment refers to an entity, whether

local or foreign, that produces inputs acceptable for organic
agriculture.
SEC. 4. Coverage. — The provisions of this Act shall apply

to the development and promotion of organic agriculture and shall
include, but not limited to, the following:
(a) Policy formulation on regulation, registration, accreditation,

certification and labeling on organic agriculture;
(b) Research, development and extension of appropriate,

sustainable environment and gender-friendly organic agriculture;
(c) Promotion and encouragement of the establishment of

facilities, equipment and processing plants that would accelerate the
production and commercialization of organic fertilizers, pesticides,
herbicides and other appropriate farm inputs; and
(d) Implementation of organic agricultural programs, projects

and activities, including the provision and delivery of support
services with focus on the farmers and other stakeholders.
SEC. 5. National Organic Agricultural Program. — There is

hereby established a comprehensive organic agricultural program
through the promotion and commercialization of organic farming
practices, cultivation and adoption of production and processing
methods which have already been developed, or to be developed,
continuing research and upgrading thereof, the capacity building of
farmers and the education of consumers thereon, the extension of
assistance to local government units (LGUs), peoples’ organizations
(POs), nongovernment organizations (NGOs) and other stakeholders
including individuals and groups who are practicing and promoting
these methods as well as those who are willing to do other pertinent
activities, and documentation and evaluation of the program.
SEC. 6. National Organic Agricultural Board (NOAB). — To

carry out the policy and the program provided in this Act, there is
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hereby created a NOAB which shall be the policy-making body and

shall provide direction and general guidelines for the implementation
of the National Organic Agricultural Program. The NOAB shall be
attached to the Department of Agriculture (DA).
The NOAB shall ensure the full participation of POs, NGOs

and the general public through coordination and consultative
mechanisms such as, but not limited to, public hearings, meetings
and joint projects.
SEC. 7. Composition of the NOAB. — The NOAB shall consist

of:
(a) The Secretary of Agriculture, or his duly authorized

permanent representative, with a rank of Undersecretary, as
Chairperson;
(b) The Secretary of the Interior and Local Government, or his

duly authorized permanent representative, as Vice Chair;
(c) The Secretary of Science and Technology, or his duly

authorized permanent representative;
(d) The Secretary of Environment and Natural Resources, or

his duly authorized permanent representative;
(e) The Secretary of Education, or his duly authorized

permanent representative;
(f) The Secretary of Agrarian Reform, or his duly authorized

(g) The Secretary of Trade and Industry, or his duly authorized

(h) The Secretary of Health, or his duly authorized permanent

representative;
609
(i) Three (3) representatives from the small farmers; and
(j) A representative each from the NGOs involved in

sustainable agriculture for at least three (3) years; agricultural
colleges and universities; and private sector or agribusiness firms;
as members.
The designated aforementioned representatives of the various

departments shall be occupying positions not lower than a bureau
director level and shall be on a coterminous basis.
The representatives of small farmers and NGOs, and of

agricultural colleges and universities, shall be chosen by the
Secretaries of Agriculture and Science and Technology, respectively,
from among nominees submitted to the agency concerned by their
respective national organizations. These representatives must be
conversant in organic agriculture and committed to the policies and
programs provided under this Act.
The existing National Organic Agriculture Board created

pursuant to Executive Order No. 481 shall continue to function
until the new NOAB created herein has been constituted pursuant
to Section 8 hereof.
SEC. 8. Organization of the NOAB. — Within sixty (60) working

days from the effectivity of this Act, the national organizations of
small farmers, of NGOs and of agricultural colleges and universities
shall submit their respective nominees to the Secretary of Agriculture
and the Secretary of Science and Technology, as the case may be,
who shall evaluate the qualifications of the nominees and appoint
the most qualified members to the NOAB.
The Chairperson shall call the members of the NOAB, or a

majority thereof if not all have been designated, to a meeting to
organize themselves and prescribe its rules and procedures for
the attainment of the objectives of this Act. A majority of all the
members of the NOAB shall constitute a quorum.
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The NOAB shall also determine its budget, including travel

expenses, allowances and per diems of its nongovernment members
when attending official NOAB meetings or attending to matters
assigned to them subject to accounting and auditing rules and
regulations.
SEC. 9. Powers and Functions of the NOAB. — The NOAB

shall have the following powers and functions:
(a) Formulate policies, plans, programs and projects to develop

and promote organic agriculture, production, processing and trade;
(b) Oversee the successful implementation of the National

Organic Agricultural Program;
(c) Identify sources of financing to expand organic agriculture;
(d) Monitor and evaluate the performance of programs for

appropriate incentives;
(e) Undertake measures for the international recognition of

local certification of organic products;
(f) Call upon any government agency to carry out and

implement programs and projects identified by the NOAB;
(g) Call upon private sectors, POs and NGOs and the academe
to provide advice on matters pertaining to organic agriculture and
conduct of capability-building initiatives to farmers, producers,
extension workers, consumers and other stakeholders in agriculture
sector in coordination with the Agricultural Training Institute;
(h) Submit annual and other periodic reports to the President,

Secretary of the DA and Congress of the Philippines through the
Modernization (COCAFM);
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(i) Promulgate such rules and regulations and exercise

such other powers and functions as may be necessary to carry out
effectively the purposes and objectives of this Act; and
(j) Perform such other functions as may be necessary for its

effective operations and for the continued enhancement, growth or
development of organic agriculture.
SEC. 10. The Bureau of Agriculture and Fisheries Product

Standards (BAFPS) of the DA. — The BAFPS of the DA shall be
strengthened and empowered in terms of establishing functional
divisions and incremental staffing to serve as the national technical
and administrative secretariat of the NOAB with the member
agencies providing additional staff support as the need arises.
SEC. 11. Functions, Duties and Responsibilities of the

BAFPS. — The BAFPS, in addition to its existing functions and
responsibilities shall perform the following functions, duties and
responsibilities for purposes of this Act:
(a) Implement organic agriculture programs and projects

approved by the NOAB;
(b) Update the NOAB on the status of the programs, projects

and activities undertaken for the development and promotion of
organic agriculture;
(c) Create effective networking with the various stakeholders

involved in organic production; and
(d) Perform such other functions, duties and responsibilities

as may be necessary to implement this Act and as directed by the
NOAB.
SEC. 12. Work Plan. — In line with the National Organic

Agricultural Program, the BAFPS shall submit to the Board for
approval the following:
612
(a) A plan of bringing the program down to the grassroots,

utilizing available personnel and facilities on the local level and
those of LGUs;
(b) A pattern of cooperation and mutual assistance with LGUs,

POs and NGOs, which will maximize people empowerment and
participatory approaches to program formulation, implementation
and monitoring; and
(c) A schedule of short-term, medium-term and long-term

targets on research and development, marketing, trade promotion/
initiatives, capacity building, among others.
SEC. 13. Organic Agriculture and Protection of the

Environment. — The NOAB shall constantly devise and implement
ways and means not only of producing organic fertilizers and other
farm inputs and needs on and off the farm but also of helping to
alleviate the problems of industrial waste and community garbage
disposal through appropriate methods of sorting, collecting and
composting. The BAFPS shall conduct continuing studies, with
consultations among the people and officials involved as well as POs
and NGOs, in order to advise local governments, from the barangay
to the provincial level, on the collection and disposal of garbage and
waste in such a way as to provide raw materials for the production
of organic fertilizer and other farm inputs.
SEC. 14. Local Executive Committees. — Every provincial

governor shall, insofar as practicable, form a provincial technical
committee, and which shall, in coordination with and assistance of
the BAFPS/DA-Regional Field Units (RFUs) implement activities
in line with the National Organic Agricultural Program within each
province.
Every municipal mayor shall likewise, insofar as practicable,

form a municipal technical committee for purposes of implementing
activities in line with the National Organic Agricultural Program
within each municipality.
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A local government unit that intends to shift its area of

responsibility to organic agriculture must ensure that local
industries have been adequately informed and consulted and that
a viable plan to ensure supply for vulnerable industries is in place.
The governors shall monitor implementation of and compliance

with this Act within their respective jurisdictions.
SEC. 15. Accreditation of Organic Certifying Body. — The

BAFPS is hereby designated and authorized to grant official
accreditation to organic certifying body or entity. The BAFPS
is tasked to formulate the necessary rules and procedures in the
accreditation of organic certifying body: Provided, That there shall
be at least one (1) accredited organic certifying body each in Luzon,
Visayas and Mindanao or in case of only one (1) organic certifying
body is accredited, it shall have at least one (1) satellite office or
processing unit each in Luzon, Visayas and Mindanao.
SEC. 16. Registration of Organic Food and Organic Input

Producers. — All organic food and input establishments must
register with the director, BAFPS, registration under this section
shall begin within ninety (90) days of the enactment of this Act.
Each such registration shall be submitted to the director through an
electronic portal and shall contain such information as the director
by guidance may determine to be appropriate. Such registration
shall contain the following information:
(a) The name, address and emergency contact information of

each organic food or input establishment that the registrant owns
or operates;
(b) The primary purpose and business activity of each organic

food or input establishment, including the dates of operation if the
organic food establishment is seasonal;
(c) A list of the organic food or input produced and corresponding

brand names;
614
(d) For organic food establishment, the name, address and

contact information of the organic food certifying body that certified
the organic products sold by the company;
(e) An assurance that the registrant will notify the director of

any change in the products, function or legal status of the domestic
food establishment (including cessation of business activities) not
later than thirty (30) days after such change; and
(f) For organic input producers, a list of materials used in the

production of each particular input.
SEC. 17. Labeling of Organic Produce. — The label of organic

produce shall contain the name, logo or seal of the organic certifying
body and the accreditation number issued by the BAFPS. Only third
party certification is allowed to be labeled as organically produced.
SEC. 18. Retailing of Organic Produce. — Retail establishments

or stores of organic produce shall designate a separate area to display
the organic produce to avoid mixing it with non-organic produce.
SEC. 19. Availability of Trading Post for Organic Inputs. —

Local chief executives shall establish, as far as practicable, at least
one (1) trading post for organic inputs for every LGU in their area
of jurisdiction.
SEC. 20. Research, Development and Extension. — The

Bureau of Agricultural Research (BAR), as the lead agency, shall
coordinate with the other agencies of the DA, the Department
of Agrarian Reform (DAR), the Department of Science and
Technology (DOST), the Department of Education (DepED), the
Department of the Interior and Local Government (DILG), the
strategic agricultural-based state universities and colleges (SUCs)
including private organizations, to develop, enhance, support and
consolidate activities and related technologies for the formulation
and implementation of a unified and integrated organic agriculture
RDE plans and programs from the national to the field level. The
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organic agriculture RDE plans and programs shall include, but not
be limited to, the following:
(a) Research, development and commercialization of

appropriate, innovative and viable organic agricultural technologies;
(b) Nationwide promotion of developed and commercially

viable biodegradable farm wastes and by-products through
various extension strategies to accelerate the production, use and
distribution of organic fertilizers; and
(c) Conduct research for market development, policy

formulation, regulation and certification.
SEC. 21. Creation of Organic Agriculture RDE Network. —

An organic agriculture RDE network shall be organized by the
BAR, composed of research and educational institutions, LGUs,
nongovernment agencies and the recognized association of organic
fertilizer manufacturers and distributors, agricultural engineers,
agriculturists, soil technologists, farmers group and/or associations.
SEC. 22. RDE Centers. — National, regional and provincial

organic R&D and extension centers shall be organized, established
and integrated as a major component of the existing RDE centers of
the DA, the DOST, the DENR, SUCs and the LGUs. These will be
strengthened and enhanced to spearhead the integrated program
to develop and promote organic agriculture throughout the country.
SEC. 23. Organic Agriculture in the Formal and Non-formal

Sectors. — The National Government, through the DepED and
in coordination with concerned government agencies, NGOs and
private institutions, shall strengthen the integration of organic
agriculture concerns in school curricula at all levels.
SEC. 24. Incentives. — The government shall extend incentives

for the production and propagation of organic farm inputs by
maximizing their use in all government and government-supported
agricultural production, research and demonstration programs.
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Incentives shall also be provided to farmers whose farms have been

duly certified as compliant to the Philippine National Standard
(PNS). Further, the DA may give cash reward in recognition of the
best organic farm in the country. The DA, the DAR, the DOST, the
DILG, the Department of Trade and Industry (DTI), the DepED, the
Department of Finance (DOF), the Land Bank of the Philippines
(LBP), and other government lending and non-lending institutions
shall also assist organic input producers and organic farmers
through the provision of adequate financial, technical, marketing,
and other services and resources. These include, but shall not be
limited to, the following:
(a) Exemption from the payment of duties on the importation

of agricultural equipment, machinery and implements as provided
under Republic Act No. 9281, which amends Republic Act No. 8435
or the Agriculture and Fisheries Modernization Act (AFMA) ;
(b) Identification by LGUs of local taxes that may be offered

as incentives to organic input production and utilization;
(c) Provision of preferential rates and special window to

organic input producers and users by the LBP;
(d) Subsidies for certification fees and other support services

to facilitate organic certification;
(e) Zero-rated value-added tax (VAT) on transactions involving

the sale/purchase of bio-organic products, whether organic inputs or
organic produce; and
(f) Income tax holiday and exemption for seven (7) years,
starting from the date of registration of organic food and organic
input producers on all income taxes levied by the National
Government.
The tax incentives shall be given only to purely organic

agriculture entities/farmers and shall be subject to the accreditation
of the BAFPS and periodic reporting by the BAFPS to the DOF:
617
Provided, That the said incentives shall be available only to micro,

small and medium enterprises as defined under Section 3 of Republic
Act No. 9501 or the Magna Carta for Micro, Small and Medium
Enterprises.
SEC. 25. Appropriations. — The sum of Fifty million pesos

(Php50,000,000.00) and the existing budget for the promotion of
organic farming of the DA is hereby appropriated for the initial
year of implementation of this Act. Thereafter, such amount as
may be necessary for the continuous operation of the NOAB and
the implementation of the program shall be included in the annual
General Appropriations Act (GAA).
The NOAB is hereby authorized to solicit and accept assistance

or facilities in the form of grants from individuals and entities here
and abroad, and to utilize these funds and resources for purposes of
this Act, subject to the usual budget, accounting and auditing rules
and regulations.
SEC. 26. Penal Provision. — Any person who willfully and

deliberately:
(a) obstructs the development or propagation of organic

agriculture, or the manufacture, production, sale or use of organic
agricultural inputs;
(b) refuses without just cause to extend the support and

assistance required under this Act; and
(c) mislabels or claims that the product is organic when

it is not in accordance with the existing standards for Philippine
organic agriculture or this Act shall, upon conviction, be punished
by imprisonment of not less than one (1) month nor more than
six (6) months, or a fine of not more than Fifty thousand pesos
(P50,000.00), or both, at the discretion of the court. If the offender
is a corporation or a juridical entity, the official who ordered or
allowed the commission of the offense shall be punished with the
618
same penalty. If the offender is in the government service, he shall,

in addition, be dismissed from office.
SEC. 27. Implementing Rules and Regulations. — The NOAB

shall adopt rules and regulations to implement the provisions of
this Act within ninety (90) days from the effectivity of this Act and
submit the same to the COCAFM for review and approval. In the
drafting of the implementing rules and regulations, the DOF shall
be consulted in connection with the tax incentives provided under
Section 24 hereof.
SEC. 28. Annual Report. — The NOAB shall render an annual

report to both Houses of Congress on the accomplishment of the
program. A review on the viability of the program shall be made by
the concerned agencies after three (3) years of its implementation.
SEC. 29. Congressional Oversight Committee. — The COCAFM

shall be the congressional oversight committee for purposes of this
Act. The COCAFM shall review and approve the implementing rules
and regulations of this Act and also perform the following functions:
(a) Monitor and ensure the proper implementation of this Act;
(b) Review the proper implementation of the programs on

organic agriculture and the use of its funds;
(c) Review the performance of the NOAB; and
(d) Such other functions it deems necessary.
SEC. 30. Separability Clause. — If any provision of this Act

is declared invalid or unconstitutional, the other provisions not
affected thereby shall remain in full force and effect.
SEC. 31. Repealing Clause. — All laws, presidential decrees,

executive orders, presidential proclamations, rules and regulations
or parts thereof contrary to or inconsistent with this Act are hereby
619
SEC. 32. Effectivity. — This Act shall take effect fifteen (15)
days following its publication in at least two (2) newspapers of
general circulation or in the Official Gazette, whichever comes first.
Approved,

of Representatives

of Representatives on February 1, 2010.

Approved: APR 06 2010

620
S. No. 3146
H. No. 4330

Metro Manila
Fifteenth Congress
Begun and held in Metro Manila, on Monday, the twenty-fifth day

of July, two thousand eleven.
AN ACT REVIVING THE OBSERVANCE OF ARBOR DAY BY

AUTHORIZING THE LOCAL GOVERNMENT UNITS THE
RESPONSIBILITIES FOR CELEBRATING THE DAY FOR
TREE PLANTING AS AN ANNUAL EVENT

SECTION 1. Short Title. – This Act shall be known as the

“Arbor Day Act of 2012”.

policy of the State to protect and advance the right of the people
to a balanced and healthful ecology in accord with the rhythm and
harmony of nature. Towards this end, the vital role and importance
of trees in ecological stability is recognized. Hence, there is a need for
a collaborated effort between the State and its citizenry to combat
the loss of our natural resources and rejuvenate our environment
by undertaking nationwide tree planting activities and providing
effective measures for their maintenance and sustainability.
It is hereby mandated that all provinces, cities and

municipalities with their component barangays shall be required
621
to revive, by appropriate proclamation of their respective local

chief executives, an Arbor Day at an appropriate fixed date every
calendar year as shall be deemed suitable according to the proper
time and season for planting trees in the respective provinces and
their respective component municipalities or cities concerned.
Although adoption of uniform dates for every province and its
component municipalities and cities shall be encouraged, varying
dates for Arbor Day celebrations may be permitted in order to afford
flexibility in planning and in implementing tree planting programs
to adjust to the proper time and period of the year most suited to
the trees selected to be planted, and as local budgetary allotments
shall allow.
SEC. 3. Creation of Arbor Day Committee. – In implementing

the intents of this Act, there shall be created in every province, city
and municipality in the country an Arbor Day Celebration Committee
the composition of which shall he selected by the concerned local
chief executive. The members shall preferably, composed of field
officers of various government agencies, based in the locality, but
not limited to the following:
(a) Local sanggunian;
(b) Local Environment and Natural Resources Office;
(c) Department of Environment and Natural Resources

(DENR);
(d) Bureau of Plant Industry (BPI);
(e) Department of Education (DepED);
(f) Department of the Interior and Local Government (DILG);
(g) Commission on Higher Education (CHED);
(h) Department of Agriculture (DA);
622
(i) Department of Agrarian Reform (DAR);
(j) Department of Public Works and Highways (DPWH);
(k) Department of Tourism (DOT);
(l) Philippine National Police (PNP);
(m) Armed Forces of the Philippines(AFP);
(n) Philippine Coconut Authority (PCA);
(o) Civic organizations;
(p) Sangguniang Kabataan (SK);
(q) Liga ng mga Barangay (LnB); and
(r) Media associations.
SEC. 4. Proclamation of Arbor Day. – All provinces, cities and

municipalities with their component barangays shall be required
to declare an Arbor Day or Tree Planting Day, by appropriate
proclamation of their respective local chief executive through an
ordinance passed by the respective local sanggunian, at a fixed date
every calendar year as shall be deemed conducive to the proper tune
and season for planting trees in the respective localities. Although
adoption of uniform dates for its celebration shall be encouraged,
varying dates may be allowed in order to afford flexibility in the
planning and implementing of the programs for tree planting:
Provided, That the Arbor Day designated shall be declared as a
public working holiday in order to ensure the participation of the
different sectors of society and such declaration may be embodied
in the proclamation that local chief executives are authorized to do
under this Act.
623
SEC. 5. Funding. – The local sanggunian shall provide for the

allocation of resources pertinent to the implementation of this Act
at their respective local government level.
SEC. 6. Information and Monitoring. – For information and

monitoring purposes, all local government units (LGUs) shall
submit to the DILG the actual date of the Arbor Day Celebration in
their respective locality.
SEC. 7. Supply and Distribution of Seedlings. – The BPI, in

coordination with the PCA, shall supply and distribute the seedlings
to the LGUs for the Tree Planting Program.
SEC. 8. Planting of Trees. – All able-bodied citizens of the

Philippines, who are at least twelve (12) years of age, shall be
required to plant one (1) tree every year.
SEC. 9. Areas Covered by Tree Planting. – The local Arbor Day

Celebrations Committee shall specify the area within the LGU to
be planted or reforested. If the area to be planted or reforested is a
protected area or a protection forest, the Committee shall encourage
the use of endemic or indigenous species during the observance of
the Arbor Day designated by the LGU.
The tree planting activities shall be done in any of the

following areas:
(a) Public school grounds, gardens or other available areas

within the school premises;
(b) Idle or vacant public lands;
(c) Public parks in urban and rural areas; and
(d) Private schools, parks and lands with the consent of the
owner thereof.
624
SEC. 10. Maintenance of Trees. – The barangay officials and

deputized nongovernmental organizations shall be responsible for
the maintenance of such trees.
SEC. 11. Implementing Rules and Regulations. – The DILG,

in coordination with the LGUs, the DENR and the DA shall
promulgate the rules and regulations to effectively implement the
SEC. 12. Separability Clause. – If any provision of this Act

or any part thereof be declared invalid or unconstitutional, the
remaining provisions not affected thereby shall continue in full
force and effect.
SEC. 13. Repealing Clause. – All laws, presidential decrees,

proclamations, executive orders or regulations and other issuances
inconsistent with the provisions and/or purposes of this Act are
SEC. 14. Effectivity. – This Act shall lake effect after fifteen
(15) days following its publication in the Official Gazette or in at
least two (2) newspapers of general circulation.
Approved,
(Sgd.) FELICIANO BELMONTE JR. (Sgd.) JUAN PONCE ENRILE

of Representatives

of Representatives on May 30, 2012 and June 5, 2012, respectively.

625
Approved: SEP 12 2012
(Sgd.) BENIGNO S. AQUINO III

626
H. No. 5360
S. No. 3282

Metro Manila
Fifteenth Congress
Begun and held in Metro Manila, on Monday, the twenty-third day

of July, two thousand twelve.
AN ACT ALLOWING THE INFUSION OF FOREIGN EQUITY IN

THE CAPITAL OF RURAL BANKS, AMENDING REPUBLIC
ACT NO. 7353, OTHERWISE KNOWN AS “THE RURAL
BANK ACT OF 1992”, AS AMENDED, AND FOR OTHER
PURPOSES

SECTION 1. Section 4 of Republic Act No. 7353, as amended,

“SEC. 4. No rural bank shall be operated without a

Certificate of Authority from the Monetary Board of the
Bangko Sentral ng Pilipinas. Rural banks shall be organized
in the form of stock corporations. No less than forty percent
(40%) of the voting stocks of a rural bank shall be owned by
citizens of the Philippines or corporations or associations
organized under the laws of the Philippines at least sixty
percent (60%) of whose capital is owned by such citizens.
Non-Filipino citizens may own, acquire or purchase up to
sixty percent (60%) of the voting stocks in a rural bank. The
percentage of foreign-owned voting stocks shall be determined
627
by the citizenship of the individual or corporate stockholders

of the rural bank. Upon consultation with the rural banks
in the area, duly established cooperatives and corporations
primarily organized to hold equities in rural banks may
organize a rural bank and/or subscribe to the shares of stock
of any rural bank: Provided, That a cooperative or corporation
owning or controlling the whole or majority of the voting stock
of the rural bank shall be subject to special examination and
to such rules and regulations as the Monetary Board may
prescribe. If subscription of private shareholders to the capital
stock of a rural bank cannot be secured or is not available, or
insufficient to meet the normal credit needs of the locality,
the Land Bank of the Philippines, the Development Bank of
the Philippines, or any government-owned or -controlled bank
or financial institution, on representation of the said private
shareholders but subject to the investment guidelines, policies
and procedures of the bank or financial institution and upon
approval of the Monetary Board of the Bangko Sentral ng
Pilipinas, shall subscribe to the capital stock of such rural
bank, which shall be paid in full at the time of subscription, in
an amount equal to the fully paid subscribed and unimpaired
capital of the private stockholders or such amount as the
Monetary Board may prescribe as may be necessary to promote
and expand rural economic development: Provided, however,
That such shares of stock subscribed by the Land Bank of the
Philippines, the Development Bank of the Philippines or any
government-owned or -controlled bank or financial institution
may be sold at any time at adjusted book value: Provided,
finally, That in the sale of shares of stock subscribed by the
Land Bank of the Philippines, the Development Bank of the
Philippines or any government-owned or -controlled bank or
financial institution, the registered stockholders shall have
the right of preemption within one (1) year from the date of
offer in proportion to their respective holdings, but in the
absence of such buyer, preference, however, shall be given to
residents of the locality or province where the rural bank is
located.”
628

“SEC. 5. Non-Filipino citizens may become members of

the Board of Directors of a rural bank but their participation
in the Board shall be limited to their proportionate share in
the equity of the rural bank: Provided, however, That at least
one (1) independent director shall be elected to the Board of
Directors.
“No director or officer of any rural bank shall, either

directly or indirectly, for himself or as the representative or
agent of another, borrow any of the deposits or funds of such
banks, nor shall he become a guarantor, indorser, or surety for
loans from such bank to others, or in any manner be an obligor
for money borrowed from the bank or loaned by it except with
the written approval of the majority of the directors of the
bank, excluding the director concerned. Any such approval
shall be entered upon the records of the corporation and a
copy of such entry shall be transmitted forthwith to the
appropriate supervising department. The director/officer of
the bank who violates the provisions of this section shall be
immediately dismissed from his office and shall be penalized
in accordance with Section 26 of this Act.
“The Monetary Board may regulate the amount of credit

accommodations that may be extended directly to the directors,
officers or stockholders of rural banks of banking institutions.
However, the outstanding credit accommodations which a
rural bank may extend to each of its stockholders owning
two percent (2%) or more of the subscribed capital stock, its
directors, or officers shall be limited to an amount equivalent
to the respective outstanding deposits and book value of the
paid-in capital contributions in the bank.”

to read as follows:
629
“SEC. 6. Loans or advances extended by rural banks

organized and operated under this Act shall be primarily for
the purpose of meeting the normal credit needs of farmers,
fishermen or farm families owning or cultivating land
dedicated to agricultural production as well as the normal
credit needs of cooperatives and merchants.
“Loans may be granted by rural banks on the security

of lands without Torrens Title where the owner of private
property can show five (5) years or more of peaceful,
continuous and uninterrupted possession in concept of
owner; or of portions of friar land estates or other lands
administered by the Bureau of Lands that are covered by
sales contracts and the purchasers have paid at least five
(5) years installment thereon, without the necessity of prior
approval and consent by the Director of Lands; or of portions
of other estates under the administration of the Department
of Agrarian Reform or other governmental agency which are
likewise covered by sales contracts and the purchasers have
paid at least five (5) years installment thereon, without the
necessity of prior approval and consent of the Department of
Agrarian Reform or corresponding governmental agency; or of
homesteads or free patent lands pending the issuance of titles
but already approved, the provisions of any law or regulations
to the contrary notwithstanding: Provided, That when the
corresponding titles are issued, the same shall be delivered
to the Register of Deeds of the province where such lands are
situated for the annotation of the encumbrance: Provided,
further, That in the case of lands pending homestead or free
patent titles, copies of notices for the presentation of the final
proof shall also be furnished the creditor rural bank and, if
the borrower applicants fail to present the final proof within
thirty (30) days from date of notice, the creditor rural bank
may do so for them at their expense: Provided, furthermore,
That the applicant for homestead or free patent has already
made improvements on the land and the loan applied for is
to be used for further development of the same or for other
productive economic activities: Provided, finally, That the
630
appraisal and verification of the status of a land is a full

responsibility of the rural bank and any loan granted on any
land which shall be found later to be within the forest zone
shall be for the sole account of the rural bank.
“The foreclosure of mortgages covering loans granted

by rural banks and executions of judgment thereon involving
real properties levied upon by a sheriff shall be exempt from
the publications in newspapers now required by law where
the total amount of loan, excluding interest due and unpaid,
does not exceed One hundred thousand pesos (P100,000) or
such amount as the Monetary Board may prescribe as may
be warranted by prevailing economic conditions. It shall be
sufficient publication in such cases if the notices of foreclosure
and execution of judgment are posted in the most conspicuous
area of the municipal building, the municipal public market,
the rural bank, the barangay hall, and the barangay public
market, if any, where the land mortgaged is situated during
the period of sixty (60) days immediately preceding the public
auction or execution of judgment. Proof of publication as
required herein shall be accomplished by an affidavit of the
sheriff or officer conducting the foreclosure sale or execution
of judgment and shall be attached with the records of the
case: Provided, That when a homestead or free patent is
foreclosed, the homesteader or free patent holder, as well as
his heirs shall have the right to redeem the same within one
(1) year from the date of foreclosure in the case of land not
covered by a Torrens Title or one (1) year from the date of the
registration of the foreclosure in the case of land covered by a
Torrens Title: Provided, finally, That in any case, borrowers,
especially those who are mere tenants, need only to secure
their loans with the produce corresponding to their share.
“A rural bank shall be allowed to foreclose lands

mortgaged to it including lands covered by Republic Act No.
6657 (Comprehensive Agrarian Reform Law of 1988), as
amended: Provided, That said lands shall be subject to the
retention limits provided under Republic Act No. 6657.
631
“Rural banks which are not qualified to acquire or hold land

in the Philippines shall be allowed to bid and take part in
foreclosure sales of real property mortgaged to them, as
well as to avail of enforcement and other proceedings, and
accordingly to take possession of the mortgaged property, for
a period not exceeding five (5)-years from actual possession:
Provided, That in no event shall title to the property be
transferred to such rural bank. In case the rural bank is the
winning bidder, it shall, during the said five (5)-year period,
transfer its rights to a qualified Philippine national, without
prejudice to a borrower’s rights under applicable laws. Should
a rural bank be not able to transfer such property within the
five (5)-year period, the rural bank shall be penalized one-half
(1/2) of one percent (1%) per annum of the price at which the
property was foreclosed until the rural bank is able to transfer
the property to a qualified Philippine national.”

to read as follows:
“To provide supplemental capital to any rural bank until

it has accumulated enough capital of its own or stimulate
private investments in rural banks, the Land Bank of the
shall subscribe within thirty (30) days to the capital stock of
any rural bank from time to time in an amount equal to the
total equity investment of the private shareholders which shall
be paid in full at the time of the subscription or such amount
as may be necessary to promote and expand rural economic
development: Provided, however, That shares of stock issued
to the Land Bank of the Philippines, the Development Bank of
the Philippines or any government-owned or -controlled bank
or financial institution, may, pursuant to this section, at any
time, be bought at adjusted book value.
“Stocks held by the Land Bank of the Philippines, the

Development Bank of the Philippines or by any government-
632
owned or -controlled bank or financial institution, under

the terms of this section, shall be made preferred only as to
assets upon liquidation and without the power to vote and
shall share in dividend distributions from the date of issuance
in an amount based on the lending benchmark approved
by the Bangko Sentral ng Pilipinas plus the prevailing
non-prime spread of the government financial institution:
Provided, however, That if such stock of the Land Bank of the
is sold to private shareholders, the same may be converted
into common stock of the class provided for in Section 10
hereof: Provided, further, That pending the amendment of the
Articles of Incorporation of the rural bank, if necessary, for
the purpose of reflecting the conversion into common stock of
preferred stock sold to private shareholders, the transfer shall
be recorded by the rural bank in the stock and transfer book
and such shareholders shall thereafter enjoy all the rights
and privileges of common stockholders. The preferred stocks
so transferred shall be surrendered and cancelled and the
corresponding common stocks shall be issued.
“x x x.”
SEC. 5. The Bangko Sentral ng Pilipinas, consistent with

Section 11 of Republic Act No. 7353, shall prescribe the necessary
rules and regulations on the amendments of the Rural Banks
Act of 1992 in consultation with various stakeholders as well as
disseminate this information to allow entry of foreign equity into
our rural bank system to revitalize the rural banking industry and
improve access of banking services to the rural areas in the country.
The implementing rules and regulations shall be published

within ninety (90) days from the publication of this Act in two (2)
newspapers of general circulation in the Philippines.
SEC. 6. Separability Clause. – If, for any reason, any provision

of this Act is declared invalid or unconstitutional, the remaining
633
provisions not affected thereby shall continue to be in force and

effect.

orders, proclamations, rules and regulations, and other issuances,
or parts thereof, which are inconsistent with the provisions of this
Act are hereby repealed or modified accordingly.
SEC. 8. Effectivity Clause. – This Act shall take effect fifteen

(15) days after its complete publication in the Official Gazette or
in at least two (2) newspapers of general circulation, whichever is
earlier.
Approved,
(Sgd.) JUAN PONCE ENRILE (Sgd.) FELICIANO BELMONTE JR.

of Representatives
This Act, which is a consolidation of House Bill No. 5360

and Senate Bill No. 3282 was finally passed by the House of
Representatives and the Senate on February 4, 2013 and January
30, 2013, respectively.
(Sgd.) EDWIN B. BELEN (Sgd.) MARILYN B. BARUA-YAP

Acting Senate Secretary Secretary General

634
S. No. 3338
H. No. 6548

Metro Manila
Fifteenth Congress

of July, two thousand twelve.
AN ACT PROMOTING AGRICULTURAL AND FISHERIES

MECHANIZATION DEVELOPMENT IN THE COUNTRY

SECTION 1. Title. – This Act shall be known as the

“Agricultural and Fisheries Mechanization (AFMech) Law”.
ARTICLE I
DECLARATION OF POLICY, DEFINITION OF TERMS

AND COVERAGE
SEC. 2. Declaration of Policy. – It shall be the policy of the

State to:
(a) Promote the development and adoption of modern,

appropriate and cost-effective and environmentally-safe
agricultural and fisheries machinery and equipment to enhance
farm productivity and efficiency in order to achieve food security
and safety and increase farmers’ income;
635
(b) Provide a conducive environment to the local assembling

and manufacturing of engines, machinery and equipment for
agricultural and fisheries production, processing and marketing;
(c) Ensure the quality and safety of machineries and equipment

locally manufactured or imported by strengthening regulation
through the development and enforcement of machinery and
machine performance standards, regular testing and evaluation,
registration, and the accreditation and classification of suppliers,
assemblers and manufacturers to ensure compliance to prescribed
quality standards;
(d) Strengthen support services such as credit faculties,

research, training and extension programs, rural infrastructures,
postharvest facilities and marketing services;
(e) Unify, rationalize and strengthen the implementation,

coordination of activities and mechanisms on agricultural and
fisheries mechanization programs and projects; and
(f) Deliver integrated support services to farmers, fisherfolk

and other stakeholders, and assist them to be able to viably operate
and manage their agricultural and fisheries mechanization projects.
SEC. 3. Definition of Terms. – The following terms are defined,

as follows:
(a) Agricultural and fisheries machinery refers to machinery

and equipment for the production, harvesting, processing,
storage, manufacture, preserving, transporting and distribution of
agricultural and fisheries products. It includes, but is not limited to,
tractors and their attachments, power tillers, seeders, transplanters,
windmills, harvesting machines, crop protection and maintenance
equipment, irrigation equipment and accessories, greenhouses
and other thermal conditioning equipment, livestock equipment,
fishery equipment, slaughtering equipment, meat/fishery and
crop processing equipment, postharvest machines such as milling
machines, dryers, threshers, grain and other strippers, agricultural
636
transport machinery and storage facilities including cold storage,

reefer vans, slaughter houses and fishing boats of three (3) gross
tons or less. New agricultural and fishery machinery includes newly
imported as well as one that has not been used since its date of
manufacture;
(b) Agricultural and fisheries mechanization refers to the

development, adoption, assembly, manufacture and application of
appropriate, location specific and cost-effective agricultural and
fisheries machinery using human, animal, mechanical, electrical,
renewable and other nonconventional sources of energy for
agricultural production and postharvest/postproduction operations
consistent with agronomic conditions and for efficient and economic
farm and fishery management towards modernization of agriculture
and fisheries;
(c) Agro-industrial processing refers to the local activity

or series of activities to maintain or raise the quality or change
the form or characteristics of agricultural, fisheries and forestry
products. It also includes, but not limited to, cleaning, sorting,
grading, mixing, milling, canning, dressing, slaughtering, freezing,
pasteurizing, conditioning, packaging, repacking and transporting
of said products; and
(d) Fishing boat refers to any boat, ship or other watercraft

of three (3) gross tons or less, equipped to be used for taking of
fishery species or aiding or assisting one (1) or more vessels in
the performance of any activity relating to fishing including,
but not limited to, preservation, supply, storage, refrigeration,
transportation and/or processing.
SEC. 4. Scope and Application. – The provision of this Act

shall apply to the research, development and extension, promotion,
distribution, supply, assembling, manufacturing, regulation, use,
operation, maintenance and project implementation of agricultural
and fisheries machinery and equipment.
637
ARTICLE II
THE NATIONAL AGRI-FISHERY MECHANIZATION PROGRAM
SEC. 5. The National Agri-fishery Mechanization Program. –

There shall be formulated a National Agri-fishery Mechanization
Program by the Department of Agriculture (DA) with the following
objectives:
(a) Promote and support through the provision of research

grants, credit, transparent and predictable regulation, the local
development and manufacture of agricultural and fisheries
machinery by the private sector;
(b) Unify, lead and support the efforts of various institutions in

the research, design and development of agricultural and fisheries
machinery;
(c) Establish quality, safety and performance standards for

agricultural and fisheries machinery;
(d) Support the establishment of quality, safety and

performance testing centers for the certification of agricultural and
fisheries machinery in strategic localities in the country;
(e) Establish guidelines for the registration of ownership of

agricultural and fisheries machinery; and
(f) Promote the adoption of certified agricultural and fisheries

machinery for improving agriculture and fishery productivity.
SEC. 6. Program Implementation. – The overall implementation

of the National Agri-fishery Mechanization Program shall be
coordinated by the DA through the Undersecretary duly designated
by the Secretary who shall:
(a) Conduct the formulation and review of the five-year

National Agri-fishery Mechanization Program for the DA;
638
(b) Provide leadership in the formulation of guidelines for the

registration of ownership of agricultural and fisheries machinery;
(c) Ensure the formulation of quality, safety and performance

standards for agricultural and fisheries machinery;
(d) Ensure the formulation of accreditation guidelines for

testing centers for agricultural and fisheries machinery;
(e) Formulate and enforce guidelines for the credit program

to include, but not limited to, access, disbursement and repayment;
(f) Oversee the implementation of the National Agri-fishery

Mechanization Program by the various units of the Department;
and
(g) Coordinate with other government agencies and local

government units (LGUs) in the implementation of measures
provided for in this Act.
ARTICLE III
RESEARCH, EXTENSION AND HUMAN RESOURCE

DEVELOPMENT
SEC. 7. Unified National Research and Development (R&D)

and Extension Agenda. – A unified National Agricultural and
Fisheries Mechanization Research and Development and Extension
(RDE) Agenda shall be formulated and implemented by the DA:
Provided, That the DA, through the Philippine Center for Postharvest
Development and Mechanization (PHilMech) as focal agency, shall
integrate and unify all agricultural and fisheries mechanization
RDE programs and projects of all concerned national government
agencies, Local Government Units (LGUs), state universities and
colleges (SUCs), which shall be geared towards development of
machineries and equipment, job generation, address market and
industry demands and help accelerate agricultural and fisheries
modernization in the countryside.
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The National Agricultural and Fisheries Mechanization RDE

Agenda shall include, but not be limited, to the following:
(a) Development, pilot-testing and commercialization of

appropriate, location-specific and cost-effective agricultural and
fisheries machinery and equipment in support to contiguous farming
and machinery pooling;
(b) Design and testing of new machineries and equipment for

agriculture and fisheries;
(c) Local manufacture and assembly of agricultural engines

and equipment;
(d) Development and utilization of renewable and

nonconventional energy resources such as wind, biomass, hydro,
solar and biofuels for agricultural and fisheries equipment and
machineries;
(e) Development of efficient production and postproduction

mechanization systems;
(f) Continuous development of technical standards and testing

procedures for quality agricultural machinery and components;
(g) Training of farmers, fisherfolk, manufacturers, extension

workers, agricultural engineers, technicians and operators engaged
in the agricultural and fisheries mechanization;
(h) Promotion of technologies through agricultural and

industrial extension activities and techno-demo centers;
(i) Development of prototype and fabrication of agricultural

machinery and equipment; and
(j) Development and conduct of commercialization strategies

involving all sectors representing the demand and supply sides of
agricultural and fisheries mechanization technologies.
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SEC. 8. Agri-fisheries Mechanization RDE Network. –

An Agricultural and Fisheries Mechanization RDE Network
is hereby organized and composed of research and educational
institutions, LGUs, nongovernment organizations and the
recognized and well-established associations of agricultural and
fisheries machinery assemblers, manufacturers and distributors,
agricultural engineers, farmers and fisherfolk. The Agricultural
and Fisheries Mechanization RDE Network shall be responsible for
the formulation and implementation of the National Agricultural
and Fisheries Mechanization RDE Agenda. The PHilMech shall be
responsible for organizing the Network and shall serve as secretariat
to the Network. The Network shall be chaired by the Director of the
PHilMech.
Moreover, the Agricultural Mechanization Development

Program of the University of the Philippines, Los Baños
(UPLB), which is part of the Network, shall be strengthened and
institutionalized to lead and coordinate the agricultural and fishery
mechanization RDE program of all academic institutions in the
country.
SEC. 9. Agri-fisheries Machinery and Equipment Service

Centers. – The DA and the LGUs shall encourage and support
the private sector and other rural entrepreneurs to establish and
operate agricultural and fishery machinery and equipment service
centers in the Strategic Agricultural and Fishery Development
Zones (SAFDZs)) and Agrarian Reform Communities.
The Agri-fisheries Machinery and Equipment Service Center’s

shall be operated as business enterprises that will provide the
following services:
(a) After-sales service and warranty to their respective clients;
(b) Custom plowing, harrowing, harvesting, drying, milling

and other farm mechanization services;
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(c) Repair and troubleshooting services of agricultural and

fishery machinery and equipment; and
(d) Training of maintenance and proper use of agricultural

machineries and equipment.
The ownership and operation of Agri-fisheries Machinery

and Equipment Service Centers shall not be the exclusive domain
of equipment and machineries suppliers. These may be owned and
operated by registered cooperatives or by businesses registered
with the Securities and Exchange Commission (SEC) or with the
Department of Trade and Industry (DTI).
SEC. 10. Agri-fisheries Mechanization and Engineering

Resource Network. – The existing agricultural machinery information
and database of the PHilMech shall be strengthened into an agri-
fishery mechanization and engineering resource network. It will
also be used or tapped as a facility for the online registration of
agri-fisheries machinery and equipment, and monitoring of agri-
fisheries mechanization and infrastructure projects. This network
shall be linked to other existing information and database networks
of the DA, the Agricultural Machinery Information Network of the
Department of Science and Technology (DOST), the Agricultural
Mechanization Development Program of the UPLB and of other
government agencies.
SEC. 11. Research Grants. – To enhance research and

technological development on agricultural and fisheries
mechanization, the government through the Bureau of Agricultural
Research (BAR) of the DA, the DOST and the Commission on Higher
Education (CHED) shall provide competitive research grants to
members of the Network to undertake needs-oriented research
as well as institutional development and upgrading of laboratory
facilities and equipment.
SEC. 12. Training and Scholarship Program. – The DA,

in partnership with SUCs and the private sector, shall train the
agricultural extension workers and agricultural engineers of
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the LGUs who in turn shall train the farmers and fisherfolk on
agricultural and fisheries mechanization technologies and practices.
The Department of Labor and Employment (DOLE) and the

Technical Education and Skills Development Authority (TESDA)
shall be responsible in the training of agricultural and fisheries
machinery technicians and operators.
Furthermore, scholarships for graduate and undergraduate

degrees on agricultural engineering and trade/vocational courses on
agricultural and fisheries mechanization shall be given priority by
the DA, the CHED and the DOST.
SEC. 13. Manpower Complement. – All agricultural and

fisheries machinery pools and service centers, including sales and
distribution outlets and manufacturing establishments, either
public or private, shall have the required manpower complement
of licensed agricultural engineers and certified technicians and
operators, in accordance with the guidelines and standards to be
promulgated by the Board of Agricultural Engineering (BoAE) of
the Professional Regulation Commission (PRC) and the DOLE to
ensure efficient operation and maintenance and good management
practices. The DA shall ensure compliance to this manpower
complement requirement.
SEC. 14. Skills Certification of Agricultural Machinery

Technicians and Operators. – The TESDA, in collaboration with the
DA, the BoAE and the national associations of agricultural engineers
and agricultural machinery assemblers, manufacturers and
distributors, shall undertake skills certification and accreditation
systems for agricultural and fishery machinery operators and
technicians.
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ARTICLE IV
LOCAL ASSEMBLY, MANUFACTURE, SUPPLY

AND AFTER-SALES SERVICE
SEC. 15. Local Assembling and Manufacturing. – Production

of locally-made engines and other machinery for agricultural
and fisheries purposes shall be promoted and encouraged by the
DA in partnership with the private sector, and through joint
venture agreements. For this purpose, the DA in partnership with
the recognized national organization of agricultural machinery
assemblers, manufacturers and distributors, agricultural engineers
and the DOST shall undertake the feasibility study and R&D for
the local assembly and manufacture of agricultural engines/prime
mover, and other agricultural machinery and equipment.
SEC. 16. Incentives for Local Manufacturers and Assemblers

of Agri-fisheries Machinery. – Ventures in local manufacture,
fabrication and assembly of agri-fisheries machinery and equipment
shall be eligible for loans under the Agricultural Competitiveness
Enhancement Fund (ACEF) under the program of the DA. These
businesses shall be granted incentives as long as they are considered
as registered enterprises engaged in a preferred area of investment
pursuant to Article 39 of Executive Order No. 226. as amended.
SEC. 17. After-Sales Service. – All agricultural and fisheries

machinery assemblers, manufacturers, importers, suppliers,
distributors and dealers are required to provide after-sales service
and warranty to then respective clients which shall be monitored by
the agriculture offices of the LGUs and the Bureau of Agricultural
and Fisheries Engineering (BAFE), created under Section 24 of this
Act.
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ARTICLE V
TESTING AND EVALUATION, REGISTRATION,

STANDARDIZATION AND ACCREDITATION
SEC. 18. Testing and Evaluation. – Agricultural and fisheries

machinery and equipment to be sold in the market shall pass
through testing and evaluation by the Agricultural Machinery
Testing and Evaluation Center (AMTEC) in accordance with
the national policies and guidelines to be promulgated by the
Secretary. Specifically, before it can be assembled, manufactured
and commercially sold in the market, the model of the machine and
any modification thereof should be tested by the AMTEC and should
pass the prescribed quality and performance standards. The regular
testing and evaluation of machinery sold shall be undertaken by
the AMTEC on new models and design. Field tests shall likewise
be undertaken by the AMTEC to ensure consistent quality of test
units as well as on the commercial units. The BAFE shall maintain
a certification registry of equipment and machinery as well as a
registry of those denied certification.
SEC. 19. Registration of Ownership of Agricultural and Fishery

Machinery and Equipment. – All owners of agricultural and fishery
machinery and equipment must register these with the agriculture
offices of municipal and city government units. The agriculture offices
of the LGUs shall establish and maintain a registry of agricultural
and fishery machinery at the municipal, city and provincial levels.
The DA Regional Agricultural Engineering Division shall maintain
a registry of agricultural and fishery machinery at the regional
office whereas the BAFE shall maintain a national database of all
registered agricultural and fishery machinery. Each office shall
ensure that these registries and databases are available through
the internet. The Secretary shall promulgate national guidelines
and procedures for the registration of agricultural and fisheries
machinery by the LGUs, including the collection of registration fees
in accordance with the Local Government Code.
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SEC. 20. Registration of Manufacturers, Fabricators,

Assemblers and Importers. – Within six (6) months upon the
enactment of this Act, all manufacturers, fabricators, assemblers
and importers must register with the BAFE.
Three (3) years upon the enactment of this Act, registrants

must provide certification by an accredited certifying body of all
products that they have in the market or intend to market and
withdraw all products that have no certification. One (1) year
after the enactment of this Act, the registrants must submit to the
BAFE the list of equipment/machineries manufactured/fabricated/
assembled/ imported.
SEC. 21. Standards Development and Enforcement. – The DA,

through the Bureau of Agriculture and Fisheries Product Standards
(BAFPS), in coordination with the DTI, the DOST, the BoAE and
the AMTEC, and in consultation with the accredited associations
of farmers and fisherfolk, agricultural machinery assemblers,
manufacturers and distributors and agricultural engineers shall
develop standards specifications and test procedures of agricultural
and fishery machinery and equipment. These standards should be
in conformity with the International Standards Organization (ISO)
and shall be part of the existing Philippine Agricultural Engineering
Standards (PAES).
Thereafter, the DA and the LGUs, in collaboration with

the BoAE, shall enforce the above standards on the manufacture,
sale and distribution of agricultural and fisheries machinery
and equipment, and its accreditation system for agricultural and
fisheries facilities and establishments.
The Secretary shall deputize the agriculture offices of the

LGUs to monitor the implementation of regulation concerning
certification, registration of manufacturers, assemblers, dealers or
importers and accreditation of agricultural and fishery machinery
and equipment testing centers.
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The Department of Public Works and Highways (DPWH)

and the local building officials, consistent with the provisions
of Republic Act No. 8559, otherwise known as the “Philippine
Agricultural Engineering Act of 1998”, and in coordination with the
agriculture offices of the LGUs shall enforce the PAES as part of the
implementation of the National Building Code of the Philippines
particularly in the design, construction, operation and maintenance
of agricultural and fisheries buildings and structures.
SEC. 22. Classification and Accreditation of Assemblers,

Manufacturers, Importers, Suppliers, Distributors and Dealers. –
Agricultural and fisheries machinery assemblers, manufacturers,
importers and suppliers, distributors and dealers shall be classified
into small, medium and large, and shall be encouraged to have their
manufacturing/service facility build-up: Provided, That agricultural
and fisheries machinery assemblers, manufacturers, importers,
suppliers, distributors and dealers shall be classified and accredited
based on their organizational strengths and track record, area of
operation, marketing and distribution network, after-sales service
and manufacturing capabilities.
For this purpose, the DA shall encourage and assist in the

organization of a private-led classification and accreditation system
for agricultural machinery assemblers, manufacturers, importers,
suppliers, distributors and dealers.
ARTICLE VI
INSTITUTIONS
SEC. 23. Agricultural and Fisheries Mechanization

Committee. – The Agricultural and Fisheries Mechanization
Committee (AFMeC) under the National Agricultural and Fishery
Council (NAFC) shall act as an advisory body to ensure the success
of the programs and activities of the DA concerning agricultural and
fisheries mechanization. It shall also serve as the consultative and
feedback mechanism from the lowest possible level to the top decision
makers and to assist in defining and formulating the goals and
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scope of the country’s agricultural and fisheries mechanization and

infrastructure policies, plans and programs. The agricultural and
fisheries mechanization committees under the regional, provincial,
city, municipal and barangay agricultural and fishery councils shall
integrate, coordinate, unify and monitor the field implementation
of the agri-fisheries mechanization and infrastructure projects of
various national government agencies, LGUs, banking and financial
institutions and the private sector.
SEC. 24. Strengthening the DA Agricultural and Fishery

Engineering Groups. – Pursuant to Section 46 of Republic Act
No. 8435, otherwise known as the “Agriculture and Fisheries
Modernization Act of 1997”, a Bureau of Agricultural and Fisheries
Engineering (BAFE) is hereby created as a regular bureau of the
DA which shall be under the supervision of the DA Undersecretary
and shall have the following functions and responsibilities:
(a) Coordinate, oversee and monitor the national planning

and implementation of agri-fisheries engineering, farm-to-market
road and other agri-fisheries infrastructure projects;
(b) Assist in the national planning, coordination and

implementation of the national agri-fisheries mechanization
programs;
(e) Prepare, evaluate, validate and recommend engineering

plans, designs and technical specifications on agri-fisheries
mechanization and infrastructure projects;
(d) Oversee and provide technical assistance to the operations

of the agricultural engineering divisions of the DA regional field
units;
(e) Coordinate and integrate all agricultural and fisheries

engineering activities of the DA bureaus, attached agencies and
corporations;
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(f) Coordinate and monitor the enforcement of standards and

other regulatory policies on agricultural and fishery engineering;
(g) Implement accreditation and registration scheme for

agriculture and fishery machinery, tools and equipment, in
coordination with technology generators:
(h) Issue permits to operate to agriculture and fishery tools and

equipment manufacturers, fabricators, assemblers and importers;
and
(i) Promulgate and implement accreditation guidelines for

testing centers.
The BAFE shall be headed by a Bureau Director and Assistant

Bureau Director, all appointed by the President.
The BAFE shall have the following divisions: (1) Engineering

Plans, Designs and Specifications; (2) Programs and Projects
Management; (3) Standards Regulation and Enforcement; and (4)
Administration and Finance.
Modifications shall be made in the organizational structure

and staffing pattern of the regional field units of the DA for the
creation of Agricultural Engineering Division to strengthen the
provision of agricultural engineering services necessary to carry out
the field implementation of the agricultural and fishery engineering,
mechanization and infrastructure programs and projects of the DA.
All concerned bureaus and attached agencies of the DA

implementing agri-fishery mechanization and infrastructure
projects shall review and modify their organizational structure and
staffing pattern with the end-view of strengthening the provision of
agricultural engineering services as part of the overall network of
the BAFE.
SEC. 25. Philippine Center for Postharvest Development and

Mechanization (PHILMech). – The PHilMech shall coordinate, plan
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and execute agricultural and fishery mechanization and postharvest

RDE programs and projects of the DA.
SEC. 26. Bureau of Agriculture and Fisheries Product

Standards. – The BAFPS, in addition to its functions under Sections
62 and 63 of Republic Act No. 8435, shall develop standards
for agriculture and fishery machinery, tools and equipment in
coordination with accredited testing centers, and other concerned
government and private entities.
The BAFPS is hereby renamed into Bureau of Agriculture and

Fisheries Standards (BAFS) and authorized to create a new section
under the current Standards Development Division on agricultural
and fisheries machinery regulations. It may call upon experts,
professional groups and other government agencies to assist in the
performance of its functions.
SEC. 27. Agricultural Machinery Testing and Evaluation

Centers (AMTEC). – The AMTEC of the College of Engineering
and Agro-Industrial Technology (CEAT) of the UPLB is hereby
institutionalized. The AMTEC is hereby designated as the premier
and reference testing center in the country, and for purposes of
functional coordination and integration, shall closely coordinate its
activities with the BAFS and BAFE. As the premier testing center,
it shall assist the BAFS in the formulation of quality, safety and
performance standards of agricultural and fisheries machinery and
of accreditation guidelines for testing centers. It shall also provide
technical assistance in the establishment of testing centers in other
parts of the country.
ARTICLE VII
RESPONSIBILITIES OF THE LOCAL GOVERNMENT UNITS
SEC. 28. Implementation by the LGUs. – The LGUs, pursuant

to the provisions of Republic Act No. 7160, otherwise known as the
“Local Government Code of 1991”, shall undertake applied research,
extension, dispersal, management and regulation of agricultural
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and fisheries machinery and equipment, including the collection of

fees.
SEC. 29. Strengthening the Agricultural Engineering Groups

of the LGUs. – The agricultural engineering division/section of the
agriculture offices of the LGUs organized under Executive Order
No. 86, Series of 1999 and Section 46 of Republic Act No. 8435 shall
serve as the planning, coordinating, regulating and implementing
bodies at the provincial, city and municipal levels on agricultural
and fisheries engineering, mechanization and infrastructure
programs and projects and shall have the following functions and
responsibilities:
(a) Provide agricultural engineering services which include

engineering survey, preparation and evaluation of plans, designs,
technical specifications, feasibility studies and cost estimates/
program of work of irrigation, small water impounding, soil
conservation and management, farm machinery, slaughterhouses,
poultry dressing plants, postharvest facilities, auction markets,
farm-to-market roads and other agricultural and fisheries
infrastructure projects of the LGUs;
(b) Administer, supervise and coordinate the construction,

operation, maintenance, improvement and management of
irrigation, small water impounding, soil and water conservation
structures and facilities, farm machinery, postharvest facilities,
auction markets, farm-to-market roads and other agricultural and
fisheries infrastructure projects of the LGUs;
(c) Undertake the registration of agri-fishery machinery

and facilities, enforcement of the PAES and other agricultural
and fishery engineering regulatory activities in coordination and
collaboration with the concerned national government agencies;
(d) Coordinate with the concerned national government

agencies with regard to the implementation of national government
programs and projects on irrigation, farm mechanization,
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postharvest facilities, farm-to-market roads and agricultural and

fisheries infrastructure;
(e) Be in the frontline of the delivery of basic agricultural

engineering services;
(f) Provide training and extension activities to farmers

and fisherfolk particularly in the installation, operation and
maintenance of their irrigation, postharvest facilities, agricultural
and fishery machinery projects in coordination with the agriculture
and fisheries extension workers;
(g) Undertake and/or coordinate the pilot testing and

commercialization of matured agricultural and fisheries engineering
technologies; and
(h) Exercise such other powers and perform such other duties
and functions as may be prescribed by law or ordinance.
To effectively carry out the above functions and

responsibilities, the agricultural engineering division of the
provincial and city agriculture offices, and agricultural engineering
section in the municipal agriculture offices are hereby strengthened
and institutionalized into the organizational structure of the LGUs,
and if not yet existing, shall be created in the particular LGUs. The
LGUs belonging to the first up to the third income classes which are
providing or implementing agricultural and fisheries infrastructure,
mechanization and engineering projects shall hire at least one (1)
agricultural engineer at the provincial, city and municipal levels.
In the case of provincial, city and municipal LGUs belonging

to the fourth up to the sixth income classes which are not
capable of establishing then agricultural engineering division/
section due to financial constraints, the DA through its regional
agricultural engineering divisions shall augment and perform such
responsibilities and, as deemed necessary, establish its provincial,
city and municipal operation units, and shall be allocated and
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provided with necessary funding and manpower requirements for

their operation.
ARTICLE VIII
PROHIBITED ACTS, PENALTIES AND SANCTIONS
SEC. 30. Prohibited Acts. – It is unlawful for any person to:
(a) Sell, mortgage or lease agricultural and fishery machinery

without being registered with the BAFE;
(b) Sell new agricultural and fishery machinery without

warranty or after-sales service;
(c) Claim ownership to an agricultural and fishery machinery

that has not been properly registered in his/her name; and
(d) Operate a testing center without proper accreditation.
SEC. 31. Penalties. – Any person who shall violate any

provision of this Act shall, upon conviction, be subject to a fine of
not less than One thousand pesos (P1,000.00) but not more than
Ten thousand pesos (P10,000.00) or imprisonment of not less than
two (2) months but not more than one (1) year, or both, upon the
discretion of the court and/or other applicable penalties imposed
under Republic Act No. 7394, otherwise known as the “Consumer
Act of the Philippines”. The purchase of noncertified or substandard
agricultural and fishery machinery for the government shall be
dealt with under Republic Act No. 3019, as amended, otherwise
known as the “Anti-Graft and Corrupt Practices Act.”
SEC. 32. Sanctions. – This provision shall take effect four (4)
years upon the enactment of this Act when all regulatory provisions
have already been in place. The Secretary or his duly authorized
representative has the power to file before the proper court or
regulatory agency the:
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(a) Forfeiture proceedings for agricultural and fishery

machinery that is not duly certified, without serial number and
without warranty, and is substandard;
(b) Closure proceedings against business entities not duly

registered as manufacturers, assemblers, dealers or importers of
agricultural and fishery machinery, or sells new agricultural and
fishery machinery not duly certified, without a serial number, or
without warranty, without after-sales service and substandard; and
(c) Closure proceedings against testing centers that has not

been duly accredited.
Any business that sells new agricultural and fishery

machinery which was not duly certified, without a serial number,
without warranty, or without after-sales service shall be given one
(1) month to refund or replace the sold machinery duly corrected
for any deficiency as indicated. Failure to do so shall result to
corresponding legal action against the offending party.
ARTICLE IX
SEC. 33. Agricultural and Fisheries Mechanization Programs

at the Local Levels. – The LGUs, through an ordinance, shall
also formulate in consultation with the DA and implement their
respective provincial, city and municipal agricultural and fishery
mechanization plans as a vital component of their respective local
development plans.
SEC. 34. Contiguous Farming. – The DA, together with the

Department of Agrarian Reform (DAR), shall carry out contiguous
farming projects in order to effect suitable field shapes and sizes
conducive to efficient operation of agricultural machinery and
equipment and likewise to ensure economies of scale. The contiguous
farming projects shall:
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(a) Promote farm land clustering with a minimum of fifty

(50)-hectare cluster for synchronized farming operations, from
land preparation to harvesting, in cooperation or contract with
agricultural mechanized operation service providers;
(b) Undertake farm development planning; and
(c) Promote the strengthening of farmers cooperatives and

associations.
SEC. 35. Use of Renewable Energy. – The use of renewable

and nonconventional energy such as wind, solar, hydro, biomass
and other farm-based energy sources shall be promoted as power
sources for the operation and maintenance of agricultural and
fisheries machinery. The DA, in coordination with the Department
of Energy (DOE), the DOST and SUCs, and the private sector shall
undertake research and extension activities to enhance the use of
renewable and nonconventional energy in agricultural and fisheries
operations.
SEC. 36. Infrastructure Support. – The government shall

provide priority investment for the infrastructure needs in clustered
farm land identified as key agricultural and fishery production
areas to accelerate agricultural and fisheries mechanization in the
countryside and this includes irrigation, farm-to-market roads,
postharvest, power and communications facilities.
SEC. 37. Implementing Rules and Regulations. – The DA,

within six (6) months upon the enactment of this Act and in
consultation with the stakeholders and other government agencies,
shall promulgate the necessary rules and regulations to implement
this Act.
SEC. 38. Funding. – The Secretary of Agriculture shall include

in the DA’s program the implementation of this Act, the funding of
which shall be included in the annual General Appropriations Act.
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The DA shall likewise set aside funds from the Agricultural

Competitiveness Enhancement Fund (ACEF) for grants to upgrade
the AMTEC and to establish one (1) testing center in Visayas and
one (1) testing center in Mindanao.
The BAR shall allocate funds annually from its regular

R&D funds to support research programs, processing of patent
applications, and testing and certification of locally designed agri-
fisheries equipment and machineries.
All LGUs shall include in their investment plans, as

part of the priority appropriations for local development fund,
the funding support for the implementation of their respective
provincial, city, municipal and barangay agricultural and fisheries
mechanization programs in accordance with Republic Act No. 7160
and its implementing rules and regulations and the Department
of the Interior and Local Government-Department of Budget and
Management (DILG-DBM) Joint Memorandum Circular No. 1,
Series of 2005.
The CHED shall allocate funds from the Higher Education

Development Fund necessary for the upgrading of agri-fisheries
mechanization and engineering laboratory facilities of concerned
SUCs, faculty training program and scholarships.
The TESDA shall likewise allocate funds from its annual

appropriations necessary for the skills certification and training
program for agri-fishery machinery technicians and operators.
SEC. 39. Congressional Oversight Committee. – The

Modernization (COCAFM) shall be the congressional oversight
committee for purposes of this Act.
SEC. 40. Separability Clause. – The provisions of this Act are

hereby declared separable and if any clause, sentence, provision or
section hereof should be declared invalid, such invalidity shall not
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affect the other provisions of this Act which can be given force and
effect without the provisions which have been declared invalid.

and other administrative issuances and parts thereof which are
inconsistent with the provisions of this Act are hereby repealed or
SEC. 42. Effectivity Clause. – This Act shall take effect after
fifteen (15) days from its publication in the Official Gazette or m two
(2) newspapers of general circulation.
Approved,
(Sgd.) FELICIANO BELMONTE JR. (Sgd.) JUAN PONCE ENRILE

of Representatives

of Representatives on February 4, 2013.
(Sgd.) MARILYN B. BARUA-YAP (Sgd.) EDWIN B. BELLEN

Secretary General Acting Senate Secretary
Approved: JUN 05 2013

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S. No. 2400
H. No. 4633

Metro Manila
Sixteenth Congress

of July, two thousand fourteen.
AN ACT PROMOTING AND SUPPORTING THE COMPETITIVENESS

OF THE SUGARCANE INDUSTRY AND FOR OTHER
PURPOSES

SECTION 1. Short Title. – This Act shall be known as the

“Sugarcane Industry Development Act of 2015”.

policy of the State to promote the competitiveness of the sugarcane
industry and maximize the utilization of sugarcane resources,
and improve the incomes of farmers and farm workers, through
improved productivity, product diversification, job generation, and
increased efficiency of sugar mills.
For these purposes, the State shall: (a) establish productivity

improvement programs; (b) provide the needed infrastructure
support; (c) enhance research and development of other products
derived from sugar, sugarcane, and their by-products; (d) provide
human resource development and extension services; and (e) provide
financial assistance to small farmers.
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SEC. 3. Productivity Improvement Programs. – To boost

the production of sugarcane and sugar, and increase the incomes
of sugarcane farmers/planters and farm workers, the following
Productivity Improvement Programs shall be implemented:
(a) Block Farm Program. – The Block Farm Program for

sugarcane farming being implemented by the Sugar Regulatory
Administration (SRA), the Department of Agriculture (DA), the
Department of Agrarian Reform (DAR), and other government
agencies is hereby institutionalized and shall be further enhanced
and supported.
For purposes of this Act, the Program is the consolidation of

small farms including farms of agrarian reform beneficiaries, as one
larger farm, with a minimum area of thirty (30) hectares within a
two-kilometer radius, to take advantage of the economies of scale
in the production of sugarcane, such that the activities in the small
farms are aligned and implemented to ensure the efficient use of
farm machineries and equipment, deployment of workers, volume
purchase of inputs, financing, and other operational advantages, as
well as recognition by sugar mills, government financial institutions,
private investors, but the ownership of each small farm remains
with the landowners.
The SRA, the DA, the DAR and other concerned government
agencies shall provide common service facilities, such as farm
machineries and implements, grants or start-up funding for the
needed production inputs, technology adoption, livelihood and skills
training and other development activities for the block farm and its
members, and other support activities that may be identified.
To ensure the success of, and compliance to the objectives of

the Program, the SRA shall:
(1) Develop guidelines for sugarcane farms to qualify for and

continue to participate in the Program;
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(2) Provide farm management, technical assistance, and

professional services support to block farms, in coordination with
the DA, the DAR and other concerned government agencies;
(3) Monitor the development and productivity of block farms;
(4) Recommend, after six (6) years, the cessation of the

Program on block farms that have failed to improve productivity or
raise efficiency, or graduation of block farms that have achieved high
and sustainable productivity and profitability on its operations; and
(5) Implement a certification system as a mechanism to access

grants, low interest financing, and other incentives and support
from Official Development Assistance (ODA); and market access of
sugarcane: Provided, That sugar mills, bioethanol distilleries and
other markets of sugarcane shall provide market access priority to
the SRA-certified block farms.
(b) Farm Support Program. – For other farms that are not
eligible under the Block Farm Program, the SRA shall make
available a support program which shall include, among others,
the provision of (1) socialized credit; and (2) farm management,
technical assistance; and professional services:
(i) Socialized credit shall be made available, through the Land

Bank of the Philippines (LBP), for the acquisition of production
inputs, farm machineries, and implements necessary for the
continuous production of sugarcane: Provided, That the loans shall
be available to sugarcane farmers duly registered with the SRA:
Provided, further, That the lender shall have a lien on the quedan
of farmers who obtained a crop loan until the crop loan is fully paid:
Provided, finally, That farmers cannot be granted another loan
until the loan is fully paid.
To ensure immediate payment of farmers and secure their

income from sugarcane, farmers may enter into any payment
method with the sugar mills or distilleries for their sugarcane.
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(ii) Farm Management, Technical Assistance and

Professional Services –The SRA, the DA, the DAR, the Department
of Labor and Employment (DOLE), the Technical Education and
Skills Development Authority (TESDA), state universities and
colleges (SUCs), and other concerned private and nongovernment
organizations (NGOs) shall formulate and implement a deployment
program of agricultural engineers, agriculturists and farm
technicians for the provision of farm management, technical
assistance and professional services to these farms.
(c) Farm Mechanization Program. – Planters/farmers of

sugarcane farms, including block farms and farms of agrarian
reform beneficiaries, shall be encouraged and trained to utilize
appropriate agricultural machineries and equipment necessary for
the efficient planting, cultivation, care and maintenance, harvesting
and handling of sugarcane.
The SRA, the DA and the DAR, in partnership with local

government units (LGUs), consistent with the provisions of Republic
Act No. 10601, otherwise known as the “Agricultural and Fisheries
Mechanization (AFMech) Law”, shall:
(1) Introduce or expand the use of machineries for the different

stages of sugarcane farming;
(2) Formulate and implement a Sugarcane Farm Mechanization

Program at the mill district levels and block farms; and
(3) Support the establishment, operation and maintenance

of Agri-fisheries Machinery and Equipment Service Centers, as
provided in Section 9 of Republic Act No. 10601, in sugarcane areas
and, for this purpose, provide socialized credit to service centers:
Provided, That these service centers shall emphasize the provision
of plowing, harrowing, weeding, fertilization, harvesting and other
farm mechanization services to sugarcane farms that do not have
the capability to purchase or maintain their own machineries and
equipment.
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To develop and deploy appropriate machineries and

equipment, the SRA, through its research centers, in collaboration
with the Philippine Sugar Research Institute, the Philippine Center
for Post-Harvest Development and Mechanization, the Bureau
of Agricultural Research, SUCs, other concerned government
agencies, and industry stakeholders, shall formulate and conduct a
research, development and extension program for sugarcane farm
mechanization and engineering.
The LBP shall manage the socialized credit facility under the
Farm Support Program and the Farm Mechanization Program.
The SRA, the DA, the DAR, and the LBP shall issue the
guidelines on the administration and lending of the socialized credit
facility.
SEC. 4. Research and Development. – The SRA, in coordination

with the Department of Science and Technology (DOST), as well
as relevant state universities and government research and
development institutions and the private sector, shall intensify
researches on sugarcane high yielding or flood resistant varieties;
pest control and prevention; latest farming, milling, refining and
biomass co-generation technologies; soil analysis and fertility
mapping of sugarcane areas; weather monitoring and climate
change adaptation measures; sugar and sweetener consumption;
and other viable products that can be derived from sugarcane. The
DA and the DOST shall likewise provide assistance to the SRA to
improve the latter’s crop forecasting and crop monitoring activities
or programs.
SEC. 5. Extension Services. – In addition to extension services

provided by the DA, the DAR, the SUCs and private and NGOs,
extension services in sugar districts shall be provided by the SRA
and the mill district development councils (MDDCs). Extension
services that can be provided shall include, but not limited to,
provision of technical assistance and advice, conduct of tests,
propagation, and dissemination of high yielding varieties, and
operation of demonstration farms.
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For its extension services, MDDCs may develop linkages with

NGOs, peoples’ organizations, and LGUs. It may likewise secure
funding for its extension services from private sector sources.
SEC. 6. Human Resources Development. – All stakeholders

in the sugarcane industry shall contribute to the development
of a sustainable human resource for the industry. Towards this
end, the DOLE, in collaboration with the SRA, the Commission
on Higher Education, the TESDA, the Professional Regulation
Commission (PRC) and the private sector, shall formulate and
implement a Human Resources Development (HRD) Master Plan
for the sugarcane industry which shall include, but not limited to,
the following:
(a) Capacity building, skills trainings, institutional

strengthening of the sugarcane industry workers, small farmers
and agrarian reform beneficiaries and their organizations to actively
contribute in productivity and competitiveness;
(b) Scholarship program for the underprivileged but deserving

college and post graduate students who are taking up courses
in relevant fields of discipline in SUCs which have programs in
agriculture, agricultural engineering and mechanics, and chemical
engineering/sugar technology; and for vocational courses and skills
development for farmers and farm technicians, and skilled workers
in sugar mills, sugar refineries, distilleries and biomass power
plants;
(c) Conduct of capability training or attendance to local or

international trainings and seminars by farmers, mill, refinery,
distilleries and biomass power plant technicians, including the SRA
technical personnel on the latest technologies related to sugarcane
farming, manufacture or production of sugar and other products
derived from sugarcane;
(d) Formulation and implementation of competency standards

and training regulations for technical vocational education and
training for the sugarcane industry by the TESDA; and
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(e) Upgrading of facilities, faculty development and

strengthening of the on-the-job training program of agri-based
higher education institutions in sugarcane areas towards the
production of highly employable and globally competitive graduates
needed by the sugarcane industry.
SEC. 7. Infrastructure Support. – To facilitate the transport

of sugarcane to mills and distilleries, enhance the marketing
and export of sugar and other products derived from sugarcane,
and complement productivity improvement measures in this Act,
transport infrastructure, farm-to-mill roads, and irrigation facilities
shall be provided.
(a) Transport Infrastructure. – The National Economic and

Development Authority (NEDA), the Department of Transportation
and Communications (DOTC), the Department of Public Works and
Highways (DPWH), and the Philippine Ports Authority (PPA), shall
include in their annual Development Plans and Priority Investment
Programs the immediate construction and/or improvement of
existing transloading ports for export or coast-wide transport of
sugar and other products derived from sugarcane in key sugarcane
producing provinces. The SRA shall submit to these agencies, six (6)
months from the start of the effectivity of this Act, a priority list of
transloading ports covered by this provision.
(b) Farm-to-Mill Roads. – The NEDA, the DA, the DPWH, and
concerned LGUs, shall include in their annual Priority Investment
Program the immediate construction and/or rehabilitation of farm-
to-mill roads in key sugarcane producing provinces. The SRA shall
prepare and submit to these agencies and LGUs, within six (6)
months from the start of effectivity of this Act, a Farm-to-Mill Road
Master Plan and priority farm-to-mill roads at the mill district as
basis for the planning, programming and investment prioritization.
(c) Irrigation. – The National Irrigation Administration (NIA),

the Bureau of Soils and Water Management, and concerned LGUs,
in coordination with the SRA, shall construct appropriate, efficient
and cost effective irrigation facilities, pump and other pressurized
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irrigation systems, rain capture and water impounding facilities

in block farms and other sugarcane farms. The SRA shall submit
to these agencies the list of priority sugarcane areas within six (6)
months from the start of the effectivity of this Act. The DA and
the NIA shall include in its annual budget the item or provision on
construction and rehabilitation of irrigation facilities, rain capture
and water impounding facilities in sugarcane areas.
To promote the conservation of water resources and encourage

and involve the participation of sugar mills, refineries and distilleries
in providing irrigation to sugarcane areas, the utilization for
irrigation of wastewater discharge of mills, refineries, or distilleries,
that meet the specifications of the DA on the safe reuse of wastewater
for irrigation, fertilization and other agricultural uses, is considered
“reuse” and, therefore, exempt from wastewater charges under the
system provided under Section 13 of Republic Act No. 9275, also
known as the “Philippine Clean Water Act of 2004”.
SEC. 8. Sugar Supply Monitoring System. – As the agency

mandated to regulate the supply of sugar in the country, in addition
to its powers and functions under Executive Order No. 18, series
of 1986, the SRA shall establish a supply chain monitoring system
from sugarcane to sugar at the retail level to ensure sufficiency and
safety of sugar.
To accurately determine the supply of sugarcane and sugar in

the country and to provide sound basis for diversification, planning
and policy, it is mandated that the following shall register with the
SRA:
(a) Sugarcane farmers, farmers’ associations/federations,

mills/mill associations, sugarcane consolidators and muscovado
producers;
(b) Distilleries, using molasses, sugar or sugarcane as

ingredient for alcohol: Provided, That importers, and consignees
of imported molasses regularly report to the SRA, among other
information, the volume of molasses imported;
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(c) International and domestic sugar traders, including

wholesale traders and repackers, muscovado and molasses traders
and customs bonded warehouses (CBWs) of food processors importing
sugar for reexport: Provided, That international and domestic sugar
traders and the CBW food processors shall likewise submit a list of
all their warehouses of sugar;
(d) Warehouses of sugar, and business establishments that

manufacture or sell bags or sacks for packing sugar; and
(e) Cane hauling and harvesting service providers.
The SRA shall provide the forms and make sure that the
manner of registration shall be the least possible cost to the
stakeholder concerned particularly agrarian reform beneficiaries.
The information gathered shall be used to develop a sugarcane
industry database which shall be administered and updated by the
SRA. Any of the aforementioned entities that shall not register shall
be subject to penalties imposed by the SRA.
SEC. 9. Classification and Regulation of Supply of Sugar. –

The SRA, in the exercise of its regulatory authority, shall classify
imported sugar according to its appropriate classification when
imported at a time that domestic production is sufficient to meet
domestic sugar requirements. The Bureau of Customs (BOC)
shall require importers or consignees to secure from the SRA the
classification of the imported sugar prior to its release.
SEC. 10. Value-Added Tax (VAT) Zero-Rated on Refined Sugar

for Export. – Pursuant to Section 106(A)(2)(a)(1) of the National
Internal Revenue Code, VAT zero-rated shall be imposed on refined
sugar withdrawn from warehouses for actual physical export to the
world market.
To differentiate refined sugar from raw sugar for VAT

purposes, refined sugar refers to sugar whose content of sucrose,
by weight, in the dry state corresponds to a polarimeter reading
of 99.5° and above, and raw sugar means sugar whose content of
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sucrose by weight, in the dry state, corresponds to a polarimeter

reading of less than 99.5°.
The Bureau of Internal Revenue, in consultation with the SRA

and industry stakeholders, shall issue the necessary regulation to
implement this section.
SEC. 11. Mandated Appropriations. – The Department of

Budget and Management (DBM) is hereby mandated to include
annually, starting the year 2016, an initial aggregate amount of
Two billion pesos (P2,000,000,000.00) in the President’s program of
expenditures for submission to Congress and allocated, as follows:
(a) Fifteen percent (15%) for grants to block farms under the
Block Farm Program;
(b) Fifteen percent (15%) for socialized credit under the Farm
Support and Farm Mechanization Programs;
(c) Fifteen percent (15%) for research and development,

capability building and technology transfer activities under
Research and Development, Extension Services, Human Resources
Development, and Farm Support Programs;
(d) Five percent (5%) for scholarship grants to be provided

under paragraph (b) of Section 6, Human Resources Development;
and
(e) Fifty percent (50%) for infrastructure support programs.
In the identification and prioritization of specific programs

and projects, the SRA shall conduct prior consultation with
representatives of block farms, sugarcane farmers and workers,
sugar millers, refiners, bioenergy producers, and producers of
other products derived from sugarcane and its by-products. The
Department shall issue the necessary guidelines for this purpose.
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For the current year, the DBM shall include in a supplemental

budget, that may be formulated, the amount of Two billion pesos
(P2,000,000,000.00) and following the allocation prescribed in this
section.
SEC. 12. Non-Exemption from Comprehensive Agrarian

Reform Program (CARP) Coverage. – Nothing in this Act shall
exempt any landholding from CARP Coverage.
SEC 13. Implementing Rules and Regulations. – The DA, in

consultation with concerned government agencies and sugarcane
industry stakeholders, shall issue the implementing rules and
regulations of this Act within ninety (90) days starting from the
effectivity of this Act.
SEC. 14. Separability Clause. – If any provision of this Act is

declared unconstitutional, the validity of the remaining provisions
hereof shall remain in full force and effect.
SEC. 15. Repealing Clause. – All laws, decrees, executive orders

and rules and regulations or part or parts thereof inconsistent with
any provision of this Act are hereby repealed, modified or amended
accordingly.
SEC. 16. Effectivity. – This Act shall take effect after fifteen
(15) days from its publication in the Official Gazette or in at least
two (2) newspapers of general circulation.
Approved,
(Sgd.) FELICIANO BELMONTE JR. (Sgd.) FRANKLIN M. DRILON

of Representatives
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of Representatives on February 2, 2015 and February 3, 2015,
respectively.
(Sgd.) MARILYN B. BARUA-YAP (Sgd.) OSCAR G. YABES


669
H. No. 3785

Metro Manila
Sixteenth Congress

day of July, two thousand fifteen.
AN ACT STRENGTHENING AND INSTITUTIONALIZING

DIRECT CREDIT SUPPORT OF THE LAND BANK OF THE
PHILIPPINES TO AGRARIAN REFORM BENEFICIARIES,
SMALL FARMERS AND FISHERFOLK, FURTHER
AMENDING REPUBLIC ACT NO. 3844, OTHERWISE
KNOWN AS THE “AGRICULTURAL LAND REFORM CODE”,
AS AMENDED

SECTION 1. Section 74 of Republic Act No. 3844, as amended

by Republic Act No. 10374, otherwise known as the “Agricultural
Land Reform Code”, is hereby further amended to read as follows:
“SEC. 74. Creation. - To finance the acquisition by the

Government of landed estates for division and resale to small
landholders, as well as the purchase of the landholding by
the agricultural lessee from the landowner, there is hereby
established a body corporate to be known as the ‘Land Bank of
the Philippines’, hereinafter called the ‘Bank’, which shall have
its principal place of business in Manila. The legal existence
of the Bank is extended for a period of fifty (50) years from the
expiration of its original term on 08 August 2013, renewable
670
for another fifty (50) years. The Bank shall be subject to such
rules and regulations as the Bangko Sentral ng Pilipinas may
from time to time promulgate.
“The Bank shall allocate five percent (5%) of its regular

loan portfolio (net of loans to the Bangko Sentral ng Pilipinas,
interbank loans and availments from domestic bills purchase
line), for socialized credit to qualified small farmers, fisherfolk
and agrarian reform beneficiaries (ARBs). This facility shall
solely finance agricultural projects pursuant to the provisions
of Section 4 of Republic Act No. 10000, otherwise known as
‘The Agri-Agra Reform Credit Act of 2009’.
“Credits extended to the beneficiaries named therein

under this facility shall be based on the feasibility of the
project and their paying capacity, their estimated production,
and/or securities they can provide as well as assets as may be
acquired by them from the proceeds of the loan.
“This facility will be funded through the operations of

the Bank itself and will not require additional government
funding.
“All loans extended through this special socialized credit

facility shall qualify as part of the Bank’s compliance with the
Agri-Agra Law.
“Credit under this special socialized credit facility shall

be extended through the following conduits:
“(a) Farmers’ and fisherfolk’s cooperatives;
“(b) Farmers’ and fisherfolk’s organizations or

associations;
“(c) Nonagricultural cooperatives (credit and

multipurpose);
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“(d) Cooperative banks;
“(e) Rural banks;
“(f) Thrift banks;
“(g) Agri-business firms or anchor firms providing credit

support to ARBs, and small farmers and fisherfolk; and
“(h) Duly accredited microfinance nongovernment

organizations by the Microfinance NGO Regulatory Council.
“Loans under this special socialized credit facility shall

have an interest rate equivalent to not more than seventy-
five percent (75%) of the Bank’s prevailing rates for loans to
cooperatives: Provided, That these conduits shall have an
interest spread of not more than five (5) percentage points.
The interest spread shall exclude crop insurance premiums
and guarantee fees: Provided, further, That a conduit cannot
lend to another conduit.
“Criteria for eligibility under this special socialized

credit facility shall be determined by the Bank and shall be
reflected in the implementing rules and regulations.”

hereby further amended by adding a new subsection (15) to read as
follows:
“(15) To offer and issue common and preferred shares of

stocks to ARBs, small farmers and fisherfolk through their
organizations, cooperatives, federations and cooperative
banks; development partners and strategic investors such
as multilateral and bilateral institutions; rural banks and
their associations, in quantities to be determined by the
Board of Directors and in accordance with applicable laws,
672
rules and regulations: Provided, However, That the National

Government shall maintain, at all times, at least two-thirds
(2⁄3) ownership of the total outstanding common shares of the
Bank.
“Preferred shares of stock shall be non-voting. Other

features of preferred shares shall be determined by the
Board of Directors in accordance with applicable laws and
regulations.”
SEC. 3. Implementing Rules and Regulations. - The Bangko

Sentral ng Pilipinas, in consultation with the Land Bank of the
Philippines, shall formulate the rules and regulations necessary for
the implementation of this Act.
SEC. 4. Repealing Clause. - All laws, executive orders, rules

and regulations or parts thereof inconsistent with any provision
hereof are hereby repealed or modified accordingly.
SEC. 5. Separability Clause. - If any provision or part hereof is

held invalid, the other provisions not affected thereby shall remain
and continue to be in full force and effect.
SEC. 6. Effectivity. - This Act shall take effect fifteen (15) days
after its publication in the Official Gazette or in any newspaper of
Approved,
(Sgd.) FRANKLIN M. DRILON (Sgd.) FELICIANO BELMONTE JR.

of Representatives
673
This Act, which originated in the House of Representatives

was passed by the House of Representatives on February 17, 2014,
amended by the Senate on February 1, 2016, and which amendments
were concurred in by the House of Representatives on May 23, 2016.
(Sgd.) OSCAR G. YABES (Sgd.) MARILYN B. BARUA-YAP

Approved:
BENIGNO S. AQUINO III

Lapsed into law on JUL 17 2016 without the signature of

the President, in accordance with Article VI, Section 27(1) of the
Constitution.
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S. No. 2434
H. No. 6421

Metro Manila
Sixteenth Congress

day of July, two thousand fifteen.
AN ACT STRENGTHENING, MODERNIZING AND ALIGNING THE

PRACTICE OF AGRICULTURAL ENGINEERING IN THE
COUNTRY INTO THE INTERNATIONALLY RECOGNIZED
PRACTICE OF AGRICULTURAL AND BIOSYSTEMS
ENGINEERING, AND FOR OTHER PURPOSES

ARTICLE I
GENERAL PROVISIONS
SECTION 1. Title. - This Act shall be known as the “Philippine

Agricultural and Biosystems Engineering Act of 2016”.
SEC. 2. Statement of Policy. - It is hereby declared a policy

of the State to promote, strengthen and regulate the practice
of agricultural and biosystems engineering profession in the
Philippines by instituting measures that will result in relevant
agricultural and biosystems engineering education and enhanced
roles and better career prospects for agricultural and biosystems
engineers.
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Likewise, the State hereby guarantees the application and

delivery of agricultural and biosystems engineering services to
accelerate agricultural and fishery modernization; and ensure food
and water security, bio-energy development, natural resources
conservation, environmental protection and human health and
safety by fostering the training and development of an adequate
and well-trained pool of agricultural and biosystems engineers in
the country.
SEC. 3. Coverage of this Act. - This Act shall cover the

following aspects of the practice of the profession of agricultural and
biosystems engineering:
(a) Examination, registration and licensure of agricultural

and biosystems engineers;
(b) Supervision, control and regulation of the practice of

agricultural and biosystems engineering;
(c) Development, upgrading and updating of the curriculum

of the agricultural and biosystems engineering profession in
coordination with the Commission on Higher Education (CHED)
and the concerned state universities and colleges (SUCs);
(d) Development and improvement of the professional

competence and practice of agricultural and biosystems engineers
through, among others, Continuing Professional Development
(CPD) and career progression and specialization; and
(e) Integration of all agricultural and biosystems engineers

under one national Accredited Integrated Professional Organization
(AIPO) of agricultural and biosystems engineers which shall be
recognized by the Board of Agricultural and Biosystems Engineering
and the Professional Regulation Commission (PRC).
SEC. 4. Definition of Terms. - As used in this Act, the following

terms shall mean:
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(a) Agricultural and Biosystems Engineering refers to the

application of engineering science and designs to the processes and
systems involved in the sustainable production, post production and
processing of safe food, feed, fiber, timber and other agricultural and
biological materials and the efficient utilization, conservation, and
management of natural and renewable resources in order to enhance
human health in harmony with the environment. Agricultural and
biosystems consist of crops, forestry and other plants, poultry,
livestock, fisheries and aquaculture resources and other animals,
wildlife and other living things;
(b) Agricultural and Biosystems Engineer refers to a person

who is registered and licensed to practice agricultural and biosystems
engineering in the country and who holds a valid certificate of
registration and professional identification card from the Board of
Agricultural and Biosystems Engineering and the PRC;
(c) Agricultural and Biosystems Power and Machinery refers to

farm power and machinery for the production, harvesting, processing,
storage, manufacture, preserving, transporting and distribution of
agricultural and biological products/materials and includes, but is
not limited to, tractors and their attachments, power tillers, seeders,
transplanters, windmills, harvesting machines, crop protection and
maintenance equipment, irrigation equipment and accessories,
greenhouses and other thermal conditioning equipment, livestock,
poultry, fishery and forest equipment, slaughtering equipment,
meat/fishery and crop processing equipment, post harvest machines
such as milling machines, dryers, threshers, grain and other
strippers, agricultural transport machinery and storage;
(d) Agricultural and Biosystems Buildings and Structures

refer to buildings and structures for the production, harvesting,
processing, storage, manufacture, preserving, transporting and
distribution of agricultural and biological products/materials and
includes, but is not limited to, silos and its components, agricultural
and biosystems machinery and equipment sheds, farm houses, green/
screen houses, poultry houses, piggery houses, slaughterhouses,
farm-to-market roads, farm bridges, agricultural and biological
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products storage/warehouse, buildings and structures for poultry,

livestock, fishery, and forestry production and processing, kiln
drying and lumber treatment structure, farm equipment, farm
supplies, and other structures such as self-feeders, and soil and
water conservation structures:
(e) Agricultural and Bio-Processing refers to local activity or

series of activities to maintain or raise the quality or change the form
or characteristics of agricultural, fishery, forestry and biological
products/materials and includes, but is not limited to, cleaning,
sorting, grading, treating, drying, dehydrating, grinding, mixing,
milling, canning, dressing, slaughtering, freezing, pasteurizing,
conditioning, packaging, repacking, transporting of agricultural,
fishery, forestry and other biological products/materials;
(f) Agricultural and Biological Waste Utilization and

Management refers to the development of systems, processes, and
equipment for agricultural waste disposal and utilization and
environment-friendly technologies such as, but is not limited to,
compost plants, biogas plants, biomass utilization technologies,
systems and processes;
(g) Agricultural and Bio-Information System refers to

utilization of information systems, database, and other information
management tools for agricultural use, biological systems
modeling to understand the mutual response between life and the
environment; and application of Geographic Information System
(GIS) technology for inventory, analysis, and management of
agricultural and biological resources, and remote sensing technology
for observation and examination of the landscape and its local forms
and agricultural activities;
(h) Agricultural and Biosystems Automation and

Instrumentation refers to the use and application of agricultural
and biosystems sensors such as, but is not limited to, computer
models for control and automation in the agricultural and fishery
production industry and the biological systems and likewise,
robotics for farm operation when use of machines are difficult
678
or impossible, agricultural and biosystems machine design and

automated controls, precision farming systems, agricultural safety
and controlled-environment agriculture; and the development
and application of metrology equipment such as moisture meters,
weighing scale and other metrology equipment;
(i) Agricultural and Biosystems Resource Conservation

and Management refers to measures of conservation and proper
management of agricultural and biological resources such as, but
is not limited to, area development for agriculture, settlement and
recreation; parks and plant nurseries; beneficial ecosystem of life
and environment; study and analysis of agricultural system as an
integrated component of landscape; monitoring and conservation
of natural resources; rehabilitation of forest, lakes, rivers and
idle lands; and the sustainable development, management, and
exploitation of the agricultural ecosystem;
(j) Accredited Integrated Professional Organization refers

to the professional organization of agricultural and biosystems
engineers duly accredited by the Professional Regulatory Board of
Agricultural and Biosystems Engineering and the PRC, hereinafter
referred to as the “AIPO”;
(k) Bachelor of Science in Agricultural and Biosystems

Engineering refers to the tertiary or higher education program
which provides graduates with a Baccalaureate Agricultural and
Biosystems Engineering Degree and shall hereinafter be referred to
as BSABE. This program is effectively promulgated under enabling
Policies, Standards and Guidelines (PSG) issued by the CHED
in coordination with the Board of Agricultural and Biosystems
Engineering and/or relevant SUCs;
(l) Commission on Higher Education refers to the government

agency created to lead, promote, and regulate higher/tertiary
education in the Philippines created under Republic Act No. 7722,
hereinafter referred to as the “CHED”;
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(m) Irrigation refers to the artificial application of water to

the soil to assist in the growing of agricultural and forest crops,
maintenance of landscapes, and revegetation of disturbed soils in dry
areas and during periods of inadequate rainfall, and shall include
drip, sprinkler, shallow tube well and other pressurized irrigation
system; national and communal irrigation systems; surface and
ground water resource management; and irrigation structures and
facilities such as dams, weirs, pump systems, conveyances, canals,
and flumes;
(n) Professional Regulation Commission refers to the

government agency described under Republic Act No. 8981,
hereinafter referred to as the “Commission”;
(o) Professional Regulatory Board of Agricultural and

Biosystems Engineering refers to the administrative body created
by law to supervise and regulate the practice of agricultural and
biosystems engineering and is the ultimate authority in the practice
of the agricultural and biosystems engineering profession in the
Philippines. It shall be hereinafter referred to as the “Board”; and
(p) Soil and Water Conservation refers to measures that

control soil and water degradation and enhance farm productivity;
and shall consist of small farm reservoir, farm ponds, small water
impoundments, contour farming, and terracing; soil erosion control,
land conditioning and mulching, and flood control.
SEC. 5. Scope of Practice of Agricultural and Biosystems

Engineering. - The practice of agricultural and biosystems
engineering within the meaning and intent of this Act shall embrace,
but not be limited to, the following:
(a) Preparation of engineering designs, plans, specifications,

project studies, feasibility studies and estimates of irrigation and
drainage, soil and water conservation and management systems and
facilities, agrometeorological systems, agricultural and biosystems
power, and machinery, agricultural and biosystems buildings and
structures, renewable/bio-energy systems and farm electrification,
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agricultural and bio-processing and post harvest facilities

and system, agricultural and biological waste utilization and
management, agricultural and bio-information system, agricultural
and biosystems resource conservation and management, and
agricultural and bio-automation and instrumentation system;
(b) Supervision or management on the construction,

operation, and maintenance of irrigation and drainage, soil and
water conservation and management systems and facilities,
agrometeorological systems, agricultural and biosystems power and
machinery, agricultural and biosystems buildings and structures,
renewable/bio-energy systems and farm electrification, agricultural
and bio-processing and post harvest facilities and system, agricultural
and biological waste utilization and management, agricultural
and bio-information system, agricultural and biosystems resource
conservation and management, and agricultural and bio-automation
and instrumentation system;
(c) Valuation, appraisal, investigation, inspection, monitoring,

and technical audit on agricultural and biosystems machineries
and equipment, structures and facilities, and agricultural and
biosystems engineering projects;
(d) Program/Project development and management, planning,

evaluation, and consultancy services on agricultural and biosystems
engineering undertakings;
(e) Conduct of research and development, training and

extension on agricultural and biosystems engineering;
(f) Testing, evaluation, and inspection of agricultural

and biosystems machinery, and other related agricultural and
biosystems engineering facilities, equipment and projects;
(g) Manufacture, distribution, installation, and sale

of agricultural and biosystems machinery and other related
agricultural and biosystems engineering facilities and equipment;
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(h) Teaching and/or conduct of lecture of agricultural and

biosystems engineering subjects in institutions of learning in the
Philippines;
(i) Preparation and evaluation of farm development plans,

farm suitability maps and land use maps/reports for agricultural,
livestock and poultry, fishery, aquaculture and forest production
and processing;
(j) Training and supervision of agri-fishery machinery

technicians and operators of agri-fishery machinery service centers/
pools, and agricultural and biosystems engineering technicians and
operators in agricultural and biosystems plants, establishments,
facilities, and projects;
(k) Employment with the government and private firms and

establishments; Provided, That such item or position requires
the knowledge and expertise of an Agricultural and Biosystems
Engineer, or its duties and responsibilities covers the scope of
practice in agricultural and biosystems engineering; and
(l) Participation in the preparation of environmental studies

for agricultural, fisheries, agro-industrial and biosystems projects
and its monitoring under the Environmental Impact Assessment
(EIA) system.
The Board, subject to approval of the Commission, may add

to, or exclude from, this section any activity or act of professional
practice, or revise it as the need arises to conform to changes and
new developments brought about by the latest trends in Agricultural
and Biosystems Engineering.
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ARTICLE II
PROFESSIONAL REGULATORY BOARD OF

AGRICULTURAL AND BIOSYSTEMS ENGINEERING
SEC. 6. Creation and Composition of the Board.— There is

hereby created a Board to be composed of a Chairperson and two
(2) members under the administrative control and supervision of
the Commission. They shall be appointed by the President of the
Philippines from a list of three (3) recommendees for each position
which were ranked by the Commission from a list of five (5) nominees
for each position submitted by the AIPO in the Philippines. The
Board shall be organized not later than six (6) months from the
SEC. 7. Qualifications of Members of the Board. - A member

of the Board shall, at the time of their appointment, possess the
following qualifications:
(a) Must be a Filipino citizen and resident of the Philippines;
(b) Must be at least thirty-five (35) years of age;
(c) Must be a holder of Bachelor’s Degree in Agricultural

and Biosystems Engineering, Agricultural Engineering or its
equivalent, conferred by a school, academy, college or university in
the Philippines or abroad which is accredited or recognized by the
CHED;
(d) A registered Agricultural and Biosystems Engineer with

a valid professional license and an active practitioner for not less
than ten (10) years prior to his/her appointment;
(e) Must not, for a period of three (3) consecutive years

prior to the appointment, be a member of the faculty of, directly
or indirectly, any school, academy, institute, college or university
where a regular course in Agricultural Engineering or Agricultural
and Biosystems Engineering is being taught; or have any pecuniary
683
interest, directly or indirectly, in or administrative supervision over

any such institutions of learning;
(f) Must not, for a period of three (3) consecutive years prior
to the appointment, be connected with a review center or any group
or association where review classes or lectures in preparation for
the licensure examination are offered or conducted at the time of
appointment;
(g) Must be a member in good standing of the AIPO for at least

five (5) years, but not an incumbent officer or trustee thereof; and
(h) Has never been convicted of any offense involving moral

turpitude.
SEC. 8. Term of Office. - The Chairperson and two (2) members

of the Board shall hold office for a term of three (3) years from the
date of their appointment and until their successors shall have been
appointed and qualified. The first Board under this Act shall hold
these terms of office: the Chairperson for three (3) years; the first
member for two (2) years; and the second member for one (1) year;
Provided, That any appointee to a vacancy with an unexpired term
shall only serve such period.
The Chairperson or a member of the Board may be reappointed

to their positions for another term of three (3) years immediately
after the expiry of their terms: Provided, further, That the holding
of such position shall not be for more than two (2) terms nor more
than six (6) years, whichever is longer. The Chairperson and two (2)
members of the Board shall take their oath of office prior to entering
upon the performance of duty.
SEC. 9. Compensation and Allowances of the Board. - The

Chairperson and members of the Board shall receive compensation
and allowances comparable to the compensation and allowances
being received by the Chairpersons and members of existing
Professional Regulatory Boards under the PRC as provided for in
the General Appropriations Act.
684
SEC. 10. Vacancy and Removal of Board Members. - Any

vacancy occurring in the Board within the term of a member shall
be filled for the unexpired portion of the term only. The President
may remove the Chairperson or any member of the Board on the
following grounds:
(a) Gross neglect, incompetence or dishonesty in the discharge

of duty;
(b) Violation or tolerance of the violation of this Act or the

Code of Ethics for agricultural and biosystems engineering;
(c) Involvement in the manipulation, tampering or rigging of

the licensure examination, its questions and/or its results, and in
the disclosure of classified and confidential information pertaining
to the licensure examination;
(d) Final judgment for crimes involving moral turpitude; and
(e) Unprofessional, unethical, immoral or dishonorable

conduct.
The Chairperson or member concerned shall be given due

notice and hearing where his/her right to be heard and to defend
himself, assisted by a counsel, shall be respected in the proper
administrative investigation.
SEC. 11. Powers and Duties of the Board. - The Board shall
exercise the following specific powers, functions and duties:
(a) Promulgate and adopt the rules and regulations necessary

for carrying out the provisions of this Act;
(b) Supervise the registration, licensure and practice of

agricultural and biosystems engineering in the Philippines;
(c) Administer oaths of successful examinees entering the

practice of agricultural and biosystems engineering;
685
(d) Issue the certificate of registration to successful examinees;
(e) Issue, suspend or revoke the license for the practice of

agricultural and biosystems engineering profession;
(f) Adopt an official seal of the Board;
(g) Look into the conditions affecting the practice of the

agricultural and biosystems engineering profession through the
conduct of ocular inspections and monitoring in agricultural and
biosystems engineering offices, plants or establishments, both
public and private, and in the case of schools, in coordination with
the CHED and/or the concerned SUCs, and whenever necessary
adopt such measures, including promulgation of agricultural and
biosystems engineering standards, rules and regulations, and best
practices for the enhancement and maintenance of high professional
and ethical standards of the profession, and the formulation
and implementation of agricultural and biosystems engineering
profession development plan/road map;
(h) Prescribe and/or adopt, and enforce a Code of Ethical

and Professional Standards for the practice of agricultural and
biosystems engineering profession;
(i) Hear and try administrative cases involving violations of

this Act, its implementing rules and regulations, the Code of Ethics
for agricultural and biosystems engineers and for this purpose, to
issue subpoena and subpoena duces tecum to secure the appearance
of witnesses and the production of documents in connection
therewith;
(j) Prescribe guidelines in the CPD program for agricultural

and biosystems engineers in coordination with the AIPO of
Agricultural and Biosystems Engineers;
(k) Ensure, in coordination with the CHED and/or SUCs, that

all educational institutions offering agricultural and biosystems
engineering education comply with the policies, standards and
686
requirements of the course prescribed by the CHED in the areas of

curriculum, faculty, library and facilities;
(l) Prepare, adopt, issue or amend the syllabi of the subjects

for examinations including its Table of Specifications in consultation
with the academe, and cause the determination and preparation
of questions for the licensure examination which shall strictly be
within the scope of the syllabi of the subjects for examinations, as
well as administer, correct and release the result of the licensure
examinations;
(m) Approve, issue, limit or revoke temporary/special permit

(TSP) to practice agricultural and biosystems engineering;
(n) Issue a cease or desist order to any person, association,

partnership, corporation or cooperative engaged in violation of
any of the provisions of this Act, any agricultural and biosystems
engineering standards and/or rules or regulations duly promulgated
by the Board as part of the rules governing the practice of agricultural
and biosystems engineering in the Philippines;
(o) Punish for contempt of the Board, both direct and indirect,
in accordance with the pertinent provision of, and penalties
prescribed by, the Rules of Court;
(p) Perform regulatory, administrative, and quasi-legislative

functions as mandated under Republic Act No. 8981, otherwise
known as the “PRC Modernization Act of 2000”, and such other
functions as may be necessary to implement the provisions of this
Act;
(q) Discharge such other duties and functions as may be

deemed necessary for the enhancement of the agricultural and
biosystems engineering profession and the upgrading, development
and growth of agricultural and biosystems engineering education in
the Philippines; and
(r) Accreditation of specialty organization.
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All policies, resolutions, rules and regulations of the Board

shall be subject to the review and approval of the Commission.
SEC. 12. Supervision of the Board; Custodian of its Records,

Secretariat and Support Services. - The Board shall be under the
administrative control and supervision of the Commission. All records
of the Board, including applications for examination, examination
papers and results, minutes of deliberation, administrative cases
and other investigations involving agricultural and biosystems
engineers shall be kept by the Commission.
The Commission shall designate the Secretary of the Board

and shall provide the secretariat and other support services to
implement the provisions of this Act.
SEC. 13. Annual Report. - The Board shall, at the close of each
calendar year, submit an annual report to the President through
the Commission giving a detailed account of its proceedings and
accomplishments during the year and making recommendations
for the adoption of measures that will upgrade and improve the
conditions affecting the practice of agricultural and biosystems
engineering in the Philippines.
ARTICLE III
EXAMINATION, REGISTRATION AND LICENSE
SEC. 14. Examination Required. - All applicants for registration

for the practice of agricultural and biosystems engineering shall be
required to undergo and pass the licensure examination as provided
for in this Act.
SEC. 15. Qualification of an Applicant for Examinations. -

Every applicant for the examination for agricultural and biosystems
engineers shall have the following qualifications:
688
(a) A citizen of the Philippines or a foreign citizen whose

country or State has a policy on reciprocity in the practice of the
profession;
(b) A graduate of Bachelor of Science in Agricultural and

Biosystems Engineering or its equivalent, or Bachelor of Science
in Agricultural Engineering prior to or after ten (10) years after
the approval of this Act, in a school, academy, institute, college or
university or an institution duly recognized by the CHED; and
(c) Of good moral character.
SEC. 16. Fraudulent Application. - The Board may suspend

or revoke any certificate of registration obtained through
misrepresentation made in the application for examination.
SEC. 17. Scope of Examination. - The licensure examination

for agricultural and biosystems engineers shall cover the required
competencies for the entry level of the practice of agricultural and
biosystems engineering and shall include the following subjects:
(a) Agricultural and Biosystems Power, Energy and

Machinery Engineering which include agricultural power and bio-
energy, machine design and analysis, machinery management and
mechanization of agricultural and bioproduction systems;
(b) Land and Water Resources Engineering which include

agrometeorology, irrigation and drainage engineering, soil and
water conservation, and aquaculture engineering;
(c) Agricultural and Biosystems Structures and Environment

Engineering which include agricultural structures engineering,
forest engineering, design and management of agricultural and
biosystem structures, and bio-environmental design;
(d) Agricultural and Bioprocess Engineering which include

refrigeration and cold storage, agri-industrial and biosystems
application of electrical energy and electronics, agricultural
689
products process engineering, and food and bio-based products

process engineering;
(e) Project Management, Feasibility Study Preparation/

Evaluation, Research, Development and Extension on Agricultural
and Biosystems Engineering;
(f) Fundamentals of Agricultural, Fishery, Ecological and

Environmental Sciences;
(g) Mathematics and Basic Engineering Principles;
(h) Laws, Professional Standards and Ethics; and
(i) Other subjects within the areas of competencies required for

the practice of agricultural and biosystems engineering profession
pursuant to Section 5 of this Act.
The said subjects and their syllabi may be periodically

amended by the Board so as to conform with the latest technological
changes brought about by continuing trends in the profession.
SEC. 18. Rating in the Board Examinations. - To be qualified

as having passed the Board examination for agricultural and
biosystems engineers, a candidate must obtain a weighted general
average of seventy percent (70%), with no grades lower than fifty-
five percent (55%) in any given subject. However, an examinee who
obtains a weighted general average rating of seventy percent (70%)
or higher, but obtains a rating below fifty-five percent (55%) in any
given subject, must retake the examination in the subject or subjects
where he/she obtained a grade below fifty-five percent (55%) and
must obtain a grade or grades in the said subject or subjects of not
lower than fifty-five percent (55%).
SEC. 19. Report of Ratings. - The Board shall submit to the

Commission the ratings obtained by each candidate within ten (10)
days after the examination, unless extended for just cause. Upon the
release of the results of the examination, the Board shall send by
690
mail the rating received by each examinee at his/her given address

using the mailing envelope submitted during the examination.
SEC. 20. Reexamination. - An applicant who fails to pass the

examination for the third time shall be allowed to take another
examination only after the lapse of one (1) year and only after having
undertaken a refresher program in a duly accredited institution. The
Board shall issue guidelines on the refresher program requirement.
SEC. 21. Oath. - All successful candidates in the examination

shall be required to take their oath before the Commission, the
Board or any government official authorized to administer oaths,
prior to entering upon the practice of the agricultural and biosystems
engineering profession.
SEC. 22. Issuance of Certificate of Registration and Professional

Identification Card - (a) A certificate of registration (COR) shall be
issued to those who are registered after payment of fees prescribed
by the Commission. It shall bear the signatures of the Chairperson of
the Commission and of the Chairperson and members of the Board,
stamped with the official seal of the Commission and of the. Board,
certifying that the person named therein is entitled to the practice
of the profession, with all the privileges appurtenant thereto. Until
withdrawn, revoked or suspended in accordance, with this Act, the
COR shall remain in full force and effect.
(b) A professional identification card bearing the registration

number and its validity and expiry dates duly signed by the
Chairperson of the Commission shall likewise be issued to every
registrant who has paid the prescribed fees, and has submitted
a certificate of membership in good standing from the AIPO and
proof of completion of the CPD requirements. The said card shall
be renewed every three (3) years, subject to requirement/s as the
Board may thereafter prescribe and upon proof of completion of the
mandatory CPD requirements.
Once registered, the agricultural and biosystems engineer may

use Engr. as the official appendage title. No person shall practice
691
agricultural and biosystems engineering in the country unless such

person has secured a license to practice agricultural and biosystems
engineering in the manner herein provided.
SEC. 23. Refusal to Register. - The Board shall not register

any successful applicant for registration with or without licensure
examination who has been:
(a) Convicted of an offense involving moral turpitude by a

court of competent jurisdiction;
(b) Found guilty of immoral or dishonorable conduct by the

Board;
(c) Adjudged guilty for violation of the General Instructions to

Examinees by the Board;
(d) Declared of unsound mind by a court of competent

jurisdiction; and
(e) Proven to be afflicted with addiction to drug or alcohol

impairing one’s ability to practice the profession through a finding
to this effect by a medical or drug testing facility accredited by the
government.
In refusing such registration, the Board shall give the

applicant a written statement setting forth the reasons therefor and
shall file a copy thereof in its records.
SEC. 24. Revocation or Suspension of the Certificate of

Registration and Cancellation of Temporary/Special Permit
(TSP).— The Board shall have the power, upon notice and
hearing, to revoke or suspend the COR of a registered and licensed
agricultural and biosystems engineer or to cancel TSP granted to a
foreign agricultural and biosystems engineer, for the same grounds
enumerated in Section 23 of this Act, except paragraph (c) thereof,
and any of the following grounds:
692
(a) Violation of any provision of this Act, implementing rules

and regulations, Code of Ethics, Code of Technical Standards for the
practice of agricultural and biosystems engineering, and of policies
and regulatory measures of the Board and/or the Commission;
(b) Perpetration or use of fraud in obtaining his/her COR,

professional identification card, and TSP;
(c) Gross incompetence, negligence or ignorance in the conduct

of the profession resulting to death, injury of persons and/or damage
to property;
(d) Unjustified refusal to join or to remain a member in good

standing of the AIPO;
(e) Unjustified or unexplained neglect or failure to pay the

annual registration fees for five (5) consecutive years;
(f) Unjustified or unexplained non-renewal of the professional

identification card after the lapse of five (5) consecutive years;
(g) Aiding or abetting the illegal practice of a non-registered

and unlicensed agricultural and biosystems engineer by, among
others, allowing him/her to use his/her COR and/or professional
identification card or his/her TSP;
(h) Practicing the profession during his/her suspension from

the practice thereof; and
(i) Addiction to a drug or alcohol abuse impairing his/her

ability to practice his/her profession or being declared of unsound
mind by a court of competent jurisdiction.
The Board shall periodically evaluate the aforementioned

grounds and revise or add new ones as the need arises subject
to approval by the Commission in order to meet the trends and
developments in the profession.
693
SEC. 25. Reissuance of Revoked COR, Replacement of Lost

or Damaged COR, Professional Identification Card or Temporary/
Special Permit. - The Board may, upon petition, reinstate or reissue a
revoked COR after two (2) years from the effectivity of the revocation,
which is reckoned from the date of surrender of the said certificate
and/or the professional identification card to the Board and/or the
Commission. The Board may not require the holder thereof to take
another licensure examination. The petitioner shall prove to the
Board that he/she has valid reasons to resume the practice of his/
her profession. For the grant of his/her petition, the Board shall
issue a Board Resolution subject to approval by the Commission.
A duplicate copy of a lost COR, professional identification

card or TSP may be reissued in accordance with rules thereon and
upon payment of the prescribed fee therefor.
ARTICLE IV
PRACTICE OF AGRICULTURAL AND BIOSYSTEMS

ENGINEERING
SEC. 26. Vested Right.— Automatic Registration of Practicing

Agricultural and Biosystems Engineers.— All agricultural engineers
who are registered under Republic Act No. 8559 at the time this Act
takes effect, shall automatically be registered as agricultural and
biosystems engineers.
SEC. 27. Seal and Use of Seal - (a) Each registrant shall,
upon registration, obtain a seal of such design as the Board may
adopt and prescribe. Plans and specifications prepared by, or under
the direct supervision of a registered agricultural and biosystems
engineer, shall be stamped with said seal during the validity of the
professional license. No person shall stamp or seal any document
with the seal of a registrant after his/her professional license has
expired or lost its validity unless he/she has been reinstated to the
practice and/or unless his/her license has been renewed.
694
(b) No officer or employee of the government, chartered cities,

provinces and municipalities now or hereinafter charged with
the enforcement of laws, ordinances or regulations relating to the
implementation, construction, repair, operation and maintenance,
testing and evaluation of agricultural and biosystems buildings,
structures, machineries and equipment, irrigation, soil and water
conservation structures and other agricultural and biosystems
engineering facilities, shall accept or endorse any plans, designs,
specifications or project studies which have not been prepared and
submitted in full accord with the provisions of this Act, nor shall any
payment be approved by any such Officer for any work, the plans and
specifications of which have not been so prepared, signed and sealed
by a duly registered agricultural and biosystems engineer. This
provision shall be implemented by the Department of Public Works
and Highways (DPWH) and Local Building Officials in the issuance
of building permits and certificate of occupancy under the National
Building Code, and by all concerned national government entities
and local government units (LGUs) in the procurement and in the
discharge of their regulatory and auditing functions pertaining to
agricultural and biosystems buildings, structures, machineries and
equipment, irrigation, soil and water conservation structures, and
other agricultural and biosystems engineering facilities/projects.
(c) No agricultural and biosystems engineer shall sign his/

her name, affix his/her seal or use any other method of signature
on plans, designs, specifications or other documents made by or
under another agricultural and biosystems engineer’s supervision
unless the same is made in such manner as to clearly indicate the
part of such work actually performed by him/her, and no person,
except the agricultural and biosystems engineer-in-charge shall
sign for any branch of the work or any function of agricultural and
biosystems engineering practice not actually performed by him/
her. The agricultural and biosystems engineer-in-charge shall be
fully responsible for all plans, designs, specifications and other
documents issued under his/her seal or authorized signature.
The Board shall formulate, adopt and promulgate all

necessary rules and regulations for the effective implementation of
695
the provisions relating to the design of the seal, the signing and
sealing of drawings, reports and other documents by agricultural
and biosystems engineers.
(d) Drawings, plans, designs and specifications duly signed,

stamped or sealed as instruments of service are the property and
documents of the agricultural and biosystems engineer, whether
the projects for which they were made is executed or not. No person
without the written consent of the agricultural and biosystems
engineer or author of said documents, shall duplicate or make copies
of said documents for use in the repetition of and for other projects,
whether executed partly or in whole.
(e) All drawings, plans, specifications and other documents and

reports to be used for the design, construction, test and evaluation,
research and extension of agricultural and biosystems buildings,
structures, machineries and equipment, irrigation, soil and water
conservation structures and other agricultural and biosystems
engineering facilities/p rejects shall be signed and sealed by a
licensed agricultural and biosystems engineer.
Violation of any of the foregoing shall be ground for

administrative and/or criminal action.
SEC. 28. Indication of License Number and Professional

Tax Receipt Number. - The agricultural and biosystems engineer
shall be required to indicate his/her professional license number,
the duration of its validity, including the professional tax receipt
number on the documents he/she signs, uses or issues in connection
with the practice of his/her profession.
SEC. 29. Firms, Partnerships, Corporations, Cooperatives,

Associations and Foundations Engaged in Agricultural and
Biosystems Engineering Practice.— A firm, partnership, corporation,
cooperative, association or foundation may engage in the practice
of agricultural and biosystems engineering in the Philippines:
Provided, That it complies with the following requirements:
696
(a) The firm, partnership, corporation, cooperative, association

or foundation applies for and is issued a COR by the Board and the
Commission to engage in the practice of agricultural and biosystems
engineering in the Philippines: Provided, That the majority of the
partners of the partnership are registered and licensed agricultural
and biosystems engineers; Provided, further, That the majority of
the members of the board of directors or members of corporations
or cooperatives shall be registered and licensed agricultural and
biosystems engineers; and
(b) The practice of the firm, partnership, corporation,

cooperative, association or foundation in agricultural and biosystems
engineering shall be carried out by duly registered and licensed
agricultural and biosystems engineers.
SEC. 30. Integration of Agricultural and Biosystems Engineers.

- The agricultural and biosystems engineering profession shall be
integrated into one (1) national organization registered with the
Securities and Exchange Commission which shall be recognized by
the Board and the Commission as the one and only integrated and
accredited association of agricultural and biosystems engineers.
An agricultural and biosystem engineer duly registered with the
Board shall automatically become a member of the integrated and
accredited association of agricultural and biosystems engineers, and
shall receive the benefits and privileges appurtenant thereto upon
payment of the required fees and dues. Membership in the integrated
and accredited association shall not be a bar to membership in other
associations of agricultural and biosystems engineers.
SEC. 31. Foreign Reciprocity. - No foreign agricultural

and biosystems engineer shall be issued a temporary license to
practice the agricultural and biosystems engineering profession or
consultancy thereof or be entitled to any of the rights and privileges
under this Act unless the country of which he/she is a subject or
citizen specifically permits Filipino agricultural and biosystems
engineers to practice within its territorial limits on the same basis
as the subjects or citizens of such foreign State or country.
697
SEC. 32. Temporary/Special Permits for Foreign Agricultural

and Biosystems Engineers. - The practice of foreign agricultural and
biosystems engineers in the Philippines shall be limited to natural
persons only and shall be governed by the provisions of Republic Act
No. 8981, otherwise known as the “PRC Modernization Act of 2000”:
Provided, That any foreign national who has gained entry in the
Philippines to perform professional services as an agricultural and
biosystems engineer or render such services or prepare or produce
such documents which are within the scope of practice of agricultural
and biosystems engineering as set forth in this Act such as, but not
limited to, being a consultant in foreign-funded or assisted project
of the government or employed or engaged by Filipino or foreign
contractors or private firms, whether or not the nomenclature of his/
her profession is specifically called in his/her country of nationality
as agricultural and biosystems engineer, but who does not meet
or wish to comply with the requirements for admission to take the
licensure examinations shall, before assuming the duties, functions
and responsibilities as agricultural and biosystems engineer or
consultant, secure temporary/special permit from the Board, subject
to the approval of the Commission to practice his/her profession
in connection with the project to which he/she was commissioned;
Provided, further, That the following conditions are satisfied;
(a) That he/she is a citizen or subject of a country which

specifically permits Filipino professionals to practice their profession
within the territorial limits on the same basis as the subjects or
citizens of such foreign country or State;
(b) That he/she is legally qualified to practice agricultural

and biosystems engineering in his/her own country, and that his/
her expertise is necessary and advantageous to the Philippines,
particularly in the aspects of technology transfer and specialization;
and
(c) That he/she shall be required to work with a Filipino

counterpart, a natural person who is a registered and licensed
agricultural and biosystems engineer, and professional services
fees and expenses of documentation pertaining to the project shall
698
be proportionately shared by both foreign and Filipino agricultural

and biosystems engineers, including liabilities and taxes due to
the Philippine government, if any, relative to his/her participation
therein, or professional services rendered to the project in accordance
with established rules and regulations.
SEC. 33. Positions in Government and Private Firms and

Establishments with Agricultural and Biosystems Engineering
Functions.— Only registered and licensed agricultural and
biosystems engineers with valid PRC license shall be appointed
or designated to all positions in government and private firms
and establishments with agricultural and biosystems engineering
functions and responsibilities, which shall include, but not be
limited to, the following:
(a) All levels of engineer positions in the Agricultural

Engineering or Agricultural and Fishery Engineering and Forest
Engineering Bureau/Division/Section/Unit of the Department of
Agriculture (DA), LGUs, and in the Department of Agrarian Reform
(DAR), the Department of Environment and Natural Resources
(DENR) and other concerned government entities whose duties,
functions and responsibilities constitute the practice of agricultural
and biosystems engineering pursuant to Section 5 of this Act;
(b) All levels of instructor/professor positions in public and

private schools, colleges and universities whose main duties and
functions involve the teaching of Agricultural and Biosystems
Engineering subjects for Agricultural and Biosystems Engineering
Degree, Agriculture/Agribusiness Degree, Fisheries Degree and
other related curriculum or degrees;
(c) All levels of science research specialist/assistant positions

in government and private institutions whose main duties and
functions involve research and development and training and
extension on agricultural and biosystems engineering;
(d) Head or assistant head, director or manager and other

executive positions of agricultural or agricultural and biosystems
699
or agricultural and fisheries engineering or aquaculture

engineering or forest engineering group, unit, section, division,
bureau, department, center and branch in all national government
departments or agencies, government-owned and -controlled
corporations, LGUs and colleges and universities, private offices,
firms and establishments;
(e) Head or assistant head, director or manager and other

executive positions of a group, unit, section, division, bureau,
department, center or branch of any of the specialized areas of
agricultural and biosystems engineering in government and private
firms, offices and establishments;
(f) All levels of planning officer, project evaluation officer,

project development officer, development management officer,
environmental management specialist and technical audit specialist
positions in government and private firms and offices that deal
with, or undertake any of the specialized areas of agricultural and
biosystems engineering or its main functions and responsibilities
which involve the planning, project development, evaluation,
inspection, monitoring and technical audit of agricultural and
biosystems infrastructure, facilities, machineries and processes and
other agricultural and bioystems engineering facilities; and
(g) All professional and sub-professional positions either

supervisory or non-supervisory and career executive positions in
government, and all other positions in private firms, establishments
and enterprises whose duties, functions and responsibilities mainly
constitute the practice of agricultural and biosystems engineering.
Moreover, registered and licensed agricultural and biosystems

engineers may also qualify for appointment in all positions in
government and private firms and establishments whose duties
and functions partly constitute the practice of agricultural and
biosystems engineering. This include, among others, Provincial/City/
Municipal Engineer, Agriculturist, Building Official, Environment
and Natural Resources Officer, and Planning and Development
Officer of the LGUs, subject to the candidate’s compliance with the
700
rest of the requirements imposed by the law or issuance creating

the said positions.
SEC. 34. Personnel Required - (a) All concerned national

government agencies, LGUs and SUCs implementing, regulating,
funding and undertaking research, development, training and
extension, testing, evaluation and inspection as well as technical audit
of irrigation, farm mechanization, post harvest and agro processing
facilities, agricultural and biosystems infrastructures, farm-to-
market roads, agro-meteorology, forest mechanization development
programs, and environmental protection and conservation programs
and projects shall employ the required number of agricultural and
biosystems engineers, and for this purpose, create various levels of
agricultural and biosystems engineer positions;
(b) All agricultural and biosystems engineering facilities/

projects supervised and maintained or accredited by the government
such as grain/agro-processing complex, slaughterhouse, communal
and national irrigation system, agricultural machinery and
equipment service centers, and testing and evaluation centers
must have at least one (1) registered and licensed agricultural and
biosystems engineer;
(c) Firms, companies, partnerships, cooperatives or

associations which are engaged in the installation, fabrication,
manufacture, distribution or sale of agricultural and biosystems
machinery and equipment, facilities and other agricultural and
biosystems engineering processes, shall hire or engage the services
of at least one (1) licensed agricultural and biosystems engineer;
(d) All contractors of irrigation, farm-to-market roads and

agricultural and biosystems structures and facilities shall have at
least one (1) registered and licensed agricultural and biosystems
engineer as part of their sustaining technical employees; and (e) The
following offices and establishments shall also employ or engage the
services of at least one (1) or the required number of registered and
licensed agricultural and biosystems engineers:
701
(1) Agro-processing establishments such as rice mills, feed

mills, sugar mills, coconut oil mills, fiber extraction processing
plants, meat processing plants, fish processing plants, poultry and
meat processing plants, food processing plants and agricultural and
fishery products storage facilities;
(2) Agro-industrial firms or establishments, corporations

and cooperatives and government entities engaged in agricultural,
livestock, poultry and fishery production and processing, the
operation and maintenance of plant/forest nurseries and parks, and
other agricultural and biosystems engineering endeavors;
(3) Financing and banking institutions engaged in providing

credit and financial assistance on agribusinesses which are
commercial in nature such as irrigation, post harvest facilities,
agro-processing and storage, forest products, aquaculture, food and
fiber production facilities and machineries; and
(4) Consultancy firms, foundations, nongovernment

organizations and other organized groups engaged in providing
agricultural and biosystems engineering services relative to
management and consultancy, training and extension, research
and development and/or the provision of irrigation, post harvest
facilities, agro-processing and storage, forest products, aquaculture,
food and fiber production facilities and machineries and soil and
water conservation.
Provided, That there shall be no understaffing and/or

overloading of agricultural and biosystems engineers. The ratio
of agricultural and biosystems engineers to clientele shall be such
as to reasonably effect a sustained quality of agricultural and
biosystems engineering services at all times without overworking
the agricultural and biosystems engineers.
The Board shall promulgate guidelines and standards on the

required manpower complement of agricultural and biosystems
engineers in concerned public and private offices and establishments.
702
SEC. 35. National Career Progression and Specialization

Program. - There shall be an institutionalized national agricultural
and biosystems engineering career progression and specialization
program to be formulated by the Board in consultation with the
AIPO, Civil Service Commission and concerned government
agencies: Provided, That any agricultural and biosystems engineer
before being allowed to work in specialty areas to perform beyond
generalist function or have specific specialties, must finish the
formal education or training towards specialization, possess
recognized practice competencies and must be certified by the Board
and must be a member of a relevant and accredited agricultural
and biosystems specialty organization; Provided, further, That
agricultural and biosystems engineering specialty organizations
shall be recognized and certified by the Board.
The Agricultural and Biosystems Engineering Specialization

shall include, but not limited to, the following:
(a) Agricultural and Biosystems Power and Machinery;
(b) Irrigation and Drainage Engineering;
(c) Soil and Water Conservation Engineering;
(d) Agricultural and Biosystems Buildings and Structures;
(e) Agricultural and Bio-process Engineering;
(f) Food Engineering;
(g) Renewable/Bio-Energy and Farm Electrification;
(h) Agricultural and Biological Waste Management;
(i) Aquacultural Engineering;
(j) Forest Engineering;
703
(k) Agricultural and Biosystems Automation and

Instrumentation;
(l) Agricultural and Bio-Information System;
(m) Agrometeorology; and
(n) Agricultural and Biological Resource Conservation and

Management.
SEC. 36. Code of Technical Standards. - The existing Philippine

Agricultural Engineering Standards (PAES) shall be transformed
into a Philippine Agricultural and Biosystems Engineering
Standards (PABES) and shall serve as Code of Technical Standards
of all registered and licensed agricultural and biosystems engineers
in the practice of their profession. The Board, in collaboration with
the AIPO of agricultural and biosystems engineers, the DA, the
Department of Science and Technology (DOST), the DENR and
other concerned government agencies and private organizations,
shall develop new standards and update the existing standards
under the PABES.
ARTICLE V
AGRICULTURAL AND BIOSYSTEMS ENGINEERING

EDUCATION
AND CONTINUING PROFESSIONAL EDUCATION/
DEVELOPMENT
SEC. 37. Curriculum Development and Updating. - The

CHED, in consultation with the Board and the industry stakeholders
and concerned SUCs, shall develop and continuously update the
Agricultural and Biosystems Engineering Curriculum in accordance
with required competencies on the practice of the profession
prescribed under this Act, in order to align with international
standards of agricultural and biosystems engineering education and
practice, and to become responsive to the industry requirements.
704
The Technical Education and Skills Development Authority

(TESDA) shall likewise include in its program, the development and
promulgation of competency standards and training programs and
regulations for agricultural and biosystems engineering technicians
and operators.
SEC. 38. Rationalization and Upgrading Program. - The

CHED in collaboration with the Board, the DA, the DENR, the DOST,
the TESDA, the concerned SUCs and the Department of Education
(DepEd) and in consultation with the industry stakeholders, shall
formulate and implement a rationalization and upgrading program
on agricultural and biosystems engineering education in the country
with the end view of upgrading and modernizing school facilities
and equipment, faculty development and training, provision of
scholarships, developing ladderized program on agricultural and
biosystems engineering and other developmental undertakings
to produce globally competitive agricultural and biosystems
engineering graduates, professionals, technicians and operators.
In line with this, all concerned Higher Education Institutions

(HEIs) shall formulate and implement their Agricultural and
Biosystems Engineering Education Competitiveness Road Map as
part of the Philippine Agricultural and Biosystems Engineering
Profession Development Plan/Road Map and shall serve as one of
the basis in the provision of grants from the government for the
upgrading program.
SEC. 39. Career Guidance and Advocacy. - The Board and

the Commission, in collaboration with the DOLE, the Philippine
Overseas Employment Administration, the CHED, the DepEd, the
DA, the DENR, the Department of Trade and Industry, the AIPO
and other concerned government agencies and private organizations,
shall formulate and implement a Career Guidance and Advocacy
Program on Agricultural and Biosystems Engineering. The
Program shall include the conduct of research studies on the supply
and demand and qualifications of the agricultural and biosystems
engineering profession, both local and abroad, employment promotion
and entrepreneurship assistance for Filipino agricultural and
705
biosystems engineers, and integration of the practical application of

agricultural and biosystems engineering in basic education.
SEC. 40. Continuing Professional Development (CPD). - The

Board and the Commission, in consultation with the academe,
AIPO, concerned government agencies and stakeholders, shall
prescribe guidelines in the implementation of the CPD programs
for agricultural and biosystems engineers. The CPD for every
agricultural and biosystems engineer registered under the PRC
is hereby made mandatory for the practice of the profession. The
CPD credit units earned by the professional shall be required in
the renewal of professional license and accreditation systems for
advance level of practice and for ASEAN Chartered Professional
Engineers, Asia-Pacific Economic Cooperation (APEC) Engineers
and other international accreditations.
The CPD credit units earned by an agricultural and biosystems

engineer shall likewise be applied as the training requirement for
promotion for positions in government agencies and private firms
and for teaching positions in academic institutions, and shall be
accumulated subject to credit transfer under the Pathways and
Equivalencies of the Philippine Qualification Framework.
ARTICLE VI
ENFORCEMENT OF THIS ACT AND PENAL PROVISIONS
SEC. 41. Enforcement. - It shall be the primary duty of the

Commission and the Board to effectively implement and enforce the
provisions of this Act and its implementing rules and regulations,
conduct investigations on complaints including violations of the
Code of Ethics and Professional Standards of the profession and
prosecute the same when so warranted.
Furthermore, all duly constituted law enforcement agencies

and offices of national, provincial, city or municipal government, or
of any political subdivision thereof, shall, upon the call or request
of the Board or the Commission, render assistance in enforcing
706
the provisions of this Act and prosecute any person violating the
provisions of the same. Any person may bring before the Commission,
Board, or the aforementioned officers of the law, cases of illegal
practice or violations of this Act committed by any person or party.
The Board shall assist the Commission in filing the appropriate

charges through the concerned prosecution office in accordance with
law and Rules of Court.
SEC. 42. Penalties. - In addition to the administrative

sanctions imposed under this Act, any person who violates any of
the provisions of this Act, or any of the following acts shall, upon
conviction, be penalized by a fine of not less than one hundred
thousand pesos (₱100,000.00) but not more than five hundred
thousand pesos (₱500,000.00), or imprisonment of not less than
six (6) months but not more than five (5) years, or both fine and
imprisonment, at the discretion of the court:
(a) Engaging in the practice of agricultural and biosystems

engineering in the Philippines without being registered or without
conforming to the provisions of this Act;
(b) Presenting or attempting to use as his/her own the

COR and/or professional identification card of another registered
agricultural and biosystems engineer or a holder of a TSP;
(c) Giving any false or forged evidence of any kind to the

Board, or impersonating any registered agricultural and biosystems
engineer or a holder of a TSP;
(d) Using a revoked or suspended COR; or an expired or

unrenewed professional identification card or TSP;
(e) Using in connection with his/her name or otherwise

assuming, using or advertising any title or description tending to
convey the impression that he/she is an agricultural and biosystems
engineer without holding a valid COR and professional identification
card or a valid TSP;
707
(f) Implementing or causing the implementation of any plans,

designs, technical specifications and other documents not prepared
and signed by a registered agricultural and biosystems engineer
in those cases where this Act specifically requires that these be
prepared and signed by a registered agricultural and biosystems
engineer; and
(g) Violating any of the provisions of this Act and the rules
and regulations thereof.
In case the offender is a corporation, partnership, association,

foundation or juridical person, the penalty of imprisonment shall
be imposed on the agricultural and biosystems engineer-in-charge
jointly and solidarity with the responsible professionals, as well as
the controlling officer or officers thereof responsible for permitting
or causing the violation.
ARTICLE VII
TRANSITORY AND FINAL PROVISIONS
SEC. 43. Transitory Provision. - The incumbent Chairperson

and members of the Board shall, in an interim capacity, continue
to carry out their functions under the provisions of this Act without
need for new appointments as Chairperson and members thereof
until the first Board, created under this Act, shall have been
constituted or organized pursuant thereto.
SEC. 44. Implementing Rules and Regulations. - Subject

to the approval of the Commission, the Board shall adopt and
promulgate such rules and regulations to carry out the provisions of
this Act, which shall be effective after sixty (60) days following its
publication in the Official Gazette or in a major daily newspaper of
general circulation in the country.
SEC. 45. Separability Clause. - If any clause, provision,

paragraph or part hereof shall be declared unconstitutional or
invalid, such judgment shall not affect, invalidate or impair any
708
other part hereof, but such judgment shall be merely confined to

the clause, provision, paragraph or part directly involved in the
controversy in which such judgment has been rendered.
SEC. 46. Repealing Clause. - All laws, decrees, executive

orders and other administrative issuances and parts thereof which
are inconsistent with the provisions of this Act are hereby modified
and/or superseded. Republic Act No. 8559 is hereby expressly
repealed.
SEC. 47. Effectivity. - This Act shall take effect after fifteen
(15) days following its publication in the Official Gazette or in a
major daily newspaper of general circulation in the Philippines,
whichever comes first.
Approved,
(Sgd.) FELICIANO BELMONTE JR. (Sgd.) FRANKLIN M. DRILON

of Representatives
This Act was passed by the Senate of the Philippines as Senate

Bill No. 2434 on February 16, 2016 and adopted by the House of
Representatives as an amendment to House Bill No. 6421 on May
23, 2016.
(Sgd.) MARILYN B. BARUA-YAP (Sgd.) OSCAR G. YABES

Approved:
BENIGNO S. AQUINO III

709
Lapsed into law on JUL 21 2016 without the signature of

the President, in accordance with Article VI, Section 27(1) of the
Constitution.
RA 10915 repealed RA 8559.
710
S. No. 1578
H. No. 6775

Metro Manila
Seventeenth Congress

of July, two thousand eighteen.
AN ACT CREATING THE DEPARTMENT OF HUMAN

SETTLEMENTS AND URBAN DEVELOPMENT, DEFINING
ITS MANDATE, POWERS AND FUNCTIONS, AND

CHAPTER I
TITLE AND DECLARATION OF POLICY
SECTION 1. Short Title. - This Act shall be known as the

“Department of Human Settlements and Urban Development Act”.
SEC. 2. Declaration of Policy. - The State shall, pursuant

to Section 9, Article XIII of the Constitution, ensure that
underprivileged and homeless citizens have access to an adequate,
safe, secure, habitable, sustainable, resilient and affordable home.
The State shall, by law and for the common good, undertake, in
cooperation with the private sector, a continuing program of housing
and urban development which shall make available at affordable
cost, decent housing and basic services to underprivileged and
711
homeless citizens in urban centers and resettlement areas. It shall

also promote adequate employment opportunities to such citizens.
In the implementation of the program, the State shall respect the
rights of small property owners.
The State shall pursue the realization of a modern, humane,

economically-viable, and environmentally-sustainable society
where the urbanization process is manifest in towns and cities
being centers of productive economic activity and is led by market
forces; where urban areas have affordable housing, sustainable
physical and social infrastructure and services facilitated under
a democratic and decentralized system of governance; and where
urban areas provide the opportunities for an improved quality of life
and the eradication of poverty.
The State shall ensure that poor dwellers in urban and rural
areas shall not be evicted nor their dwelling demolished, except in
accordance with law.
In addition, the State shall encourage on-site development

in the implementation of housing programs and shall promote
the creation of new settlements and development of sustainable
urban renewal programs while guaranteeing the preservation of
agricultural lands necessary for food security.
CHAPTER II
DEFINITION OF TERMS
SEC. 3. Definition of Terms. - As used in this Act, the following

terms are defined as follows:
(a) Abandoned subdivision or condominium refers to a project

whose development has not been completed in accordance with the
approved development plan despite the lapse of at least ten (10)
years from the target date of completion and it appears that said
project owner or developer has no intention to complete the project
712
development or, despite diligent effort for at least the last five (5)
years, the project owner or developer cannot be located;
(b) Comprehensive Land Use Plan (CLUP) refers to the

document, formulated by the local government in consultation
with its stakeholders, that defines or provides guidelines on the
allocation, utilization, development and management of all lands
within a given territory or jurisdiction according to the inherent
qualities of the land itself and supportive economic, demographic,
socio-cultural and environmental objectives;
(c) Housing refers to a multi-dimensional concept relating

to the process of residing and the objects of dwelling whose main
attributes are location relative to access to livelihood, tenure
arrangements, cost and physical structure, as well as their
environment. Housing is likewise a physical structure as well as a
social structure, functioning at different spatial scales from homes,
neighborhoods, communities, municipalities, cities, provinces, and
regions. It is also a sector of the economy, an important category of
land use in both urban and rural areas, especially in cities, and is
an important factor in the overall dynamics of the urban system;
(d) Human Settlements comprise of (a) physical components

of shelter and infrastructure; and (b) services to which the physical
elements provide support, such as community services which include
education, health, culture, welfare, recreation and nutrition;
(e) Informal Settler Families (ISFs) refer to households living

in a lot, whether private or public, without the consent of the property
owner; or those without legal claim over the property they are
occupying; or those living in danger areas such as esteros, railroad
tracks, garbage dumps, riverbanks, shorelines, and waterways;
(f) People’s plan refers to the plan formulated by the

beneficiary-association, which shall contain a site development
plan that conforms to the CLUP of the local government unit
under whose jurisdiction the project site is proposed to be located,
including community health, sanitation, and security plans, as well
713
as non-physical development components such as self-help housing

cooperative, livelihood, self-help development, capability building,
and a system of allocation of socialized housing units that promote
and protect the welfare of the elderly, persons with disability, and
children;
(g) Public housing is housing that is owned and/or managed by

the government for the purpose of providing housing to underserved
families;
(h) Urban Development refers to the process of occupation and

use of land or space for activities such as residential, industrial,
commercial and the like or their combinations, necessary to
carry out the functions of urban living. It entails the building or
rebuilding of more or less permanent structures over land that is
often withdrawn or converted from its original use, resulting in the
creation of a built environment; and
(i) Urban Development Planning refers to the process

that involves the planning of diverse elements that comprise an
urbanizing and urbanized area, including its physical infrastructure,
environment, housing, transportation and management of land use
and urban growth.
CHAPTER III
DEPARTMENT OF HUMAN SETTLEMENTS AND URBAN

DEVELOPMENT
SEC. 4. Creation and Mandate of the Department of Human

Settlements and Urban Development. - There is hereby created
the Department of Human Settlements and Urban Development,
hereinafter referred to as the Department, through the consolidation
of the Housing and Urban Development Coordinating Council
(HUDCC) and the Housing and Land Use Regulatory Board
(HLURB). The Department shall act as the primary national
government entity responsible for the management of housing,
human settlement and urban development. It shall be the sole and
714
main planning and policy-making, regulatory, program coordination,

and performance monitoring entity for all housing, human
settlement and urban development concerns, primarily focusing on
the access to and the affordability of basic human needs. It shall
develop and adopt a national strategy to immediately address the
provision of adequate and affordable housing to all Filipinos, and
shall ensure the alignment of the policies, programs, and projects
of all its attached agencies to facilitate the achievement of this
objective.
SEC. 5. Powers and Functions. - The Department shall

exercise the following powers and functions:
I. Policy Development, Coordination, Monitoring and

Evaluation
(a) Formulate a national housing and urban development

policies, strategies and standards that are consistent with the
Philippine Development Plan to promote social and economic
welfare, in coordination and in consultation with national and local
stakeholders, local government units (LGUs), and other government
agencies;
(b) Formulate housing finance and production policies,

recommend and facilitate the development of mechanisms that
promote the establishment of a self-sustaining housing finance and
housing delivery systems in coordination with the relevant agencies;
(c) Formulate housing policies and programs, such as public

housing, in coordination with the attached agencies, for the homeless
and underprivileged families;
(d) Conduct continuing and comprehensive studies and

research necessary for housing and urban development;
(e) Formulate a framework for resilient housing and human

settlements as a basis for the mechanisms for post-disaster housing
and resiliency planning, research and development, extension,
715
monitoring and evaluation of programs, projects and activities to

protect vulnerable communities from the adverse effects of climate
change and disasters; and
(f) In the exercise of its oversight functions, develop and

establish a sector performance monitoring and assessment
mechanism to accurately and independently report on the
performance of national government agencies and LGUs involved
in the housing and urban development.
II. Environmental, Land Use and Urban Planning and

Development
(a) Develop and maintain a shelter and urban development

management, standards and monitoring information system
which shall include, but not be limited to, the following data sets:
inventory of idle lands, CLUPs, inventory of housing stocks, and list
of beneficiaries: Provided, That notwithstanding this provision, all
existing CLUPs duly approved and being implemented by the LGUs
shall remain in full force and effect for the duration of the period as
stated therein: Provided, further, That upon enactment of this Act,
LGUs may improve, amend and enhance their existing CLUPs in
accordance with the standards set by the Department;
(b) Provide technical assistance to provinces, cities and

municipalities in building their capability to undertake housing and
urban development and management, such as, but not limited to:
creating a Local Housing Board (LHB) or similar entity; formulating
CLUPs and local shelter plans (LSPs); and strengthening local
government compliance with housing and urban development laws,
standards and guidelines;
(c) Assist the LGUs in the utilization of the socialized housing

tax, as provided in Section 43 of Republic Act No. 7279, and other
sources of funds for housing which shall be exclusively used for new
settlement projects, and other housing, urban development and
renewal projects;
716
(d) Own and administer government-owned lands, whether

owned by the national government or any of its subdivisions,
instrumentalities, or agencies, including government-owned or
-controlled corporations (GOCCs) and their subsidiaries, which have
not been used for the purpose for which they have been originally
reserved or set aside for at least ten (10) years and identified by
the Department as suitable for urban development, particularly
for housing purposes: Provided, That the lands held in trust by the
GOCCs for and on behalf of their members shall be excluded from
the coverage hereof;
(e) Formulate and prescribe land use planning and

zoning standards and regulations for the guidance of cities and
municipalities in the formulation of their respective CLUPs; and
(f) Develop and implement a comprehensive plan for the

establishment of government centers in the country.
III. Housing and Real Estate Development Regulation
(a) Develop mechanisms and implement programs, in

coordination with attached agencies and concerned agencies, that
will initiate and promote the establishment of estate and new
towns, new settlements, urban renewal programs, and prototypes
of housing and urban development interventions, including the
people’s plan approach, while encouraging the participation therein
of local government partnerships with civil society organizations,
nongovernment organizations, private groups and communities;
(b) Manage and oversee the development of proclaimed

socialized and economic housing sites, including the use of these
land assets as resource mobilization strategy to raise alternative
resources in developing new housing projects and efficient financing
programs, either by itself or through its attached agencies;
(c) Implement a single regulatory system that shall govern

all activities relative to the planning, production, marketing, and
management of housing and urban development projects; and
717
(d) Take over unfinished, incomplete or abandoned licensed

real estate development projects under Presidential Decree No.
957, in coordination with the appropriate government agencies and
instrumentalities, under such guidelines as may be formulated.
Further, the Department shall be in charge of regulating the use of
road and street systems of projects taken over under this provisions.
IV. Homeowners Association and Community-Development
(a) Register, regulate and supervise the homeowners

associations (HOAs) in subdivision projects and government housing
projects;
(b) Provide technical assistance to encourage housing

cooperatives and civil society organizations to serve as the
implementing agencies of their housing and urban development
programs;
(c) Promote and encourage partnerships between the

government and private sectors for the provision of decent housing,
suitable living environment, and expanded economic opportunities
specially for the homeless and underprivileged citizens; and
(d) Effect and oversee a single regulatory system that

shall govern all activities relative to the planning, development,
production, marketing, and management of housing and urban
development projects, without encroaching on the jurisdiction of
other agencies.
V. General Powers
(a) Enter into contracts, joint venture agreements or

understanding, public-private partnerships, and memoranda of
agreement or understanding, either domestic or foreign, under such
terms and conditions as the Department may deem proper and
reasonable subject to existing laws;
718
(b) Receive, take and hold by bequest, device, gift, purchase

or lease, either absolutely or in trust for any of its purposes from
foreign and domestic sources, any asset, grant or property, real or
personal, subject to such limitations provided under existing laws
and regulations;
(c) Discharge all responsibilities of government that may

arise from treaties, agreements and other commitments on human
settlement and urban development to be extended through bilateral
or multilateral loans and/or assistance programs;
(d) Determine, fix and collect reasonable amounts to be charged

as fees and charges necessary for the effective implementation of all
laws, rules and regulations enforced by the Department and impose
reasonable fines and penalties for violation thereof: Provided,
however, That all income generated from fees, fines, charges, and
other collections shall be deposited with the National Treasury as
income of the general fund;
(e) Recommend new legislation and amendments to existing

laws as may be necessary for the attainment of government’s
objectives in housing;
(f) Promote, accredit and regulate the use of indigenous

materials and technologies in the housing construction;
(g) Implement prototype projects in housing and urban

development undertakings, with the right to exercise the power of
eminent domain, when necessary;
(h) Open roads of subdivisions to the public when the general

welfare requires it upon consultation with stakeholders; and
(i) Perform such other related functions as may be mandated

by law.
SEC. 6. Composition. - The Department shall be composed of

the Office of the Secretary, and the various bureaus, services and
719
regional offices. The Office of the Secretary shall house the Office of
the Department Secretary, the Offices of the Undersecretaries, the
Offices of the Assistant Secretaries, and their immediate support
staff.
SEC. 7. The Secretary. - The Secretary shall have the following

functions:
(a) Advise the President of the Philippines on matters related

to housing, human settlements, and rural and urban development;
(b) Establish policies and standards for the efficient and

effective operations of the Department in accordance with programs
of the government;
(c) Promulgate rules, regulations and other issuances

necessary in carrying out the Department’s mandate, objectives,
policies, plans, programs and projects;
(d) Exercise control and supervision, including disciplinary

powers over officers and employees of the Department in accordance
with law, including their investigation and the designation of a
committee or officer to conduct such investigation;
(e) Exercise control and supervision, including disciplinary

powers over officers and employees of the attached agencies
in accordance with law, including their investigation and the
designation of a committee or officer to conduct such investigation;
(f) Designate and appoint officers and employees of the

Department, excluding the Undersecretaries, Assistant Secretaries,
and Regional and Assistant Regional Directors, in accordance with
the civil service laws, rules and regulations;
(g) Coordinate with other agencies and instrumentalities of

the government to ensure the effective and efficient implementation
of housing and urban development programs;
720
(h) Formulate such rules and regulations and exercise such

other powers as may be required to implement the objectives of this
Act; and
(i) Perform such other functions as may be provided by law or

assigned by the President.
The Secretary shall also serve as a voting member of the

National Economic and Development Authority (NEDA) Board,
the governing Boards of the Climate Change Commission (CCC),
the National Disaster Risk Reduction and Management Council
(NDRRMC), and the National Land Use Committee (NLUC).
SEC. 8. The Undersecretaries and Assistant Secretaries. - The

Secretary shall be assisted by three (3) Undersecretaries and three
(3) Assistant Secretaries, who shall be appointed by the President,
upon the recommendation of the Secretary: Provided, That at
least one (1) Undersecretary and one (1) Assistant Secretary shall
be career officers. They shall have the powers and functions as
provided for in Chapter 2, Book IV of the Administrative Code of
1987. The Secretary is further authorized to delineate and assign
other functional areas or responsibilities of the Undersecretaries
and Assistant Secretaries.
SEC. 9. Qualifications and Appointment. - No person shall

be appointed Secretary, Undersecretary and Assistant Secretary of
the Department unless he or she is a citizen and resident of the
Philippines, of good moral character, of proven integrity, competence
and expertise in housing, urban planning and development.
SEC. 10. Department Bureaus and Regional Offices. - The

Department shall establish, operate, and maintain Bureaus under
it such as. but not limited to:
(a) Environmental, Land Use and Urban Planning and

Development;
721
(b) Housing and Real Estate Development Regulation; and
(c) Homeowners Associations and Community Development.
As may be necessary, a regional office may be established in

the administrative regions of the country.
SEC. 11. Structure and Staffing Pattern. - Subject to the

approval of the Department of Budget and Management (DBM), the
Secretary shall determine the organizational structure and create
new divisions or units as may be necessary, and appoint officers
and employees of the Department and the Commission hereinafter
created under Section 12 in accordance with the civil service laws,
rules and regulations. The remuneration structure of the position in
the staffing pattern shall strictly conform to Republic Act No. 6758,
otherwise known as the Salary Standardization Law, as amended.
CHAPTER IV
HUMAN SETTLEMENTS ADJUDICATION COMMISSION
SEC. 12. Reconstitution of the HLURB as the Human

Settlements Adjudication Commission (HSAC). - The HLURB is
hereby reconstituted and shall henceforth be known as the Human
Settlements Adjudication Commission, hereinafter referred to as
the “Commission”.
The adjudicatory function of the HLURB is hereby transferred

to the Commission and shall be attached to the Department for
policy, planning and program coordination only.
SEC. 13. Composition, Staffing Pattern and Compensation. -
(a) The Commission shall be composed of the following:
(1) Commission en banc – Five (5) Commissioners appointed

by the President shall comprise the Commission.
722
The Executive Commissioner, chosen by the President from

among the five (5) Commissioners, shall be responsible for the
administration and operations of the Commission, including the
supervision of personnel, and shall be assisted by the Executive
Clerk of the Commission.
(2) Regional Adjudication Branch – There shall be as many

Regional Adjudication Branches as there are Regional Offices of
the Department. The President shall appoint as many Regional
Adjudicators as may be necessary upon the recommendation of the
Secretary.
(b) Subject to the approval of the DBM, the Commission shall

determine its organizational structure and create new divisions
or units as it may deem necessary, and shall appoint officers and
employees of the Commission in accordance with the civil service
laws, rules and regulations. The remuneration structure of the
positions in the staffing pattern shall strictly conform to Republic
Act No. 6758 or the Salary Standardization Law, as amended.
SEC. 14. Qualifications and Terms of Office. - The qualifications

and terms of office are as follows:
(a) Commissioner – Each Commissioner must be a natural

born citizen of the Philippines, of good moral character and has been
engaged in the practice of law and a member of the Philippine Bar
of good standing for a period of at least ten (10) years prior to the
appointment: Provided, That all nominees shall have experience
in urban development planning, sustainable development, climate
change adaptation, disaster risk reduction and/or real estate
development.
Each Commissioner shall hold office for six (6) years. In case
of death, permanent disability, removal from office, resignation and
incapacity to discharge the duties of office, the person appointed
as Commissioner shall only serve the unexpired term: Provided,
That the term of office of the incumbent Commissioners shall be
respected.
723
(b) Regional Adjudicator – Each Regional Adjudicator must

be a citizen of the Philippines, of good morall character, has been
in the practice of law and member of the Philippine Bar of good
standing for at least seven (7) years, with at least three (3) years’
experience in realty and/or land use and development cases, prior to
the appointment: Provided, That the existing HLURB Arbiters are
deemed qualified.
Each Regional Adjudicator shall hold office on good behavior

until otherwise incapacitated or has reached the retirement age in
accordance with law, rules and regulations promulgated by duly
constituted authorities, whichever comes earlier.
SEC.15. Jurisdiction of the Commission. - The Commission

shall have the exclusive appellate jurisdiction over:
(a) All cases decided by the Regional Adjudicators; and
(b) Appeals from decisions of local and regional planning and

zoning bodies.
The decision of the Commission shall be final and executory

after fifteen (15) calendar days from receipt thereof by the parties.
SEC. 16. Jurisdiction of Regional Adjudicators. - The Regional

Adjudicators shall exercise original and exclusive jurisdiction to
hear and decide cases involving the following:
(a) Cases involving subdivisions, condominiums, memorial

parks and similar real estate developments:
(1) Actions concerning unsound real estate business practices

filed by buyers or homeowners against the project owner or
developer, which cause prejudice to the buyers or committed with
bad faith and disregard of the buyers’ rights;
(2) Claims for refund, and other claims filed by subdivision lot
or condominium unit buyer against the project owner, developer,
724
dealer, broker or salesman: Provided, That when the cause of action

arises from the buyer’s rights under Section 23 of Presidential
Decree No. 957 and the purchase price of the property is paid
through a housing loan from a bank or other financing institutions,
the latter shall be impleaded as necessary party;
(3) Cases involving specific performance or contractual and

statutory obligations arising from the sale of the lot or unit and
development of the subdivision or condominium project;
(4) Disputes involving the open spaces or common areas

and their use filed by the project owner or developer or the duly
registered HOA, including the eviction of informal settlers therein,
in accordance with the requirements of law, and the rules and
regulations promulgated by duly constituted authorities;
(5) Suits to declare subdivision, condominium or other real

estate developments within the regulatory jurisdiction of the
Department as abandoned, as defined under Section 3 of this Act
for the purpose of Section 35 of Presidential Decree No. 957;
(6) Disputes involving easements within or among subdivision

projects; and
(7) Actions to annul mortgages executed in violation of Section

18 of Presidential Decree No. 957 filed by a subdivision lot or
condominium unit buyer against the project owner and/or developer
and the mortgagee.
(b) Cases involving Homeowners Associations:
(1) Controversies involving the registration and regulation of

HOAs;
(2) Intra-association disputes or controversies arising out of

the relations between and among members of HOAs; between any
or all of them and the HOA of which they are members;
725
(3) Inter-association disputes or controversies arising out of

the relations between and among two (2) or more HOAs between and
among federations and other umbrella organizations, on matters
pertaining to the exercise of their rights, duties and functions; and
(4) Disputes between such HOA and the State, insofar as it

concerns their individual franchise or right to exist and those which
are intrinsically connected with the regulation of HOAs or dealing
with the internal affairs of such entity.
(c) Disputes involving the implementation of Section 18 of

Republic Act No. 7279, as amended, and its Implementing Rules
and Regulations.
(d) Disputes or controversies involving laws and regulations

being implemented by the Department except those cases falling
within the jurisdiction of other judicial or quasi-judicial body.
SEC. 17. Powers and Authorities of the Commission. - The

Commission shall have the power and authority:
(a) To promulgate rules and regulations governing the hearing

and disposition of cases before it and its Adjudicators, as well as
those necessary to carry out its functions;
(b) To administer oaths, summon the parties to a controversy,

issue subpoenas requiring the attendance and testimony of
witnesses or the production of such books, papers, contracts, records,
statements of accounts, agreements, and others as may be material
to a just determination of the case;
(c) To hold any person in contempt directly or indirectly and

impose appropriate penalties therefore in accordance with law.
Any person committing any act of misbehavior in the presence

of or so near any member of the Commission or any Adjudicator as
to obstruct or interrupt the proceedings before the same, including
disrespect toward said officials, offensive acts toward others, or
726
refusal to be sworn, or to answer as a witness or to subscribe an

affidavit or deposition when lawfully required to do so, may be
summarily adjudged guilty of direct contempt by said officials and
shall be punished by a fine not exceeding Five thousand pesos
(₱5,000.00) or imprisonment not exceeding five (5) days, or both if
it be committed against the Commission or any member thereof;
and, if the offense is committed against an Adjudicator, it shall be
punishable by a fine not exceeding One thousand pesos (₱1,000.00)
or imprisonment not exceeding one (1) day, or both.
The person adjudged in direct contempt by the Adjudicator

may appeal to the Commission and the execution of the judgment
shall be suspended pending the resolution of the appeal upon the
filing by such person of a bond on condition that he/she will abide
by and perform the judgment of the Commission should the appeal
be decided against him/her. Judgment of the Commission on direct
contempt is immediately executory and unappealable. Indirect
contempt shall be dealt with by the Commission or Adjudicator in
the manner prescribed under Rule 71 of the Revised Rules of Court
(ROC).
(d) To enjoin or restrain, after due notice and hearing, any

actual or threatened commission of any or all prohibited or unlawful
acts or to require the performance of a particular act in any dispute
within its jurisdiction which, if not restrained or performed
forthwith, may cause grave or irreparable damage to any party or
render ineffectual any decision in favor of such party. In no case
shall a temporary or permanent injunction be issued except after a
finding of fact by the Commission, to the effect that:
(1) Prohibited or unlawful acts have been threatened and

will be committed and will be continued unless restrained, but
no injunction or temporary restraining order shall be issued on
account of any threat, prohibited or unlawful act, except against the
person or persons, association or organization making the threat or
committing the prohibited or unlawful act or actually authorizing or
ratifying the same after actual knowledge thereof;
727
(2) Substantial and irreparable injury to complainant’s

property will follow;
(3) As to each item of relief to be granted, greater injury will

be inflicted upon complainant by the denial of relief than will be
inflicted upon defendants by the granting of relief;
(4) Complainant has no adequate remedy at law; and
(5) Public officers charged with the duty to protect

complainant’s property are unable or unwilling to furnish adequate
protection.
(e) To exercise such other powers as are implied, necessary,

or incidental to carry out the express powers granted to the
Commission.
SEC. 18. Appeals. - Decisions, awards or orders of the Regional

Adjudicators shall be final and executory unless appealed to the
Commission within fifteen (15) calendar days from receipt of such
decisions, awards or orders.
The decision of the Commission upon any disputed matter

may be brought upon to the Court of Appeals in accordance with
Rule 43 of the Rules of Court.
SEC. 19. Execution of Decisions, Orders or Awards. - The

Commission or any Regional Adjudicator may, motu proprio or
on motion of any interested party and under such rules as may
be duly promulgated, issue a writ of execution on an order, award
or judgment within five (5) years from the date it becomes final
and executory, and by independent action for the enforcement of
the order, award or decision filed with the Regional Adjudication
Branch which issued the order, award or decision.
The Commission shall appoint a Sheriff or such number of

Sheriffs, in accordance with the provisions of the civil service laws,
rules and regulations, who shall be responsible for the service and
728
execution of all writs, summonses, and orders and other processes

of the Commission.
The Commission may designate special sheriffs and take

any measure under existing laws to ensure compliance with their
decisions, orders or awards.
SEC. 20. Criminal Prosecution. - The criminal prosecution for

violation of housing laws and regulations shall be instituted before
criminal courts having appropriate jurisdiction.
CHAPTER V
NATIONAL HUMAN SETTLEMENTS BOARD
SEC. 21. Creation of a National Human Settlements Board.

- The powers and functions of the attached agencies with respect
to policy and program development shall be exercised by a single
Board of Trustees, known as the National Human Settlements
Board, hereinafter referred to as the Board, with the Secretary of
the Department as Chairperson and the following as members:
(a) The Director General of NEDA or his/her designated

Deputy Secretary General;
(b) The Secretary of Finance or his/her duly designated

Undersecretary;
(c) The Secretary of Budget and Management or his/her duly

designated Undersecretary;
(d) The Secretary of Department of Public Works and

Highways or his/her duly designated Undersecretary;
(e) The Secretary of the Interior and Local Government or his/

her duly designated Undersecretary; and
(f) The Head of each attached agency of the Department.
729
Provided, That the Home Development Mutual Fund’s

corporate powers and functions shall continue to be exercised by its
own Board of Trustees, as provided for under Republic Act No. 9679.
CHAPTER VI
ATTACHED CORPORATIONS
SEC. 22. Attached Corporations. - The Department shall

exercise administrative supervision over the following housing
agencies, which shall remain to be attached for purposes of policy
and program coordination, monitoring and evaluation:
(a) National Housing Authority (NHA);
(b) National Home Mortgage Finance Corporation (NHMFC);
(c) Home Development Mutual Fund (HDMF); and
(d) Social Housing Finance Corporation (SHFC).
The attached corporations shall continue to function according

to existing laws and their respective Charters, subject to the policy
directions of the Board.
The appointment of the Board of Directors or Trustees of the

attached GOCCs shall be in accordance with Republic Act No. 10149,
otherwise known as the “GOCC Governance Act of 2011”. However,
each of the heads of the attached corporations shall enter into a
performance contract annually with the Secretary in accordance
with their respective mandates, which shall be consistent with the
national targets on human settlements and urban development,
and the overall administration of the corporation.
Furthermore, within two (2) years from the effectivity of

this Act, the Secretary, in coordination with the Governance
Commission for GOCCs (GCG), shall recommend to the President,
730
the restructuring of the foregoing corporations guided by the

objectives found hereunder:
(a) To eliminate overlaps, if any, in programs, within and

among the attached corporations, that serve the same beneficiaries
or clientele;
(b) To identify functions and programs of corporations

that properly belong to regular government agencies such as
policymaking, regulation, standard setting, and service provision
from functions that are imbued with commercial motives which
require a corporate structure. Thereafter, line functions shall be
transferred to the Department while commercial functions shall be
retained with the corporations;
(c) To clarify the role of each corporation along the housing

value chain, including housing production, primary financing,
secondary market development, and housing insurance and
guarantee to promote the development of a comprehensive and
synergetic housing industry; and
(d) To strengthen integration of functions, programs, and

services among the corporations and the Department to leverage
limited public resources and maximize the value of housing products
and services offered by the public sector.
Any reorganization, merger, streamlining, abolition or

privatization of any attached corporation shall be formulated and
implemented in coordination with the GCG and in consultation
with the GOCC concerned and the relevant provisions of Republic
Act No. 10149.
CHAPTER VII
OTHER PROVISIONS
SEC. 23. Housing One-Stop Processing Centers (HOPCs). -

The Department shall establish HOPCs in the regions, which shall
731
centralize the processing and issuance of all required housing-

related permits, clearances, and licenses in accordance with
Executive Order No. 45, series of 2001, entitled “Prescribing Time
Periods for Issuance of Housing Related Certifications, Clearances
and Permits, and Imposing Sanctions for Failure to Observe the
Same”: Provided, That for the foregoing purpose, the respective
ceilings for socialized, low cost/economic and middle-income
housing shall be jointly determined by the Department and NEDA:
Provided, further, That at any time, but not more than once every
two (2) years, such ceilings may be reviewed or revised to conform
to prevailing economic conditions.
All agencies involved in the issuance of said permits,

clearances and licenses shall be represented in the HOPC and shall
assign to HOPC regional centers personnel who shall be sufficiently
authorized to process and issue the same.
SEC. 24. Identification and Designation of Lands for Housing

and Urban and Rural Development. - For the purpose of designating
lands for housing and urban and rural development, the Department
of Human Settlements and Urban Development (DHSUD), the
Department of Environment and Natural Resources (DENR),
the Department of Agrarian Reform (DAR), the Department
of Agriculture (DA), the Department of the Interior and Local
Government (DILG), and the Land Registration Authority (LRA)
shall, within one hundred eighty (180) days from the effectivity
of this Act, jointly identify government lands suitable for housing
and rural development: Provided, That all government lands which
have been idle for more than ten (10) years, except lands owned
by the GOCCs and government financial institutions engaged in
shelter financing as part of its fiduciary obligation to its members
and/or are taken possession of in their ordinary conduct of business,
are hereby prioritized for housing and urban development purposes:
Provided, further, That lands exempted from conversion under
existing laws shall be excluded from the coverage of this section:
Provided, finally, That the national lands identified under this
section shall be transferred to or administered by the Department,
subject to the approval of the President.
732
CHAPTER VIII
TRANSITORY PROVISIONS
SEC. 25. Transfer of Functions and Assets. - The HUDCC

and the HLURB are hereby consolidated and reconstituted as the
Department and HSAC, respectively.
The following functions of the HLURB are hereby transferred

as stipulated hereunder:
(a) The land use planning and monitoring function, including

the imposition of penalties for noncompliance to ensure that LGUs
will follow the planning guidelines and implement their CLUPs and
zoning ordinances shall be transferred to the Department;
(b) The regulatory function, including the formulation,

promulgation, and enforcement of rules, standards and guidelines
over subdivisions, condominiums and similar real estate
developments, are hereby transferred to the Department;
(c) The registration, regulation and supervision of HOAs are

hereby transferred to the Department; and
(d) The adjudicatory mandate is hereby transferred to the

Commission.
The Department shall, by virtue of this Act, be subrogated to

all rights and assume all the liabilities of the HUDCC and HLURB,
except those that may hereafter be transferred to or absorbed by the
Commission.
SEC. 26. Transition Period. - All transfer of functions,

assets, funds, personnel, equipment, properties, transactions, and
personnel in the affected national government agencies and the
formulation and implementation of the internal organic structures,
staffing patterns, operations systems, and revised budgets of the
Department and the Commission, shall be completed within six
733
(6) months from the effectivity of this Act, during which existing
personnel shall continue to assume their posts in holdover capacities
until new appointments are issued. Accordingly, all applications
for permits and licenses, and cases pending with HLURB upon the
effectivity of this Act and filed during the transition period shall
continue to be acted upon by the incumbents until the rules and
regulations as provided under this Act shall have been in force.
SEC. 27. Transfer of Assets and Obligations. - The following

dispositive actions shall be implemented within six (6) months from
the effectivity of this Act:
(a) The assets, equipment, funds, records, and pertinent

transactions of HUDCC and HLURB shall be transferred to the
Department and the Commission; and
(b) The Department and the Commission shall cause

the creation of additional positions and augment their budget
appropriations, as may be necessary.
SEC. 28. Absorption or Separation from Service of Employees

of the Consolidated Agencies. - The existing employees of HUDCC
and HLURB shall enjoy security of tenure and shall be absorbed
by the Department or the HSAC, in accordance with their staffing
patterns and the selection process as prescribed under Republic
Act No. 6656, otherwise known as the “Government Reorganization
Law”.
Employees opting to be separated from the service as

a consequence of the consolidation and reconstitution under
the provisions of this Act shall, within one (1) month from their
separation or phase out from the service, receive separation benefits
in accordance with existing laws. In addition, those who are qualified
to retire shall be allowed to” retire and be entitled to all benefits
provided, under any of the existing retirement laws.
SEC. 29. Implementing Rules and Regulations. - The HUDCC,

HLURB, DBM and Civil Service Commission, in coordination with
734
NHA, SHFC, NHMFC, HDMF and other concerned agencies, shall

prepare and issue the Implementing Rules and Regulations (IRR)
of the Department within ninety (90) days upon the effectivity of
this Act.
SEC. 30. Implementing Authority. - The HUDCC Chairperson

is hereby authorized to undertake the implementation of the
provisions of this Act and implement the necessary organizational
changes within the specified six (6)-month transition period or until
a Department Secretary has been appointed and has assumed office.
SEC. 31. Appropriations. - The amount necessary for the initial

implementation of the provisions of this Act shall be charged against
the current year’s appropriations of the HUDCC and HLURB.
Thereafter, such sums as may be necessary for the continued
implementation of this Act shall be included in the annual General
Appropriations Act. The Department shall include in its proposed
budget the necessary amount to enable it to achieve its mandate of
providing adequate and affordable housing to all Filipinos.
CHAPTER IX
SEC. 32. Mandatory Review of the Implementation of this Act.

- The Department shall conduct a review of the implementation
of this Act at the end of the third (3rd) year from the date of its
effectivity and submit a report to Congress.
SEC. 33. Separability Clause. - If, for any reason, any portion
or provision of this Act shall be held unconstitutional or invalid, the
remaining provisions not affected thereby shall continue to be in
full force and effect.
SEC.34. Repealing Clause. - Executive Order No. 90, s. 1986

and Executive Order No. 648, s. 1981, are hereby repealed.
735
All other laws, executive orders, proclamations, rules,

regulations, and other issuances or parts thereof which are
inconsistent with the provisions of this Act are hereby amended or
SEC. 35. Effectivity - This Act shall take effect fifteen (15)
days after its publication in the Official Gazette or in any newspaper
Approved,
(Sgd.) GLORIA MACAPAGAL-ARROYO (Sgd.) VICENTE C. SOTTO III

of Representatives
This Act which is a consolidation of Senate Bill No. 1578

and House Bill No. 6775 was passed by the Senate and the House
of Representatives on November 12, 2018 and October 10, 2018,
respectively.
(Sgd.) DANTE ROBERTO P. MALING (Sgd.) MYRA MARIE D. VILLARICA

Acting Secretary General Secretary of the Senate
(Sgd.) RODRIGO ROA DUTERTE

RA 11201 repealed EO 90 s. 1986.

RA 11201 repealed EO 648 s. 1981.
736
S. No. 1998
H. No. 7735

Metro Manila
Seventeenth Congress

of July, two thousand eighteen.
AN ACT LIBERALIZING THE IMPORTATION, EXPORTATION

AND TRADING OF RICE, LIFTING FOR THE PURPOSE
THE QUANTITATIVE IMPORT RESTRICTION ON RICE,

SECTION 1. Section 2 of Republic Act (R. A.) No. 8178. as

amended, is hereby further amended to read as follows:
“ SEC. 2. Declaration of Policy. - It is the policy of the

State to ensure food security and to make the country’s
agricultural sector viable, efficient and globally competitive.
The State adopts the use of tariffs in lieu of non-tariff import
restrictions to protect local producers of agricultural products.
xxx
SEC. 2. Section 3 of R. A. No. 8178. as amended is hereby

737
“ SEC. 3. Definition of Terms. - The following definitions

apply to the terms used in this Act:
“(a) ‘Agricultural products’ shall refer to specific

commodities classified under Chapters 1-24 of the Harmonized
Commodity Description and Coding System (HS) adopted and
used in Section 1611 of R. A. No. 10863, otherwise known as
the “Customs Modernization and Tariff Act” (CMTA);
“x x x
“(c) ‘ATIGA Rate’ refers to tariff rate commitments under

the ASEAN Trade in Goods Agreement (ATIGA) applicable to
importations originating from Association of Southeast Asian
Nations (ASEAN) member States;
“(d) ‘Bound rate’ refers to the agreed maximum tariffs

on products committed by the Philippines to the World Trade
Organization (WTO) under the Uruguay Round Final Act,
and under the ATIGA, in accordance with its tariff schedule
(Annex 2: Tariffs under the ASEAN Trade in Goods Agreement
(ATIGA)- PHILIPPINES);
“(e) ‘Buffer Stock’ refers to the optimal level of rice

inventory that shall be maintained at any given time to be
used for emergency situations and to sustain the disaster
relief programs of the government during natural or man-
made calamities;
“(f) ‘In-Quota Tariff Rate’ refers to the tariff rates for

minimum access volumes committed by the Philippines to the
WTO under the Uruguay Round Final Act:
“(g) ‘Out-Quota Tariff Rate’ refers to the higher rate of

customs duty that is levied on the quantities of an imported
agricultural product in excess of its minimum access volume
(MAV);
738
“(h) ‘Minimum Access Volume’ refers to the volume of

a specific agricultural product that is allowed to be imported
with a lower tariff as committed by the Philippines to the
WTO under the Uruguay Round Final Act;
“(i) ‘Most Favoured Nation (MFN) Rate’ refers to

Philippine tariff rates that are applicable to imports from all
sources as prescribed in the CMTA;
“(j) ‘Quantitative Import Restrictions’ refer to non-tariff

restrictions used to limit the amount of imported commodities,
including, but not limited to discretionary import licensing
and import quotas, whether qualified or absolute;
“(k) ‘Rice’ refers to all products classified under the

Harmonized Commodity Description and Coding System (HS)
heading 10.06;
“(l) ‘Rice Shortage’ is a situation where the quantity

available or the supply of the commodity in a market falls
short of the quantity demanded or required at a given time;
“(m) ‘Tariff’ refers to a tax levied on a commodity imported

from another country. It earns revenues for the government
and regarded as instruments to promote local industries by
taxing their competitors. The benefit is accorded to the local
producers by the maintenance of a domestic price at a level
equal to the world price plus the tariff;
“(n) ‘Tariff Equivalent’ refers to the rate of tariff that

provides comparable protection under existing quantitative
import restrictions, reflected by the average price gap between
domestic prices and world prices; and
“(o) ‘Tariffication’ refers to the lifting of all existing

quantitative restrictions such as import quotas or prohibitions,
imposed on agricultural products, and replacing these
restrictions with tariffs.”
739
SEC. 3. Section 4 of R. A. No. 8178, as amended, hereby

“ SEC. 4. Repeal. - The following laws and all other

laws or provisions of law prescribing quantitative import
restrictions or granting government agencies the power to
impose such restrictions on agricultural products or hindering
the liberalization of the importation, exportation and trading
of rice are hereby repealed:
“x x x
“(8) Subparagraphs i, v, vi, vii, xi. xii, xiii, xiv, xv, xvi,
xvii, xviii, xix, xxii, xxiii, and xxv of Section 6(a) of Presidential
Decree (P.D.) No. 4, as amended.”
SEC. 4. A new Section 5 is hereby inserted after Section 4 of

R. A. No. 8178, as amended, to read as follows:
“SEC. 5. Issuance of Sanitary and Phytosanitary Import

Clearance for Rice for the Sole Purpose of Ensuring Food.
Safety. - All importers of rice are required to secure a Sanitary
and Phytosanitary Import Clearance (SPSIC) from the Bureau
of Plant Industry (BPI) prior to importation in accordance
with existing laws, rules and regulations: Provided, That
the clearance shall not provide for import volume and timing
restrictions: Provided, further, That failure on the part of the
BPI to release the SPSIC without informing the rice importer
of any error, deficiency, omission, or additional documentary
requirement shall mean automatic approval of the SPSIC
applied for within seven (7) days after submission of the
complete requirements.
“The imported rice should arrive before the expiration of

the SPSIC from the BPI.
“The food safety regulatory function of the NFA under

Item (i), Section 16 of R. A. No. 10611, otherwise known as the
740
‘Food Safety Act of 2013’. is hereby transferred to the BPI.”
SEC. 5. Section 6 of R. A. No. 8178, as amended, is hereby

“SEC. 6. Tariffication. - In lieu of quantitative import

restrictions, the maximum bound rates committed under the
Uruguay Round Final Act shall be imposed on the agricultural
products whose quantitative import restrictions are repealed
by this Act. x x x.
“x x x
“For the tariff equivalent of the quantitative import

restrictions on rice, the bound rate shall be as notified by the
Philippines to the WTO as follows:
“(a) For the minimum access volume committed by the

Philippines to WTO. the in-quota tariff rate indicated in the
applicable provisions of the WTO Agreement on Agriculture
shall apply;
“(b) For rice imports originating from ASEAN member

states, the import duty rate under the ATIGA shall apply; and
“(c) For rice imports originating from non-ASEAN WTO

member states, the out-quota tariff rate is one hundred
eighty percent (180%) or the tariff equivalent calculated
in accordance with Paragraph 10 of Annex 5, Section b, of
the WTO Agreement on Agriculture upon the expiration of
the waiver relating to the special treatment for rice of the
Philippines, whichever is higher, shall apply.
“The calculated tariff equivalent shall be determined by

the Tariff Commission and approved by the National Economic
Development Authority (NEDA) Board within forty-five (45)
days upon the effectivity of this Act.”
741
SEC. 6. A new Section 7 is hereby inserted after Section 6 of

R. A. No. 8178, as amended, to read as follows:
“SEC. 7. Powers of the President. - Consistent with the

Philippine national interest and the objective of safeguarding
Filipino farmers and consumers, the President is hereby
empowered to act with full delegated authority subject to the
provisions of the CMTA. in the following circumstances:
“(a) The President may increase, reduce, revise, or adjust

existing rates of import duty up to the bound rate committed
by the Philippines under the WTO Agreement on Agriculture
and under the ATIGA, including any necessary change in
classification applicable to the importation of rice: Provided,
That the power herein delegated to the President shall only be
exercised when Congress is not in session: Provided, further,
That any order issued by the President adjusting the applied
tariff rates shall take effect fifteen (15) days after publication;
“(b) In the event of any imminent or forecasted shortage,

or such other situation requiring government intervention,
the President is empowered for a limited period and/or a
specified volume, to allow the importation at a lower applied
tariff rate to address the situation. Such order shall take effect
immediately and can only be issued when Congress is not in
session; and
“(c) In case the calculated out-quota tariff rate referred

to under Section 6(c) of this Act exceeds one hundred percent
(100%), the provision of Paragraph 1, Section 1608(a) of the
CMTA shall also not apply.
“The power herein delegated to the President may

be withdrawn or terminated by Congress through a Joint
Resolution.”
SEC. 7. A new Section 7-A is hereby inserted after the new

Section 7 of R. A. No. 8178, as amended, to read as follows:
742
“SEC. 7-A. Trade Negotiation Authority. - In the interest

of the Philippine rice industry and Philippine consumers, and
upon the recommendation of the NEDA and the Department
of Agriculture (DA), the President may enter into trade
negotiations or renegotiations of the Philippine international
trade commitments on rice.”
SEC. 8. A new Section 8 is hereby inserted after the new

Section 7-A of R. A. No. 8178. as amended, to read as follows:
“SEC. 8. Maintenance of Rice Buffer Stock. - The NFA

shall, in accordance with the rules, regulations and procedures
to be promulgated, maintain sufficient rice buffer stock to be
sourced solely from local farmers.”

Section 8 of R. A. No. 8178. as amended, to read as follows:
“SEC. 9. Lifting of Quantitative Export Restrictions on

Rice. - Any and all laws, rules, regulations, guidelines, and
other issuances imposing quantitative export restrictions
on rice are hereby repealed. The exportation of rice shall be
allowed in accordance with the established redes, regulations
and guidelines.”

“SEC. 10. Special Rice Safeguard. - In order to protect

the Philippine rice industry from sudden or extreme price
fluctuations, a special safeguard duty on rice shall be imposed
in accordance with R.A. No. 8800, otherwise known as the
‘Safeguard Measures Act’ and its implementing rules and
regulations.”
SEC. 11. Section 7 of R. A. No. 8178. as amended, is hereby

renumbered as Section 11 and is amended to read as follows:
743
“SEC. 11. Mechanism for the Implementation of Minimum

Access Volume (MAV). - An equitable and transparent
mechanism for allocating the MAV of agricultural products
whose quantitative restrictions are herein lifted, shall be
developed and established, having the least government
intervention, addressing the requirements of each geographical
area, and without entailing any cost to importers/users of
these products to the detriment of local consumers and other
end-users.
“In the case of rice, its MAV will revert to its 2012 level
at three hundred fifty thousand metric tons (350,000 MT) as
indicated in the Philippine commitment to the WTO.
“x x x.”
SEC. 12. Section 8 of R. A. No. 8178. as amended, is hereby

renumbered as Section 12 and is amended to read as follows:
“SEC. 12. Agricultural Competitiveness Enhancement

Fund. - To implement the policy enunciated in this Act,
there is hereby created the Agricultural Competitiveness
Enhancement Fund, herein referred to as the Fund. The Fund
shall consist of all duties collected from the importation of
agricultural products, except rice, under the MAV mechanism,
including unused balances and collections from repayments
from loan beneficiaries including interests, if any. The Fund
shall be automatically credited to Special Account 183 in the
General Fund of the National Treasury: Provided, That fund
releases shall not be subject to any ceiling bv the Department
of Budget and Management (DBM).
“x x x.”
SEC. 13. A new Section 13 is hereby inserted after the

renumbered Section 12 of R. A. No. 8178, as amended, to read as
follows:
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“SEC. 13. Rice Competitiveness Enhancement Fund. -

There is hereby created a Rice Competitiveness Enhancement
Fund, herein referred to as the ‘Rice Fund’. The Rice Fund
shall consist of an annual appropriation of Ten billion pesos
(₱10,000,000,000.00) for the next six (6) years following the
approval of this Act and shall be automatically credited to a
Special Account in the General Fund of the National Treasury
which shall be in place within ninety (90)’ days upon the
“At the end of the sixth (6th) year, a mandatory review

shall be conducted by the Congressional Oversight Committee
on Agricultural and Fisheries Modernization (COCAFM) to
determine whether the Rice Fund and its use as provided for
under this Act shall be continued, amended, or terminated.
The COCAFM shall utilize the increase or decrease in
farmers’ incomes as a primary benchmark in determining the
effectiveness of the interventions under the program and its
possible extension.
“The Secretary of Agriculture shall be accountable and

responsible for the Rice Fund in coordination with other
government agencies concerned.
“The amount allocated shall be released directly to the

implementing agencies as provided for in this Act based on the
objectives and plans of the rice industry roadmap: Provided,
That the unutilized portion of the Rice Fund allocated to the
implementing agencies shall not revert to the General Fund
but shall continue to be used for the purpose for which it was
set aside. Fund releases charged against the Rice Fund shall
not be subject to any ceiling by the Department of Budget and
Management (DBM).
“Any program undertaken in accordance with this Act

shall only be deemed complementary and supplementary to
and shall not be a replacement of any existing programs for
745
rice and rice farmers already implemented by the DA and

other agencies concerned.
“Subject to the usual accounting and auditing rules and

regulations, the Rice Fund shall be allocated and disbursed to
rice producing areas, as follows:
“(a) Rice Farm Machineries and Equipment – Fifty percent

(50%) of the Rice Fund shall be released to and implemented
by the Philippine Center for Postharvest Development
and Mechanization (PHilMech) as grant in kind to eligible
farmers associations, registered rice cooperatives and local
government units (LGUs), in the form of rice farm equipment,
such as tillers, tractors, seeders, threshers, rice planters,
harvesters, irrigation pumps, small solar irrigation, reapers,
driers, millers, and the like, for purposes of improving farm
mechanization: Provided, That the PHilMech shall, whenever
feasible, procure from accredited local manufacturers to assist
in the promotion of locally manufactured farm machineries
and equipment;
“(b) Rice Seed Development, Propagation and Promotion

– Thirty percent (30%) of the Rice Fund shall be released to
and implemented by the Philippine Rice Research Institute
(PhilRice) and shall be used for the development, propagation
and promotion of inbred rice seeds to rice farmers and the
organization of rice farmers into seed growers associations
and/or cooperatives engaged in seed production and trade:
“(c) Expanded Rice Credit Assistance – Ten percent

(10%) of the Rice Fund shall be made available in the form of
credit facility with minimal interest rate-s and with minimum
collateral requirements to rice farmers and cooperatives, to be
managed equally by the Land Bank of the Philippines (LBP)
and the Development Bank of the Philippines (DBP); and
“(d) Rice Extension Services – Ten percent (10%) of

the Rice Fund shall be made available for the extension
746
services provided by PHilMech. PhilRice. Agricultural

Training Institute (ATI) and Technical Education and Skills
Development Authority (TESDA) for teaching skills on
rice crop production, modern rice farming techniques, seed
production, farm mechanization, and knowledge/technology
transfer through farm schools nationwide as follows: seventy
percent (70%) to TESDA, ten percent (10%) each to ATI,
PhilRice and PHilMech.
“Provided, That the percentage allocation will be

reviewed on the third year of the effectivity of this Act for
possible revisions should intervention priorities change.
“Provided, further, That preferential attention should

be given to rice farmers, cooperatives and associations
adversely affected by the tariffication of the quantitative
import restriction on rice in accordance with the thrust and
priorities of R. A. No. 8435, as amended, otherwise known
as the ‘Agriculture and Fisheries Modernization Act’ and
the Philippine Development Plan (PDP). The increase or
decrease of farmers’ incomes shall be the primary benchmark
in granting these interventions.
“Provided, furthermore, That if the annual tariff

revenues from rice importation exceeds Ten billion pesos
(₱10,000,000,000.00) in any given year within the six (6) year
period following the effectivity of this Act, the excess tariff
revenues shall be earmarked by Congress and included in the
General Appropriations Act (GAA) of the following year:
“(a) Rice Farmer Financial Assistance – A portion of the

excess rice tariff revenues shall be released to the DA and
shall be used for providing direct financial assistance to rice
farmers who are farming two (2) hectares and below regardless
of whether they continue farming rice or not as compensation
for the projected reduction or loss of farm income arising from
the tariffication of the quantitative import restrictions on rice;
747
“(b) Titling of Agricultural Rice Lands – A portion of the

excess rice tariff revenues shall be released to the Department
of Agrarian Reform (DAR), Department of Environment
and Natural Resources (DENR) and Land Registration
Authority (LRA). and shall be used for the subdivision and
titling of agricultural rice lands or parts thereof awarded
to farmer-beneficiaries under the Comprehensive Agrarian
Reform Program (CARP) and other similar programs of the
government:
“(c) Expanded Crop Insurance Program on Rice – A

portion of the excess tariff revenues shall be released to the
Philippine Crop Insurance Corporation (PCIC) and shall
be used for the provision of crop insurance to qualified rice
farmer-beneficiaries under its existing agricultural insurance
programs; and
“(d) Crop Diversification Program – A portion of the

excess tariff revenues shall be released to the DA and shall be
used for productivity-enhancement programs for rice farmers
seeking to diversify production towards other crops.
“The Congressional Oversight Committee on Agricultural

and Fisheries Modernization (COCAFM) shall conduct a
periodic review of the use of the Rice Fund.”

“SEC. 14. Beneficiaries of the Rice Fund. - The

beneficiaries of the Rice Fund shall be those farmers and
farmworkers and their dependents listed in the Registry
System for Basic Sectors in Agriculture (RSBSA), and rice
cooperatives and associations accredited by the DA. Within
one hundred eighty (180) days from the effectivity of this
Act, the DA. in consultation with farmers’ cooperatives and
organizations and LGUs, shall validate and update the
masterlist of eligible beneficiaries to ensure that those listed
748
are legitimate farmers, farmworkers and rice cooperatives

and associations.
“In order to focus on the targeted rice farmer beneficiaries,

cooperatives and associations for the Rice Fund, the list of rice
producing provinces and LGUs, as provided for by PhilRice
as of 2015-2018. shall be the basis and shall be added to the
roadmap as an appendix.”

“SEC. 15. Rice Industry Roadmap. - Upon the

effectivity of this Act, the DA, .together with the
NEDA. Department of Finance (DOF), DBM, DAR.
National Irrigation Administration (NIA), TESDA,
PCIC, National Anti-Poverty Commission (NAPC)
Farmer Sectoral Council Representative and other
government agencies concerned, including rice farmer
representatives, shall be given a maximum of one
hundred eighty (180) days to formulate and adopt the
rice roadmap to restructure the government‘s delivery
of support services for the agricultural rice sector.
“The following principles shall govern the

development and implementation of the roadmap for
the rice industry:
“(a) Raise sustainable investments in the rice

industry particularly on rice support infrastructure and
post-harvest facilities;
“(b) Improve the productivity, efficiency and

profitability of small rice farmers and landless
farmworkers;
“(c) Strengthen research and development

programs that will enhance the resiliency of the rice
industry:
749
“(d) Preserve and enhance the rice production capabilities

of future generations;
“(e) Provide accessible, targeted and technology-oriented

support services that cover the entire value chain;
“(f) Set up responsible, participatory and effective

governance mechanisms; and
“(g) Address impact of income loss caused by rice

tariffication.
“The rice industry roadmap shall be implemented

through a complementation of the DA‘s rice sector programs
as funded by the GAA, and the Rice Fund created under this
Act.”

“SEC. 16. National Single Window Program. - To ensure

the accurate collection of tariff as provided in Section 6 of
this Act, the National Single Window (NSW) program of the
Bureau of Customs (BOC) shall be implemented within one
hundred eighty (180) days from the effectivity of this Act in
accordance with Executive Order No. 482.”
SEC. 17. Implementing Rules and Regulations. - Within forty-

five (45) days from effectivity of this Act, the DA, NEDA and DBM
shall, in coordination with DAR. DENR, NIA. LRA, PCIC. PHilMech,
PhilRice, TESDA, LBP, DBP, ATI, and other government agencies
concerned and after consultation with directly affected stakeholders,
promulgate the rules and regulations to effectively implement the
SEC. 18. Separability Clause. - If any portion of this Act is

declared invalid or unconstitutional, the portions or provisions
which are not affected shall continue to be in full force and effect.
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SEC. 19. Repealing Clause. - All laws, decrees, executive

issuances, rules and regulations inconsistent with this Act are
hereby repealed or modified accordingly.
days after its publication in the Official Gazette or in a newspaper
Approved,
(Sgd.) GLORIA MACAPAGAL-ARROYO (Sgd.) VICENTE C. SOTTO III

of Representatives

House Bill No. 7735 was passed by the Senate and the House of
Representatives on November 28, 2018.
(Sgd.) DANTE ROBERTO P. MALING (Sgd.) MYRA MARIE D. VILLARICA

Acting Secretary General Secretary of the Senate

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S. No. 1318
H. No. 6878

Metro Manila
Eighteenth Congress

day of July, two thousand twenty.
AN ACT AMENDING REPUBLIC ACT NO. 10068 OR THE

ORGANIC AGRICULTURE ACT OF 2010

SECTION 1. Section 1. Section 2 of Republic Act No. 10068,

otherwise known as “An Act Providing for the Development and
Promotion of Organic Agriculture in the Philippines and for Other
Purposes”, is hereby amended, to read as follows:
“SEC. 2. Declaration of Policy. - It is hereby declared

the policy of the State to promote, propagate, develop further
and implement the practice of organic agriculture in the
Philippines that will cumulatively condition and enrich the
fertility of the soil, increase farm productivity and farmers’
incomes, reduce pollution and destruction of the environment,
prevent the depletion of natural resources, encourage the
participation of indigenous organic farmers in promoting their
sustainable practices, further protect the health of farmers,
consumers, and the general public, save on imported farm
inputs and promote food self-sufficiency. Towards this end,
a comprehensive program for the promotion of community-
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based organic agriculture systems which include, among

others, farmer-produced organic soil amendments, bio-control
agents and other farm inputs, together with a nationwide
educational and promotional campaign for their use and
processing shall be established.
Likewise, a nationwide educational and awareness

campaign among consumers on the benefits of consuming
organic products to boost local production of organic food
and non-food products, as well as the adoption of organic
agricultural system as a viable alternative shall be undertaken.
x x x.”
SEC. 2. Section 3 of Republic Act No. 10068 is hereby amended,

to read as follows:
“SEC. 3. Definition of Terms. - For purposes of this Act,

the following terms shall be defined as follows:
xxx
(c) Organic production system is a system designed to:
(1) Enhance biological diversity within the whole system;
(2) Increase soil biological activity;
(3) Maintain long-term soil fertility;
x x x;
(h) Certification is the procedure by which a government

agency or an organic certifying body (OCB) provides written or
equivalent assurance that farms, or production and processing
systems, conform to organic standards as mandated in this
Act.
753
(i) Accreditation is the procedure by which a government

agency having jurisdiction formally recognizes the competence
of an OCB to provide inspection and certification services. This
shall be solely and exclusively exercised by the designated
agency or agencies in this Act, pursuant to the mandates
stated herein.
x x x.
(o) Inspection is the examination of farms, food and non-

food products, food control systems, raw materials, processing,
distribution and retailing, including in-process and finished
product testing, in order to verify that they conform to the
requirements for being organic. Inspection includes the
examination of the production and processing systems.
(p) Organic bio-control agents refer to organisms and

their associated metabolites as well as naturally occurring
substances that control pests and diseases. These are classified
as botanicals, macrobials, microbials, and semichemicals.
(q) Organic Certifying Body (OCB) refers to a legal entity

accredited by a government agency to perform inspection and
certification activities. It is responsible for verifying that a
product sold or labeled as “organic” is produced, processed,
prepared, or handled according to relevant guidelines.
(r) Organic soil amendments refer to all the products

within the scope of the Philippine national standard, i.e.
organic fertilizers, compost/soil conditioner, microbial
inoculants, and organic plant supplements that are added to
the soil to improve its physical properties.
(s) Participatory Guarantee System (PGS) refers to a

locally-focused quality assurance system which is developed
and practiced by people actually engaged in organic
agriculture, It is built on a foundation of trust, social network,
and knowledge exchange. It is used to certify producers
754
and farmers as actual and active practitioners of organic

agriculture.
(t) PGS group refers to a legal association or cooperative

of registered farmer members and other stakeholders in a
participatory guarantee system
(u) Core PGS group refers to the basic grouping unit in

the PGS.
(v) Participatory Organic Certificate refers to a

documentary proof that a core PGS group is compliant with
the requirements, standards and norms of organic farming/
agriculture. It shall be issued by a government agency or by
an authorized OCB, after the conduct of an investigation and
certification activity on the application for certification by the
core PGS group. It shall have a validity of three (3) years.
(w) Small farmer/fisherfolk refers to those utilizing not

more than five (5) hectares of land for the single purpose of, or
a combination of the following purposes for, agricultural crop
production, including rice and corn, aquaculture, and poultry/
livestock raising: Provided, That poultry/livestock raising
shall not have more than the following:
* Poultry - 1,000 poultry layers or 5,000 broilers
* Swine/native pigs - 10 sow level or 20 fatteners
* Cattle - 10 fatteners or 5 breeders
* Dairy - 10 milking cows
* Goat, sheep and other small ruminants - 50 heads
* Other animals permitted to be raised, the limits

of which are to be determined by the National Organic
Agriculture Board (NOAB).
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(x) Organic value chain refers to agriculture-related

activities that put farmers, processors, distributors and
consumers within a system that produces, processes,
transports, markets and distributes organic agricultural
products.”
SEC. 3. Section 4 of Republic Act No. 10086 is hereby amended,

to read as follows:
“SEC. 4. Coverage. - The provision of this Act shall apply

to the development and promotion of organic agriculture and
shall include, but not limited to, the following:
xxx
(c) Promotion and encouragement of the establishments

of facilities, equipment and processing plants that would
accelerate the production and commercialization of organic
fertilizers, bio-control agents, organic soil amendments and
other appropriate farm inputs; and
(d) Implementation of organic agricultural programs,

projects and activities, including the provision and delivery
of support services with focus on the farmers, prioritizing
small farmers/fisherfolk and their organizations and other
stakeholders.”
SEC. 4. Section 7 is hereby amended, to read as follows:
“SEC. 7. Composition of the NOAB. - The NAOB shall

consist of the following members:
xxx
(d) The Director General of the Technical Education

and Skills Development Authority, or his/her duly authorized
756
(e) The Secretary of Agrarian Reform, or his/her duly

(f) The Secretary of Trade and Industry, or his/her duly

(g) The Secretary of Health, or his/her duly authorized

(h) Three (3) representatives from the small farmers;
(i) One (1) representative from the NGOs involved in

organic agriculture for at least three (3) years;
(j) One (1) representative from agricultural colleges and

universities;
(k) One (1) representative from the private sector in the

organic value chain;
(l) One (1) representative from the national association

of PGS groups, to be chosen from among and by themselves:
Provided, That the representative is a small farmer;
(m) One (1) representative from a national organization

of local government units (LGUs) actually engaged in organic
agriculture; and
(n) One (1) qualified representative from the indigenous

organic farmers.
xxx
The representatives of small farmers and NGOs and

of agricultural colleges and universities, shall be chosen by
the Secretaries of Agriculture and Science and Technology,
respectively, from among nominees submitted to the agency
concerned by their respective national organizations. These
757
representatives must represent their respective organizations

at least from the provincial level, actually and actively
practicing and promoting organic agriculture practices, be
conversant in organic agriculture and committed to the
policies and programs provided under this Act. The three (3)
seats given to small farmers shall be chosen from the crops
and livestock sectors, which will have two (2) seats and one (1)
seat, respectively.
An appointed/elected member of the board can only serve

a single term of three (3) years, without reappointment. Should
the member fail to complete his/her term, the replacement or
successor shall only serve the unexpired portion of the term.
SEC. 5. Section 8 is hereby amended, to read as follows:
“SEC. 8. - Organization of the NOAB. -
xxx
The Chairperson shall call the members of the NAOB,

or a majority thereof if not all have been designated, to a
meeting to organize themselves and prescribe its rules and
procedures for the attainment of the objectives of this Act.
A majority of all the members of the NAOB shall constitute
a quorum. The NOAB shall meet at least once every quarter
after its constitution.
x x x”
SEC. 6. Section 10 and 11 of Republic Act No. 10068 are hereby

repealed and a new Section 10 is hereby inserted, to read as follows:
“SEC. 10. National Organic Agriculture Program -

National Program Coordinating Office (NOAP-NPCO). - To
manage the effective implementation of the National Organic
Agriculture Program, the Department of Agriculture (DA),
Office of the Secretary, shall be strengthened and empowered
758
in terms of establishing a functional office, to be known as the

National Organic Agriculture Program - National Program
Coordinating Office (NOAP-NPCO). It shall serve as the
planning and administrative secretariat of the NOAB, and as
the coordinating office of the Program.”

and renumbered as Section 11 of this Act, to read as follows:
“SEC. 11. Work Plan. - In line with the National Organic

Agriculture Program, the NOAP-NPCO shall submit to the
Board for approval the following:
x x x.”

Section 11, to read as follows:
“SEC. 12. Bureau of Agriculture and Fisheries Standards

(BAFS). - The BAFS of the DA shall be restructured,
strengthened, and empowered to support the objectives of this
Act. It shall provide technical assistance to the NOAB and the
NOAP-NPCO. The BAFS, in addition to its existing functions
and responsibilities, shall perform the following functions,
duties and responsibilities for purposes of this Act:
(a) Formulate and update standards relevant to organic

agriculture;
(b) Issue accreditation to OCBs;
(c) Conduct inspections on compliance of PGS groups

with the Philippine National Standards (PNS) for organic
agriculture, and publish at least once a year the list of
compliant PGS groups;
(d) Issue registration of organic inputs, such as organic

soil amendments and organic bio-control agents;
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(e) Issue registration of integrated organic farms with

multiple commodities/production and of organic input
products;
(f) Rules on the appeal of farm/farmowner on decision

made by OCBs and the concerned municipal/city PGS groups
on inspection and certification issues; and
(g) Perform such other functions, duties, and

responsibilities as may be necessary to implement this Act.”

and renumbered as Section 13 of this Act, to read as follows:
“SEC. 13. Accreditation of OCB. - The BAFS is hereby

designated and authorized to grant official accreditation to an
OCB entity. The BAFS is tasked to formulate the necessary
rules and procedures in the accreditation of OCBs performing
third-party certification, or granting certification as part
of the PGS: Provided, That there shall be at least one (1)
accredited OCB performing third-party certification, each in
Luzon, Visayas and Mindanao, or in case of only one (1) OCB
performing third=party certification is accredited, it shall
have at least one (1) satellite office or processing unit each in
Luzon, Visayas and Mindanao.”
SEC. 10. A new Section 14 is hereby inserted, to read as

follows:
“SEC. 14. Participatory Guarantee System (PGS). -
(a) Basic Principles. The PGS shall be the mechanism

which small farmers/fisherfolk, their farms/associations/
cooperatives shall be certified as engaged in organic
agriculture and as producers of organic agriculture products.
The participatory organic certification from a government
agency or OCBs, organized in accordance with this Act, shall
be promoted and accepted. The products certified through
760
the PGS shall be traded only in the domestic market,

unless covered by an international certification or a mutual
recognition agreement.
An association or group under the PGS shall adhere to

the PNS for organic agriculture.
Further, associations or groups under the PGS shall

adopt the following features and characteristics:
(i) Existence of organic agriculture norms conceived

by the organic agriculture stakeholders, norms that are
appropriate to smallholder agriculture;
(ii) Grassroots organization: the participatory certification

should be perceived as a result of a social dynamic, based on
the active participation of all stakeholders;
(iii) Existence of principles and values that enhance the

livelihoods and well-being of farming families and promote
organic agriculture;
(iv) Documented management systems and procedures;
(v) Provision of mechanisms to verify farmer’s compliance

to established norms;
(vi) Provisions of mechanisms for supporting farmers to

produce organic products and be certified as organic farmers,
which shall include field advisors, newsletters, farm visits,
web sites, among others;
(vii) Existence of a bottom-line document, such as a

farmer’s pledge, that shall state his/her agreement to the
established norms;
(viii) Introduction or use of seals or labels providing

evidence of organic status; and
761
(ix) Existence of a clear and previously defined set of

recommendations and measures against farmers who fail to
comply with standards.
(b) Legal Personality. The core PGS group shall be

registered with the municipality/city where the PGS group is
predominantly located. It shall secure a mayor’s permit from
said municipality/city, possession of which shall suffice as
proof of registration and the grant of legal personality, which
however shall be limited only to PGS transactions.
The national organization of LGUs actually engaged in

organic agriculture shall also secure a legal personality for
purposes of accreditation by the BAFS.
Any other OCB shall secure a mayor’s permit from the

municipality/city where it intends to operate and possession
of which shall suffice to grant them legal personality for
purposes of accreditation by the BAFS.
(c) Certification. Certification.The BAFS shall provide

the guidelines for the certification of farms, pursuant to the
A farm/farmowner applying for certification as an

organic agriculture practitioner shall join a PGS group in the
same municipality/city where his/her farm is located, or with
a PGS group in a municipality/city within the same province
to which he/she, as the farmowner, regularly interacts or
conducts business with.
The farm/farmowner shall apply for a participatory

organic certificate with a core PGS group of the PGS group
where the farm belongs; or with a national organization of
LGUs initiating organic agriculture practices, a member of
which is the municipality/city where the PGS group is located;
or with any private group or organization actually engaged in
762
organic agriculture and operating in that municipality/city;

any of which is accredited as an OCB.
The decision of any of the abovementioned OCBs shall

be appealable to the BAFS: Provided, That the BAFS shall
rule on the appeal within thirty (30) days from its receipt.
Otherwise, the appealed decision shall be considered reversed.
The withdrawal of membership in the PGS group shall

mean forfeiture of the privilege for the farm/farmowner to use
the participatory organic certificate.
In case a member of the core of PGS group representing

a farm applies for renewal of certification with the same core
PGS group, the member of the core PGS group must inhibit
himself/herself before the application for renewal can be
considered.
(d) Accreditation. The BAFS shall provide the guidelines

for accreditation.
A registered core PGS group shall apply for accreditation

with the BAFS. A core PGS group shall be accorded accreditation
by the BAFS only if it has at least five (5) members, coming
from different farms within the municipality/city or within the
province, certified and actually practicing organic agriculture.
The BAFS shall extend technical and financial support to a
core PGS group in its application for accreditation.
For purposes of this section, the BAFS is hereby

authorized to certify five (5) individual farms as a core PGS
group: Provided, That once such core PGS group is accredited
to certify, it can subsequently certify as organic agriculture
compliant other core PGS groups: Provided, further, That
the authorization to certify shall be deemed revoked when
the core membership becomes less than five (5) or any of the
minimum five (5) member farms becomes noncompliant to
organic agriculture standards.
763
A national organization of LGUs actually initiating

or engaged in organic agriculture; or any private group or
organization actually engaged in organic agriculture, as direct
farm producer, as a promoter/advocate of the ways, methods,
and principles of organic agriculture; or as a marketer of
organic agriculture produce; may also apply for accreditation
as an OCB.
The BAFS shall issue its decision on the application

for accreditation by a core PGS group or any qualified entity
applying for accreditation within sixty (60) days from the
submission of the complete requirements. Failure to render
decision within such period, shall be deemed an approval of
the application for accreditation as an OCB. The BAFS shall
not charge any application fee.
(e) Organization Levels.
(1) The Core PGS Group. Every core PGS group should
have at least five (5) members, composed of farmers from a
combination of both the crops and livestock sectors. It may add
to its membership farmers from other sectors in agriculture.
NGOs, people’ s organizations, buyers of organic agriculture
products, suppliers of organic inputs, among others, who all
live or operate within the province and regularly interact with
the concerned PGS group.
Each core PGS shall have the following duties and

responsibilities:
(i) Develop an understanding of the organic standards;
(ii) Make sure farm practices are compliant;
(iii) Make a pledge that they understand and adhere to

the organic standards;
764
(iv) Conduct inspection and certification activities of

member farms. At least a majority of the members of the core
PGS group who joined in the actual inspection and certification
activity should sign on the truthfulness of the findings of the
inspection and certification activity;
(v) Recommend which farms will be certified;
(vi) Initiate key field trainings for farmer-members and

residents in their locality to promote organic agriculture;
(vii) Attend municipal/provincial PGS meetings and

share information;
(viii) Take actions on defaults/noncompliance as per

sanction guidelines to be provided by the BAFS, OCBs and
municipality/city PGS groups; and
(ix) Assist defaulting and noncompliant members to

regain certification status.
(2) Municipality/City PGS Group. The municipal/city

PGS group shall be composed of the following: 10 one (1)
representative for each core PGS group in the municipality/
city; and 2) one (1) representative from a regional agricultural
state university or college (SUC) or local private agricultural
educational institution: Provided, That there should be at
least two (2) core PGS groups in the municipality/city before a
municipal/city PGS group can be established.
The municipality/city PGS group shall conduct its

business and affairs based on the majority decision of the
members present, after having secured a quorum.
The municipality PGS group shall have the following

powers, duties and responsibilities:
765
(i) Together with the BAFS, develop or update and

implement the PGS, as provided in this Act;
(ii) Ensure that compliant farmer members continue to

comply with all the requirements of the applicable PNS for
organic agriculture and relevant regulatory requirements;
(iii) Maintain a registry of core PGS groups operating

within its area of jurisdiction, which shall be forwarded to the
BAFS on year-end for the latter’s national database;
(iv) Together with the OCB involved in the inspection

and certification activity, and in coordination with the
NAFS, issue participatory organic certificate and the “PGS
guaranteed organic” label/mark to compliant small farmer/
fisherfolk and/or their farm/association/cooperative; and
(v) Submit regularly to the BAFS, a list of certified small

farmer/fisherfolk and/or their farm/association/cooperative.
In case a municipal/city PGS group has yet to be established,

the BAFS, in coordination with the LGU concerned, shall
assume the powers, duties and responsibilities of this group.
(3) Provincial and National PGS group. It shall be the

option of the PGS groups to form their aggrupation at the
provincial and national levels. They shall receive the financial
and technical assistance, support and guidance of the
departments in the NOAB and the DA-BAFS in this regard.
The provincial governments shall encourage and support the
formation and activities of these PGS groups in the different
provinces, cities and municipalities within their jurisdiction.
(f) Promotion. The NOAB shall actively promote, search

and recognize associations or groups that have been practicing
organic agriculture through the PGS, in accordance with this
Act. The NOAB shall ensure that each province in the country
766
has a PGS group. Every PGS group shall conduct trainings

and promote organic agriculture.
(g) Training and Inspection. The Agricultural Training

Institute (ATI) shall, in close coordination with the BAFS,
make available the required training program on organic
agriculture standards and processes for PGS groups applying
for BAFS accreditation. The BAFS shall conduct random
inspections to ensure that PGS groups are all compliant with
the PNS for organic agriculture. The BAFS shall keep a record
of compliant PGS groups in the country and shall publish a
list of such compliance at least once a year.
(h) Incentives. Any small farmer/fisherfolk or their farms/

associations,cooperatives engaged in organic agriculture or
any organic input producer, certified by its core PGS group
or any OCB, accredited under this section, to be compliant
for a period of five (5) years, without any offense or infraction,
shall be eligible for a full government subsidy of the cost for
an international certification for one (1) year: Provided, That
they shall export their products. Further, so long as the same
entities maintain their status for compliance, they shall be
invited and given, for free, prime location in any government
agency-initiated or sponsored trade and business marketing
gathering of Filipino products, for the purpose of displaying
and selling their own organic products.”
SEC. 11. Section 13 of Republic Act No. 10068 is hereby

renumbered as Section 15.

amended and renumbered, to read as follows:
“SEC. 16. Local Executive Concerns. - Every provincial

governor shall, insofar as practicable x x x.
xxx
767
xxx
Local government units shall coordinate with the DA-

Bureau of Plant Industry for the establishment and/or
strengthening of local organic seed centers in order to increase
farmers’ adoption to organic agriculture.
The municipalities and cities are hereby enjoined to

enact ordinances that shall protect organic farming zones and
organic farming practices.
x x x.”

repealed and replaced with a new Section 17, to read as follows:
“SEC. 17. Registration of Organic Producers, Produce,

Inputs, and Organic Processed Food. - The BAFS of the DA
shall be responsible for the registration of integrated organic
farms and organic inputs such as organic soil amendments
and organic bio-control agents. The Bureau of Plant Industry
(BPI) of the DA shall be responsible for the registration of
organic seeds, planting materials and crops.
Further, the Bureau of Animal Industry (BAI) of the DA

shall be responsible for the registration of organic agriculture
farms, livestock and poultry and its feeds. The Bureau of
Fisheries and Aquatic Resources (BFAR) of the DA shall
be responsible for the registration of organic fisheries and
aquaculture resources and organic aquaculture feeds.
The BAFS, BPI, BAI, and BFAR of the DA shall come

up with a single unified set of rules and regulations for the
registration of organic produce and inputs.
The Food and Drug Administration (FDA) of the

Department of Health (DOH) shall be responsible for the
product registration of organic processed food. It shall
768
formulate its rules and regulations for the registration of

organic pre-packaged and processed food.”

“SEC. 18. Labeling of Organic Produce. - The label of

organic produce shall contain the name, logo or seal of the
OCB and the accreditation number issued by the BAFS. The
organic label/mark shall also include the trade name, as
defined by pertinent domestic property rights laws, and the
address of origin of the produce.
Products which are certified and guaranteed by third-

party organic certification system and the PGS shall be
allowed to be labelled and sold as organic.”

renumbered accordingly.

repealed and a new section is inserted, to read as follows:
“Section 20. Market Development and Trade Promotion. -

The agribusiness and marketing assistance service of the DA,
in collaboration with other relevant agencies, shall develop
and implement market development and trade promotion
programs for organic agriculture, including, but not limited
to, the following:
(a) Development of marketing agenda for organic

agriculture;
(b) Establishment ensuring sustainability and monitoring

of organic trading posts and stalls/outlets: Provided, That
these trading posts and stalls/outlets are strategically located
in an area such as in the public market and in other centers of
trading and local business activities;
769
(c) Development of market information system;
(d) Promotion of organic food, non-food and input

products; and
(e) Facilitation of market matching activities.”
SEC. 17. Section 20 to 24 of Republic Act No. 10068 are hereby

renumbered accordingly.

“SEC. 26. Appropriations. x x x.
The Department of Budget and Management shall

include annually in the President’s program of expenditure
for submission to and approval by Congress One billion pesos
(P1,000,000,000.00) for the promotion and development of the
national Organic Agriculture Program, allocated as follows:
Thirty-five percent (35%) for shared facilities;
Twenty-five percent (25%) for seeds development/

planting materials and animals distribution and feed for
aquaculture, soil amendments and bio-control agents;
Twenty percent (20%) for extension and training;
Five percent (5%) for socialized credit;
Five percent (5%) for small scale irrigation system;
Five percent (5%) for research and development;
and
Five percent (5%) for marketing and promotion.ℒαwρhi৷
770
x x x.”
SEC. 19. Section 26 is hereby amended and renumbered, to

read as follows:
“SEC. 27. Penal Provisions and Other Penalties. - Any

person who willfully and deliberately:
xxx
(c) mislabels or claims that the product is organic when it

is not in accordance with the existing standards for Philippine
organic agriculture or this Act shall, upon conviction, be
punished by imprisonment of not less than one (1) month nor
more than six (6) months, or a fine of not more than Fifty
thousand (P50,000.00), or both, at the discretion of the court.
If the offender is a corporation or a juridical entity, the official
who ordered or allowed the commission of the offense shall
be punished with the same penalty. If the offender is in the
government service, he/she , in addition, be dismissed from
the office: Provided, That any OBC found to have issued a
certification to a farm or producer established to be not
compliant with any of the PNS for organic agriculture or with
the provisions of this Act, shall be penalized by the BAFS as
follows:
(1) First Offense: Written warning
(2) Second offense. Suspension of accreditation.”

amended and renumbered as Section 28, to read as follows:
“SEC. 28. Implementing Rules and Regulations. - The

NOAB shall adopt rules and regulations to implement
provisions of this Act within ninety (90) days from the
effectivity of this Act and submit the same to the COCAFM.
In the drafting of the implementing rules and regulations, the
771
Department of Finance (DOF) shall be consulted in connection

with the tax incentive provided under Section 25 hereof.”
SEC. 21. Sections 28 to 32 are hereby renumbered accordingly.
SEC. 22. Separability Clause. - If any provision of this Act

is declared invalid or unconstitutional, the other provisions not
affected thereby shall remain in force and effect.
SEC. 23. Repealing Clause. - All laws, presidential decrees,

executive orders, presidential proclamations, rules and regulations
or parts thereof contrary to or inconsistent with this Act are hereby
days following its publication in at least two (2) newspapers of
general circulation or in the Official Gazette.
Approved,
(Sgd.) LORD ALLAN JAY Q. VELASCO (Sgd.) VICENTE C. SOTTO III

of Representatives

House Bill No. 6878 was passed by the Senate of the Philippines
on October 13, 2020 and the House of Representatives in a special
session on October 16, 2020.
(Sgd.) JOCELIA BIGHANI C. SIPIN (Sgd.) MYRA MARIE D. VILLARICA

772
Approved: DEC 23 2020

773
S. No. 1978
H. No. 6149

Metro Manila
Eighteenth Congress
Begun and held in Metro Manila, on Monday, the twenty-sixth day

of July, two thousand twenty-one.
AN ACT DECLARING THE PROVINCE OF CATANDUANES AS

THE ABACA CAPITAL OF THE PHILIPPINES

SECTION 1. Declaration of Policy. - Section 1, Article XII of

the 1987 Constitution provides that the State shall promote the
industrialization and full employment based on sound agricultural
development and agrarian reform, through industries that make
full and efficient use of human and natural resources, which are
competitive in both domestic and foreign markets.
Towards this end, the State hereby recognizes the importance

of abaca industry and its development as a driver of rural development
not only because of its singular potential as a raw material that
can increase the country’s export earnings tremendously, and put
the name of the country in the map of the world for producing the
biggest volume of abaca fiber, but for having provided livelihood to
many small farmers in the countryside.
SEC. 2. Abaca Capital of the Philippines. - In recognition of

its status as the country’s biggest producer of abaca and making
the Philippines world-renowned as “Manila Hemp” in the fiber
774
industry, and in support to agricultural development of the province,

it is hereby declared that Catanduanes be the Abaca Capital of the
Philippines.
SEC. 3. Repealing Clause. - Any law, presidential decree or

issuance, executive order, letter of instruction, rule or regulation
inconsistent or contrary to the provisions of this Act is hereby
SEC. 4. Effectivity. - This Act shall take effect fifteen (15) days
after its publication in the Official Gazette or in at least two (2)
Approved,
(Sgd.) LORD ALLAN JAY Q. VELASCO (Sgd.) VICENTE C. SOTTO III

of Representatives
This Act was passed by the Senate of the Philippines as

Senate Bill No. 1978 on January 31, 2022 and adopted by the House
of Representatives as an amendment to House Bill No. 6149 on
February 2, 2022.
(Sgd.) MARK LLANDRO L. MENDOZA (Sgd.) MYRA MARIE D. VILLARICA

Approved:
RODRIGO ROA DUTERTE

Lapsed into law on APR 15 2022 without the signature of

the President, in accordance with Article VI, Section 27 (1) of the
Constitution.
775
776
LEGISLATIVE MEASURES – BATAS PAMBANSA
Batas Pambansa
777
778
CABINET BILL No. 31
REPUBLIC OF THE PHILIPPINES

BATASANG PAMBANSA
Metro Manila
Begun and held in Quezon City, Metropolitan Manila, on Monday,

the twenty-third of July, nineteen hundred and seventy-nine.
BATAS PAMBANSA BLG. 65
AN ACT AMENDING FURTHER REPUBLIC ACT NUMBERED

SEVEN HUNDRED TWENTY, AS AMENDED, OTHERWISE
KNOWN AS THE "RURAL BANKS' ACT"
Be it enacted by the Batasang Pambansa in session assembled:
SECTION 1. Section 3 of Republic Act No. 720, as amended, is

"SEC. 3. In furtherance of this policy, the Monetary Board of

the Central Bank of the Philippines shall formulate the necessary
rules and regulations governing the establishment and operation of
Rural Banks for the purpose of providing adequate credit facilities
to farmers and merchants, or to cooperatives of such farmers or
merchants and, in general, to the people of the rural communities,
and to supervise the operation of such banks."

"SEC. 4. No Rural Bank shall be operated without a Certificate

of Authority of the Monetary Board of the Central Bank. Rural
Banks shall be organized in the form of stock corporations. Duly
established cooperatives and corporations primarily organized to
hold equities in Rural Banks may organize a Rural Bank and/or
779
subscribe to the shares of stock of any Rural Bank subject to such

rules as the Monetary Board may prescribe. With the exception of
shareholdings of corporations organized primarily to hold equities
in Rural Banks as provided for under Section 12-C of Republic Act
No. 337, as amended, and of Filipino-controlled domestic banks,
the capital stock of any Rural Bank shall be owned and held directly
or indirectly by citizens of the Philippines. If subscription of private
shareholders to the capital stock of a Rural Bank cannot be secured
or is not available, or is insufficient to meet the normal credit
needs of the locality, the Development Bank of the Philippines, on
representation of the said private shareholders, and upon approval
of the Monetary Board of the Central Bank, shall subscribe to the
capital stock of such Rural Bank, which shall be paid in full at the
time of subscription, in an amount equal to the fully paid subscribed
capital of the private shareholders but not exceeding one million
pesos or such amount as the Monetary Board may prescribe as may
be necessary to promote and expand rural economic development:
Provided, however, That such shares of stock subscribed by the
Development Bank of the Philippines may be sold at any time at par
to private individuals who are citizens of the Philippines: Provided,
finally, That in the sale of shares of stock subscribed by the
Development Bank of the Philippines, the registered stockholders
shall have the right of pre-emption within one year from the date of
offer in proportion to their respective holdings, but in the absence of
such buyer, preference, however, shall be given to residents of the
locality or province where the Rural Bank is located.
"All members of the Board of Directors of the Rural Bank

shall be citizens of the Philippines: Provided, however, That no
appointive or elective official, whether full-time or part-time, shall
at the same time serve as officer of any Rural Bank except in cases
where such service is incident to financial assistance provided by
the Government or a government-owned or controlled corporation
to the bank."

as follows:
780
"SEC. 5. Loans or advances extended by Rural Banks organized

and operated under this Act, shall be primarily for the purpose of
meeting the normal credit needs of farmers or farm families owning
or cultivating land dedicated to agricultural production as well as the
normal credit needs of cooperatives and merchants. In the granting
of loans, the Rural Bank shall give preference to the application of
farmers and merchants whose cash requirements are small.
"Loans may be granted by Rural Banks on the security of

lands without Torrens titles where the owner of private property can
show five years or more of peaceful, continuous and uninterrupted
possession in concept of owner; or of portions of friar land estates or
other lands administered by the Bureau of Lands that are covered
by sales contracts and the purchasers have paid at least five years
installment thereon, without the necessity of prior approval and
consent by the Director of Lands; or of portions of other estates
under the administration of the Ministry of Agrarian Reform or other
governmental agency which are likewise covered by sales contracts
and the purchasers have paid at least five (5) years installment
thereon, without the necessity of prior approval and consent of the
Ministry of Agrarian Reform or corresponding governmental agency;
or of homesteads or free patent lands pending the issuance of titles
but already approved, the provisions of any law or regulations to the
contrary notwithstanding: Provided, That when the corresponding
titles are issued same shall be delivered to the register of deeds
of the province where such lands are situated for the annotation
of the encumbrance: Provided, further, That in the case of lands
pending homestead or free patent titles, copies of notices for the
presentation of the final proof shall also be furnished the creditor
rural bank and, if the borrower-applicant fail to present the final
proof within thirty (30) days from date of notice, the creditor rural
bank may do so for them at their expense: Provided, furthermore,
That the applicant for homestead or free patent has already made
improvements on the land and the loan applied for is to be used for
further development of the same or for other productive economic
activities: Provided, finally, That the appraisal and verification of
the status of a land ds a full responsibility of the Rural Bank and
any loan granted on any land which shall be found later to be within
781
the forest zone shall be for the sole account of the Rural Bank to the
exclusion of the Central Bank counterpart.
"The foreclosure of mortgages covering loans granted by

Rural Banks and executions of judgments thereon involving
real properties levied upon by a sheriff shall be exempt from the
publications in newspapers now required by law where the total
amount of loan, including interests due and unpaid, does not exceed
Ten Thousand Pesos (P10,000.00) or such amount as the Monetary
Board may prescribe as may be warranted by prevailing economic
conditions. It shall be sufficient publication in such cases if the
notices of foreclosure and execution of judgment are posted in the
most conspicuous area of the Municipal Building, the Rural Bank
and the Barangay Hall where the land mortgaged is situated during
the period of sixty days immediately preceding the public auction or
execution of judgment. Proof of publications as required herein shall
be accomplished by affidavit of the sheriff or officer conducting the
foreclosure sale or execution of judgment and shall be attached with
the records of the case: Provided, That when a homestead or free
patent land is foreclosed, the homesteader or free patent holder, as
well as his heirs shall have the right to redeem the same within two
years from the date of foreclosure in the case of land not covered by
a Torrens title or two years from the date of the registration of the
foreclosure in the case of land covered by a Torrens title: Provided,
finally, That in the case of borrowers who are mere tenants, the
produce corresponding to their share may be accepted as security."

as follows:
"SEC. 7. To provide supplemental capital to any Rural Bank

until it has accumulated enough capital of its own or stimulate
private investments in Rural Banks, the Development Bank of
the Philippines shall, upon certification of the Monetary Board
which shall be final, of the existence of such need, subscribe within
thirty days to capital stock of any Rural Bank from time to time
in an amount equal to the total equity investment of the private
shareholders which shall be paid in full at the time of subscription
782
but not exceeding one million pesos or such amount as the Monetary
Board may prescribe as may be necessary to promote and expand
rural economic development: Provided, however, That shares of
stock issued to the Development Bank of the Philippines, pursuant
to this section, may, at any time, be paid off at par and retired
in whole or in part if, in the opinion of the Monetary Board, the
Rural Bank has accumulated enough capital strength to permit
retirement of such shares; or if an offer is received from private
sources to replace the equity investment of the Development Bank of
the Philippines with an equivalent investment or more in the equity
of such Bank. In case of such retirement of stock or replacement of
equity investments of the Development Bank of the Philippines, the
registered private shareholders of the Rural Bank shall have the
right of pre-emption within one year from date of offer in proportion
to their respective holdings.
"Stock held by the Development Bank of the Philippines, under

the terms of this section, shall be made preferred only as to assets
upon liquidation and without the power to vote and shall share in
dividend distributions not exceeding two percent thereof without
preference: Provided, however, That if such stock of the Development
Bank of the Philippines is sold to private shareholders, the same
may be converted into common stock of the class provided for in
section nine: Provided, further, That pending the amendment of the
Articles of Incorporation of the Rural Bank, if necessary, for the
purpose of reflecting the conversion into common stock of preferred
stock sold to private shareholders, the transfer shall be recorded
by the Rural Bank in the stock and transfer book and such
shareholders shall thereafter enjoy all the rights and privileges of
common stockholders. The preferred stocks so transferred shall be
surrendered and cancelled and the corresponding common stocks
shall be issued.
"The corporate secretary of the Rural Bank shall submit to the

Central Bank and the Securities and Exchange Commission a report
on every transfer of preferred stock to private shareholders, and
such report received by the Securities and Exchange Commission
shall form part of the corporate records of the Rural Bank. When
783
all the preferred shares of stock of a Rural Bank have been sold
to private shareholders, the Articles of Incorporation of the Rural
Bank shall be amended to reflect the conversion of the preferred
shares of stock into common stock. For this purpose, the President,
the corporate secretary, and a majority of the Board of Directors
shall issue a certificate that all preferred shares have been sold and
transferred to private shareholders which, together with a copy of
the Articles of Incorporation, as amended, duly certified correct
by the said President, corporate secretary, and a majority of the
Board of Directors, shall be filed with the Securities and Exchange
Commission, which shall attach the same to the original Articles of
Incorporation on file with said office.
"The Securities and Exchange Commission shall not register

the amended articles of incorporation unless accompanied by the
certificate of authority required under Section nine of Republic Act
Numbered Three Hundred and Thirty-seven, as amended."
SEC. 5. Section 9 of the same Act "is hereby amended to read

as follows:
"SEC. 9. Stock preferred as to assets upon liquidation shall

be issued to represent the contributions to capital stock of the
Rural Bank by the Government through the Development Bank
of the Philippines, and by qualified persons under such terms and
conditions as the Monetary Board may prescribe. The powers of
the Monetary Board over Rural Banks shall extend to prescribing
the amount, value and class of stock issued by any Rural Bank,
organized under this Act."
Sec. 6. Section 11 of the same Act is hereby amended to read

as follows:
"SEC. 11. In addition to the operations specifically authorized

in this Act, any Rural Bank may perform the following services:
"(a) Accept savings and time deposits;
784
"(b) Act as correspondent for other financial institutions;
"(c) Act as a collection agent;
"(d) Offer other banking services as provided in Section 72 of

Republic Act No. 337, as amended.
"With written permission of the Monetary Board of the

Central Bank, any Rural Bank may:
"(a) Open current or checking accounts;
"(b) Act as trustee over estates or properties of farmers and

merchants;
"(c) Act as official depository of municipal, city or provincial

funds in the municipality, city or province where it is located,
when so authorized by the Monetary Board in accordance with
the provisions of Republic Act Numbered Two hundred sixty-
five, as amended, and subject to such limitations as may be deemed
necessary for the protection of said funds.
"(d) Rediscount paper with the Philippine National Bank or

the Development Bank of the Philippines, or other banks and their
branches and agencies. The Central Bank shall specify the·· nature
of paper deemed acceptable for rediscount, as well as the rediscount
rate to be charged by any of these institutions.
"Nothing in this section shall be construed as precluding a

Rural Bank from performing, with prior approval of the Monetary
Board, all the services authorized for savings and mortgage banks,
or for commercial banks, under Republic Act Numbered Three
hundred and thirtyseven, as amended, or from operating under an
expanded banking authority as provided in section 21-B of the same
Act."
SEC. 7. Section 11-A of the same Act is hereby amended to

read as follows:
785
"SEC. 11-A. Rural Banks may invest in equities of allied

undertakings as may be approved by the Monetary Board: Provided,
That (a) the total investment in equities shall not exceed twenty-
five percent of the net worth of the Rural Bank; (b) the equity
investment in any single enterprise shall be limited to fifteen percent
of the net worth of the Rural Bank; and (c) the equity investment
of the Rural Bank in any single enterprise shall remain a minority
holding in that enterprise except where the enterprise is not a
financial intermediary: Provided, further, That where such allied
undertaking is a wholly or majority-owned subsidiary of a Rural
Bank, the same may be subject to examination by the Central Bank:
Provided, finally, That equity investments shall not be permitted
in non-related activities."

as follows:
"SEC. 19. Every individual acting as officer or employee of

a Rural Bank and handling funds or securities amounting to five
thousand pesos or more, in any one year, shall be covered by an
adequate bond as determined by the Monetary Board; and the by-
laws of the Rural Bank may also provide for the bonding of other
employees or officers of Rural Banks."
SEC. 9. All acts inconsistent herewith are hereby repealed or

Approved,
(Sgd.) QUERUBE C. MAKALINTAL

Speaker
786
This Act was passed by the Batasang Pambansa on March 27,

1980.
(Sgd.) ANTONIO M. DE GUZMAN

Secretary
Approved: April 1, 1980

BP 65 amended RA 720.
787
P. B. No. 1880

BATASANG PAMBANSA
Fourth Regular Session
AN ACT AUTHOR IZING THE MINISTR Y OF HUMAN

SETTLEMENTS TO ESTABLISH AND PROMULGATE
DIFFERENT LEVELS OF STANDARDS AND TECHNICAL
REQUIREMENTS FOR ECONOMIC AND SOCIALIZED
HOUSING PROJECTS IN URBAN AND RURAL AREAS
FROM THOSE PROVIDED UNDER PRESIDENTIAL
DECREES NUMBERED NINE HUNDRED FIFTY-SEVEN,
TWELVE HUNDRED SIXTEEN, TEN HUNDRED NINETY-
SIX AND ELEVEN HUNDRED EIGHTY-FIVE
SECTION 1. It is hereby declared a policy of the Government

to promote and encourage the development of economic and
socialized housing projects, primarily by the private sector, in order
to make available adequate economic and socialized housing units
for average and low-income earners in urban and rural areas.
SEC. 2. As used in this Act, economic and socialized housing

refers to housing units which are within affordability level of the
average and low-income earners which is thirty percent (30%) of
the gross family income as determined by the National Economic
and Development Authority from time to time. It shall also refer
to the government-initiated sites and services development and
construction of economic and socialized housing projects in depressed
areas.
SEC. 3. To carry out the foregoing policy, the Ministry of

Human Settlements is authorized to establish and promulgate
788
different levels of standards and technical requirements for the

development of economic and socialized housing projects and
economic and socialized housing units in urban and rural areas
from those provided in Presidential Decree Numbered Nine
hundred fifty-seven, otherwise known as the “Subdivision and
Condominium Buyers’ Protective Decree,” Presidential Decree
Numbered Twelve hundred and sixteen, “Defining Open Space
in Residential Subdivision”; Presidential Decree Numbered Ten
hundred and ninety-six, otherwise known as the “National Building
Code of the Philippines”; and Presidential Decree Numbered Eleven
hundred and eighty-five, otherwise known as the “Fire Code of the
Philippines” and the rules and regulations promulgated thereunder,
in consultation with the Ministry of Public Works and Highways,
the Integrated National Police, and other appropriate government
units and instrumentalities and private associations.
SEC. 4. The standards and technical requirements to

be established under Section three hereof shall provide for
environmental ecology, hygiene and cleanliness, physical, cultural
and spiritual development and public safety and may vary in each
region, province or city depending on the availability of indigenous
materials for building construction and other relevant factors.
SEC. 5. The different levels of standards and technical

requirements that shall be established and promulgated by the
Ministry of Human Settlements only after public hearing and
shall be published in two newspapers of general circulation in the
Philippines for at least once a week for two consecutive weeks and
shall take effect thirty days after the last publication.
Approved, March 25, 1982.
789
P.B. No. 880

BATASANG PAMBANSA
Fifth Regular Session
AN ACT ENACTING A LOCAL GOVERNMENT CODE
BOOK I.—GENERAL PROVISIONS
TITLE ONE.—BASIC PRINCIPLES
CHAPTER 1.—The Code: Policy and Application
SECTION 1. Title of Act.—This Act shall be known and

referred to as the “Local Government Code.”
SEC. 2. Declaration of Policy.—The State shall guarantee and

promote the autonomy of local government units to ensure their
fullest development as self-reliant communities and make them
more effective partners in the pursuit of national development
and social progress. To this end, the State shall constantly find
and effectuate ways of enhancing their capabilities in discharging
these responsibilities through a responsive and accountable
local government structure instituted through a system of
decentralization whereby local governments shall be given more
powers, responsibilities and resources.
SEC. 3. Scope of Application of Code.—This Code shall apply

to all local governments and, to the extent herein provided, to
officials, offices or agencies of the national government.
790
SEC. 4. Rules of Interpretation.—(1) Any power of a barangay,

municipality, city or province shall be liberally construed in its
favor. Any fair and reasonable doubt as to the existence of the
power shall be interpreted in favor of the local government unit
concerned.
(2) The general welfare provisions in this Code shall be

liberally interpreted so as to give more power to local governments
in promoting the economic uplift, social welfare and material
progress of the people in the community.
(3) Vested rights existing on the date of the effectivity of

this Code arising out of contracts or any other source of obligation
between a province, city, municipality or barangay and another
party, shall be governed by the original terms and provisions of
said contract or the law in force at the time such rights became
vested and in no case shall this Code infringe on them.
(4) When in the resolution of controversies arising under this

Code no legal provision or jurisprudence can be found to apply,
resort may be had to the customs and traditions in the place where
the controversy arose.
XXX XXX XXX
SEC. 208. Powers and Duties.—The sangguniang

panlalawigan shall:
(a) Enact such ordinances as may be necessary to carry

into effect and discharge the responsibilities conferred upon it by
law, and such as shall be necessary and proper to provide for the
health, safety, comfort and convenience, maintain peace and order,
improve public morals, and promote the prosperity and general
welfare of the province and its inhabitants;
(b) Prescribe reasonable limits and restraints on the use of

property, and for violation of ordinances, provide for imposition of a
791
fine not exceeding one thousand pesos or six months imprisonment,

or both such fine and imprisonment, at the discretion of the court;
(c) Levy taxes for general and special purposes and fix the
taxes thereof in accordance with the provisions of this Code;
(d) Impose and fix reasonable fees and charges for all services
rendered by the province to private parties;
(e) Upon the majority vote of all the members, authorize

the governor to negotiate and contract loans and other forms of
obligations in accordance with the provisions of this Code, or to float
bonds for development projects, subject to such limitations as may
be provided by law;
(f) Upon recommendation of the provincial governor,

appropriate money for purposes not specified by law which will
promote the general welfare of the province and its inhabitants;
(g) Fix in accordance with law the number and salaries of

officials and employees of the province paid from provincial funds
and provide for expenditures that are necessary for the proper
conduct of the activities of the provincial government;
(h) Provide funds for the construction and maintenance and

rental of buildings for the use of the province;
(i) Provide for the establishment and maintenance of an

adequate provincial jail and detention center and appropriate
sufficient funds for the subsistence of prisoners and detainees;
(j) Regulate and fix the license fees for sealing and licensing of
weights and measures in conformity with law;
(k) Provide or facilitate the establishment and maintenance of

a waterworks system or district waterworks for supplying water to
inhabitants of its component cities and municipalities;
792
(l) Review ordinances approved by the sanggunian of

component cities and municipalities within the authority granted
by law;
(m) Authorize the payment of compensation or additional

compensation, as the case may be, to any officer or employee, or to
any person not in the government service appointed temporarily to
fill a vacancy at a rate of salary authorized for the position pursuant
to law;
(n) Provide for the establishment and operation of secondary

and vocational schools and colleges subject to existing laws and
regulations and, with the advice of the division superintendent of
schools, fix reasonable fees for instruction therein;
(o) Provide for the establishment and maintenance of

centers and facilities for the rehabilitation and reformation of
vagrants, drug addicts, alcoholics, mendicants, prostitutes, juvenile
delinquents and convicts on probation or parole or who have served
their sentence;
(p) Adopt measures and issue regulations to protect the public

from floods, conflagrations, typhoons, droughts, earthquakes and
other calamities and provide relief for persons suffering from the
same;
(q) Adopt measures and safeguards against pollution for

the preservation of the natural eco-systems in the province, in
consonance with approved standards on human settlements and
environmental sanitation;
(r) Provide for the construction, improvement, repair and

maintenance of roads, bridges, waterways, parks and playgrounds,
and other public works, and regulate the U3e thereof;
(s) Make provisions within the financial capacity of the

province, for the care of the poor, the aged, the sick, or persons
793
of unsound mind, the care and rehabilitation of delinquent and

abandoned minors and other disabled or handicapped persons;
(t) Provide for the suppression of riots, vandalism, tumultuous

affrays, disturbances and disorderly assemblies;
(u) Adopt measures on quarantine as may from time to time

be deemed desirable or necessary to prevent the introduction and
spread of diseases;
(v) Adopt such measures as would enhance the full

implementation of the agrarian reform program of the government
in coordination with the Ministry of Agrarian Reform; and
(w) Exercise such other powers and perform such other duties
and functions as may be prescribed by law or ordinance.
SEC. 209. Approval of Ordinances by the Governor; Veto

Power.— (1) Every ordinance or resolution passed by the sangguniang
panlalawigan shall be forwarded to the governor.
(2) Within fifteen days after receipt of the ordinance or

resolution, the governor shall return it with either his approval or
his veto. If he does not return it within that time, it shall be deemed
approved.
(3) If the governor should consider the ordinance or resolution

prejudicial to the public welfare, he may veto it by signifying to
the sangguniang panlalawigan his disapproval thereof in writing.
The sangguniang panlalawigan may, by two-thirds vote of all
its members, pass an ordinance or resolution over the veto of
the governor, in which case it shall become effective without his
approval.
(4) The governor shall have the power to veto any particular
item or items of an appropriation ordinance or of an ordinance or
resolution directing the payment of money or creating liability,
794
but the veto shall not affect the item or items to which he does not
object. The item or items objected to shall not take effect unless
the sangguniang panlalawigan overrides the veto in the manner
provided in paragraph (3) of this section. The veto power of the
governor shall be exercised only once upon an ordinance or resolution
or upon an item or items in an appropriation ordinance.
SEC. 210. Appropriations.— (1) The governor shall submit

to the sangguniang panlalawigan within the period prescribed by
the Office of Budget and Management, as the basis of the general
appropriations proposal, a budget of receipts based on existing and
proposed revenue measures and of expenditures. The form, content,
and manner of preparation of the budget shall be prescribed by law.
(2) No provision or enactment shall be embraced in the

general appropriations proposal unless it relates specifically to some
particular appropriations thereof. Any such provision or enactment
shall be limited in operation to the appropriation to which it relates.
(3) The procedure in approving appropriations for the

sangguniang panlalawigan shall strictly follow the procedure for
approving appropriations for other provincial services and offices.
(4) If, by the end of any fiscal year, the sangguniang

panlalawigan shall have failed to pass the general appropriations
for the ensuing fiscal year, the general appropriations ordinance
for the preceding fiscal year shall be deemed reenacted and shall
remain in force and effect until the general appropriations proposal
is passed by the said sanggunian.
(5) The sangguniang panlalawigan may appropriate funds

as aid to institutions of a charitable, benevolent, or exceptional
character only if the institution to be assisted is operated and
maintained in the province, or in its component city or municipality,
or their component barangays.
XXX XXX XXX
795
TITLE FOUR.—FINAL PROVISIONS
SEC. 232. Separability Clause.—If, for any reason or reasons,

any part or provision of this Code shall be held to be unconstitutional
or invalid, other parts or provisions hereof which are not affected
thereby shall continue to be in full force and effect.
SEC. 233. Repealing Clause; Metropolitan Manila and the

Sangguniang Pampook of Regions IX and XII.—(1) Except as
otherwise provided herein, all laws, acts, city charters, decrees,
executive orders, proclamations and administrative regulations,
or part or parts thereof which are inconsistent with this Code are
(2) Until otherwise provided by law, nothing in this Code

shall be understood to amend or repeal the pertinent provisions of
Presidential Decree No. 824 and Batas Pambansa Blg. 20, and all
presidential decrees and issuances relevant to Metropolitan Manila
and the Sangguniang Pampook of Regions IX and XII.
SEC. 234. Effectivity Clause.—Unless otherwise specifically

provided herein, this Code shall take effect one month after its
publication in the Official Gazette.
BP 337 amended or repealed BP 20.

BP 337 amended or repealed PD 824.
796
P. No. 2069S

BATASANG PAMBANSA
Sixth Regular Session
Begun and held in Quezon City, Metropolitan Manila, on Monday, the

twenty-fifth day of July, nineteen hundred and eighty-three.
AN ACT EXEMPTING FROM PAYMENT OF DONOR’S TAX,

DONATIONS OF PRIVATE AGRICULTURAL LANDS AND/
OR HOMELOTS AND WAIVERS OF COMPENSATION
UNDER THE AGRARIAN REFORM PROGRAM, AND FOR
OTHER PURPOSES
SECTION 1. The provisions of existing laws to the contrary

notwithstanding, donations of private agricultural lands and/or
homelots not covered by Operation Land Transfer (OLT) under
Presidential Decree Numbered Twenty-seven, as amended, made
to or in favor of tenant-farmers, actual tillers and/or occupants,
pursuant to the agrarian reform program of the government, shall
be exempt from the payment of donor’s tax. Claims for exemption
under this provision shall be allowed upon certification by the
Ministry of Agrarian Reform that the donee is a tenant-farmer,
actual tiller and/or occupant of the land donated which, in no
case, shall exceed a family-size farm and/or homelot area and that
the donation conforms with the agrarian reform program of the
government. For purposes of this Act, the terms ‘family-size farm
and/or homelot area” and “tenant-farmer, actual tiller and/or
occupant” shall be understood in the sense that they are defined
in existing laws, rules, regulations and guidelines establishing and
implementing the land reform program of the government.
797
The certification shall be issued within sixty days from receipt

of the request therefor.
In case the land donated is tenanted, in no case shall the

security of tenure of the tenant be violated.
SEC. 2. No land and/or homelot donated under the provisions

of this Act shall be further transferred to anybody except by
hereditary succession or to the government. Any violation of this
provision will subject the donee to liability for the payment of the
donor’s tax.
SEC. 3. The tax exemption provided under Section 1 hereof

can also be availed of by a landowner covered by Operation Land
Transfer (OLT) or his successor-in-interest who waives his right
to receive the whole or the balance of the compensation due him
from the Land Bank of the Philippines or the farmer-beneficiary,
as the case may be, and in such case the tenant-farmer shall be
relieved of the obligation to pay the amount waived. Claims for
exemption under this provision shall be allowed upon certification
by the Ministry of Agrarian Reform that the compensation waived
has been determined to be in accordance with the provisions of
Presidential Decree Numbered Twenty-seven, as amended, and its
implementing guidelines, which certification shall be issued within
the period provided for in Section one hereof.
SEC. 4. Fifty percent of the fair market value of the property

donated as determined in the tax declaration of such property at
least one year prior to the donation shall be a deduction against
taxable income of the donor in the year the donation is made. If the
donation is in accordance with the immediately preceding section,
the deduction shall be the whole amount waived.
SEC. 5. The Minister of Finance, in consultation with the

Minister of Agrarian Reform, and upon recommendation of the
Commissioner of Internal Revenue, shall promulgate the necessary
rules and regulations for the effective implementation of this Act.
798
SEC. 6. Any provision of this Act or any part thereof which may
be declared unconstitutional shall not affect the other provisions
hereof.
Approved,
(Sgd.) QUERUBE C. MAKALINTAL

Speaker
This Act was passed by the Batasang Pambansa on December

19, 1983.
(Sgd.) ANTONIO M. DEGUZMAN

Secretary General
Approved: March 7, 1984

PRESIDENT OF THE PHILIPPINES
799
P. No. 1687

BATASANG PAMBANSA
First Session
AN ACT PROHIBITING THE ESTABLISHMENT OF SHARE

TENANCY OR AGRICULTURAL LEASEHOLD RELATION
IN LANDS ACQUIRED UNDER THE AGRARIAN REFORM
PROGRAM OF THE GOVERNMENT, PROVIDING
PENALTIES THEREFOR AND FOR OTHER PURPOSES
SECTION 1. To further carry out the objectives and

purposes of the agrarian reform program of the government, the
establishment of share tenancy or agricultural leasehold relation
as defined by existing laws, in lands acquired under Presidential
Decree Numbered Twenty-seven (27), Republic Act Numbered
Thirty-eight hundred and forty-four (3844), as amended by Republic
Act Numbered Sixty-three hundred and eighty-nine (6389),
Republic Act Numbered Fourteen hundred (1400), Commonwealth
Act Numbered Five hundred thirty-nine (539), in lands acquired
by virtue of the resettlement program of the government under the
administration and disposition of the Ministry of Agrarian Reform,
as well as in lands which may hereafter be acquired under any
agrarian reform program of the government, is hereby declared to
be contrary to public policy, abolished and prohibited: Provided,
That leasehold relations existing at the time of the approval of this
Act may continue in force and effect until the end of the agricultural
year.
SEC. 2. The owner of the land under Section 1 hereof or any

other person who acts in collusion with the owner of the land or who
acts solely on his own, who violates the provisions hereof shall upon
800
conviction suffer a penalty of fine in the amount of not less than

one thousand pesos (P1,000.00) but not more than two thousand
pesos (P2,000.00) in the discretion of the court, with subsidiary
imprisonment in case of insolvency.
In addition thereto, the land shall be forfeited in favor of the

government and the landowner shall not be entitled to a refund
of whatever he shall have paid by way of amortization: Provided,
That should the violator be a juridical person, the latter and its
principal officers and its manager, or the person who has charge of
the management or administration of the property or, in his default,
the person acting in his stead shall be individually liable: Provided,
further, That in either or both cases, the tenant so instituted and
who is included as a party litigant in the case shall not be entitled
to security of tenure and shall be ordered ejected by the court in the
same proceedings: and, Provided, finally, That the guilty party or
parties shall not be entitled to restitution or refund of any advances
or expenses, rents or any amount on account of said tenancy relation.
SEC. 3. The land so forfeited shall be allocated to deserving

citizens by the Minister of Agrarian Reform in accordance with
existing laws, rules and regulations.
SEC. 4. The Ministry of Agrarian Reform, through its

appropriate agencies or offices, motu proprio or upon the complaint of
any interested party, may initiate the filing of the necessary action:
Provided, That no such complaint shall be dismissed upon mere
desistance on the part of the complainant: and, Provided, further,
That cases falling within the purview of this Act shall be under the
exclusive original jurisdiction of the Regional Trial Courts.
SEC. 5. The Ministry of Agrarian Reform shall promulgate

rules and regulations to carry out effectively the aims and purposes
of this Act.
SEC. 6. All laws, decrees, rules and regulations inconsistent

herewith are hereby repealed and modified accordingly.
,
801
Approved, April 18, 1985.
802
P. No.1686

BATASANG PAMBANSA
First Session
AN ACT PROVIDING LEGAL SANCTIONS AGAINST TRANSFER

OF LANDS ACQUIRED UNDER PRESIDENTIAL DECREE
NUMBERED TWENTY-SEVEN OR THE LAND REFORM
PROGRAM OF THE GOVERNMENT AND FOR OTHER
PURPOSES
SECTION 1. Any person who, having acquired ownership of

lands under the provisions of Presidential Decree Numbered Twenty-
seven or the Land Reform Program of the Government and having
been issued emancipation patent or title, transfers or conveys such
land or any portion thereof in violation of said Presidential Decree
Twenty-seven, shall lose ownership thereof, and the person, natural
or juridical, in whose favor the land or portion thereof has been
transferred or conveyed shall acquire no valid right or title thereto.
SEC. 2. The land or portion thereof sold, transferred or

conveyed in violation of Section 1 hereof shall be forfeited in favor of
the State and the owner-beneficiary shall not be entitled to a refund
of whatever he shall have paid by way of amortization.
SEC. 3. The Solicitor General or his authorized representative,

upon the recommendation of the Minister of Agrarian Reform, shall
institute the necessary proceedings for any violation of this Act with
the Regional Trial Court of the province where the land involved is
situated.
803
The action under this section shall prescribe within ten years
from the time that the Minister of Agrarian Reform shall have
official knowledge of such violation.
.
SEC. 4. The Minister of Agrarian Reform shall reallocate the
land so forfeited to qualified and deserving farmers in accordance
with existing laws, rules and regulations within one year from the
date the decision declaring the forfeiture of the land in favor of the
State becomes final and executory.
SEC. 5. The Minister of Agrarian Reform shall promulgate

rules and regulations to carry out the provisions of this Act.
SEC. 6. Any provision of law, decree, executive order or

administrative rule or regulation inconsistent with the provisions
of this Act is hereby repealed, amended, or modified accordingly.
SEC. 7. If any provision of this Act, or its application to any

person or situation is declared unconstitutional, the other provisions
hereof and their application to other situations shall not be affected
and shall remain in full force and effect.
Approved, April 18, 1985.
804
EXECUTIVE ISSUANCES – PRESIDENTIAL DECREES
Presidential Decrees
805
806
PRESIDENTIAL DECREE NO. 2
PROCLAIMING THE ENTIRE COUNTRY AS A LAND REFORM

AREA
WHEREAS, there is pressing need to accelerate the Agrarian

Reform Program of the Government for the early attainment of the
objectives set forth in Republic Act No. 3844, as amended;
WHEREAS, among such objectives is to achieve dignified

existence for the small farmers free from the pernicious
institutional restraints and practices which have not only retarded
the agricultural development of the country but have also produced
widespread discontent and unrest among our farmers, one of the
causes of the existing national emergency; and
WHEREAS, it is believed that the lasting objectives of land

reform may be sooner realized if the whole country is declared a
land reform area;
NOW, THEREFORE, I, FERDINAND E. MARCOS,

President of the Philippines, by virtue of the powers vested in me
by the constitution as Commander-in-Chief of all the Armed Forces
of the Philippines, and pursuant to Proclamation No. 1081 dated
September 21, 1972, and General Order No. 1, dated September
22, 1972, as amended, whereby I have assumed direction of the
operation of the entire Government, do hereby proclaim the whole
country, as land reform area.
All agencies and offices of the Government are enjoined to

extend full cooperation and assistance to the Department of Agrarian
Reform to insure the successful prosecution of the Agrarian Reform
Program.
The Agrarian Reform Coordinating Council created under

Executive Order No. 347, series of 1971, is hereby directed to
convene immediately to exercise its functions.
807
The Secretary of Agrarian Reform shall take the necessary

steps for the prompt and effective implementation of this decree.
Done in the City of Manila, this 26th day of September, in the

year of Our Lord, nineteen hundred and seventy-two.

President
808
PROVIDING FOR THE DEVELOPMENT OF THE RICE AND

CORN INDUSTRY AND CREATING FOR THIS PURPOSE
THE NATIONAL GRAINS AUTHORITY
WHEREAS, there were pending before Congress prior to the

promulgation of Proclamation No. 1081, dated September 21, 1972,
certain priority measures vital to the national development program
of the Government, and which were duly certified by the President
as urgent measures.
WHEREAS, one of these priority measures is the proposed

bill entitled “An Act to Develop the Rice and Corn Industry, Create
the National Grain Authority and Provide Funds Therefor.”
WHEREAS, the rice and corn industry has not been fully
harnessed for the economy of the country nor has it been the object
of a truly integrated development, planning, programming and
implementation;
NOW, THEREFORE, I FERDINAND E. MARCOS, by virtue

of the powers vested in me by the Constitution as Commander-in-
Chief of all the Armed Forces of the Philippines, and pursuant to
Proclamation No. 1081, dated September 21, 1972 and General
Order No. 1 dated September 22, 1972, as amended, in order to effect
desired changes and reforms in the social, economic and political
structure of our society, do hereby decree that the “Act to Develop
the Rice and Corn Industry, Create the National Grain Authority
and Provide Funds Therefor” as hereto attached is hereby adopted,
and approved and made as part of the law of the land.
Changes and modifications in the said “Act to Develop the

Rice and Corn Industry, Create the National Grain Authority
and Provide Funds Therefor” shall be made from time to time, as
necessity requires, to be correspondingly announced by me or by my
duly authorized representative.
809
This decree shall take effect immediately.
All concerned shall act accordingly.
Done in the City of Manila, this 26th day of September in the

year of Our Lord, nineteen hundred and seventy two.
By the President:
ROBERTO V. REYES
Acting Executive Secretary
810
DECREEING THE EMANCIPATION OF TENANT FROM THE

BONDAGE OF THE SOIL, TRANSFERRING TO THEM THE
OWNERSHIP OF THE LAND THEY TILL AND PROVIDING
THE INSTRUMENTS AND MECHANISM THEREFOR
Inasmuch as the old concept of the land ownership by a few

has spawned valid and legitimate grievances that gave rise to
violent conflict and social tension,
The redness of such legitimate grievances being one of the

fundamental objectives of the New Society,
Since Reformation must start with emancipation of the tiller

of the soil from his bondage,
NOW, THEREFORE, I FERDINAND E. MARCOS, President

of the Philippines, by virtue of the powers vested in me by the
Constitution as Commander-in-Chief of all the Armed Forces of
the Philippines, and pursuant to Proclamation No. 1081, dated
September 21, 1972 and General Order No. 1 dated September 22,
1972 as amended do hereby decree and order the emancipation of
all tenant farmers as of this day, October 21, 1972;
This shall apply to all tenant farmers of private agricultural

lands primarily devoted to rice and corn under a system of sharecrop
or lease-tenancy, whether classified as landed estate or not;
The tenant farmer, whether in land classified as landed estate

or not, shall be deemed owner of a portion constituting a family-size
farm of five (5) hectares if not irrigated and three (3) hectares if
irrigated;
In all cases, the landowner may retain an area of not more

than seven (7) hectares if such landowner is cultivating such area
or will now cultivate it;
811
For the purpose of determining the cost of the land to be

transferred to the tenant-farmer pursuant to this Decree, the
value of the land shall be equivalent to two and one-half (2½) times
the average harvest of the three normal crop years immediately
preceding the promulgation of this Decree;
The total cost of the land, including the interest at the rate of
six (6) per centum per annum, shall be paid by the tenant in fifteen
(15) years of fifteen (15) equal annual amortizations;
In case of default, the amortizations due shall be paid by

the farmers cooperative in which the defaulting tenant-farmer is
a member, with the cooperative having a right of recourse against
him;
The government shall guarranty such amortizations with

shares of stock in government-owned and government-controlled
corporations;
No title to the land owned by the tenant-farmers under this

Decree shall be actually issued to a tenant-farmer unless and
until the tenant-farmer has become a full-pledge member of a duly
recognized farmer’s cooperative;
Title to land acquired pursuant to this Decree or the Land

Reform Program of the Government shall not be transferable except
by hereditary succession or to the Government in accordance with
the provisions of this Decree, the Code of Agrarian Reforms and
other existing laws and regulations;
The Department of Agrarian Reform through its Secretary

is hereby empowered to promulgate rules and regulations for the
implementation of this Decree.
All laws, executive orders, decrees and rules and regulations,

or parts thereof, inconsistent with this Decree are hereby repealed
and or modified accordingly.
812
Done in the City of Manila, this 21st day of October, in the


813
MALACAÑANG
Manila
AUTHORIZING THE SECRETARY OF AGRARIAN REFORM

TO SIGN ON BEHALF OF THE PRESIDENT OF THE
PHILIPPINES LAND TRANSFER CERTIFICATES ISSUED
TO TENANT-FARMERS PURSUANT TO PRESIDENTIAL
DECREE NO. 27
WHEREAS, it is my desire that the land reform program

of the Government be implemented with maximum efficiency and
speed;
WHEREAS, the distribution of the Land Transfer Certificates

to be issued pursuant to the implementing Rules and Regulations
for Presidential Decree No. 27 will be expedited if the Secretary of
Agrarian Reform is authorized to sign and issue such Certificates in
the name of, and on behalf of, the President of the Republic of the
Philippines;

President of the Philippines, by virtue of the powers in me vested
by the Constitution, and pursuant to Proclamation No. 1081, dated
September 21, 1972, and General Order No. 1, dated September 22,
1972, do hereby authorize and empower the Secretary of Agrarian
Reform to sign and issue the Land Transfer Certificates to be issued
pursuant to Presidential Decree No. 27 in the name and on behalf of
the President of the Republic of the Philippines.
This Decree shall take effect immediately; it shall be part of

the law of the land.
814
Done in the City of Manila, this 22nd day of December, in the


By the President:
(Sgd.) ROBERTO V. REYES

Assistant Executive Secretary
815
MALACAÑANG
MANILA
CREATING THE AGRARIAN REFORM FUND TO SUPPORT

FINANCING REQUIREMENTS OF AGRARIAN REFORM
PROVIDED IN PRESIDENTIAL DECREE NO. 27 AND FOR
OTHER PURPOSES
WHEREAS, there is an imperative need for immediate

implementation of agrarian reform provided in Presidential Decree
No. 27 dated October 21, 1972;
WHEREAS, such implementation calls for timely and

adequate financial support in all phases involved in the execution of
desired agrarian reforms;
WHEREAS, there is need to mobilize and harness properly

available resources to provide necessary funds for the realization of
government agrarian reform;

by the Constitution as Commander-in-Chief of all the Armed Forces
of the Philippines and pursuant to Proclamation No. 1081 dated
September 21, 1972 and General Order No. 1 dated September 22,
1972, as amended, do hereby order and decree:
SECTION 1. Establishment of the Agrarian Reform Fund. An

Agrarian Reform Fund, hereinafter referred to as the “Fund” is
hereby established to finance and/or guaranty the payment of farm
lots acquired under Proclamation No. 27, dated October 21, 1972,
and to extend agricultural credit support and the corresponding
guarantee coverage to achieve a high level of production in land
reform areas of the country.
816
The resources of the Fund shall be drawn from the following:
1. Central Bank of the Philippines
a. Bonds in Portfolio
2. Guarantee Funds
a. Agricultural Guarantee Fund
b. Agricultural Guarantee and Loan Fund
c. CB-Loan Guarantee Fund (Calamity Fund)
3. Development Bank of the Philippines
a. Preferred shares in client corporations
b. Government-counterpart preferred stocks in rural

banks
c. Preferred stocks in development banks
d. Acquired assets
e. Reparations Account Receivables
f. Other disposable assets
4. Philippine National Bank
a. Acquired assets
5. National Investment and Development Corporation
a. Acquired assets
817
6. Government Service Insurance System
a. Acquired assets
7. Land Bank
a. Shares of stock owned or controlled by the Government
8. Agrarian Reform Special Account
a. Allocation for Agricultural Guarantee Fund and Land

Bank
9. Proceeds from foreign loans
10. Social Security System
a. Acquired assets
11. Other disposable assets of the government as may be

available for the land reform program.
12. Other funds and resources provided by law.
The resources listed above shall be turned over to the Agrarian

Reform Fund at such time, terms, prices and conditions as shall
be agreed upon between the Agrarian Reform Fund Commission
and the financial institution and government agencies concerned,
payment to be made by the former to latter in Agrarian Reform
Bonds issued pursuant to Section 5 of this Decree.
SEC. 2. Utilization of the Resources of the Fund. All resources

of the Fund shall be utilized for the attainment of the objectives of
the Fund as follows;
818
1. Financing of acquisition of lands under any of the following

modes of settlement;
(a) Cash payment, subject to availability of funds, for

small landholding;
(b) Exchange arrangement for government stocks in

government-owned or controlled corporations or
private corporations where the government has
holdings;
(c) Payment through the establishment of annuities

of pensions with guarantee against inflation and/or
medical insurance;
(d) Full guaranty on the payment of the fifteen (15) equal

annual amortizations to be made by the tenant-
farmers; and
(e) Such other modes of settlement as may be adopted by

the Agrarian Reform Fund Commission.
2. Financing agricultural production and/or commodity loans

through banking institutions and/or issuance of guarantee
of losses up to eighty-five (85%) per cent of the amount of
the production loan under such terms and conditions as the
Agrarian Reform Fund Commission may prescribe.
SEC. 3. Administration of the Fund. There is hereby created

an Agrarian Reform Fund Commission, hereinafter referred to as
the Commission, composed of the Secretary of Finance as Chairman
and the Governor of the Central Bank of the Philippines and the
Secretary of Agrarian Reform as members, which shall administer
the Fund. In the event that the Chairman or any members of
the Commission is unable to attend any meeting thereof he shall
designate the next ranking official of the office or agency concerned
to represent him in the meeting of the Commission.
819
Operational expenses of the Commission shall be advanced

by the Central Bank of the Philippines until such time as the Fund
generates income sufficient for the purpose. The Commission shall
reimburse the Central Bank for its advances, including interests, if
any, as soon as possible.
SEC. 4. Powers and Duties of the Commission. The Commission

shall have exclusive administration and control of the Fund, which
shall include the authority to invest and dispose of the assets
under its administration. For this purpose, it shall be empowered
to promulgate such rules and regulations necessary for effective
operations of the Fund and may execute acts or perform activities
for the best interest of the Fund.
SEC. 5. Issuance of Bonds. The Secretary of Finance shall,

upon recommendation of the Commission and the Monetary Board
of the Central Bank and with the approval of the President of
the Philippines, issue bonds, debentures and other evidences of
indebtedness for the account of the Fund at such terms, rates and
conditions to be determined by the Commission. Such bonds and
other obligations shall be secured by the assets of the Fund and
shall be fully tax exempt both as to principal and income. Said
income shall be paid to the landholders every six months from the
date of issue.
These bonds and other obligations issued for the account

of the Fund shall be direct obligations of the Government of the
Republic of the Philippines and shall be redeemable at the option
of the Commission at or prior to maturity, which, in no case shall
exceed twenty-five (25) years.
SEC. 6. Reorganization of the Land Bank. The Agrarian

Reform Fund Commission, as holder of all the shares of the Land
Bank owned or controlled by the Government, is hereby authorized,
with the approval of the President of the Philippines, to reorganize
the Land Bank, modify its operations and functions and exercise its
powers and manage its property, the provisions of Republic Act No.
3844, as amended, notwithstanding.
820
SEC. 7. Tax Exemptions. All assets and earnings of the Fund

shall be exempt from all national, provincial, municipal and city
taxes and assessments now in force and may hereinafter be imposed.
SEC. 8. Repealing Clause. All laws, executive orders, rules

or regulations or parts thereof inconsistent with this Decree are
hereby repealed and/or modified accordingly.
SEC. 9. Effectivity. This Decree shall take effect immediately.
Done in the City of Manila, this 24th day of December, in the


By the President :
(Sgd.) ALEJANDRO MELCHOR

Executive Secretary
PD 85 was repealed by PD 462.
821
AMENDING CERTAIN PROVISIONS OF REPUBLIC ACT

WHEREAS, there is imperative need for immediate

implementation of agrarian reform envisioned under Presidential
Decree Nos. 27 and 85 dated October 21, 1972 and December 25,
1972, respectively;
WHEREAS, the implementation of such a revolutionary

program of rural change demands an effective administrative
machinery financially and organizationally equipped to mobilize
and harness properly all available government resources for the
realization of desired agrarian reform;
WHEREAS, the Land Bank, the only financial institution

established for agrarian reform, is presently deficient and inadequate
both in capitalization and in organization structure to meet the
implementation requirements of the agrarian reform program;

by the Constitution as Commander-in-Chief of all the Armed Forces
of the Philippines and pursuant to Proclamation No. 1081 dated
1972, as amended, do hereby order and decree:
SECTION 1. Section seventy-four of Republic Act Numbered

Three thousand eight hundred and forty-four, as amended, is hereby
“SEC. 74. Creation. To provide timely and adequate financial

support in all phases involved in the execution of needed agrarian
reform, there is hereby established a body corporate and government
instrumentality to be known as the “Land Bank of the Philippines,”
822
hereinafter called the “Bank,” which shall have its principal place
of Business in Greater Manila. The legal existence of the Bank shall
be for a period of fifty (50) years from the date of approval hereof.”
SEC. 2. Section seventy-five of the same Act is hereby amended

to read as follows:
“SEC.. 75. Powers in General. The bank shall have the power.
“1. To prescribe, repeal and alter its own by-laws to determine

its operating policies, and to issue such rules and regulations as
may be necessary;
“2. To adopt, alter and use a corporate seal;
“3. To hold, purchase, acquire and own real and personal

property, introduce necessary improvements thereon to enhance
and develop their social and economic values, and to sell, mortgage
or otherwise dispose of the same;
“4. To sue and be sued, make contracts, negotiate and secure

loans from both local and foreign sources. Before undertaking any
such credit operation, the Bank, through the Secretary of Finance,
shall request the opinion, in writing, of the Monetary Board on
the monetary implications of the contemplated action. All loans
from foreign sources shall be subject to approval by the President
of the Philippines and shall be fully guaranteed by the Philippine
Government;
“5. To grant short, medium and long term loans and advances
against security of real estate and/or other acceptable assets for the
establishment, development or expansion of agricultural, industrial,
home building or home financing projects and other productive
enterprises;
“6. To grant loans to farmers’ cooperatives/associations to

facilitate production, marketing of crops and acquisition of essential
commodities;
823
“7. To finance and/or guarantee the acquisition, under

Presidential Decree No. 85 dated December 25, 1972, of farm lots
transferred to tenant-farmers pursuant to Presidential Decree No.
27 dated October 21, 1972;
“8. To underwrite, hold, own, purchase, acquire, sell, mortgage,

dispose or otherwise invest or reinvest in stocks, bonds, debentures,
securities and other evidences of indebtedness of other corporations
and of the government or its instrumentalities which are issued for
or in connection with any project or enterprise;
“9. The provision of any law to the contrary notwithstanding,

to guarantee acceptance(s), credits, loans, transactions or
obligations of any person, co-partnership, association or corporation
in favor of any financing or banking institution, whether foreign or
domestic: Provided, That the proceeds of such acceptances, credits,
loans, transactions or obligations are utilized or earmarked for the
development and/or expansion of agriculture and industry;
“10. To borrow from, or rediscount notes, bills of exchange and

other commercial papers with, the Central Bank. The rate of interest
to be charged and the conditions on such obligations or borrowings
shall be subject to the rules and regulations of the Monetary Board;
“11. To act as trustee, or administer any trust or hold property

in trust in accordance with the provisions of law governing trust
corporations; and
“12. To exercise the general powers mentioned in the

Corporation Law and the General Banking Act, as amended, insofar
as they are not inconsistent or incompatible with this Decree.”
SEC. 3. Section seventy-six of the same Act is hereby amended

to read as follows:
“SEC. 76. Issuance of Bonds. The bank shall, upon

recommendation of the Secretary of Finance and after consultation
with the National Economic and Development Authority and the
824
Monetary Board, and with the approval of the President of the

Philippines, issue bonds, debentures, securities, collaterals and
other evidences of indebtedness, rates and conditions as the Bank
may determine, up to an aggregate amount not exceeding, at any
one time, ten times its paid-in capital and surplus. These bonds and
other obligations shall be redeemable at the option of the Bank at
or before maturity and in such manner as may be stipulated therein
and shall bear such rate of interest as may be fixed by the Bank.
Such obligations shall be secured by the assets of the Bank including
the stocks, bonds, debentures, and other securities underwritten,
purchased or held by it under the provisions of this Decree. Such
obligations may be issued in payment and/or replacement of certain
assets transferred to the Bank and/or offered for sale at such price or
prices as the Bank may determine, and shall be exempt from taxation
both as to principal and interest, and shall be fully guaranteed
by the Government of the Republic of the Philippines, and such
guarantee shall be expressed on the face thereof. These instruments
of indebtedness shall be negotiable and may be mortgaged in
accordance with established banking procedures and practices with
the government institutions, their existing charters and/or laws to
the contrary notwithstanding, to enable the holders of such bonds
to make use of them in investments in productive enterprises. The
Board of Directors shall have the power to prescribe rules and
regulations for the issuance, reissuance, servicing, placement and
redemption of the bonds herein authorized to be issued as well as
the registration of such bonds at the request of the holders thereof.
SEC. 4. Section seventy-seven of the same Act is hereby

“SEC. 77. Issuance of Preferred Shares of Stock to Finance

Acquisition of Farm Lots and Other Assets. The Bank shall issue,
from time to time, preferred shares of stock in such quantities as
may be necessary to pay the landowners in accordance with Section
eighty and eighty-one of this Code, and for acquisition of other
assets should the seller elect to accept such payment. The amount
of shares that the Bank may issue shall not exceed the aggregate
amount needed to pay the landowners in the proportion prescribed
825
in said Section eighty of this Code. The Board of Directors shall

include as a necessary part of the by-laws that it shall issue under
Section seventy-five of this Code, such formula as it deems adequate
for determining the net asset value of its holdings as a guide and
basis for the issuance of preferred shares. The shares of stock issued
under the authority of this provision shall be guaranteed a rate of
return of at least six per centum. In the event that the earnings
of the Bank for any single fiscal year are not sufficient to enable
the Bank, after making reasonable allowance for administration,
contingencies and growth, to declare dividends at the guaranteed
rate, the amount equivalent to the difference between the Bank’s
earnings available for dividends and that necessary to pay the
guaranteed rate shall be paid by the Bank out of its own assets
but the government shall, on the same day that the Bank make
such payment, reimburse the latter in full, for which purpose such
amounts as may be necessary to enable the Government to make
such reimbursements are hereby appropriated out of any moneys
in the National Treasury not otherwise appropriated. The Bank
shall give sufficient notice to the Budget Commissioner and the
Secretary of Finance in the event that it is not able to pay the
guaranteed rate of return on any fiscal period. The guaranteed rate
of return on these shares shall not preclude the holders thereof
from participating at a percentage higher than six per centum
should the earnings of the Bank for the corresponding fiscal period
exceed the guaranteed rate of return. The Board of Directors shall
declare and distribute dividends within three months after the close
of each fiscal year at the guaranteed rate unless a higher rate of
return is justified by the Bank’s earnings after making reasonable
allowance for administration, contingencies and growth, in which
case, dividends shall be declared and distributed at a higher rate.
The capital gains derived from the sale or transfer of such shares
and all income derived therefrom in the form of dividends shall be
fully tax-exempt.”
SEC. 5. Section seventy-eight of the same Act is hereby

826
“SEC. 78. Special Guaranty Fund. In the event that the Bank
shall be unable to pay the bonds, debentures and other obligations
issued by it, a fixed amount thereof shall be paid from a special
guaranty fund to be set up by the Government, to guarantee the
obligation of the Bank, and established in accordance with this
Section and, thereupon, to the extent of the amounts so paid, the
Government of the Republic of the Philippines shall succeed to all
rights of the holders of such bonds, debentures or other obligations:
Provided, however, That the Government shall pay into the guaranty
fund the sum of five million pesos each year until the cumulative
total of such guaranty fund is no less than twenty per cent of the
outstanding net obligation of the Bank at the end of any calendar
year.
“The special guaranty fund shall be administered by the

Central Bank of the Philippines in the manner most consistent
with its charter. For the purpose of such funds, the sum of five
million pesos is hereby appropriated annually out of any moneys
in the National Treasury not otherwise appropriated, until the
total amount of one hundred million pesos shall have been attained
therefrom.”
SEC. 6. Section seventy-nine of the same Act is hereby

“SEC. 79. Receipts of Deposits. The Bank, subject to the

provisions of the General Banking Act, as amended, is authorized
to receive demand, savings and time deposits.
“The Secretary of Finance, the National Treasurer and his

authorized representatives, city and municipal treasurers as well
as custodians of funds or those belonging to government-owned or
controlled corporations, may be authorized by the Monetary Board
to make and actually maintain deposits of any government or
corporate funds with the Land Bank.
827
“SEC. 79-A. Administration of Agricultural Guarantee Funds.

All agricultural guarantee funds shall be converted into a trust fund
to be administered by the Bank.”
SEC. 7. Section eighty of the same Act is hereby amended to

read as follows:
“SEC. 80. Modes of Payment. The Bank shall finance the

acquisition of farm lots under any of the following modes of
settlement:
“1. Cash payment of 10% and balance in 25-year tax-free 6%

Land Bank bonds;
“2. Payment of 30% in preferred shares of stock issued by the

Bank and balance in 25-year tax-free 6% Land Bank bonds;
“3. Full guarantee on the payment of the fifteen (15) equal

annual amortizations to be made by the tenant/farmer;
“4. Payment through the establishment of annuities or

pensions with insurance;
“5. Exchange arrangement for government stocks in

government-owned or controlled corporations or private corporations
where the government has holdings;
“6. Such other modes of settlement as may be further adopted

by the Board of Directors and approved by the President of the
Philippines.
In the event there is existing lien or encumbrance on the

land in favor of any Government lending institution at the time of
acquisition by the Bank, the landowner shall be paid the net value of
the land (i.e., the value of the land determined under Proclamation
No. 27 minus the outstanding balance/s of the obligation/s secured
by the lien/s or encumbrance/s), and the outstanding balance/s of
the obligations to the lending institution/s shall be paid by the Land
828
Bank in Land Bank bonds or other securities; existing charters

of those institutions to the contrary notwithstanding. A similar
settlement may be negotiated by the Land Bank in the case of
obligations secured by liens or encumbrances in favor of private
parties or institutions.
“Whenever the Bank pays the whole or a portion of the total

cost of farm lots, the Bank shall be subrogated by reason thereof,
to the right of the landowner to collect and receive the yearly
amortizations on farm lots or the amount paid including interest
thereon, from tenant/farmers in whose favor said farm lots had been
transferred pursuant to Presidential Decree No. 27, dated October
21, 1972.
“The profits accruing from payment shall be exempt from tax

on capital gains.”
SEC. 8. Section eighty-one of the same Act is hereby amended

to read as follows:
“SEC. 81. Capital. The authorized capital stock of the Bank

shall be three billion pesos, divided into one hundred and eighty
million common shares with a par value of ten pesos each, which
shall be fully subscribed by the Government, and one hundred and
twenty million preferred shares with a par value of ten pesos each,
which shall be issued in accordance with the provisions of Sections
seventy-seven and eighty-three of this Code. These preferred shares
shall be non-voting. The Board, upon the recommendation of the
Secretary of Finance and with the approval of the President of the
Philippines, may increase the capitalization of the Bank up to such
an amount as may be necessary to attain the objectives of this Act.
The total capital stock subscribed by the Government shall be paid by
the Agrarian Reform Fund Commission created under Presidential
Decree No. 85, hereinafter referred to as the “Commission,” as
follows: four hundred million pesos within sixty (60) days from the
approval of this Decree, and at least one hundred million pesos
every year thereafter until the total subscription of the Government
is fully paid: Provided, That the common and preferred shares of the
829
Bank which have been issued, including those already subscribed,

shall form part of the increased capitalization of the Bank: Provided,
further, That the Government is authorized to appropriate funds
out of the National Treasury for this purpose.”
SEC. 9. Section eighty-three of the same Act is hereby

amended as follows:
“SEC 83. Preferred Shares. All preferred shares or stock issued

under Section seventy-seven of this Code shall be entitled to the
income earned by the Bank on its investments and other operations:
Provided, That the holders of such preferred shares of stock shall not
bring derivative suits against the Bank. Such preferred shares shall
be fully transferrable: Provided, further, That upon the liquidation
of the Bank, the redemption of such preferred shares shall be given
priority.”
SEC. 10. Section eighty-four of the same Act is hereby

“SEC. 84. Voting of Shares. The voting power of all the

common shares of stock of the Bank owned and controlled by the
Government shall be vested in the President of the Philippines or
in any ex-officio member of the Board of Directors of the Bank as he
may designate.”
SEC. 11. Section eighty-five of the same Act is hereby amended

to read as follows:
“SEC. 85. Use of Bonds. The bonds issued by the Bank may
be used by the holder thereof and shall be accepted for any of the
following:
“1. Payment for agricultural lands or other real properties

purchased from the Government.
“2. Payment for the purchase of shares of stock or assets or

government-owned or controlled corporations.
830
“Upon offer by the bondholders, the corporation owned or

terms and conditions most favorable to the corporation shall be
be determined by the Committee of Appraisers composed of three
two members, so chosen. The expense of appraisal shall be borne
“Should the Government offer for sale to the public any or all
the shares of stock or the assets of any of the Government-owned
or controlled corporations, the bidder who offers to pay in bonds of
the Land Bank shall be preferred, provided that the various bids be
equal in every respect except in the medium of payment.
“3. Surety, bail bonds for the provisional release of accused

person or performance bonds in all cases where the Government
may require or accept real property as bonds.
“4. Security for loans applied with the Philippine National

Bank of the Philippines, Government Service Insurance System,
Social Security System, and other governmental financial
institutions, existing charters of these institutions to the contrary
notwithstanding.
“5. Payment for reparations goods the provisions of Republic

Act Nos. 1700 and 90, as amended, to the contrary notwithstanding.
SEC. 12. Section eighty-six of the same Act is hereby amended

to read as follows:
“SEC. 86. Board of Directors; Membership; Per Diem. The

affairs and business of the Bank shall be directed and its property
managed and preserved by a Board of Directors consisting of seven
831
(7) members to be composed of the Secretary of Finance as Chairman,

the President of the Bank as Vice-Chairman, the Secretary of
Agrarian Reform and the Secretary of Labor as ex-officio members,
and three members to be elected as hereinafter provided.
“Annually, on the first Tuesday after the first Monday in

December, the stockholders shall meet to take up, among others,
the election of two (2) members of the Board of Directors for the
succeeding year, each common shareholder or proxy to be entitled
to as many votes as he may have shares of stock registered in his
name on the 31st day of October last preceding and held by him at
the time of the election.
“The Board shall convene as frequently as is necessary to

discharge its responsibilities properly, but shall meet at least
once every two weeks. The Board may be convoked either by the
Chairman or, in his absence, the Vice-Chairman.
“The presence of four (4) members shall constitute a quorum.
“All decisions of the Board shall require the concurrence of at

least four (4) members.
“The Chairman and the members of the Board shall receive

a per diem of two hundred fifty pesos for each session of the Board
attended, but in no case to exceed two thousand pesos a month.
“SEC. 86-A. Powers and Responsibilities of the Board. The

Board of Directors shall have, among others, the following specific
powers and responsibilities:
“1. Formulate policies, rules and regulations for the effective

operation of the Bank;
“2. Take decisions concerning loans as well as fix the rates of

interest thereon, guarantees, investments, borrowing by the Bank,
furnishing of technical assistance and other operations of the Bank;
832
“3. Establish such branches and agencies as may be deemed

necessary and convenient;
“4. Provide for the appointment and removal and fix the
reasonable compensation of such personnel as may be necessary for
the expeditious conduct of the business of the Bank; and
“5. Approve the budget of the Bank.”
SEC. 13. Section eighty-seven of the same Act is hereby

“SEC. 87. Executive Officers; Compensation. The Chief

Executive of the Bank shall be the President, who shall be chosen
and may be removed by the Board of Directors with the advice and
consent of the President of the Philippines. His salary shall be fixed
by the Board of Directors with the approval of the President of the
Philippines. The President shall be assisted by Vice-Presidents
as may be required, whose appointments and removal shall be
approved and whose salaries shall be fixed by the Board of Directors
upon recommendation of the President of the Bank.
“SEC. 87-A. Duties and Powers of the President. The President

of the Bank shall, among others, execute the policies, measures,
orders and resolutions promulgated by the Board of Directors and
supervise and administer the operation of the Bank. He shall be the
legal representative of the Bank and shall make all contracts, enter
into all necessary obligations on behalf of the bank, and recommend
changes of policies which may to him seem best. He shall furnish,
upon request of the President of the Philippines, any information in
his possession regarding the operations of the bank.
SEC. 14. Section eighty-eight of the same Act is hereby

“SEC. 88. Qualifications of Executive Officers. No person shall

be appointed to any executive position in the Bank mentioned in
the preceding section unless he be of good moral character and
833
unquestionable integrity and responsibility, and who is of recognized

competence in the field of economics, agriculture, industry, banking
and/or finance, at least thirty-five (35) years of age and possessed of
demonstrated administrative skill and ability.”
SEC. 15. Section eighty-nine of the same Act is hereby

“SEC. 89. Withdrawal of Person Having Personal Interest.

Whenever any member attending a meeting of the Board has a
personal interest of any sort in the discussion or resolution of any
given matter, or any of his relatives within the fourth degree of
consanguinity or a second degree of affinity has such interest, said
member shall not participate in the discussion or resolution of the
matter and must retire from the meeting during the deliberations
thereon. The subject matter, when resolved, and the fact that a
member had a personal interest in it, shall be made available to the
public. The minutes of the meeting shall note the withdrawal of the
member concerned.”
SEC. 16. Section ninety of the same Act is hereby amended to

read as follows:
“SEC. 90. Personnel. The Board of Directors shall provide

for an organization and staff of officers and employees of the Bank
and upon recommendation of the President of the Bank, appoint
and fix their remunerations and other emoluments, and remove
such officers and employees; Provided, That the Board shall have
exclusive and final authority to promote, transfer, assign or reassign
personnel of the Bank, any provisions of existing law to the contrary
notwithstanding.
“The Bank officers and employees, including all members

of the Board, shall not engage directly or indirectly in partisan
activities or take part in any election except to vote.
834
“No officer or employee of the Bank subject to the Civil Service

Law and regulations shall be removed or suspended except for cause
as provided by law.”
SEC. 17. Section ninety-one of the same Act is hereby amended

to read as follows:
“SEC. 91. Legal Counsel. Any provision of existing law or

executive order to the contrary notwithstanding, the Bank shall
have its own Legal Department, the chief and members of which
shall be appointed by the Board of Directors.”
SEC. 18. Section ninety-two of the same Act is hereby amended

to read as follows:
“SEC. 92. Auditor. The Chairman of the Commission on

Audit shall act as the ex-officio Auditor of the Bank and, as such,
he is empowered and authorized to appoint a representative who
shall be the auditor in charge of the auditing office of the Bank and
in accordance with law, fix his salary, and to appoint and fix the
salaries and number of personnel to assist said representative in
his work, but in all cases subject to the approval of the Board of
Directors. The salaries and all other expenses of maintaining the
auditor’s office shall be paid by the Bank. The Auditor of the Bank
and personnel under him may be removed only by the Commission
on Audit.”
SEC. 19. Section ninety-three of the same Act is hereby

“SEC. 93. Report on Condition of the Bank. The representative

of the Commission on Audit shall make a quarterly report on
the condition of the Bank to the President of the Philippines, to
the Secretary of Finance, to the Chairman of the Commission on
Audit, and to the Board of Directors of the Bank. The report shall
contain, among other things, a statement of the resources and
liabilities, including earnings and expenses, the amount of capital
stock, surplus, reserve and profits, as well as losses, bad debts, and
835
suspended and overdue paper carried in the books and assets of the
Bank.”
SEC. 20. Section ninety-five of the same Act is hereby repealed.
SEC. 21. Section ninety-seven of the same Act is hereby

“SEC. 97. Central Bank Supervision. The Bank shall be

under the supervision and regulation of the Central Bank of the
Philippines.”
SEC. 22. Section ninety-eight of the same Act is hereby

“SEC. 98. Tax Exemptions. The Land Bank shall be exempt

from all national, provincial, municipal, and city taxes and
assessment now enforced or hereinafter established.
“The exemption authorized in the preceding paragraph of this

section shall apply to all property of the Bank, to the resources,
receipts, expenditures, profits and income of the Bank, as well as
to all contracts, deeds, documents and transactions related to the
conduct of the business of the Bank, Provided, That said exemptions
shall apply only to such taxes and assessments payable by persons
or other entities doing business with the Bank.”
SEC. 23. Section ninety-nine of the same Act is hereby

“SEC. 99. Reorganization of the Bank. The Bank shall be

reorganized within ninety (90) days from the date this Decree take
effect. The present personnel complement of the Bank shall in the
interim continue to discharge their respective functions. Officials
and personnel whose services may be dispensed with as a result of
this reorganization shall be paid the usual gratuities to which they
may be entitled under existing law.”
836
SEC. 24. Section one hundred of the same Act is hereby

“SEC. 100. Penalty for Violation of the Provisions of this

Chapter. Any director, officer, employee or agent of the Bank who
violates or permits the violation of any of the provisions of this
Chapter or any person aiding or abetting the violation of any of
the provisions of this Chapter, shall be punished by a fine of not to
exceed ten thousand pesos or by imprisonment of not more than five
years, or both, such fine and imprisonment at the discretion of the
Court.”
SEC. 25. Applicability of Republic Act. No. 337 as amended,

and Presidential Decree No. 129. The provisions of the General
Banking Act (Republic Act No. 337, as amended) and of Presidential
Decree No. 129 insofar as they are not in conflict or inconsistent
with the provisions of this Act shall apply to this Bank.
SEC. 26. Repealing Clause. All laws, executive orders, rules

and regulations or parts thereof inconsistent with this Decree are
hereby repealed and/or modified accordingly.
Done in the City of Manila, this 21st day of July, in the year
of Our Lord, nineteen hundred and seventy-three.

By the President :

PD 251 amended RA 3844.
837
MALACAÑANG
Manila
APPROPRIATING FUNDS TO THE DEPARTMENT OF AGRARIAN

REFORM TO FINANCE THE ACQUISITION OF HAND
TRACTORS
WHEREAS, it is the concern of the New Society to emancipate

tillers of the soil from their bondage of tenancy and to encourage
them to produce more food crops to attain self-sufficiency by the
adoption of modern farm practices through the utilization of low-
cost hand tractors;
WHEREAS, the Philippines has the lowest rate of farm

mechanization in the world, as reflected in the following facts:
Japan- 3.5 deployed horsepower per hectare; U.S. & Europe 3 h.p.;
Taiwan2 h.p.; Asia 0.9 h.p. and Philippines 0.9. h.p.;
WHEREAS, the local sources of hand tractors cannot

supply the immediate needs of the emancipated farmers involved
in the Masagana 99 and the Palayan Ng Bayan Programs of the
Government;
WHEREAS, the immediate procurement of hand tractors will

accelerate the achievement of government goals in food production.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President

of the Philippines, by virtue of the powers in me vested by the
Constitution as Commander-in-Chief of all the Armed Forces of
the Philippines, and pursuant to Proclamation No. 1081, dated
22, 1972, as amended, do hereby order and decree that the sum of
ONE HUNDRED FORTY MILLION PESOS is hereby appropriated
to the Department of Agrarian Reform out of which TWENTY
MILLION PESOS shall be programmed for FY 1973-74 and the
balance shall be programmed in like amounts annually thereafter
838
for six (6) years to finance the cost of acquisition and related cost
of 5,000 units of hand tractors for resale at reasonable cost to the
emancipated farmers in areas covered by Presidential Decree No.
27 to meet the requirements of Masagana 99 and the Palayan Ng
Bayan Programs of the Government.
The Department of Agrarian Reform shall formulate the rules

and regulations to cover the distribution of these hand tractors and
the collection of their amortization.
This Decree shall take effect immediately.
DONE in the City of Manila, this 6th day of September, in the

year of Our Lord, nineteen hundred and seventy-three.

By the President:

839
MALACAÑANG
Manila
PROHIBITING THE EJECTMENT OF TENANT-TILLERS FROM

THEIR FARMHOLDINGS PENDING THE PROMULGATION
OF THE RULES AND REGULATIONS IMPLEMENTING
WHEREAS, notwithstanding my earlier instructions that

no tenant-farmer shall be ejected from the land cultivated by him,
many landowners are ejecting or threatening to eject their tenants;
WHEREAS, numerous complaints for ejectment have

been filed in the Courts by landowners against their tenants and
orders have been issued enjoining or restraining the latter from
entering and cultivating their farmholdings or impounding their
harvest; and likewise, numerous criminal cases have been filed by
landowners against tenant-tillers which arise from the possession
and cultivation of farmholdings and other agrarian causes, as a
result of which tenant-farmers have been arrested and detained;
WHEREAS, the aforementioned acts have resulted in strained

relations between landowners and tenant-farmers or tillers of the
soil which threaten to disturb the peace and order conditions in the
rural areas;
WHEREAS, these ejectment suits or other acts of harassment

by landowners intended to eject or remove their tenants cannot be
sanctioned or condoned by the Government, especially in the light of
our current efforts to bring forth a New Society – a Filipino society
that is more compassionate and that adheres to the basic principle
of social justice;

by the Constitution as Commander-in-Chief of the Armed Forces
840
of the Philippines, and pursuant to Proclamation No. 1081, dated

1972, as amended, do hereby order and decree, as part of the law of
the land the following;
SECTION 1. No tenant-farmer in agricultural lands primarily

devoted to rice and corn shall be ejected or removed from his
farmholding until such time as the respective rights of the tenant-
farmer and the landowner shall have been determined in accordance
with the rules and regulations implementing Presidential Decree
No. 27.
SEC. 2. Unless certified by the Secretary of Agrarian Reform

as a proper case for trial or hearing by a court or judge or other
officer of competent jurisdiction, no judge of the Court of Agrarian
Relations, Court of First Instance, municipal or city court, or any
other tribunal or fiscal shall take cognizance of any ejectment
case or any other case designed to harass or remove a tenant of an
agricultural land primarily devoted to rice and corn, and if any such
cases are filed, these cases shall first be referred to the Secretary
of Agrarian Reform or his authorized representative in the locality
for a preliminary determination of the relationship between the
contending parties. If the Secretary of Agrarian Reform finds that
the case is a proper case for the court or judge or other hearing officer
to hear, he shall so certify and such court, judge or other hearing
officer may assume jurisdiction over the dispute or controversy.
SEC. 3. In all cases, efforts shall be exerted by all government

officials to maintain the status quo in the relation between tenant-
farmers and landowners as already embodied in Presidential
instructions.
SEC. 4. All provisions of existing laws, orders, rules and

regulations, or parts thereof, in conflict or inconsistent herewith are
SEC. 5. This Decree shall take effect immediately.
841
Done in the City of Manila, this 22nd day of October, in the


By the President:

PD 316 was repealed or amended by RA 6657.
842
MALACAÑANG
Manila
CODIFYING, REVISING AND UPDATING ALL FORESTRY LAWS

WHEREAS, there is a serious need to effectively conserve the

Nation’s public forests, including watershed areas, to protect and
preserve national parks, and at the same time, to provide suitable
agricultural land for our people;
WHEREAS, upon my instructions, the Department of

Agriculture and Natural Resources has prepared, drafted and
completed the codification, revision and updating of forestry laws
to conform with, and in pursuance of the provisions of the New
Constitution;
WHEREAS, the adoption of the Code as part of the law of the

land will achieve the following results, among others:
(1) The gradual phasing out of log exportation and

accelerated development of the local wood processing industry
through a system of disincentives and incentives;
(2) Additional revenue to support the expanded

responsibilities of the Bureau of Forest Development in land
classification, forest protection, reforestation of denuded
watersheds, continuing census of settlers and kaingin
management in public forest, forest research and development;
(3) The abolition of short-term licenses and the granting

of long-term license agreements of 10 and 25 years to afford
the grantee security of tenure, thus, assuring the effective
conservation of the forest and elimination of petty graft
resulting from periodic renewal of such timber licenses;
843
(4) Abolition of the requirement of one processing

plant for each concession and inducing the establishment of
economic-sized plants located near shipping points, which can
adequately complete in foreign markets in terms of quality
and pricing of output;
(5) Acceleration of land classification and immediate

proclamation of permanent forests as forest reserves;
(6) Resettlement or integration of settlers in public

forests through a system of kaingin management. This
involves a complete and continuing census of all occupants of
public forest, including their location, in order to determine
valid claims and prepare action plans for integrating such
occupants into the socio-economic mainstream; and
(7) Revitalization of the Forest Agency (Bureau of

Forest Development). Adopted and made part of this Code
is the merger of the Bureau of Forestry, Reforestation
Administration, and the Parks and Wildlife Office, as already
embodied in the Integrated Reorganization Plan approved
under Presidential Decree No. 1.
WHEREAS, the urgency of giving force and effect to this

measure in the quickest possible manner and time cannot be
overemphasized, the Filipino people having witnessed and suffered
from the last catastrophic floods and droughts throughout the
Archipelago;

of the Philippines and pursuant to Proclamation No. 1081, dated
22, 1972, as amended, in order to accelerate the classification of
our remaining unclassified forest lands into alienable or disposable
public lands and permanent forest and conserve the latter for the
844
benefit of the present and future generations of this Country, do

hereby order and decree the following:
ARTICLE I. - TITLE AND POLICY
SECTION 1. Title. – This shall be known as the “Forestry

Reform Code of the Philippines”.
SEC. 2. Declaration of Policy. – It is the policy of the State:
(a) To promote the wise utilization, conservation and

development of the forest resources of the country, including their
associated services relating to water supply, recreation and wildlife
preservation;
(b) To safeguard the national interest in the maintenance of a

wholesome ecological environment;
(c) To accelerate the rehabilitation of denuded lands, including

those under private ownership; and
(d) To provide a stable forestry agency and a body of laws and

regulations adequate to achieve the national policy.
ARTICLE II. - ORGANIZATION AND JURISDICTION

OF THE BUREAU OF FOREST DEVELOPMENT
SEC. 3. Merger and Organization of Forestry Agencies. –

For the purpose of carrying out the policies established under this
Code, the Bureau of Forestry, the Reforestation Administration,
the Parks and Wildlife Office and such other government agency,
instrumentality or special project as are performing related
functions, including applicable appropriations, records, equipment,
property and such personnel as may be necessary, are hereby
merged into a single agency to be known as the Bureau of Forest
Development, hereinafter referred to as Bureau. The Bureau shall
be directly under the control and supervision of the Secretary of
845
the Department of Agriculture and Natural Resources, hereinafter

referred to as Department Head.
The Bureau shall be headed by a Director, who shall be

assisted by one or more Assistant Directors. The Directors and
Assistant Directors shall be appointed by the President.
All positions in the three merged agencies are considered

vacated. Present occupants may be appointed in accordance with
a plan of organization prepared by the Director as approved by
the Department Head. Any appointee who fails to report for duty
in accordance with the approved plan within thirty (30) days
upon receipt of notification shall be deemed to have declined the
appointment, in which case the position may be filled by any other
qualified applicant.
SEC. 4. Qualification of the Director and Assistant Director.

– No person shall be appointed Director or Assistant Director of
the Bureau unless he is a natural-born citizen of the Philippines,
at least 30 years of age, a holder of at least a Bachelor’s Degree in
Forestry or its equivalent, and a registered forester.
SEC. 5. Creation of Functional Divisions and Staffs. – There

is hereby created the following divisions:
(a) Planning and Evaluation Division which shall have the

following functions: (1) undertake economic, organization and
management research relative to forest land management and
forest industry development; (2) prepare long-range and annual
programs of work; (3) guide the preparation of multiple-use plans for
the public forest; (4) evaluate, through a system of field inspection,
the quality and quantity of performance as measured against
established policies, goals and standards; (5) establish standards
for land classification in the public forest; (6) recommend changes
in laws, regulations, policies and procedures as needed to achieve
agency objectives; (7) maintain agency manuals; and (8) perform
such other functions as may be provided by law.
846
This Division shall consist of functional sections, namely:

Program Planning, Performance Evaluation, Forest Economics and
Management Analysis.
(b) Administrative Division which shall have the following

functions: (1) advise management on personnel policies and
administration; (2) develop and administer a personnel program on
selection and placement, classification and pay, career and employee
development, training, performance rating, employee relations,
health and welfare service; (3) inform the public about the policies,
plans, activities and accomplishments of the Bureau; (4) develop and
improve budgetary methods, procedures, and justifications, provide
fund estimates in support of the Bureau’s operations, plans, and
programs; and provide for the systematic release and control of fund
allotments to the various units of the Bureau; (5) maintain basic
and subsidiary accounting records and books of accounts to reflect
financial transactions; (6) certify to the availability of funds, obligate
funds, process vouchers or claims, and prepare financial reports;
(7) file and maintain necessary records and establish a records
disposition program; (8) provide mail, transportation, messengerial,
and general utility services for the Bureau; (9) procure, store, and
distribute supplies and equipment and conduct periodic inventories
of the same; (10) provide cashiering services; (11) and perform such
other functions as may be provided by law.

Personnel, Budget, Accounting, Information and General Services.
(c) Legal Staff which shall have the following functions:

(1) provide legal counsel and assistance to the Director and
various organizational units of the central office concerning the
interpretation and application of forestry, reforestation, parks, and
wildlife laws; (2) assist the regional staffs in resolving complex legal
problems involving violations of laws, rules and regulations; (3)
appear in courts and administrative bodies in behalf of the Director
and other personnel of the Bureau on cases arising from the lawful
discharge of, or cases related to the functions of their offices; (4)
conduct investigations regarding cases filed against employees of
847
the Bureau and submit recommendations; and (5) perform such

other functions as may be provided by law. The Legal Staff shall be
directly under the Office of the Director.
(d) Silviculture Division which shall have the following

functions: (1) maintain a current inventory of timber resources in
the public forest, including virgin, cutover and degraded forests; (2)
design silvicultural systems for commercial and non-commercial
timberlands; (3) prepare guidelines for working unit plans; (4)
provide standards for the conduct of post-harvest diagnostic surveys
and timber stand improvement activities in the public forest;
(5) prepare the program for reforestation and disease and insect
control; (6) insure that the boundary of the permanent public forest
is established in accordance with the land classification standards
prescribed by the Planning and Evaluation Division, and undertake
the initial marking of the boundary; and (7) perform such other
functions as may be provided by law.

Silviculture and Reforestation, Timber Inventory, Working Unit
Plans and Land Classification.
(e) Forest Protection and Utilization Division which shall have

the following functions: (1) plan and develop, within the public forest,
the programs for protecting the public forest, reforestation projects,
national parks and wildlife sanctuaries from fire and encroachment;
(2) provide guidelines for the effective enforcement of fish and
game laws and regulations; (3) prescribe standards and procedures
for the issuance of forestry licenses or permits; (4) issue timber
licenses and establish guidelines in the processing of application
for leases and in the preparation of operating plans for the removal
of timber and minor forest products in accordance with working
unit plans; (5) develop a program for the resettlement of shifting
cultivators occupying the public forest; (6) formulate a program
for the protection and rehabilitation of watersheds; (7) develop,
install and provide technical supervision in the maintenance of
forest transportation and communication systems, buildings, and
848
other structural facilities associated with the public forest; and (8)
perform such other functions as may be provided by law.

Timber Operations, Land Uses, Watershed Management, Utilization,
Kaingin Management, and Forest Protection and Engineering.
(f) Parks, Range and Wildlife Division which shall have the
following functions: (1) formulate the outdoor recreation programs
in public forest, national parks, including marine parks and other
related recreation units; (2) establish the carrying capacity and
range-use requirements on suitable grasslands in the public forest;
(3) set standards for the issuance of grazing permits to ensure the
utilization of public range lands is in accordance with watershed
and wildlife habitat requirements; (4) determine the need for, and
recommend, the establishment of wildlife sanctuaries; (5) establish
wildlife habitat requirements for application in the managed forest;
(6) recommend season, bag and/or creel limits of game and fish
within the public forest and the marine parks, lakes and other
inland waters which may be under the jurisdiction of the Bureau;
and (7) perform such other functions as may be provided by law.

Parks Management, Recreation Management, Wildlife Management
and Range Management.
(g) Forest Research Division which shall have the following

functions: (1) conduct problem analysis, design and implement
program of basic and applied research on the protection of utilization
of the soil, water, timber, range, wildlife habitat and recreation
resources of the public forest including silviculture, ecology, forest
pests and diseases, range, wildlife and forest environment; and (2)
perform such other functions as may be provided by law.

Silviculture, Range and Wildlife, Watershed Management, Pests
and Diseases, and Field Research Services.
849
The Department Head, upon recommendation of the

Director, may create such additional divisions, sections or units as
may be deemed necessary to meet the demands for better forest
administration. He may likewise create, upon recommendation
of the Director, a central research institute for the purpose of
collaborating with and reinforcing the Forest Research Division.
SEC. 6. Creation of Regional and District Offices. – For the

efficient and effective implementation of the program of the Bureau,
there shall be created at least eleven regional offices. In each region,
there shall be as many forest districts as may be necessary, in
accordance with the extent of forest area, established work loads,
need for forest protection, fire prevention and other factors, any law
to the contrary notwithstanding.
SEC. 7. Jurisdiction of the Bureau. – The Bureau shall be

responsible for the effective, efficient and economic classification,
protection, development, management, regeneration, reforestation,
occupancy and use of all public forest and forest reserves; the granting
of licenses or permits for the taking or use of forest products therefor
or the occupancy or use of the public forest; the implementation of
multiple-use and sustained yield management in the public forest,
and a comprehensive program of forest research; the protection,
development and preservation of national parks, game refuges and
wildlife; the implementation of a continuing program of kaingin
management within the public forest; the enforcement of forestry,
reforestation, parks, games and wildlife laws. The Bureau shall,
in collaboration with appropriate Government agencies, extend
assistance towards the development, utilization and rationalization
of the wood industries; regulate the operation of sawmills, veneer
and plywood mills and other wood processing plants; conduct
studies of domestic and world markets; provide and support of
industrial operations within the public forest; and support fiscal
policies associated therewith.
SEC. 8. Adoption by Reference. – Except as specifically

provided in the preceding sections, the provisions of the Integrated
Reorganization Plan under Presidential Decree No. 1, dated
850
September 24, 1972, and Letter of Implementation No. 9, dated

November 1, 1972, with respect to the Bureau, the regional offices,
their organization, staffing, and other matters as are hereby related,
are deemed adopted as part of this Code.
SEC. 9. Regulation of the Bureau. – The Director shall, with

the approval of the Department Head, promulgate such rules or
regulations as are deemed expedient or necessary for the protection,
conservation, development, occupancy and use of the public forest,
including national parks, game refuge and bird sanctuaries in
such a manner and by such means as will insure a continuous and
sufficient supply of water, timber, forage, wildlife, recreational
values, and other forest products and services.
The regulations shall include the mechanism by which the

licenses, leases, or permits specified in this Code may be issued
by the Bureau. Charges, fees and bonds shall be prescribed and
imposed only in the manner provided for in this Code.
SEC. 10. Authority of Officers and Employees of the Bureau to

Make Arrest and Seizure and to Administer Oath and take Testimony.
– Officers or employees of the Bureau may arrest without warrant
in a public forest any person who has committed or is committing
an act against the provisions of this Code. They may also seize and
confiscate in favor of the Government forest products, including tools
and equipment used in committing the act. The disposition of seized
products, materials and equipment shall be done by the Director
in accordance with regulations approved by the Department Head.
The Department Head may deputize any qualified person

to exercise the power or authority provided for in the preceding
paragraph, which shall include the protection of the forest from any
form of illegal occupation or destruction.
Any person arrested by an officer or employee of the Bureau

under the authority herein given shall, if such be reasonable and
practicable, be brought before the proper authorities within the
851
period prescribed by existing laws and to be dealt with according

to law.
Forest officers are authorized to administer oath and take

acknowledgment in official matters connected with the functions of
their office, and to take testimony in official investigations conducted
under the authority of this Code and the implementing regulation.
SEC. 11. Manpower Development. – The Bureau shall

establish are in-service training center for the purpose of upgrading
and training its personnel and new employees. The training center
shall consist of a Central Institute to be established on the campus
of the College of Forestry of the University of the Philippines, and
such other training center or centers the Bureau may establish.
The Bureau shall also set aside adequate funds to enable

personnel to obtain special education and training in local or foreign
colleges or institutions.
SEC. 12. Performance Evaluation. – The Bureau shall devise

a system, to be approved by the Department Head, to evaluate
the performance of its employees as well as the performance of
permittees, lessees, licensees and other users of the public forest.
The system shall measure accomplishment in quantity and quality
of performance as related to the funded program of work assigned
to each organizational unit. There shall be included a system of
periodic inspection of district offices by the regional offices and of the
regional and district offices by the Central Office in both functional
fields and in the overall assessment of how each administrative
unit has implemented the laws, regulations, policies, programs
and practices relevant to such unit. The evaluation system shall
provide the information for: annual progress reports; determination
of employee training, transfer or disciplinary action; continuation,
modification or termination of licenses, leases or permits; and the
modification of laws, regulations, policies and practices.
A summary of the key findings of the evaluation activity shall

be incorporated into an annual report which the Director shall
852
submit to the Department Head within sixty (60) days following the
close of each fiscal year.
ARTICLE III. - GENERAL PROVISIONS
SEC. 13. Principles Governing the Administration of Forests. –

The public forests of the Philippines shall be held and administered
under the concept of multiple-use and sustained-yield for the
protection of the public interest, the utility and safety of the forests,
and the perpetuation thereof in productive condition by wise use.
SEC. 14. Diffusion of Benefit. – No lease, license or license

agreement issued to a corporation shall be granted, renewed or
allowed to continue under the provision of this Code except upon the
express condition that the grantee shall, within three (3) years from
the date of the grant, renewal or, in the case of those that are not
yet due to expire, within three (3) years from the approval of this
Code, sell or offer for sale under reasonable terms and conditions
as may be determined by the Director, at least twenty per centum
(20%) of its subscribed capital stock to its employees and/or to the
general public.
The Bureau shall, in its rules, ensure the further diffusion of

the privilege to develop and utilize the forest resources to as many
qualified and deserving applicants as possible, consistent with the
policy of promoting the establishment of economic-sized operational
units.
SEC. 15. Private Rights. – The grant of any license, license

agreement, lease or permit under this Code shall be subject to
private rights of persons, if there be any, within the concession
or license areas as evidenced by their occupation and cultivation
existing at the time the license, license agreement, lease or permit
is issued by the Government, or other muniments of title, and the
area over which such private rights exist shall be respected, and
logging operations or occupancy within said area shall be allowed
only upon prior authorization by the Director.
853
ARTICLE IV. - LAND CLASSIFICATION
SEC. 16. Regulation Setting Apart Forest Reserves;

Permanency of Same. – Upon the recommendation of the Director,
duly concurred in by the Department Head, the President of the
Philippines shall, by proclamation, declare all lands of the public
domain eighteen percent (18%) in slope or over as permanent forests
or forest reserves, regardless of the condition of vegetative cover,
occupancy, or use of any kind, and thereafter such forest reserves
shall not be alienated nor disposed of, but shall remain in public
ownership as such for forest uses.
Parcels of land less than eighteen percent (18%) in slope and

less than two hundred fifty (250) hectares, and lands on tops of
ridges or plateaus, regardless of size, which are found within or are
surrounded, wholly or partly, by a body of public forest and suitable
for permanent forest purposes shall be considered as part thereof.
Areas along streams or rivers may be utilized, in the absence of
available alienable or disposable areas, as kaingin relocation
centers, forest villages, and other purposes compatible with the
proper management of the forest. Appropriately located road rights-
of-way shall be retained as part of the permanent forest land. A
strip of land fifty (50) meters above the normal high waterline on
each side of rivers and streams with channels not less than five (5)
meters wide shall be retained as permanent forest land for stream
bank protection. Strips of land, mangrove and swampland not less
than fifty (50) meters from the apparent shoreline as indicated by
vegatative growth along the shoreline facing oceans, lakes and other
bodies of water shall be retained as permanent forest for shoreline
protection. Isolated areas or patches of forest of at least five (5)
hectares with slope eighteen percent (18%) or over shall likewise be
retained as permanent forest land.
All lands eighteen percent (18%) in slope or over which have

been previously classified as alienable or disposable, but not yet
titled as certified by the Director of Lands, shall be reverted to
the category of public forest; Provided, That existing alienable or
disposable lands, even if eighteen percent (18%) in slope or over
854
but covered by approved public land applications, or have been and

are actually occupied openly, continuously, adversely and publicly
for a period of not less than thirty (30) years as of the effectivity of
this Code, shall remain as such alienable or disposable; Provided,
further, That such alienable or disposable lands eighteen percent
(18%) in slope or over are kept in a vegetative condition sufficient
to prevent erosion and adverse effects on the lowlands and streams,
otherwise, steps shall be taken by the Bureau to initiate appropriate
proceedings to revert such lands to the category of public forest.
The President of the Philippines may, by proclamation, and

upon the recommendation of the Director, duly concurred in by
the Department Head, modify the boundaries of any forest reserve
without need of concurrence by any other body, any provision of law
SEC. 17. Establishment of Boundaries of Forest Reserves.

– All boundaries of the public forest shall be clearly marked and
maintained on the ground. Boundary corners shall be established
with concrete monuments of intervals of not more than five hundred
(500) meters and in accordance with established procedures and
standards.
SEC. 18. Classification of Public Forest Lands as Alienable

or Disposable. – Except those excluded in Section 16, and areas
presently designated as permanent forest, national park, national
shrine, national historic site, swampland and forest area which
have been declared by the Department Head as essential to
research, scenic, recreation, or fish and wildlife purposes, portions
of the public forest below eighteen percent (18%) in slope, upon the
certification of the Director that said portions are not required by
the public interest to be kept in public ownership and that their
alienation or disposition is compatible with forestry purposes, shall
be declared by the Department Head as such alienable or disposable;
Provided, however, that areas within timber concessions below
eighteen percent (18%) in slope which are timbered and/or having
adequate residual stocking, and presently supporting an existing
processing plant shall not be released as alienable or disposable
855
but shall remain as part of the permanent forest land; Provided,

further, That the Department Head may, from time to time, release
to the Department of Agrarian Reform Lands of the public domain
for the purpose of Agricultural Resettlement and Sale.
All applications for registration of land for titling purposes

shall be referred to the Director or his representative who will
certify under oath that such land is alienable or disposable, or part
of the public forest, as the case may be.
ARTICLE V. - SPECIAL AREAS AND THEIR FUNCTIONS
SEC. 19. Forest Research. – The Bureau is responsible

for the design and conduct of a comprehensive program of forest
research relative to the establishment, protection, perpetuation and
utilization of the various resources and services available from the
public forest. Such research shall be conducted in a manner which
provides functional information in harmony with the concept of
managing the forest as an ecosystem. The research program shall
include such subjects as forest and grasslands, ecology, silviculture,
range and wildlife habitat management, wildlife biology, forest soils,
watershed management and protection of the forest from insects
and diseases. Except for such research as may be conducted by
educational institutions in furtherance of their academic programs,
the Bureau is assigned the exclusive authority and responsibility
for the conduct of such research in the Government sector.
Experimental forests may be established for the purpose of

conducting coordinated research. Should such coordinated research
require harvesting of timber or other forest products, the same shall
be done solely by the Government but in no case shall it be carried
on a commercial scale and any revenue realized therefrom shall
accrue to the Bureau as part of its research and development trust
fund.
Field research shall be reinforced by a Central Research

Institute to be established on the campus of the College of Forestry
of the University of the Philippines in which laboratory phases of
856
forest research shall be conducted. The organization of this Institute

shall be done by the Department Head upon recommendation of the
Director.
The execution of the provisions of this Section shall coordinate

with the provisions of Presidential Decree No. 48, dated November
10, 1972, establishing the Philippine Council for Agricultural
Research (PCAR).
SEC. 20. National Park System. – Upon recommendation of

the Department Head, the President of the Philippines may, by
proclamation, reserve and withdraw from settlement, occupancy, or
disposition any portion of the public domain which, because of its
panoramic, historical, educational, cultural, scientific, or aesthetic
values, should be dedicated and set apart as a national park, in
accordance with the criteria to be prescribed by the Director and
approved by the Department Head, the national marine parks,
national seashore parks, national battlefield parks, and other
categories of national significance. All natural resources or physical
components which are naturally stored or found therein shall be
used only in accordance with the purpose for which these areas are
established.
All existing national parks and all other areas that may be
established as such are hereby declared permanent in status, and
thereafter such parks shall not be alienated nor disposed of, but
shall remain as such for the purpose for which they are established;
Provided, that the President may, by proclamation, alter or modify
the boundaries of such parks in order to conform with precise surveys,
enhance their park values and insure their sound management.
Roads in national parks which are existing or to be constructed

shall be opened only to traffic inherent to the use of national parks.
Areas within the national park system are hereby declared as

game refuges and bird sanctuaries.
857
The Director shall, subject to the approval of the Department

Head, establish a schedule of fees and impose conditions and
penalties for the use of areas in the national park system.
SEC. 21. Watershed Reservation. – All watershed reservations

established or to be established, shall be under the jurisdiction of
the Bureau. Watershed reservations may be established by the
President of the Philippines upon recommendation of the Director,
concurred in by the Department Head, to protect or improve the
conditions of water yield or to reduce sedimentation. The watershed
reservation may be opened to other uses under such terms and
conditions as the Department Head may prescribe; Provided, that
the principal objectives of such reservation shall not be jeopardized.
Upon determination by a recognized water-using agency

that a portion of the public forest is essential to a specific water
resources project, the Bureau, upon written request of such agency,
shall collaborate in the preparation of a detailed plan of protection,
development, utilization and management of such watersheds.
Upon approval of the management plan by the Department Head,
the Bureau shall be responsible for its full implementation. When
the plan of management exceeds the financial resources that the
Bureau normally allocates to the watershed areas, and when the
water-using agency determines that the action program must
be accelerated or its management intensified, such agency shall
provide the additional funds needed to achieve the objectives of the
plan. In the event that the utilization of forest products or services
is curtailed, the water-using agency, with the approval of the
Department Head, shall be required to pay annually to the Bureau
an amount equivalent to the revenue which otherwise would have
accrued to become part of the Research and Development Trust
Fund.
SEC. 22. Establishment of Municipal or City Forests and

Pastures. – The municipal or city council of any municipal/municipal
district or city/city district, may acquire private or public (alienable
or disposable) land for the purpose of establishing a municipal or city
forest, tree park, watershed or pasture. The national government
858
shall assist in, and provide the technical supervision over the
establishment and maintenance of such municipal or city forest or
pastures.
ARTICLE VI. - FOREST RESOURCES MANAGEMENT
SEC. 23. Watershed Management. – In addition to the

responsibilities relative to watershed reservations, the Bureau is
responsible for the design and application of measures to minimize
soil erosion, regulate or modify water yield, minimize pollution
or water by users of forest and water resources and rehabilitate
and improve deteriorating watersheds. Among other activities,
the Bureau shall prescribe watershed protection and restoration
measures to be incorporated in license agreements, leases, permits,
work orders, and contracts which involve serious disturbance
of the soil and water resources, with particular attention to road
construction, mining, shifting cultivation, and burning; and it
shall establish a monitoring system to see to it that the activities
authorized by the Bureau are accomplished in line with prescribed
water quality standards. It shall also adopt standards and criteria by
which it will be able to determine whether or not logging and other
land use practices shall be allowed or suspended in a watershed or
portion thereof.
SEC. 24. Timber Resource Management. – No timber resource

shall be allowed for commercial utilization unless the grant advances
the economic and social welfare of the Filipino people, while at
the same time assuring the continuity of the forest in productive
condition.
Subject to the provisions of the preceding paragraph, the

Director or his duly authorized representative may select or
designate timber for sale, disposal or use and may sell, dispose or
authorized the use of the same, by means of license or sales contract,
at prices fixed in this Code or as otherwise determined in accordance
with regulations promulgated thereunder.
859
The Director shall prescribe and implement in every logging

concession a silvicultural system or combination of systems which
will produce the optimum sustained yield of raw materials for the
dependent industries in coordination with other related uses.
The construction of logging roads and hauling of logs which

are the primary responsibility of the licensee or concessionaire may
be subcontracted to third parties under conditions and standards
prescribed by the Director; Provided, That any violation committed
by the subcontractor shall be considered as violation committed by
the licensee or concessionaire himself and shall subject the license
to suspension or cancellation.
SEC. 25. Allocation of Commercial Timber Resources. – The

commercial timber resources of the production forest shall be
allocated in such a manner as to encourage the maintenance and
further development of an integrated wood industry.
To this end, the major portion of the commercial timber

resource shall be allocated under long-term license agreements.
Timber allocated under such agreements shall be limited in area
and/or volume of timber required to support, on a sustained-yield
basis, the processing plant installed or to be installed.
The estimated volume and value of timber available for

commercial sale shall be determined through an appraisal system
by the Bureau.
SEC. 26. Timber Appraisal, Scaling and Tree Measurement.

– The Director shall institute a system of timber appraisal for all
public forest areas or forested alienable or disposable lands, whether
vacant or covered by existing timber concessions.
In the case of timber license agreements, existing as of the

effectivity date of this Code, the first appraisal shall take place
after two (2) years following such effectivity; and of those that may
be issued thereafter, said appraisal be made every five (5) years
reckoned from the original issuance thereof.
860
Tree measurement shall be the basis for assessing government

charges on timber cut and removed from the public forest or
alienable or disposable lands; Provided, that until such time as the
mechanics of tree measurement has been developed, the present
scaling method provided for in the National Internal Revenue Code
shall be used.
The Director, with the approval of the Department Head,

shall promulgate the implementing rules and regulations to carry
into effect the purposes of this Section.
SEC. 27. Authority of Department Head to Impose Fees or

Require Special Deposits. – In addition to the taxes, fees and charges
imposed under existing laws and regulations, the Department
Head is hereby authorized to impose, upon recommendation of the
Director and in consultation with representatives of the industries
affected, such fees, or require special deposits, for the privilege to
occupy or use a portion of the public forest, or harvest and utilize
forest products.
SEC. 28. Collection and Disbursement. – The collection of the

fees and special deposits subject of the next preceding Section shall be
the responsibility of the Director or his authorized representatives.
The Director shall remit his monthly collection to the Treasurer
of the Philippines within the first ten (10) days of the succeeding
month. The Budget Commissioner and the National Treasurer shall
effect the quarterly releases out of this collection upon request of
the Director on the basis of a consolidated annual budget of a work
program approved by the Department Head upon approval by the
President.
SEC. 29. Mandatory Wood Processing Requirements. – Upon

effectivity of this Code, unless otherwise decreed by the President
upon recommendation of the National Economic Development
Authority, the amount of timber production of each timber licensee
or concessionaire required to be locally processed shall not be less
than the following percentages based on the average actual cut
during the preceding two (2) years:
861
(a) Calendar Year 1973 40 percentum

(b) Calendar Year 1974 60 percentum
(c) Calendar Year 1975 80 percentum
(d) Calendar Year 1976 and thereafter 100 percentum
A wood-processing plant shall purchase logs only from

legitimate sources. A license who has no processing plant may enter
into a contract with a wood processor for purposes of complying with
the requirements of this Section, subject to approval by the Director.
Timber license holders shall be encouraged and assisted to

utilize and convert logging wood wastes and wood trees in their
concessions and the wood residues of their wood processing plants
into the manufacture of wood by-products and derivatives. For this
purpose, the Bureau shall, in collaboration with other wood agencies,
the Board of Investments and industry associations concerned,
evolve and recommend a program of incentives for submission to
the NEDA, thru the Department Head.
SEC. 30. Forest Range Resources Management. – The forage

and range resources of the public forest shall be developed and
managed to insure a continuous productivity of forage to support
the livestock industry of the country. The Bureau shall collaborate
with the Bureau of Animal Industry, Bureau of Plant Industry and
other appropriate government agencies to achieve this objective.
Suitable range or grazing lands shall be determined by the

Bureau using fifty percent (50%) slope as the maximum gradient
for suitable range, and such other criteria as it may establish. All
existing leases on unsuitable range land will be offered the privilege
of transferring to suitable range lands in lieu of lease termination.
The Department Head, upon the recommendation of the

Director, shall promulgate such rules and regulations as are
necessary to effectively carry out the provisions of this Section.
862
SEC. 31. Wildlife Resources Management. – There shall be

maintained an adequate population of wildlife in the public forests
and surrounding areas to provide an ideal biological balance of flora
and fauna. It shall be unlawful to hunt, wound or kill, take, have in
possession or offer for sale any bird, fish or mammal without license.
Wild mammals and birds may, upon prior permission by the Director
or his representative, be caught or destroyed by property owners at
any time that such animals cause destruction to their property. The
Director may specify the seasons during which certain birds, game
and fish may be taken with permit, and may also establish the daily
and/or seasonal bag or creel limits as may be required to maintain
the desired level of stocking.
Permits for the taking of birds and game animals shall not be
issued within national parks, botanical gardens, established game
sanctuaries and other areas designated by the Department Head,
except that the latter may authorize the Director to issue a special
permit for the taking of surplus game or destructive predatory,
noxious or dangerous animals which endanger the habitat. The
Director is authorized to establish, equip, operate and maintain
game farms and other game projects in such portions of the lands
under his jurisdiction as may be deemed appropriate and beneficial,
and to terminate such activities when the purpose has been served.
A reasonable fee may be collected for the issuance of hunting

and fishing permits: Provided, however, that permits shall be issued
free of charge to those who by tradition are dependent upon the
flesh of wildbirds and mammals for their subsistence, subject to the
mode of hunting, species bag limits, and other conditions as may be
prescribed.
SEC. 32. Recreation Resource Management. – The Bureau

shall, in the preparation of multiple-use management plans, identify
and provide for the protection of scenic areas which are potentially
valuable for recreation and tourism. In planning for the operation of
such areas for utilization of other resources, the design shall provide
for the protection and development of the recreation resource.
863
Likewise, the road system to be constructed for harvesting

timber, mining, and other purposes shall, to the extent feasible, be
designed and constructed to facilitate the access to recreation areas.
The Bureau shall plan for development of recreation areas

to induce and meet increasing demands. The construction and
operation of necessary facilities to accommodate outdoor recreation
will be done by the Bureau with the use of its own funds which
may be derived from rentals and fees for the operation and use of
recreational facilities by private persons or operators.
The Director shall promulgate rules and regulations and

establish a schedule of fees for the recreational use of such areas.
In the areas constituting the national park system, such rules

shall be formulated and adopted to insure the continuity of their
unique values.
SEC. 33. Management of Swamplands and Mangrove Forests.

– The Bureau, in consultation with other appropriate agencies,
shall jointly develop a management plan to increase the public
benefits derived from swamplands and mangrove forests, but in no
case shall the development obstruct or impede waterflow of streams
and rivers.
Strips of mangrove forests bordering numerous islands protect

the shoreline, the shoreline roads, and even coastal barrios from the
destructive force of the sea during high winds and typhoons, and
therefore, must be kept free from artificial obstruction so that flood
water will flow unimpeded to the sea to avoid flooding or inundation
of cultivated areas in the upstreams.
All mangrove swamps set aside for coastal protection forest

purposes shall be established as permanent forest, and shall be
managed under the principle of sustained-yield.
SEC. 34. Kaingin Management. – The Bureau shall, in the

preparation of its multiple-use plans, design and provide for
864
implementation of kaingin management and relocation plan. The

plan shall include a complete and continuing census of all forest
occupants, survey of the sizes of occupancy and the identification of
those to whom kaingin management benefits shall be given.
The Bureau shall control and regulate the location and area,
and prescribe rules and regulations for the prevention of further
encroachment into the public forests and shall also provide an
agro-forestry development program and assistance to increase crop
productivity and employment opportunities to forest occupants.
The Bureau, in collaboration with other appropriate agencies,

shall identify and stabilize the land claims of primitive tribes residing
within the public forest. Provision shall be made for permanent
settlement on designated areas reserved for the purpose, such as,
unoccupied alienable or disposable lands, relocation centers within
the public forest and elsewhere as may be required to achieve the
objectives: Provided, That a member of the primitive tribes who,
since July 4, 1955, has continuously and publicly occupied and
cultivated, either by himself or through his predecessors-in-interest,
a tract or tracts of land declared as alienable or disposable, shall be
entitled to the rights granted in this Code: Provided, further, That
at the time he files his free patent application, he is not the owner of
any real property secured or disposable under the provisions of the
Public Land Act; and Provided, finally, That he has not previously
availed himself of the provisions of the laws relative to free grant
of land.
For those remaining in the public forest, a continuing program

of assistance, when needed, shall be provided by the Bureau.
Any person making kaingin without permit after the

completion of the initial forest occupancy census and survey as
provided for under this Section shall be criminally prosecuted in
accordance with existing laws. Any person who violates the terms
and conditions of his kaingin permit shall forfeit all privileges
granted him under the kaingin management plan. In both cases, the
violator shall be ejected from the public forest illegally occupied and
865
all improvements introduced thereon including tools, equipment

and work animals shall be confiscated in favor of the Government.
SEC. 35. Industrial Plantation Management. – The Bureau

shall encourage the rehabilitation of denuded or deteriorated lands
embracing both those under public and private ownership. It shall
implement a system of incentives to prospective investors to plant
suitable areas to forest trees of commercial value. Such incentives
may exceed the limits set for other uses of forest lands under this
Code, and shall be contained in a set of rules to be promulgated by
the Department Head with the approval of the President.
In the case of lands within the public forest, the Bureau may
grant industrial plantation license and/or lease for a period of 25
years, renewable for another 25 years at the option of the lessee,
and charge an annual nominal rental and use fee only from the time
of harvest.
In the case of private lands, the Bureau shall assist in the

preparation of management plans, give technical advice in the
development and maintenance of the plantation, and implement
a system of incentives to landowners who undertake approved
conservation and silvicultural practices.
Small scattered areas may be leased to individuals: Provided,

they organize themselves into a cooperative to insure the orderly
management and development of their plantations and marketing
of their products. Big, compact areas may be leased to individuals,
corporation, partnerships or associations.
SEC. 36. Mineral Resources Management Within the Public

Forest. – Mining operations in forest areas shall be conducted with
due regard to protection, development and utilization of other
surface resources in the areas affected by such mining operations.
No prospecting, exploration or exploitation of mineral

resources shall be allowed within the public forests including forest
reservations, national parks, reforestation projects, grazing areas,
866
and those under special uses and such areas reserved by law or
by the President of the Philippines for special purposes unless
approved by the President upon recommendation of the Director of
Mines and Director of Forestry.
The utilization of timber and other forest products within

mineral reservations and other mineral lands shall be allowed in
accordance with existing forestry laws and regulations and such
rules as may hereinafter be promulgated.
ARTICLE VII. - LICENSES, LEASES AND PERMITS
SEC. 37. Types and Specification of Licenses, Leases and

Permits. – A license, lease or permit may be issued or granted only
after an application has been filed and an award has been made. No
licenses, leases and permits, however, shall be granted in provinces
and cities which according to the latest official population census,
are inhabited by members of the national cultural communities,
without a prior inspection jointly conducted by the representatives
of the Bureau and of the Commission on National Integration and a
certification by said representatives that no members of the cultural
communities actually occupy or possess, or has a claim to all or
portions of the area applied for; and in cases where only portions
of the area applied for are in the occupation or possession of, or
claimed by, members of the said national cultural communities, the
same shall be excluded, or deemed excluded.
The types of licenses, leases or permits issued or granted by

the Director or the Department Head as the case may be are as
follows:
(a) Timber License Agreement – a long term license executed

by and between the Department Head, on behalf of the Government,
and the grantee for the harvesting and removal from the public forest
of timber and, in appropriate cases also of other forest products. It
is drawn up by the Director and recommended to the Department
Head for his final approval. It is subject to review at least once every
867
five (5) years to ascertain compliance with the terms thereof and
adjust such terms to major policy changes.
(b) Pulpwood License Agreement – similar to timber license

agreement except that it is primarily for the planting and cutting of
pulpwood species.
(c) Provisional Timber License – a short term license issued by

the Department Head over areas previously under ordinary timber
licenses where field evaluation is prevented by unstable peace
and order conditions or fortuitous events, or where government
restrictions or changes in government policy have prevented the
licensee from actual logging operations, or for one reason or another
which the Department Head or Director considers satisfactory, and
the licensee failed to commence such actual operation although
substantial capital improvements have been introduced and that
the licensee has shown evidence of sufficient financial capability for
continuous logging operations such that cancellation of the license or
conversion into a longer term license cannot be done in the interim;
or where the area is covered by a mining claim and claimant does
not need the timber for mining purposes and commercializes it or
waives his right to another who is qualified to acquire a timber
license.
(d) A & D Timber License – a license issued by the Director for

the clear-cutting and commercial utilization of timber over forested
lands that have been declared as alienated or disposable but not yet
covered by a title of ownership.
(e) Private Land Timber License – a license issued by the

Director for the cutting and commercial utilization of timber in a
private land the title to which is not registered with the Bureau.
(f) Registered Private Woodland License – a license issued by

the Director for the cutting and commercial utilization of timber in
a private land the title of which is registered with the Bureau.
868
(g) Soft Wood Timber License – a license issued by the Director

inside a public forest for the cutting of timber species suitable and
used solely for bakya, matchsticks, carving and similar purposes.
(h) Hard Wood Timber License – a license issued by the

Director inside a public forest for the cutting of timber classified
as furniture timber, to be used exclusively in the manufacture of
furniture, fixtures, house components, sash, handicraft, and other
such woodcraft.
(i) Gratuitous Timber License – a license issued by the Director

or his representative for the cutting of timber strictly for personal
use, for public purposes or for mining operations.
(j) Mangrove Timber License – a license issued by the Director

for the cutting and utilization of mangrove timber species.
(k) Civil Reservation Timber License – any of the foregoing

licenses issued by the Department Head or by the Director inside
a civil reservation for the cutting and utilization of timber species.
(l) Land Grant Timber License – any of the foregoing types

of licenses except paragraph (k) issued by the Department Head or
by the Director inside land grants for the cutting and utilization of
timber species.
(m) Minor Forest Products License – a license issued by the

Director within a public forest or forested land for the cutting and
utilization of any forest product other than timber.
(n) Pasture Lease – a lease for the occupancy and use of a

portion of the public forest for pasture purposes executed by and
between the Department Head on behalf of the Republic, and the
grantee, as recommended by the Director.
(o) Industrial Plantation License Agreement – is a long-term

agreement executed by the Department Head, as party of the first
part, upon recommendation of the Director, by which the party of
869
the second part is granted the privilege to occupy a portion of the

public forest which is partly forested and partly open or bare area,
for the purpose of cutting available standing timber for pulpwood or
similar uses, and for planting the open portion with timber species
of commercial value.
(p) Industrial Plantation Lease – a lease for the occupancy

and use of a portion of the public forest for the purpose of growing
commercial timber on denuded or deteriorated forest lands, executed
by and between the Department Head, on behalf of the Republic,
and the grantee, as recommended by the Director.
(q) Special Use Lease – a lease executed by the Department

Head upon recommendation of the Director for a long-term
occupancy and use of a portion of the public forest for purposes
other than those stated in the foregoing leases.
(r) Special Use Permit – a short-term permit granted by the

Director for the occupancy or use of a portion of the public forest for
purposes other than those stated in the foregoing leases.
(s) Such other leases and/or permits – the Department

Head or the Director may grant for purposes associated with the
disposition of forest products or use and occupancy of the public
forest and other areas associated therewith.
Every license, lease or permit for the occupancy or use of

the forest or for the taking, gathering or removing of the products
therefrom shall specify in detail, the privileges the holder is entitled
to, and the obligations imposed on him; and all such licenses, leases
or permits shall, when practicable, define the area for occupancy or
use, or where such products are to be taken, gathered or removed:
Provided, That such license, lease, or permit shall not, except as
specified by the Director or the Department Head, exclude other
lawful uses and occupancy of other persons: Provided, further, That
where the area applied for is inside an existing timber license or
concession, a Hard Wood or Soft Wood Timber License may be issued
only over said portions not covered by the operations or management
870
plan of the existing licensee or concessionaire for cutting within the

next five years, or even if such applied area is within the current
operations or logging plan, upon a written waiver or consent by the
existing licensee or concessionaire.
SEC. 38. Tenure of Licenses, Leases or Permits; Extent of

Area. – No license or lease granted by the Director or Department
Head shall continue in force for more than twenty-five (25) years,
renewable for another twenty-five (25) years, upon faithful
compliance with the terms and conditions of the license or lease.
Permits may be granted on a yearly basis renewable for the same
period at the option of granting authority.
Except as otherwise provided, the tenure and extent of area

for a license, lease or permit shall be as specified hereunder:
TYPE DURATION AREA

Timber License 10 to 25 years Not more than 100,000 hectares,
Agreement except upon approval of the
National Assembly upon the
recommendation of NEDA.
Pulpwood License 10 to 25 years Not more than 100,000 hectares,
Agreement except upon approval of the
National Assembly upon the
recommendation of NEDA.
Provisional At the discretion of At the discretion of Department
Timber License the Director but not to Head.
exceed 4 years.
A & D Timber At the discretion of Limited to the extent of area
License the Director but not to containing commercial timber.
exceed 4 years.
Private Land At the discretion of the Limited to the extent of area
Timber License Director depending containing commercial timber.
on extent of forested
area and merchantable
stand.
Registered Same as private timber Limited to the extent of area
Private Woodland license. containing commercial timber.
License
Soft Wood Timber At the discretion of At the discretion of the
License the Director but not to Departmen t Head.
exceed 5 years.
871
Hard Wood Same as Soft Wood At the discretion of the

Timber License Timber License. Department Head.
Gratuitous Not more than one year At the discretion of the
Timber License for personal purposes Department Head.
and not more than 5
years for mining and
public purposes.
Mangrove Timber Not more than 4 years. At the discretion of the
License Department Head.
Civil Reservation At the discretion of the At the discretion of the
Timber License Director. Department Head.
Land Grant At the discretion of the At the discretion of the
Timber License Director. Department Head.
Minor Forest At the discretion of At the discretion of the
Products License the Director but not to Department Head.
exceed 5 years.
Pasture Lease 10 to 25 years. Not to exceed 2,000 hectares.
Industrial Not to exceed 25 years. At the discretion of the

Plantation Department Head.
License
Industrial Not to exceed 25 years. At the discretion of the
Plantation Lease Department Head.
Other special use permits and leases for the use or occupancy
of the forest provided for in this Code shall be of such duration and
extent as the Director may fix.
SEC. 39. Charges, Fees and Bonds. – Except as specified in this

Code, the Department Head, upon recommendation of the Director,
shall fix the amount of charges, fees or rentals for the privilege to
harvest and remove for commercial purposes forest products, and to
occupy or use the public forest.
He may in like manner determine the amount of bond

necessary to secure the faithful compliance with the terms and
conditions of the license, lease or permit.
SEC. 40. Conditions Imposed on License, Lease or Permit.

– Upon granting any license, lease or permit, the Bureau may
prescribe such terms, conditions and limitations, not inconsistent
with law, as may be deemed by him to be in the public interest.
872
SEC. 41. Prohibition on Transfer of Permit, Lease, License,

License Agreement. – (a) Except as herein below provided, the
transfer, exchange, sale or conveyance of any permit, lease, license,
license agreement or any transaction under any guise which will
allow or permit another person to enjoy the privilege granted therein
is hereby prohibited.
(b) In the case of a lease or license agreement, after a period

of three years from the issuance of the original lease or license
agreement, the lessee or licensee may, with the approval of the
Department Head as recommended by the Director, be allowed to
transfer, or convey his lease or license agreement to another provided
the lessee or licensee has complied with all the requirements of
the law and the rules and regulations thereunder promulgated:
Provided, further, that the proposed transferee possesses the
qualifications and none of the disqualifications to hold a lease or
license agreement under the law and this Code; and Provided,
finally, that there is no evidence that such transfer or conveyance is
being made for purposes of speculation and that the transferee shall
assume all unpaid forestry accounts of the transferor.
(c) Where the lessee or license holder of a lease or license

agreement, is a partnership or corporation, the transfer of the lease
or license agreement to another partnership or corporation may
be allowed even before the lapse of the three-year period provided
the original partners or stockholders of the transferor shall control
at least sixty-six and two thirds per cent (66-2/3%) of the paid up
capital of the transferor.
(d) In any event any lessee or license agreement holder who

transfers or conveys his or its lease or license agreement, shall
forever be barred from acquiring another lease or license agreement.
(e) The National Assembly may, in the national interest, allow

forest products licensees, lessees, or permittees to enter into service
contracts for financial, technical, management, or other forms of
assistance with any foreign person or entity for the exploration,
development, exploitation or utilization of the natural resources
873
covered by their licenses, leases or permits. Existing valid and

binding service contracts for financial, technical, management or
other forms of assistance are hereby recognized as such.
SEC. 42. Registration and Regulation of Forested Private

Lands. – Every owner of private land containing timber shall register
his title to said land with the Director. Once duly registered, timber
taken and removed from such land for commercial purposes shall
be exempt from the payment of the minimum single forest charges.
The harvesting of timber shall be in accordance with a plan of
management, if such be required of the owner, duly approved by the
Director or his designated representative. The plan of management
shall include measures for keeping the land in productive condition
and for preventing watershed damage.
SEC. 43. Cancellation or Suspension of Privileges Granted

in License, Lease or Permit. – The Department Head may, upon
recommendation of the Director, terminate, cancel, suspend or
refuse to extend a license, lease or license agreement granted by
him under this Code for serious violation of the provisions thereof
or its implementing regulations.
The Director may, for the same reason, terminate, cancel,

suspend or refuse to extend any other license, lease or permit not
covered by the preceding paragraph.
ARTICLE VIII. - INFRASTRUCTURE DEVELOPMENT
SEC. 44. Infrastructure Development. – The Bureau shall

coordinate its program and standards of road construction with those
of the Bureau of Public Highways in such a manner as to facilitate
and economically reduce the cost of development of infrastructure
and in a manner that will best serve the public interest, and shall
work with the Bureau of Public Works in establishing wharves,
piers and other port facilities in locations designated for processing
centers to provide incentives for wood-based industries in the
manufacture and export of finished products at competitive levels.
874
The President, upon the recommendation of the NEDA and

the Department Head, is authorized to establish one wood industry
import-export center each in Davao, Zamboanga and Quezon
provinces.
Imported log supplies used in such centers shall be exempt

from all import duties as well as taxes on the resulting finished
products exported to foreign markets. Finished products may be sold
in domestic markets subject, however, to prevailing tariffs and taxes
and to other requirements governing the sale of forest products by
local processors. The Director shall in collaboration with the proper
government agencies take all necessary precautions to prevent
the introduction of insects, pests and/or diseases detrimental to
Philippine forests.
SEC. 45. Transportation System. – The Bureau shall

prescribe the design and standard, and supervise the construction
of all roads, bridges, communications and other installations
inside the public forest, in coordination with the Department of
Public Works, Transportation and Communication. Main roads,
subject to such rules and regulations as may be promulgated, upon
the joint recommendation of the Director and the Commissioner
of the Bureau of Public Highways, subject to the approval of the
Department Head, shall link up with the national and provincial
highway networks and shall become public roads after five (5) years
following the completion of their construction. Secondary roads shall
become part of the permanent forest protection and management
transportation system.
Where roads are utilized by more than one commercial forest

user, the Bureau shall prescribe the condition of joint use including
the equitable sharing of construction and/or maintenance. The
Director shall promulgate such rules, approved by the Department
Head, to implement this provision including the use of these roads
by other parties and such fees as are deemed necessary.
875
The Bureau shall initiate a meeting at least annually with

the Bureau of Public Highways at regional levels to coordinate the
overall transportation system programs of the two (2) agencies.
ARTICLE IX. - SPECIAL PROVISIONS ON PROMULGATION

OF ORDERS OR DECISIONS OF THE REGIONAL DIRECTOR,
THE DIRECTOR AND THE SECRETARY, APPEAL
THEREFROM
SEC. 46. Claims and Conflicts. – Conflicts and disputes arising

out of claims or interests in licenses, leases or permits relating to
occupancy, use and/or utilization of public forests, including forest
reserves, shall be presented and decided in the manner hereinafter
provided for.
SEC. 47. When Order or Decision shall be Rendered. – The

award of forest area; rejection or disapproval of application for
license, lease or permit, or the extension or renewal thereof; the
suspension of a license, lease or permit; imposition of fines and
penalties upon the holder thereof for violation of the terms and
conditions of the license, lease or permit; or of any provisions of
this Code, or the internal revenue, labor or any existing laws or
regulations affecting the forest resources; the exoneration of the
grantee therefrom; and the disposition of bonds shall be decided
by the Director or his duly delegated representative. The regional
director shall have original jurisdiction to decide adverse claims and
conflicts.
SEC. 48. When Order or Decision Becomes Final. – Except

as otherwise expressly provided hereunder, an order or decision
of the Director under this Code shall become final after thirty (30)
days following the receipt by the party concerned of such order or
decision, unless in the meantime an appeal therefrom is taken or a
motion for reconsideration is filed by the aggrieved party to suspend
the running of the period, and in a manner prescribed herein.
An order or decision of the Director in the following cases

shall be executory immediately upon promulgation:
876
(a) award of license, lease or permit, or the renewal thereof;
(b) suspension of logging operations for reasons specified

under this Code and/or other related rules and regulations; and
(c) exoneration of a licensee, lessee or permittee from

reported violation of the provisions of this Code or related laws and
regulations.
SEC. 49. Motion for Reconsideration, Grounds, Period for

Filing, etc. – Within thirty days (30) days from the receipt of an order
or decision, an aggrieved party may file a motion for reconsideration
of said order or decision for one or more of the following causes
materially affecting the substantial rights of said party:
(a) the order or decision is not in conformity with the applicable

law, or regulations, or with the evidence presented;
(b) fraud, accident, mistake or excusable negligence which

ordinary prudence could not have guarded against and by reason of
which the movant has been impaired in his rights; and
(c) newly discovered evidence which he could not, with

reasonable diligence, have discovered and produced in the
investigation or when the order or decision was still under
advisement and which, if produced, would probably alter the result
thereof.
Any motion for reconsideration filed after the above-prescribed

period, or which is not based on any of the above-stated grounds
shall not be entertained. Only one motion for reconsideration of an
order or decision shall be allowed.
SEC. 50. Appeal from the Order or Decision of the Regional

Director. – An appeal shall lie from an order or decision of the
Regional Director to the Director within the same period prescribed
in Section 49 hereof, unless a motion for reconsideration is filed
within a like period, in which case an appeal shall be made within
877
thirty (30) days from the receipt by the aggrieved party of the order
disposing of the motion for reconsideration.
The notice of appeal may be delivered or sent to the Regional

Director or the Director. In case the notice is sent directly to
the Director, a copy of the same shall be furnished the Regional
Director, who shall forthwith transmit all the records of the case to
the Director.
SEC. 51. Appeal from the Order or Decision of the Director. – An

appeal from an order or decision of the Director to the Department
Head shall be made within the same period and manner as provided
for in Section 50 hereof.
SEC. 52. When Appeal Deemed Perfected. – An appeal is

perfected upon the due filing of the notice of appeal together with
the corresponding appeal fee. The appeal fee of fifty (P50.00) pesos
shall be paid to the Office with which the appeal is filed, which
amount shall accrue to the General Fund.
SEC. 53. Effect of Appeal; Motion for Reconsideration. – A

perfected appeal, or a motion for reconsideration when filed in due
time and on the grounds enumerated in Section 50, shall stay the
order or decision of the Director but shall not stay that which is
included in the enumeration in the second paragraph of Section 49
hereof.
SEC. 54. Execution Upon Final Orders or Decision. – Except

as expressly provided in Section 49, second paragraph, and Section
56, no execution shall issue upon an order or decision of the Director
until after the period for perfecting an appeal or for filing a motion
for reconsideration has expired.
SEC. 55. Execution Pending Appeal. – The Director may,

before an appeal is perfected and upon motion of the prevailing
party with notice to the adverse party, by special order, direct the
execution of his order or decision even before the expiration of the
878
time to appeal upon good and meritorious reasons to be stated in

the special order.
SEC. 56. Stay of Execution. – An order of execution issued

before the lapse of the period to appeal may be stayed upon motion
seasonably filed and upon the filing of a bond reasonably sufficient to
secure the performance of the order or decision in case it be affirmed
wholly or in part to answer for any damage that may be caused by
the suspension of the effect of such order or decision.
SEC. 57. Adverse Claim. – Any person who believes himself

to be the rightful owner, grantee or possessor of the land subject
of an application for a license, lease or permit under this Code, or
who claims to have priority over the same shall, before the lapse of
one (1) year after the issuance of the license, lease or permit, file in
writing and under oath his opposition in the Office of the Regional
Director, stating therein the basis of his priority or the grounds
therefor, and submitting in support thereof a sworn declaration of
two credible witnesses, and such other documents which he may
care to present: Provided, that, in case the Regional Director shall
be officially notified of not more than thirty (30) days from notice
by the Regional Director within which to file his protest in due
form, copy or copies of which shall be furnished by the claimant to
other interested parties at the same time. Any claim or protest filed
beyond the period herein set forth shall not be entertained.
SEC. 58. Conflict. – Any licensee, lessee or permittee who

believes that another licensee, lessee or permittee has encroached
upon the area covered by that of the former shall report the matter
to the Regional Director or any local forestry office within thirty
(30) days after the aggrieved party learned of the encroachment
commenced, otherwise the complaint shall not be entertained.
SEC. 59. Investigation of Claims and Conflicts. – Adverse

claims when properly asserted and reports of conflicts received within
the time specified in the next preceding Section shall be caused to be
investigated, if this has not yet been done, by the Regional Director.
The investigation shall be made whenever necessary in the very
879
ground and after both parties have been advised of the time, date,
and place where it will be held, and of the nature of the case. The
notice of investigation shall be served upon them at least one week
before the date set therefor.
SEC. 60. Report of Investigation. – The report of investigation

shall state, among other things, the following: (a) who is in actual
possession of the disputed area; (b) since when and how the
possession was made; (c) whether the occupant, if a licensee, lessee
or permittee, is utilizing the land under the terms and conditions
of his license, lease or permit; (d) since when and to what extent
the occupant has utilized the forest resources of the area occupied
by him; (e) what improvements are found on the land; (f) what they
consist of and when they were introduced; and (g) muniments of
title of occupant.
The report shall likewise be accomplished with copies of the

notice to the parties with evidence of their receipt thereof, as well
as the declaration of the parties and their witnesses who testified in
the investigation, and other documentary evidence pertinent to the
just resolution of the controversy.
SEC. 61. Mode of Filing Appeal, Memorandum or Brief

. – Within a prescribed period, the appellant shall file a brief or
memorandum containing a concise statement of the facts of the
case, the assignment of errors, and the arguments supporting the
appeal. Copy of the appeal, brief or memorandum shall be furnished
the appellee. The records of the case shall be forwarded to the Office
with which the appeal was filed.
SEC. 62. Answer. – If the petition is sufficient in form and

substance, the Regional Director, Director or the Department Head,
as the case may be, shall issue an order requiring those against
whom the petition is filed or answer the same within fifteen (15)
days from the receipt thereof.
SEC. 63. Action after Answer is Filed. – Once the answer is filed,
or the time for its filing has expired, the Regional Director, Director
880
or the Department Head, as the case may be, shall investigate the
case. If after investigation, it is found that the allegation in the
petition is not true, the petition shall be dismissed, otherwise the
petition shall be granted, or the order or decision complained of set
aside upon such terms and conditions as may be just.
SEC. 64. Finality of Decision Promulgated by the Department

Head. – The decision of the Department Head on the appealed case
and suspension or cancellation of licenses, leases or permits, as
well as other cases covered by this Code shall become final after
thirty (30) days from the date of the receipt of a copy thereof by the
interested parties, unless otherwise specifically stated therein, or
a timely motion for reconsideration is filed. In the latter case, the
provision of Section 49 hereof shall apply.
SEC. 65. Execution and Stay of Execution of Department

Head’s Decision. – The provisions of Sections 55 and 56 hereof shall
apply with respect to decisions of the Department Head subject of
the preceding Section.
SEC. 66. Appeal from the Order/Decision of the Department

Head. – The party not satisfied with the order or decision of the
Department Head may take the matter to the Supreme Court or
the Court of Appeals, as the case may be, in a proper proceeding,
within thirty (30) days from receipt of such order or decision. Only
questions of law may be brought before the Supreme Court.
Finding of facts of the Director, when affirmed by the

Department Head, shall be final and conclusive.
SEC. 67. Suppletory Application of Rules of Court; Other

Laws. – The Rules of Court and other related laws shall apply in a
suppletory character whenever practicable and convenient.
ARTICLE X. - PROHIBITION AND PENALTIES
SEC. 68. Free Entry by Forest Officers or Other Persons. –

When in the performance of their official duties, forest officers or
881
other government officials or employees, shall have free entry into

the public forests, national parks, forest reserves, game refuges and
bird sanctuaries. It shall be unlawful for any existing concessionaire,
lessee, licensee or permittee and their agents, representatives or
employees to bar or prevent entry of such forest officers or other
government officials or employees to areas under concession, lease,
license or permit. Violation of this Section shall be sufficient cause
for cancellation of such concession, lease, license or permit.
SEC. 69. Cutting, Gathering, and/or Collection of Timber or

Other Products. – The penalty of prision correccional in its medium
period and a fine of five (5) times the minimum single forest charge on
such timber and other forest products in addition to the confiscation
of the same products, machineries, equipments, implements and
tools used in the commission of such offense; and the forfeiture
of improvements introduced thereon, in favor of the Government,
shall be imposed upon any individual, corporation, partnership,
or association who shall, without permit from the Director, occupy
or use or cut, gather, collect, or remove timber or other forest
products from any public forest, proclaimed timberland, municipal
or city forest, grazing land, reforestation project, forest reserve of
whatever character; alienable or disposable land: Provided, That if
the offender is a corporation, partnership or association, the officers
thereof shall be liable.
The same penalty above shall also be imposed on any licensee

or concessionaire who cuts timber from the license or concession
of another without prejudice to the cancellation of his license or
concession, as well as his perpetual disqualification from acquiring
another such license or concession.
SEC. 70. Pasturing Livestock. – The penalty of prision

correccional in its minimum period and a fine of ten (10) times the
regular rentals due in addition to the confiscation of such livestock
and all improvements introduced therein in favor of the Government,
shall be imposed upon any individual, corporation, partnership or
association who shall, without permit or lease from the Director,
graze or cause to graze livestock in the public forest, proclaimed
882
timberland, municipal or city forest reserve of whatever character,

declared alienable or disposable land which have not as yet been
disposed of in accordance with the Public Land Act: Provided, That
in case the offender is a corporation, partnership or association, the
officers thereof shall be liable.
SEC. 71. Survey by Unauthorized Person. – The penalty

of prision correccional in its medium period in addition to the
confiscation of the implements used in violation of this Section
including the cancellation of the license, if any, shall be imposed
upon any person who shall, without permit to survey from the
Director, enter the public forest, proclaimed timberland, municipal
or city forest and pasture, reforestation project, national park and
forest reserve to conduct or undertake survey for whatever purpose.
SEC. 72. Misclassification and Survey by Government Official

or Employee. – Any public officer or employee who knowingly survey,
classify, or recommend the release of public forest lands as alienable
or disposable contrary to the criteria and standards established in
this Code, or the regulations promulgated thereunder, shall, in
addition to the nullification of such survey, classification or release,
be dismissed from the service with prejudice to re-employment and
shall suffer an imprisonment of not less than one (1) year and a fine
of not less than one thousand pesos (P1,000.00).
SEC. 73. Tax Declaration on Real Property. – The penalty

of prision correccional in its medium period and perpetual
disqualification from holding an elective or appointive office, shall
be imposed upon any public officer or employee who shall issue a tax
declaration on real property without a certification from the Director
and the Director of Lands or their duly designated representative
that the area declared for taxation is alienable or disposable land,
except when such lands are titled or have been occupied and
possessed by members of the national cultural communities prior
to July 4, 1955.
SEC. 74. Coercion and Influence. – Any person who coerces,

influences, abets or persuades the public officer or employee referred
883
to in the next preceding Section to commit any of the acts therein

mentioned shall suffer an imprisonment of not less than one (1)
year and a fine of five hundred (P500.00) pesos for every hectare
or a fraction thereof so improperly surveyed, classified or released.
SEC. 75. Unlawful Occupation of Public Forest or Destruction

of Forest Reserve. – It shall be unlawful for any person who, having
no prior written permission from the Director or his duly authorized
representative, willfully enter and occupy or possess for his own
private use or for others any public forest, reforestation project,
forest reserve of whatever character or municipal/city pasture or
forest, or in any manner destroy such forest or part thereof, or to
cause any damage to the timber stand and other forest products and
forest growths found therein, or to assist, aid or abet any other person
to do so. It shall be unlawful for any person to set or to negligently
permit a fire which has been set upon his own premises or lands
under his jurisdiction or occupied by him, to be communicated to
any public forest hereinabove described. It shall further be unlawful
for any person or association to occupy or use any part of the public
forest without permit or lease as herein required, or cause damage
to the forest or the resources found therein.
Any person or association of persons found to have committed

any of the aforesaid acts shall be fined not less than five hundred
(P500.00) pesos and imprisoned for not less than six (6) months for
each offense; and shall likewise be liable to the payment of ten (10)
times the rental and other charges now or hereafter provided for by
regulations corresponding to the nature of use and the period that
such area is illegally occupied; except that in cases falling under
Sections 32 and 82 hereof, the penalty provided therein shall be
imposed and no other regardless of whether the entry, occupation
and utilization of the area was made before the completion of the
initial forest occupancy. In all cases falling under this Section, the
Court shall upon conviction, order the eviction of the offender from
the land and the forfeiture to the Government of all improvements
made and all vehicles, domestic animals, and equipment of any
kind used in the commission of the offense. If not suitable for use
by the Bureau, said vehicles, domestic animals, equipments and
884
improvements shall be sold at public auction, the proceeds of which

shall accrue into the Research and Development Fund of the Bureau.
SEC. 76. Unlawful Possession of Implements and Devices

Used by Forest Officers. – The penalty of prision correccional in its
medium period and fine of not less than one thousand (P1,000.00)
pesos in addition to the confiscation of such implements and
devices, and the automatic cancellation of the forestry permit,
lease or license, if the offender is a holder thereof, shall be imposed
upon any individual, corporation, partnership or association
who shall, without authority from the Director or his authorized
representative, cut, make, manufacture, or have in his possession
any government marking hatchet or other marking implements, or
any mark, poster, or other device officially used by officers of the
Bureau for the marking or identification of timber or other products,
or any duplicate, counterfeit, or imitation thereof, or make or apply
a government mark on timber or any other forest products by
means of any authentic or counterfeit government marking hatchet,
implement, mark, poster, or other device, or alter, deface, or remove
government marks, or signs from trees, logs stumps, firewoods, or
other forest products, or destroy, deface, remove, or disfigure any
such mark, sign, poster or warning notices set by the Bureau to
designate the boundaries of cutting areas, municipal or city forest
or pasture, classified timber land, forest reserve, national park,
to make any false mark or imitation of any mark or sign herein
indicated: Provided, however, That if the offender is a corporation,
partnership or association, the officer thereof shall be liable.
SEC. 77. Fraud in the Kind, Quality and Measurement of Logs,

Lumber and Other Processed Wood Products Offered for Sale. – It
shall be unlawful to sell or offer for sale any log, lumber, plywood or
other manufactured wood product in the international or domestic
market except in accordance with grading rules established or to be
established by the Government.
Failure to adhere to the established grading rules and

standards or any act of falsification of the volume of logs, lumber, or
other forest products shall be a sufficient cause for the suspension
885
of the export, sawmill, or other license or permit authorizing the

manufacture or sale of such products for a period of not less than
two (2) years.
It is further provided that every dealer in lumber and other

building materials covered by this Code is under obligation to issue
an invoice for each transaction or sale of such material and state
on each invoice that the kind, standard and size of material sold to
each purchaser is exactly the same as described in the invoice. Any
violation of this Section shall be sufficient ground for the suspension
of the dealer’s license for a period of not less than two (2) years and
in addition thereto, shall be punished for each such offense by a fine
of not less than two hundred pesos (P200.00) or the total value of
the invoice, whichever is greater.
Duly accredited representatives of the Bureau shall certify as

to the compliance with grading rules by the licensees.
In case the offense of fraud is willfully committed by a

government official or employee, he shall, in addition to the above
penalties be dismissed from office and permanently disqualified
from holding any elective or appointive position.
SEC. 78. Payment, Collection and Remittance of Forest Charges.

– Any individual, corporation, partnership or association who shall
fail to pay the amount already due and payable under provisions of
this Code or rules and regulations promulgated thereunder, shall
be liable for the payment of a surcharge of twenty-five per centum
(25%) of the amount due and payable. Failure to pay the amount
due, including surcharges thereof, within sixty (60) days after the
same has become due and payable, shall be a sufficient cause for
the suspension or cancellation of the license, lease, permit or timber
sales contract and forfeiture of the corresponding bond deposit of
the licensee, lessee, permittee or sales contractor.
Any person who fails or refuses to remit to the proper

authorities said forest charges collectible pursuant to the provisions
of this Code, or who delays, obstructs or prevents the same, or who
886
orders, causes or effects the transfer or diversion of the funds for

purposes other than those specified in this Code, for each such
offense shall, upon conviction, be punished by a fine of not exceeding
one hundred thousand pesos (P100,000.00) and/or imprisonment
for a period of not exceeding six (6) years in the discretion of the
Court. If the offender is a government official or employee, he
shall, in addition, be dismissed from the service with prejudice to
reinstatement and with disqualification from holding any elective
or appointive office.
If the offender is a corporation, partnership or association, the

officers thereof shall be liable.
SEC. 79. National Park System. – Any person who knowingly

or deliberately violates any provisions of Section 19 of this Code, or
regulations promulgated thereunder or shall, without permit, where
the same is required, occupy for any length of time any portion of
the areas in the national parks system or shall, in any manner,
cut, destroy, damage or remove timber of any species of vegetation
or forest cover and other natural resources found therein, or shall
mutilate, deface or destroy objects or natural beauty or of scenic
value within areas in the national park system, shall be liable to
a fine of not less than two hundred (P200.00) pesos or more than
five hundred pesos (P500.00) exclusive of the value of the thing
damaged: Provided, That if the area requires rehabilitation or
restoration as determined by the Director, the violator shall also
be required to restore or compensate for restoration of the damage:
Provided, further, That any person who, without proper permit
shall hunt, capture, or kill any kind of bird, fish or wild animals
life within any area in the national park system shall be subject to
the same penalty as heretofore mentioned. In case of a company or
corporation, the president or manager shall be directly responsible
and liable for the act of his employees or laborers; and that the
Court shall, upon conviction, order the eviction of the offender
from the land and that all timber or any species of vegetation and
other natural resources collected or removed or any construction
or improvement made thereon by the offender shall be forfeited in
favor of the Government.
887
In the event an official of a city or municipal government is

primarily responsible for detecting and convicting the violator of the
provisions of this Section, fifty per centum (50%) of the fines collected
shall accrue to such municipality or city for the development of local
parks.
SEC. 80. Wildlife Resources. – Any person violating the

provisions of Section 31 of this Code, or the regulations promulgated
thereunder, shall be fined not less than one hundred pesos (P100.00)
for each such violation and in addition shall be denied a permit for a
period of three (3) years from the date of the violation.
SEC. 81. Kaingin. – Any person or association of persons

who violates the provisions of Section 34 of this Code, or the
regulations promulgated thereunder, or encourages, abets or
knowingly permits, through negligence, inaction or positive action,
encroachment or unauthorized occupancy of the public forests shall,
upon conviction, be imprisoned for a period of not less than one (1)
year, without prejudice to the payment of the full cost of restoration
of the occupation area as determined by the Bureau. The offender
shall thereafter be evicted from the premises and all improvements
thereon shall be confiscated and forfeited in favor of the Government.
In case the offender is a government official or employee, he

shall, in addition to the above penalties, be deemed automatically
dismissed from office and permanently disqualified from holding
any elective or appointive position.
ARTICLE XI. - GENERAL PROVISIONS
SEC. 82. Words and Phrases Defined. – As used in this Code:
(a) “Timber or Forest Land” refers to that portion of the public

domain, characterized by a predominant growth of trees or wood
species, including nipa, mangrove and other swamps, which has
been delimited, classified and declared as such; the phrase includes
all lands of the public domain not otherwise classified as agricultural
888
or alienable, industrial or commercial, residential, resettlement,

mineral or grazing land.
(b) “Public Forest” synonymous to “timber or forest land.”
(c) “Permanent Forest” or “Forest Reserve” refers to forest or

timber land so delimited, classified and proclaimed for forest uses,
the boundaries of which cannot be modified nor altered except to
conform with subsequent precise surveys but not to exclude any
portion thereof, and upon approval of the President.
(d) “National Park” refers to any portion of the public

domain, essentially of primitive or wilderness character which, by
Presidential proclamation, has been withdrawn from settlement
or occupancy and set aside as such exclusively to preserve the
scenery, the natural and historic objects and the wild animals or
plants therein, and to provide enjoyment of these features in such a
manner as will leave them unimpaired for future generations.
(e) “Game Refuge and Bird Sanctuary” refers to an area

designated for the protection of game animals, birds and fish which
is closed to hunting and fishing in order that the excess population
may flow out and restock surrounding areas and all disturbances
are limited particularly to those of man-made origin.
(f) “Reforestation Project” refers to any portion of the public

domain which is essentially openland needing reforestation or
afforestation and declared as such by the Department Head.
(g) “Marine Park” refers to any off-shore area inhabited by

rare and unique species of marine flora and fauna.
(h) “Grazing Land” refers to that portion of the public domain

characterized by a predominant growth of grass species suitable for
domestic and wild-animal feeds.
(i) “Range Land” is synonymous to “grazing land”.
889
(j) “Alienable or Disposable Land” is that portion of the public

domain certified by the Director as not needed for forestry purposes
and not required by public interest to be retained under forest cover
and declared as such by the Department Head.
(k) “Working Unit” refers to the primary unit of forest

management, with well-defined boundaries usually based
on topography, sufficient to support the predetermined wood
requirement of dependent industries or communities on a sustained-
yield basis.
(l) “Forest Product” means timber, pulpwood, firewood, bark,

tree top, resin, gum, wood oil, beeswax, nipa, rattan, or other forest
growth such as grass, shrub, and flowering plant, the associated
water, fish, game scenic, historical, recreational and geologic
resources in public forest, national park, game refuge and bird
sanctuary and other such areas.
(m) “Multiple-Use” means the protection, development and

management of all the resource values of the public forest in the
combination that best contributes to the long term socio-economic
development. Use of some of the land and its resources for such
single or limited uses as national parks, forest recreation areas or
protected watersheds is an accepted part of multiple-use but only
when such uses or services cannot be provided in combination with
other uses.
(n) “Sustained-Yield” implies continuous or periodic production

of its product with the aim of achieving at the earliest practicable
time an approximate balance between growth and harvest or use.
This is generally applied to the commercial timber resources and is
equally applicable to the water, grass, wildlife, and other renewable
resources of the forest.
(o) “Timber” when used for purposes of collecting forest charges

or fees, refers to any piece of wood having an average diameter of at
least 15 centimeters and at least 1.5 meters long.
890
(p) “License, Lease or Permit” refers to a written authority

granted by the Director or Department Head to any qualified person
or entity for the cutting, removal and utilization of forest products or
for the occupancy and use of a particular portion of the public forest.
The term “license” or “lease” is synonymous to “license agreement”
or “lease agreement.”
(q) “Management Plan” refers to the written guideline for the

proper and systematic conservation, utilization, management and
development of timber and other forest resources of a specific forest
area.
(r) “Ecosystem” means the ecological community considered

together with non-living factors and its environment as a unit.
(s) “Forest Officer” means any official or employee of the

Bureau who, by the nature of his appointment or the functions of the
position to which he is appointed, is delegated by law or by competent
authority to execute, implement or enforce the provisions of this
Code, other related laws as well as their implementing regulations.
(t) “Processing Plant” as used in this Code is any mechanical

set-up, machine or combination of machines used for the processing
of logs and other forest raw materials into lumber, veneer, plywood,
wallboard, blackboard, paper board, paper or similar finished
products. The term “processing plant” includes circular sawmill,
band sawmill, pulp and paper mill, veneer plant, plywood plant,
wallboard plant and blackboard plant.
(u) “Private Right” as used in this Code, shall mean or refer to

rights of ownership under existing laws and in the case of primitive
tribes, to rights of possession existing at the time a license is
granted under this Code, which possession may include places of
abode and worship, burial grounds, and old clearings, but excludes
production forest inclusive of logged over areas, commercial forests
and established plantations of forest trees and trees of economic
value.
891
(v) “Primitive Tribe” is a group of endemic tribesmen living

primitively as a distinct portion of a people from a common ancestor.
(w) “Mainroad” means that principal haul road between

the nearest national or provincial road and/or the log pond or
manufacturing plant of the licensee and the most distant points or
points of the license area or a point of connection with the main road
of an adjacent licensee as may be prescribed by the Director.
SEC. 83. Separability Clause. – Should any provision herein

be subsequently declared unconstitutional, the same shall not affect
the validity or the legality of the other provisions.
SEC. 84. Implementing Clause. – The Department Head is

hereby authorized to create such number of positions and appoint
the corresponding personnel as well as fix their compensations, as
may be necessary to install the reorganized agency under this Code.
There is hereby appropriated out of the General Fund of the National
Treasury not otherwise appropriated such amount corresponding to
the salaries of the personnel to be appointed under this provision.
Such appropriation shall include the necessary amount to cover the
cost of suitable uniforms to be required of forest officers, and to be
given as annual uniform allowance.
He shall promulgate such rules and regulations for the

effective implementation of the provisions of this Code.
SEC. 85. Repealing Clause. – All laws, orders, rules and

regulations or any part thereof which are inconsistent herewith are
hereby repealed accordingly.
SEC. 86. Date of Effectivity. – This Code shall take effect

immediately upon promulgation thereof.
892
DONE in the City of Manila, this 5th day of February, in the

year of Our Lord, nineteen hundred and seventy-four.

By the President:

Executive Secretary
893
MALACAÑANG
RESIDENCE OF THE PRESIDENT OF THE PHILIPPINES
MANILA
AMENDING CERTAIN SECTIONS OF REPUBLIC ACT

NUMBERED THREE THOUSAND EIGHT HUNDRED AND
AGRARIAN REFORMS IN THE PHILIPPINES”
WHEREAS, certain provisions of Republic Act Numbered

Three Thousand Eight Hundred and Forty-Four were amended
by Presidential Decree Numbered Two Hundred and Fifty-One in
order to strengthen and revitalize the Land Bank of the Philippines
and thus provided it with the means to effectively discharge its role
as the financing arm of the Government for land reform;
WHEREAS, further modifications in Republic Act Numbered

Three Thousand Eight Hundred and Forty-Four are necessary in
order to improve the organizational and administrative structure of
the Land Bank of the Philippines, as well as strengthen its capital
base.

Constitution, do hereby decree and order:
SECTION 1. A new section is hereby added after section

seventy-seven of Republic Act Numbered Three Thousand Eight
Hundred and Forty-Four, to read as follows:
“SEC. 77-A. The provisions of their respective charters to the

contrary notwithstanding, all government-owned or controlled
corporations, including government financial institutions, are
authorized to invest in preferred shares of the Land Bank of
and/or accept those shares in exchange for any of their assets or
properties under such terms and conditions as shall be agreed
894
upon between the corporations or institutions concerned and

the Land Bank.”
SEC. 2. Section eighty-six of the said Act is hereby amended

to read as follows:
“SEC. 86. The Board of Directors; Membership; Per Diem. -

The affairs and business of the Bank shall be directed and
its property managed and preserved by a Board of Directors
consisting of seven (7) members to be composed of the
Secretary of Finance as Chairman, the President of the Bank
as Vice-Chairman, the Secretary of Agrarian Reform and the
Secretary of Labor as ex-officio members, and three members
to be elected as hereinafter provided.

December, the stockholders shall meet to take up, among
others, the election of three (3) members of the Board of
Directors for the succeeding year, each shareholder or proxy
to be entitled to as many votes as he may have shares of
stock registered in his name on the 31st day of October last
preceding and held by him at the time of the election. The said
three (3) members of the Board of Directors shall be elected
preferably from the holders of the preferred shares depending
on the outstanding amount of said shares, as follows: A) Not
exceeding P50 million - One member; B) Exceeding P50 million
but not over P100 million - Two members; and C) Exceeding
P100 million - Three members.
“The Board shall convene as frequently as necessary to

discharge its responsibilities properly, but shall meet at least
once every two weeks. The Board may be convoked either by
the Chairman or, in his absence, the Vice-Chairman.
“The presence of four (4) members shall constitute a quorum.
“All decisions of the Board shall require the concurrence of at

least four (4) members.
895
“The Chairman and the members of the Board shall receive

a per diem of two hundred fifty pesos each session of the
Board attended, but in no case to exceed two thousand pesos
a month.”
SEC. 3. Section eighty-two of the same Act is hereby amended

to read as follows:
“SEC. 82. Government Shares. - All shares of stock in the

Bank subscribed or owned by the government shall not be
entitled to participate in the income earned by the Bank from
its investment and other operations, whether in the form
of cash or stock dividends or otherwise. Amounts expended
for the administration of the Bank shall not be deemed as
a participation of the government in income: Provided, That
the Bank may declare all its earnings accumulated prior to
the issuance of preferred shares as stock dividends to the
government as the sole shareholder of the Bank or in lieu
of dividends, set aside said earnings as contributed surplus
to serve as fund for the guaranteed dividend to preferred
shareholders. The manner of distributing the surplus shall be
determined by the Board of Directors.”
SEC. 4. Repealing Clause. - All laws, decrees, executive orders,

rules and regulations, or parts thereof inconsistent with this Decree
are hereby repealed and/or modified accordingly.”
SEC. 5. Effectivity. - This Decree shall take effect immediately.
896
Done in the City of Manila, this 4th day of May, in the year of
Our Lord, nineteen hundred and seventy-four.

By the President:

Executive Secretary
897
MALACAÑANG
Manila
TRANSFERRING THE ASSETS AND LIABILITIES AS WELL AS

CERTAIN POWER OF THE AGRARIAN REFORM FUND
COMMISSION TO THE LAND BANK OF THE PHILIPPINES
WHEREAS, under Presidential Decree No. 85 dated

December 24, 1972, an Agrarian Reform Fund Commission has
been established to mobilize and harness properly all available
government resources for the massive funding requirements of
agrarian reform as envisioned in Presidential Decree No. 27;
WHEREAS, under Presidential Decree No. 251 dated July 21,

1973, the Land Bank of the Philippines has been revitalized by the
grant of additional powers, and increased capitalization to cope with
the implementation requirements of the agrarian reform program;
WHEREAS, while Presidential Decree No. 251 intended to

consolidate in the Land Bank of the Philippines all functions related
to the financing aspects of agrarian reform program by transferring
certain functions of the Agrarian Reform Fund Commission to the
Land Bank of the Philippines, the function of gathering resources
was left with the Agrarian Reform Fund Commission;

by the Constitution, do hereby order the transfer of the assets
and liabilities of the Agrarian Reform Fund Commission together
with the rights and obligations appurtenant thereto including the
power to draw and acquire resources from the various government
financial institutions and other sources as embodied in Section 1 of
Presidential Decree No. 85, to the Land Bank of the Philippines.
Presidential Decree No. 85 dated December 24, 1972 is hereby

repealed and all other laws, executive orders, rules and regulations
898
or parts thereof inconsistent with this Decree are likewise repealed

or modified accordingly.
This decree shall take effect upon its approval.
Done in the City of Manila, this 17th day of May, in the year
of Our Lord, nineteen hundred and seventy-four.

By the President:

Executive Secretary
PD 462 repealed PD 85.
899
MALACAÑANG
Manila
AMENDING REPUBLIC ACT NUMBERED SIX THOUSAND

THREE HUNDRED NINETY, AS AMENDED
WHEREAS, it is the policy of Government to increase food

production as well as the income of agrarian reform beneficiaries;
WHEREAS, agrarian reform beneficiaries are now being

encouraged to engage in the production of multiple crop and in
agricultural projects in order to maximize the utilization of their
available land and labor resources;
WHEREAS, rural banks, the Philippine National Bank and

other financing institutions operating in rural areas are ideal outlets
for the granting under supervised credit of the necessary loans to
finance the multiple crops/projects of agrarian reform beneficiaries;
WHEREAS, under supervised credit, the amount of loans

granted by rural banks and other financing institutions to their
borrowers is determined by the actual needs and viability of the
projects to be financed and the repayment capacity of the borrowers;
and
WHEREAS, the P5,000 maximum loan they may be granted

at any one time to a farmer-borrower as provided under Section
16 of Republic Act No. 6390, is no longer realistic in view of the
rising cost of production inputs such as fertilizers, feeds, pesticides,
medicines, etc.
NOW, THEREFORE, I, FERDINAND E. MARCOS, by virtue

of the powers in me vested by the Constitution and in order to help
effect the desired changes and reforms in the social and economic
structure of our society, do hereby order and decree the amendment
of Republic Act No. 6390, as amended, as follows:
900
SECTION 1. The first paragraph of Section sixteen of Republic

Act Numbered Six Thousand Three Hundred Ninety, as amended,
“Privileges and limitation of Rural Banks. — The total amount

of loans that may be granted at any one time to a single borrower
under the preceding section shall be determined by the actual need
and viability of the project to be financed and the capacity of the
borrower to repay the loan at interest not exceeding twelve per cent
per annum, excluding service fees and other charges.”
SEC. 2. The same act is hereby amended by adding the

following section immediately after section seventeen thereof, which
shall read as follows:
“SEC. 17-A. Applicability to Other Financing Institutions.

— All privileges extended to rural banks under this Act, including
guarantee coverage under the Agricultural Guarantee Fund, may
likewise apply to the Philippine National Bank and other financing
institutions granting loans under supervised credit to agrarian
reform beneficiaries.”
SEC. 3. All Acts and part of Acts inconsistent with the

provisions of this Decree are hereby repealed, amended or modified.
DONE in the City of Manila, this 22nd day of August, in the


By the President:

Executive Secretary
901
MALACAÑANG
Manila
PRESCRIBING PENALTIES FOR THE UNLAWFUL EJECTMENT,

EXCLUSION, REMOVAL OR OUSTER OF TENANT-
FARMERS FROM THEIR FARMHOLDINGS
WHEREAS, I have declared in various decrees, letters of

instructions and other orders, as well as in my speeches and other
oral pronouncements that the land reform program is an urgent and
vital social and economic reform under the New Society;
WHEREAS, the determination of the Government to

implement the program has been demonstrated by various acts,
including the revitalization of agencies implementing the program
such as the Department of Agrarian Reform and the Land Bank,
and the channeling of a major portion of government resources
to the program, as well as the promulgation of decrees, letters of
instructions and other orders designed to hasten the implementation
of the program and the protection of the tenants;
WHEREAS, notwithstanding all the foregoing, there remains

a strong resistance to the program on the part of some of our citizen,
including government officials, and this has been made evident by
direct acts such as the ejection of tenant-farmers notwithstanding the
prohibition against ejectment of tenant-farmers under Presidential
Decree No. 316, and some subtle schemes intended to obstruct the
progress of the program or to keep the tenants in perpetual bondage
under a feudalistic system of landownership;
WHEREAS, these acts or schemes against a vital program

of the New Society cannot be allowed, and will not be allowed, to
remain unpunished or without sanction from the Government.
902

SECTION 1. In view of the determination of the Government

to emancipate the tenant-farmers from a feudalistic system of
landownership, it is hereby declared a policy of the State, in
furtherance of its desire to protect the tenant-farmers, that no acts
or schemes designed to obstruct the implementation of land reform
program or obviously in derogation of the rights of tenant-farmers
shall remain unpunished.
SEC. 2. Any judge of the Court of Agrarian Relations, Court

of First Instance, City or Municipal Court or any fiscal or any
investigating officer, including members of the Armed Forces of
the Philippines, who shall order the ejectment, ouster, exclusion or
removal of any tenant-farmer from the land tilled by him or who
shall take cognizance of any ejectment case or any other similar
case designed to exclude, oust, eject or remove a tenant-farmer from
the land tilled by him without first complying with the provisions of
Presidential Decree No. 316 shall, upon conviction, be punished by
prision mayor and perpetual absolute disqualification.
SEC. 3. Any official or employee of the Government, including

members of the Armed Forces of the Philippines, who executes an
order for the ouster, removal, exclusion or ejectment of a tenant-
farmer, knowing that the order is unlawful as provided under
Section 2 of this Decree shall, upon conviction, suffer the penalty of
prision correccional and perpetual absolute disqualification.
SEC. 4. Unless previously authorized by the Secretary of

Agrarian Reform, any land-owner who converts his tenanted
land primarily devoted to rice and corn into any non-agricultural
use or to the production of any other crop as a means to avoid the
application of the land reform laws or decrees to his landholdings
and to dispossess his tenant-farmers of the land tilled by them
shall, upon conviction, suffer the penalty of prision mayor or a fine
903
ranging from P5,000.00 to P10,000.00, or both, at the discretion of

the court.
The same penalty shall be imposed on a landowner who by

any other act, scheme or strategy shall eject, exclude, remove or
oust and/or causes the ouster, exclusion, removal or ejectment of
a tenant-farmer from his farmholding in contravention of decrees,
laws, and other orders on land reform.
SEC. 5. Repealing Clause. – All provisions of existing laws,

orders, decrees, rules and regulations inconsistent herewith are
SEC. 6. Effectivity of this Decree. – This Decree shall take

effect immediately.
DONE in the City of Manila, this 16th day of November, in

the year of Our Lord, nineteen hundred and seventy-four.

By the President:

Executive Secretary
PD 583 (sec. 4) was amended by PD 815.
904
MALACAÑANG
MANILA
PROVIDING AN AGRARIAN REFORM CREDIT AND FINANCING

SYSTEM FOR AGRARIAN REFORM BENEFICIARIES
THROUGH BANKING INSTITUTIONS
WHEREAS, it is a declared national policy to give first priority

to measures for the adequate and timely financing of the Agrarian
Reform Program;
WHEREAS, government and private banking institutions are

in the best position to extend adequate agrarian reform credit to
agrarian reform beneficiaries;
WHEREAS, there is a need of flexibility of government policy

on agrarian reform credit and for a realistic approach to the credit
needs of agrarian reform beneficiaries;

Constitution, do hereby decree and order to be part of the laws of
the land the following:
SECTION 1. There shall be evolved an agrarian reform credit

and financing system for the beneficiaries of agrarian reform, namely:
tillers, tenant-farmers, settlers, agricultural lessees, amortizing
owners, owner-cultivators, farmers cooperatives and compact farms,
through government and private banking institutions.
Agrarian reform credit, as used herein, shall include

production or other types of loans for acquisition of work animals,
farm equipment and machinery, seeds, fertilizers, poultry, livestock,
feeds and other similar items; acquisition of lands authorized under
the Agrarian Reform Code of the Philippines and its amendments;
905
construction and/or acquisition of facilities for production, processing,

storage and marketing; and efficient and effective merchandising of
agricultural commodities stored and/or processed by the facilities a
forecited in domestic and foreign commerce.
SEC. 2. The credit mentioned in the next preceding Section

may be extended to the beneficiaries named therein based on the
feasibility of the project and their paying capacity, their estimated
production, and/or securities they can provide as well as such assets
as may be required by them from the proceeds of the loan.
SEC. 3. All banking institutions, whether government or

private, shall set aside at least twenty-five per cent (25%) of their
loanable funds for agricultural credit in general, of which at least
ten per cent (10%) of the loanable funds shall be made available for
agrarian reform credit to beneficiaries mentioned in Section 1 hereof:
PROVIDED, however, that loanable funds as used in this Section
shall refer to funds generated from the date of effectivity of this
Decree; PROVIDED, FURTHER, that the national Economic and
Development Authority may increase or decrease such percentages
whenever so recommended by the Department of Agrarian Reform
and Central Bank of the Philippines taking into consideration the
magnitude of the credit needs of the beneficiaries of agrarian reform.
SEC. 4. The Central Bank of the Philippines, in consultation

with and/or upon the recommendation of the Department of Agrarian
Reform, shall promulgate such rules and regulations as may be
necessary to implement the provisions of this Decree. Subject to
such rules and regulations, banking institutions may be allowed to:
a) Invest, in such government securities, as may be declared

eligible by the Central Bank of the Philippines, any portion of the
amount set aside for agrarian reform credit not actually loaned
out; PROVIDED, however, that the issuing government entity
shall stand ready to monetize, encash or repurchase such securities
whenever funds are needed by the banks holding the said securities,
for lending to the beneficiaries of agrarian reform; and
906
b) Rediscount with the Central Bank of the Philippines eligible

paper covering agrarian reform credits.
SEC. 5. All laws, decrees, rules and regulations, or parts

thereof, as may be inconsistent herewith are hereby repealed or
Done in the City of Manila, this 29th day of May, in the year
of Our Lord, nineteen hundred and seventy-five.

President
By the President:

Executive Secretary
PD 717 was repealed by RA 10000.
907
MALACAÑAN PALACE
MANILA
CREATING THE PRESIDENTIAL COMMITTEE ON

AGRICULTURAL CREDIT
WHEREAS, the agricultural sector generates employment for

almost half of the entire Filipino population and accounts for one-
third of the gross domestic product;
WHEREAS, further agricultural development is essential

not only for the efficient utilization of available and manpower
resources but for the success of our effort to produce enough food
for our people;
WHEREAS, credit is a crucial key to agricultural development,

as proven by the Masagana 99 program;
WHEREAS, our credit resources are limited and must be

channeled to areas where they are most needed and where they will
generate the greatest social and economic benefits to our farmers;

Constitution, do hereby order and decree that:
SECTION 1. A Presidential Committee on Agricultural Credit

(PCAC) shall be immediately created with the Governor of the
Central Bank as Chairman, the Secretary of Agriculture as Vice-
Chairman and the following members:
The Director-General National Economic and

Development Authority
The Secretary Department of Local Government and

Community Development
908
The Secretary Department of Natural Resources
The Secretary Department of Agrarian Reform
The President Philippine National Bank
The Chairman of the Board of Governors
Development Bank of the Philippines
The President Land Bank of the Philippines
(a) Advise all government financial institutions on

matters related to agricultural credit programs;
(b) Review ongoing and proposed agricultural credit

programs, and recommend modifications where necessary;
(c) Ensure coordination in the implementation of

agricultural credit programs, not only among financial
institutions, but also between these institutions and
government agencies involved in the implementation of
said programs;
(d) Synchronize credit programs for production with credit

programs for such activities as (1) land development and
improvement, (2) farm mechanization, (3) production
and supply of agricultural inputs, (4) transportation and
storage, (5) processing, (6) marketing, and other related
activities;
(e) Establish priorities and set loan ceilings for the

purpose of allocating scarce credit resources;
(f) Exercise the same authority over institutions not

mentioned above but involved in agricultural credit, and
whose funds are derived, even if only partially, from the
above-named institutions.
909
SEC 3. A Technical Board for Agricultural Credit (TBAC)

shall be created simultaneously with the PCAC to assist the PCAC
in the implementation of the aforementioned functions. The TBAC
shall have the Deputy Governor of the Central Bank for Bank
Supervision and Examination as Chairman, and following, or their
respective representatives, as members;
The Undersecretary for Cooperatives

Department of Local Government and Community
Development
The Assistant Secretary Department of Agriculture
The Assistant Secretary Department of Natural Resources
The Assistant Director-General Programs and Projects Office

National Economic and Development Authority
The Bank Economist and Vice-President Philippine National

Bank
The Executive Director National Food and Agriculture Council
The Assistant Secretary and Director of the Bureau of Farm

Management Department of Agrarian Reform
The Administrator Agricultural Credit Administration
The Manager of the Agricultural Department
Development Bank of the Philippines
The Senior Vice-President Land Bank of the Philippines
The Director of the Department of Rural Banks, Savings and

Loan Associations
Central Bank of the Philippines
910
SEC. 4. The TBAC will organize and commission its staff and/
or other agencies to do research work, conduct surveys and make
studies essential to the proper design and improvement of the
agricultural credit programs. These are envisioned to accelerate the
development of the agricultural sector. Members of said staff, to be
hired by TBAC shall not be considered employees of the Central
Bank although they shall be administratively under the direction
of the Deputy Governor of the Central Bank for Supervision and
Examination. The same shall be exempted from Civil Service and
WAPCO regulations.
SEC. 5. The Budget Commission is hereby instructed to add

annually the amount of P2.5 million to the budget of the Department
of Agriculture for the purpose of financing all the administrative and
operating expenses of the PCAC, including research and surveys.
SEC. 6. The PCAC is hereby authorized to receive and utilize

donations and grants from local and/or foreign sources to augment
its annual budget.
SEC. 7. All laws and executive orders, or parts thereof,

contrary to, or inconsistent with the provisions of this Decree are
This Decree shall take effect immediately.

year of Our Lord, nineteen hundred and seventy-five.

By the President:

911
MALACAÑANG
MANILA
AMENDING SECTION 4 OF P.D. NO. 583, DATED NOVEMBER 16,

1975, “PRESCRIBING PENALTIES FOR THE UNLAWFUL
EJECTMENT, EXCLUSION, REMOVAL, OR OUSTER OF
TENANT-FARMERS FROM THEIR FARMHOLDINGS.”
WHEREAS, there is an urgent need to further strengthen the

security of tenure of the tenant-farmers/agricultural lessees in the
cultivation of the landholding planted to rice and corn;
WHEREAS, despite various Decrees, Letter of Instructions

and other Orders as well as speeches and other pronouncements
by me that tenant farmers and agricultural lessees should not be
ejected or dispossessed of the lands being cultivated by them, some
landowners, landholders, and/or agricultural lessors have resorted
to various schemes and devices with which to circumvent the
aforementioned pronouncements.
WHEREAS, in view of the numerous disturbing reports

that many landowners have subleased their tenanted landholding
planted to rice and corn to other persons so that the latter appears
in their behalf as the legal possessor thereof without binding
the landowner in the event of a violation of the aforementioned
Presidential Decrees Nos. 316 and 583, the government must act
with dispatch to protect the security of tenure of our tenant/farmers/
agricultural lessees;
WHEREAS, this scheme is patently directed against a vital

program of the New Society and cannot be tolerated, much less
sanctioned, by the government;

Constitution do hereby decree and order:
912
SECTION 1. Section 4 of P.D. No. 583 is hereby amended as

follows:
“Subject to the studies on zoning of the Human Settlements

Commission and unless previously authorized by the Secretary of
Agrarian Reform, any landowner, landholder, agricultural-lessor or
anybody acting for and in their behalf, who converts his tenanted
land primarily devoted to rice and corn into any non-agricultural
use or into the production of any other crop as a means to avoid the
application of the land reform laws or decrees to his landholdings
and to dispossess his tenant-farmers of the land tilled by them
shall, upon conviction, suffer the penalty of prision mayor or a fine
ranging from P5,000.00 to P10,000.00 or both, at the discretion of
the Court.
“The same penalty shall be imposed on a landowner, landholder,

agricultural-lessor, or anybody acting for and in their behalf, who
by any other act, scheme or strategy shall eject, exclude, remove or
oust and/or cause the ouster, exclusion, removal or ejectment of a
tenant-farmer from his farmholdings in contravention of decrees,
laws, and other orders on land reform.”
SEC. 2. All provisions of existing laws, orders, decrees, rules

and regulations inconsistent herewith are hereby repealed or
SEC. 3. This decree shall take effect immediately.


By the President :

Executive Secretary
PD 815 amended PD 583 (sec. 4).
913
MALACAÑANG
MANILA
PROVIDING THAT TENANT-FARMERS/AGRICULTURAL

LESSEES SHALL PAY THE LEASEHOLD RENTALS
WHEN THEY FALL DUE AND PROVIDING PENALTIES
THEREFOR
WHEREAS, under Presidential Decree No. 2, dated September

26, 1972, the whole country has been declared a land reform area;
WHEREAS, the said Presidential Decree covers only tenanted

rice and corn landholdings;
WHEREAS, while the implementing rules and regulations

of Presidential Decree No. 27 have not yet been issued completely,
the status quo shall be maintained between the parties, that is, the
landowner shall continue to pay the land taxes thereon if the said
landholding is not yet covered by a Certificate of Land Transfer,
while on the other hand the tenant-farmer who is now called
agricultural lessee shall continue to pay the rental to the landowner
whether or not his landholding planted to rice and corn is already
covered by a Certificate of Land Transfer;
WHEREAS, such payment of rental shall continue until and

after the valuation of the property shall have been determined
or agreed upon between the landowner and the determined of
Agrarian Reform which, in turn, will become the basis of computing
the amortization payment to be made by the agricultural lessee in
15 years with 6% interest per annum under Presidential Decree No.
27;
WHEREAS, it is known that despite the presidential

pronouncements that they shall continue to pay the rentals to
the landowners/agricultural lessors, some agricultural lessees
have stopped and refused to pay their leasehold rentals to their
914
landowners/agricultural lessors on the assumption that, once the

Certificates of Land Transfer are issued in their favor, they are no
longer obliged to pay the said leasehold rentals;
WHEREAS, this practice is detrimental to the expeditious

implementation of land reform because, as I pointed out on May
7, 1975, it indicates resistance to the government’s land reform
program and its goals;
WHEREAS, it has always been the policy of the government

to equalize the rights and obligations of the landowners/agricultural
lessors and the agricultural lessees;

SECTION 1. That the continuing and deliberate refusal of the

agricultural lessees to pay their leasehold rentals to the landowners/
agricultural lessors cannot be countenanced and shall not remain
unchecked or unpunished;
SEC. 2. That any agricultural lessee of a rice or corn land

under Presidential Decree No. 27 who deliberately refuses and/or
continues to refuse to pay the rentals or amortization payments
when they fall due for a period of two (2) years shall, upon hearing
and final judgment, forfeit the Certificate of Land Transfer issued in
his favor, if his farmholding is already covered by such Certificate of
Land Transfer, and his farmholding;
SEC. 3. That any agricultural lessee whose landholding is not

yet covered by a Certificate of Land Transfer and who shall continue
not to pay his lease rentals or amortization payments when they fall
due for a period of two (2) years to the landowner/agricultural lessor
shall, upon proper hearing and judgment, lose his right to be issued
a Certificate of Land Transfer under Presidential Decree No. 27 and
his farmholding;
915
SEC. 4. That landholdings subject of forfeiture under the

preceding Section shall be turned over to the Samahang Nayon
with which the agricultural lessee is affiliated for assignment to a
qualified member or members of the association whose landholding/s
is/are of uneconomic size in accordance with the policies laid down
by the Department of Agrarian Reform;
SEC. 5. That any action for violation of the provisions of

the preceding Sections 2 and 3 shall be cognizable by the Court
of Agrarian Relations which is hereby vested with original and
exclusive jurisdiction to try and decide the same;
SEC. 6. All provisions of existing laws, orders, decrees, and

rules and regulations which are inconsistent herewith are hereby
DONE in the City of Manila, this 21st day of October, in the


By the President:

Executive Secretary
916
MALACAÑANG
Manila
REORGANIZING THE PRESIDENTIAL ACTION COMMITTEE

ON LAND PROBLEMS (PACLAP)
WHEREAS, it is the declared policy of the Government

to provide more protection and assistance to small settlers and
landholders and members of cultural minorities in their struggle
for recognition of their right to the land which they occupy;
WHEREAS, social unrest, which sometimes precipitates

clashes among our people, often results from long-drawn disputes
between big landholders and poor, landless settlers, or between
Christians and members of our cultural minorities;
WHEREAS, there is an urgent need to direct and coordinate

the activities, particularly the investigation work, of the various
government agencies involved in land problems to ensure their
speedy, peaceful and satisfactory solution;
WHEREAS, the successful intercession of the PACLAP in

many serious and critical land problems has proved to the efficacy of
an action-oriented approach to the solution of these problems, and
the necessity of continuing its work in potential land-problem areas;
WHEREAS, there is a need to reconstitute the membership

of the PACLAP due to the implementation of the Integrated
Reorganization Plan and the reorganization of the Department of
Agriculture and Natural Resources into two departments;
NOW, THEREFORE, I, FERDINAND E. MARCOS, by virtue

of the powers in me vested by the Constitution, do hereby order and
decree to be part of the law of the land, the following:
917
SECTION 1. Reorganization of the Presidential Action

Committee on Land Problems. - The Presidential Action Committee
on Land Problems, herein referred to as the PACLAP, created
by Executive Order No. 251, dated July 31, 1970, as amended
by Executive Order No. 305, dated March 19, 1971, is hereby
reorganized as follows:
Secretary of Natural Resources Chairman

PANAMIN Secretary Member
Deputy Executive Secretary Member
Undersecretary of Agriculture Member
Undersecretary of Justice Member
Undersecretary of Agrarian Reform Member
Undersecretary of National Defense Member
Chief of Constabulary Member
Commissioner of Land Registration Member
Chief, Citizen's Legal Assistance Office Member
Director of Lands Member
Director of Forest Development Member
Director of Mines Member
The PACLAP shall have a Policy Body which shall formulate

its policies and submit them for its approval. The Policy Body shall
be composed of the Secretary of Natural Resources, as Chairman,
and the following members: the PANAMIN Secretary, the Deputy
Executive Secretary, the Undersecretary of Agriculture, the
Undersecretary of Justice, the Undersecretary of Agrarian Reform,
and the Undersecretary of National Defense. Said Body shall meet
upon the call of its Chairman.
The PACLAP shall also have an Executive Committee which

shall implement its policies and be in charge of its overall operations.
It shall be composed of the Director of Lands, as Chairman, and the
following members: the Director of Forest Development, the Chief
of the Citizens Legal Assistance Office, the Commissioner of the
Land Registration Commission, the Chief of Constabulary, and the
918
Director of Mines. Said Executive Committee shall meet on call of

its Chairman.
The Chairman of the PACLAP may create such sub-committees

and positions as may be necessary to enable the PACLAP to perform
its functions and discharge its duties effectively.
All the government agencies represented in the membership

of the PACLAP and other agencies involved in land problems or
disputes shall be member agencies thereof.
SEC. 2. Functions and duties of the PACLAP. - The PACLAP

shall have the following functions and duties:
1. Direct and coordinate the activities, particularly the

investigation work, of the various government offices and agencies
involved in land problems or disputes, and streamline administrative
procedures to relieve small settlers and landholders and members
of cultural minorities of the expense and time-consuming delay
attendant to the solution of such problems or disputes;
2. Refer for immediate action any land problem or dispute

brought to the attention of the PACLAP, to any member agency
having jurisdiction thereof: Provided, That when the Executive
Committee decides to act on a case, its resolution, order or decision
thereon, shall have the force and effect of a regular administrative
resolution, order or decision, and shall be binding upon the parties
therein involved and upon the member agency having jurisdiction
thereof;
3. Recommend to the President innovative, bold and decisive

measures to resolve expeditiously cases involving, among others,
(a) public lands that have been titled in a manifestly erroneous or
illegal manner, and (b) implementation of decisions/resolutions of
administrative/quasi-judicial agencies vested with jurisdiction to
resolve land problems or disputes;
919
4. Evolve and implement a system of procedure for the

speedy investigation and resolution of land disputes or problems at
provincial level, if possible;
5. Undertake a comprehensive study of the causes of land

disputes or problems in the country and recommend to the President
of the Philippines policies and courses of action to avoid or, at least,
minimize their occurrence;
6. Study and review present policies as embodied in land laws

and administrative rules and regulations, in relation to the need for
land of the agro-industrial sector and the small farmer, with the end
in view of evolving and recommending new laws and policies and
establishing priorities in the grant of public lands;
7. Maintain a systematic and permanent management of all

records pertaining to land disputes or problems; and
8. Perform such other functions as may hereafter be assigned

to it by the President of the Philippines.
In the performance of its functions and discharge of its duties,

the PACLAP is authorized, through its Chairman, to issue subpoena
and subpoena duces tecum for the appearance of witnesses and the
production of records, books and documents before it. It may also
call upon any department, office, agency or instrumentality of the
National Government, including government-owned or controlled
corporations, and local government for assistance. This authority is,
likewise, conferred upon the Chairman of the Provincial Committee.
SEC. 3. Executive Director and Secretariat. - In the performance

of its functions and discharge of its duties, the PACLAP shall be
assisted by an Executive Director and an Assistant Executive
Director who shall both be appointed by the Chairman, and who shall
have the rank and shall receive the salary of Assistant Secretary and
Department Service Chief, respectively. It shall have a Secretariat,
with such personnel as may be necessary, which shall be under the
immediate direction and supervision of the Executive Director. The
920
personnel of the Secretariat and other officials and employees of the

PACLAP shall be appointed and their compensation fixed by the
Chairman, upon recommendation of the Executive Director.
SEC. 4. Provincial PACLAP Committee. When conditions in

any province so warrant, the PACLAP shall create a Provincial
PACLAP Committee which shall be composed of the following:
Provincial Commander, Philippine Chairman

Constabulary
District Land Officer Vice-Chairman
District Forester Member
Register of Deeds Member
A representative from the Department of Member
Agrarian Reform
A Representative each of the PANAMIN and Members
Citizens Legal Assistance Office, if available
Provincial Fiscal Legal Adviser
ex-officio
Assistant Provincial Commander Action Officer
The Provincial PACLAP Committee shall receive and

investigate cases referred to it by the PACLAP or brought to it
by private complainants, resolve cases that it can decide or settle
by itself, and submit its report thereon to the PACLAP. It shall
also submit to the PACLAP its report, together with the separate
investigation report of the local agency concerned, regarding cases
which are beyond its competence to resolve or decide.
SEC. 5. Creation of Special Action Group. - Within thirty (30)

days after the effectivity of this Decree, the heads of the PACLAP
member agencies shall create in their respective agencies, a Special
Action Group which shall have the following functions and duties:
1. Prepare a program of action for the agency in relation to its

role in the settlement of land disputes or problems;
921
2. Receive and investigate cases referred to the agency by the

PACLAP and submit its report thereon;
3. Evolve and implement reasonable, expeditious office

procedures to ensure immediate action; and
4. Develop communication/transportation network with the

Provincial PACLAP Committee, other Special Action Groups and
the Secretariat.
SEC. 6. Rules and regulations. - The Chairman shall issue the

necessary rules and regulations to carry out the provisions of this
Decree.
SEC, 7. Appropriations. - There is hereby authorized to be

appropriated out of any funds in the National Treasury not otherwise
appropriated, the sum of Two million pesos (P2,000,000.00) for the
operation of the PACLAP for the current fiscal year. Thereafter, the
necessary amount for its operation shall be included in the annual
general appropriation law.
SEC. 8. Repeal of inconsistent laws. - Executive Orders No.

251, dated July 31, 1970, and No. 305, dated March 19, 1971, and
laws, administrative orders, or parts thereof inconsistent herewith
are repealed or amended accordingly.
SEC. 9. Effectivity. - This Decree shall take effect upon

promulgation.
922
Done in the City of Manila, this 27th day of November, in the


By the President :
(Sgd.) JACOBO C. CLAVE

Presidential Executive Assistant
PD 832 s. 1975 repealed or amended EO 251 s. 1970.

PD 832 s. 1975 repealed or amended EO 305 s. 1971.
923
MALACAÑANG
Manila
REORGANIZING THE COURTS OF AGRARIAN RELATIONS,

STREAMLINING THEIR PROCEDURES, AND FOR OTHER
PURPOSES
WHEREAS, the present organizational, operational and

procedural set-up of the Courts of Agrarian Relations is not conducive
to the effective and efficient implementation of the objectives of the
accelerated agrarian reform program;
WHEREAS, the inferior economic, intellectual, social, political

and cultural position of the tenant-tillers require suitable changes
in the structure, manner of operation and rules of procedure of
Courts of Agrarian Relations as well as in the orientation of persons
having anything to do with agrarian law and reform if they are to
render justice and help attain the emancipation of the tenant-tillers
as provided in the Constitution; and
WHEREAS, there is, therefore, an imperative need to

reorganize the Courts of Agrarian Relations and to streamline their
procedures to achieve a just, expeditious and inexpensive disposition
of agrarian cases, and to make the said Courts responsive to the
goals of the New Society.

Constitution, do hereby order and decree:
SECTION 1. The Courts of Agrarian Relations; Supervision. -

The Courts of Agrarian Relations organized and established under
Republic Act Numbered thirty-eight hundred and forty-four, as
amended, are hereby reorganized and their procedures streamlined
in conformity with the provisions of this Decree.
924
The Supreme Court shall continue to exercise administrative

supervision over said Courts.
SEC. 2. Regional Districts, Stations; Residences of Judges.

- The Districts of the Courts of Agrarian Relations shall be the
same as those of the Courts of First Instance. The stations of the
respective Courts shall be determined by the Supreme Court, except
that the Executive Judge shall have his Station in Metropolitan
Manila, without prejudice to his holding court in any District where
the exigencies of the service so require.
Until otherwise provided by the Supreme Court, the branches

(salas) of the Courts shall be stationed as follows:
First Regional District:
Branch I – Tuguegarao, Cagayan;

Branch II – Ilagan, Isabela;
Branch III – Santiago, Isabela;
Branch IV – Bayombong, Nueva Vizcaya; and
Branch V – Cabarroguis, Quirino;
Second Regional District:
Branch I – Laoag City;

Branch II – San Fernando, La Union; and
Branch III – Tabuk, Kalinga-Apayao;
Third Regional District:
Branch I – Lingayen, Pangasinan;

Branch II – Urdaneta, Pangasinan;
Branch III – Tayug, Pangasinan; and
Branch IV – Iba, Zambales;
Fourth Regional District:
Branch I – Cabanatuan City;
925
Branch II – Guimba, Nueva Ecija;

Branch III – San Jose City;
Branch IV – Gapan, Nueva Ecija;
Branch V – Tarlac, Tarlac, and
Branch VI – Paniqui, Tarlac;
Fifth Regional District:
Branch I – San Fernando, Pampanga;

Branch II – Angeles City;
Branch III – Guagua, Pampanga;
Branch IV – Baliuag, Bulacan;
Sixth Regional District:
Branch I – Metropolitan Manila (Sala of the Executive Judge);
Seventh Regional District;
Branch I – Pasig, Rizal;

Branch II – Cavite City; and
Branch III -Puerto Princesa City;
Eighth Regional District:
Branch I – Calamba, Laguna;

Branch II – San Pablo City;
Branch III – Lipa City;
Branch IV – San Jose, Occidental Mindoro; and
Branch V – Calapan, Oriental Mindoro;
Ninth Regional District:
Branch I – LucenaCity;
Branch II – Gumaca, Quezon; and
Branch III – Baler, Quezon;
926
Tenth Regional District:
Branch I – Daet, Camarines Norte;

Branch II – Naga City;
Branch III – Legaspi City; and
Branch IV – Sorsogon, Sorsogon;
Eleventh Regional District:
Branch I – Iloilo City;

Branch II – San Jose, Antique;
Branch III – Roxas City; and
Branch IV – Kalibo, Aklan;
Twelfth Regional District: Branches I and II -Bacolod City;
Branch III – San Carlos City; and

Branch IV -Dumaguete City;
Thirteenth Regional District:
Branch I – Ormoc City;

Branch II – Tacloban, Leyte; and
Branch III – Catarman, Northern Samar;
Fourteenth Regional District:
Branch I -Cebu City;
Fifteenth Regional District:
Branch I – Butuan City;

Branch II – Surigao City; and
Branch III – Tandag, Surigao del Sur; and
Sixteenth Regional District:
Branch I – Davao City;
927
Branch II – Cotabato City;

Branch III – Ozamis City;
Branch IV – Pagadian City;
Branch V – Cagayan de Oro City; and
Branch VI -Iligan City.
In the interest of justice, the Supreme Court may transfer

stations within the District and establish new Branches (salas).
Every Judge shall reside within a distance of not more than

fifty (50) kilometers by the most direct transportation route from his
official station.
SEC. 3. Judges of the Courts of Agrarian Relations. - The

functions of the Courts of Agrarian Relations shall be vested in an
Executive Judge and the District Judges. They shall be appointed
by the President of the Philippines; Provided, however, That the
incumbent Executive Judge and District Judges at the time of the
effectivity of this Decree shall continue as Judges without need of
new appointments. Upon the effectivity of this Decree, the said
Executive Judge shall continue to exercise the administrative
functions over the Courts of Agrarian Relations except as otherwise
herein provided.
In the event that the Executive Judge is incapacitated to

discharge his duties, temporarily or otherwise, the Chief Justice
shall designate an Acting Executive Judge from among the District
Judges of the Courts of Agrarian Relations.
SEC. 4. Qualifications of Judges; Tenure of Office;

Compensation. - No person shall be appointed as Executive Judge or
Regional District Judge of the Courts of Agrarian Relations unless
he (a) is a natural born citizen of the Philippines; (b) has practiced
law in the Philippines for a period of not less than ten (10) years
or has held during a like period an office requiring admission to
the practice of law as an indispensable requisite; and (c) has had
at least four (4) years of experience and background in agrarian
relations law or agrarian reform before, during or after such period of
928
practice or tenure of office: Provided, however, That in exceptionally

meritorious cases, his qualification may be dispensed with.
Judges of the Courts of Agrarian Relations shall serve during

good behavior, until they reach the age of sixty-five (65) years or
become incapacitated to discharge the duties of their office, unless
sooner removed from office in accordance with law.
Judges of the Courts of Agrarian Relations shall receive the

same compensation as Judges of the Courts of First Instance. The
Executive Judge shall receive such additional compensation and
emoluments as may be authorized by the Supreme Court.
SEC. 5. Retirement and Leave Privileges; Traveling Expenses. -

Judges of the Courts of Agrarian Relations shall be entitled to the
same retirement and leave privileges now granted or that may
hereafter be granted to Judges of the Courts of First Instance. They
shall be entitled to traveling expenses as provided for by law.
SEC. 6. Assignment of Judges to Vacation Duty. - The

assignment of Judges of the Courts of Agrarian Relations to vacation
duty shall be made by the Chief Justice in consultation with the
Executive Judge.
SEC. 7. Oath of Office. - Before entering upon the discharge of

the duties of his office, every Judge shall take and subscribe to an
oath of office as prescribed by the Supreme Court, and shall submit
to the latter a sworn statement to the effect that all applicable
agrarian laws have been observed on his lands, if any, and in those
of his wife and minor children.
SEC. 8. Division of Business Among Branches. - Responsibility

for official business appertaining to the Courts of Agrarian Relations
of each Regional District, where there are two or more Branches,
shall be equitably distributed among the Branches as may be agreed
upon by the Judges themselves. Should the Judges fail to agree,
then the Executive Judge shall make the proper distribution.
929
SEC. 9. Period for Resolution and/or Decision; Certification. -

Every Judge of the Courts of Agrarian Relations shall resolve,
within a period of fifteen (15) days from submission by the parties,
all petitions, incidents and motions, and decide all cases submitted
for decision within a period of thirty (30) days. He shall, at the end of
each month, so certify in writing his compliance with the foregoing,
and no leave shall be granted and no salary shall be paid without
such certificate.
For cases pending decision at the time this Decree takes effect,
the period shall be counted from the completion and submission of
the transcript of stenographic notes. The stenographers concerned
shall submit said transcript not later than thirty (30) days from the
effectivity of this Decree.
SEC. 10. Time and Place of Holding Court. - Sessions of the

Courts of Agrarian Relations shall be held on all working days
when there are cases ready for trial or incidents set for hearing. The
Judge shall extend the sessions whenever necessary. The hours for
the daily business of the Courts shall be from eight o’clock in the
morning to twelve o’clock noon and from one to five o’clock in the
afternoon.
Sessions of the Courts of Agrarian Relations shall be held at

the official stations of the respective Branches: Provided, however,
that whenever necessary in the interest of just, expeditious and
inexpensive administration of justice, a Judge shall hold court in
any appropriate place in the municipality, where the subject matter
of the dispute is located, preferably in the barrio or barangay center.
SEC. 11. Detail of Judges. - Whenever the condition of the

docket of any Branch within any District requires the assistance
of an additional Judge or Judges, or when there is any vacancy
therein, the Executive Judge may assign any Judge of that District
whose docket permits his temporary absence from his Court, to
hold sessions in the Branch needing such assistance or where the
vacancy exists.
930
Any Judge may be detailed outside his District by the Chief

Justice upon consultation with the Executive Judge.
Whenever a Judge of any Branch of the Courts of Agrarian

Relations is assigned, transferred or detailed to another Branch or
District or to another court of equal rank or jurisdiction without
having decided a case totally heard by him and which was duly
argued or in which opportunity for argument was given to the
parties or their counsel, he shall prepare and sign his decision
in said case anywhere within the Philippines and send the same
by registered mail to the clerk of court to be filed in the proper
Branch as of the date when the same was received by the clerk,
which shall to all legal intents and purposes have the same effect
as if the Judge were present in the court to direct the filing of the
judgment: Provided, however, That if a case has been heard only in
part, the Chief Justice, upon petition of any of the interested parties
to the case, may authorize the Judge who has partly heard the case
to continue hearing and to decide said case notwithstanding his
assignment to another Branch or District, under such conditions as
the Chief Justice may specify.
SEC. 12. Jurisdiction over Subject Matter. - The Courts of

Agrarian Relations shall have original and exclusive jurisdiction
over:
(a) Cases involving the rights and obligations of persons in

the cultivation and use of agricultural land except those cognizable
by the National Labor Relations Commission; Provided, That
no case involving the determination of rentals over any kind of
tenanted agricultural land shall be taken cognizance of by the
Courts of Agrarian Relations unless there has been a prior fixing
of provision rental by the Department of Agrarian Reform, except
that the tenant-farmer may directly bring the case for immediate
determination by the Courts of Agrarian Relations;
(b) Questions involving rights granted and obligations

imposed by laws, Presidential Decrees, Orders, Instructions, Rules
and Regulations issued and promulgated in relation to the agrarian
931
reform program; Provided, however, That matters involving the

administrative implementation of the transfer of the land to the
tenant-farmer under Presidential Decree No. 27 and amendatory
and related decrees, orders, instructions, rules and regulations,
shall be exclusively cognizable by the Secretary of Agrarian Reform,
namely:
(1) classification and identification of landholdings;
(2) identification of tenant-farmers and landowners, and

determination of their tenancy relationship;
(3) parcellary mapping;
(4) determination of the total production and value of the land

to be transferred to the tenant-farmer;
(5) issuance, recall or cancellation of certificates of land

transfer in cases outside the purview of Presidential Decree No. 816;
(6) right of retention of the landowner;
(7) right of the tenant-farmer to a home lot;
(8) disposition of the excess area in the tenant’s farmholding;
(9) change of crop from rice and/or corn to any other agricultural
crop;
(10) issuance of certification for the conversion of tenanted

rice and/or corn land for residential, commercial, industrial, or other
urban purposes, it being understood that the authority to issue
certificates for conversion of other kinds of tenanted agricultural
land for the same purposes remains vested in the Secretary of
Agrarian Reform;
(11) transfer, surrender or abandonment by the tenant-farmer

of his farmholding and its disposition; and
932
(12) increase of tillage area by a tenant-farmer;
Provided, further, That the decision of the Secretary of Agrarian

Reform may be appealed to the President of the Philippines.
(c) Cases involving the collection of amortizations on payments

for lands acquired under Presidential Decree No. 27, as amended,
Commonwealth Act Numbered twenty, as amended, Commonwealth
Act Numbered five hundred thirty-nine, as amended, Republic Act
Numbered eleven hundred and sixty, as amended, Republic Act
Numbered fourteen hundred, as amended, Republic Act Numbered
thirty-eight hundred and forty-four, as amended, and other related
laws, decrees, orders, instructions, rules and regulations, as well as
payment for residential, commercial and industrial lots within the
settlement and resettlement areas under the administration and
disposition of the Department of Agrarian Reform;
(d) Cases involving collection of amortizations on payments

for farm machineries and implements distributed and sold by
the Department of Agrarian Reform and the Land Bank of the
Philippines to tenant-farmers, agricultural lessees, settlers, owner-
cultivators, amortizing owner-cultivators, the Samahang Nayon,
compact farms, farmers’ cooperatives, and other registered farmers’
associations or organizations, as well as payment for indebtedness
of settlers by reason of the assistance given them by the Department
of Agrarian Reform in the form of seeds, work animals, houses,
subsistence, transportation, medicines, farm implements, tools, and
the like;
(e) Cases involving collection of amortizations on payments for

irrigation systems and/or water rights grants, as well as irrigation
fees, charge and/or rentals;
(f) Cases involving collection of rentals on agricultural lands

leased by the Department of Agrarian Reform or Land Bank and
collection of agricultural loans granted to tenant-farmers, agricultural
lessees, settlers, owner-cultivators, amortizing owner-cultivators,
933
the Samahang Nayon, compact farms, farmers’ cooperatives and

other registered farmer associations or organizations;
(g) Cases involving the annulment or rescission of lease

contracts and deeds of sale, and the cancellation or amendment of
titles pertaining to agricultural lands under the administration and
disposition of the Department of Agrarian Reform and the Land
Bank, as well as emancipation patents issued under Presidential
Decree No. 266, homestead patents, free patents, and miscellaneous
sales patents to settlers in settlement and resettlement areas under
the administration and disposition of the Department of Agrarian
Reform;
(h) Cases involving boundary disputes over lands under the

administration and disposition of the Department of Agrarian
Reform and the Land Bank, which are transferred, distributed and/
or sold to tenant-beneficiaries and are covered by deeds of sale,
patents and certificates of titles;
(i) Cases arising out of, or in connection with, membership

in the Samahang Nayon, compact farms, farmers’ cooperatives and
other registered farmers’ associations or organizations, and the
rights and obligations arising from such membership;
(j) Cases arising directly or indirectly between corporations or

partnerships covered by General Order No. 47 and tenant-farmers,
agricultural lessees, settlers, owner-cultivators, amortizing
owner-cultivators, the Samahang Nayon, compact farms, farmers’
cooperatives, and other registered farmers’ associations or
organizations, and between such corporation or partnerships
and other corporations, partnerships, associations or single
proprietorships where the question involved affects the rights and
interests of the persons herein mentioned;
(k) Cases involving the determination of title to agricultural

lands where this issue is raised in an agrarian dispute by any of the
parties or a third person in connection with the possession thereof
for the purpose of preserving the tenure of the agricultural lessee
934
or actual tenant-farmer and effecting the ouster of the interloper or

intruder in one and the same proceeding;
(l) Cases involving the sale, alienation, mortgage foreclosure,

pre-emption and redemption of tenanted agricultural land;
(m) Cases involving expropriation of all kinds of land in

furtherance of the agrarian reform program;
(n) Expropriation proceedings for public purpose of all kinds

of tenanted agricultural land, whether instituted by the State, its
political subdivisions and instrumentalities, or corporations and
entities authorized by laws to expropriate;
(o) Cases involving acquisition by the Department of Agrarian

Reform of irrigation systems and/or water rights grants for the
benefit of tenant-farmers, agricultural lessees, settlers, owner-
cultivators, amortizing owner-cultivators, the Samahang Nayon,
compact farms, farmers’ cooperatives, and other registered farmers’
associations or organizations, the Department of Agrarian Reform
being hereby vested with the authority to construct irrigation
systems and apply for water rights grants for the purpose herein
provided;
(p) Ejectment proceedings instituted by the Department of

Agrarian Reform and the Land Bank involving lands under their
administration and disposition, except urban properties belonging
to the Land Bank;
(q) Cases involving violations of the penal provisions of

Republic Act Numbered eleven hundred and ninety-nine, as
amended, Republic Act Numbered thirty eight hundred and
forty-four, as amended, Presidential Decrees and laws relating to
agrarian reform; Provided, however, That violations of the said
penal provisions committed by any Judge shall be tried by the courts
of general jurisdiction; and
(r) Violations of Presidential Decrees Nos. 815 and 816.
935
No tenant-farmer in agricultural lands primarily devoted to

rice and/or corn shall be ejected or removed from his farmholding
until such time as the respective rights of the tenant-farmer and the
landowner shall have been determined in accordance with the rules
and regulations implementing Presidential Decree No. 27.
No Judge of the Courts of Agrarian Relations, Courts of First

Instance, municipal or city courts, or any other tribunal or fiscal shall
take cognizance of any ejectment case or any other case designed to
harass or remove a tenant of an agricultural land primarily devoted
to rice and/or corn, unless certified by the Secretary of Agrarian
Reform as a proper case for trial or hearing by a court or Judge or
other officer of competent jurisdiction, and if any such case is filed,
the case shall first be referred to the Secretary of Agrarian Reform
or his authorized representative in the locality for a preliminary
determination of the relationship between the contending parties. If
the Secretary of Agrarian Reform or his authorized representative
in the locality finds that the case is a proper case for the Court or
Judge or other hearing office to hear, he shall so certify and such
court, Judge or other hearing officer may assume jurisdiction over
the dispute or controversy.
The preliminary determination of the relationships between

the contending parties by the Secretary of Agrarian Reform or his
authorized representative, is not binding upon the court, Judge or
hearing officer to whom the case is certified as a proper case for trial.
Said court, Judge or hearing officer, after hearing, may confirm,
reverse or modify said preliminary determination as the evidence
and substantial merits of the case may warrant.
SEC. 13. Territorial Jurisdiction: Venue of Action. - All actions

except criminal cases falling with the jurisdiction of the Courts of
Agrarian Relations shall be commenced by a written complaint
filed with the office of the clerk of court of the Branch within whose
territorial jurisdiction the land directly involved is situated.
936
Every Branch shall have territorial jurisdiction over all cases

directly involving lands within the entire Regional District where
its official station is located.
Where a party questions the territorial jurisdiction of a Branch,

said Branch shall forthwith determine whether the land directly
involved in the proceeding is within its territorial jurisdiction. Upon
finding the contrary, the said Branch shall promptly forward the
case to the Branch within whose territorial jurisdiction the land
subject matter or the case is located.
Where the land directly involved straddles two or more

Regional Districts, the Branch in any of the said Districts where the
case is first instituted, shall have exclusive territorial jurisdiction.
If there be any conflict of territorial jurisdiction between

Courts of two or more Regional Districts, the Supreme Court shall
resolve such conflict administratively.
Where the land involved is located within a Regional District,

but the case is filed in a Branch in another Regional District, and
none of the parties objects, that Branch shall proceed to hear the
case and decide it on the merits. Where any of the parties objects,
but the Branch is of the opinion that it has territorial jurisdiction, it
shall likewise proceed to hear the case and decide it on the merits. If
on appeal the appellate court finds that the Branch had no territorial
jurisdiction over the case, it shall nevertheless decide the appeal on
the merits.
Where the question of territorial jurisdiction is not raised

in the Courts of Agrarian Relations, all parties are estopped from
raising the issue on appeal or in any other proceeding.
Any problem of territorial jurisdiction not covered by the

foregoing provisions shall be governed by rules to be promulgated
by the Supreme Court.
937
In the cases covered by paragraph (f), (i) and (j) of the preceding
section, where one of the parties involved is a tenant-farmer,
agricultural lessee, settler, owner-cultivator or amortizing owner-
cultivator, the action shall be commenced and tried in the Regional
District where the farmholding of such party is located. Where the
action is between parties other than those enumerated, the action
shall be commenced and tried in the regional District where the main
office of the Samahang Nayon, compact farm, farmers’ cooperative or
registered farmers’ association or organization is located. Where the
action is between a corporation or partnership covered by General
Order No. 47, and any other corporation, partnership, association
or single proprietorship, the action shall be commenced and tried
in the Regional District where the main office of any of the parties
is located.
SEC. 14. Powers of Courts of Agrarian Relations. - Every Court

of Agrarian Relations shall have all the powers and prerogatives
inherent in or belonging to the Courts of First Instance, including
the following:
(a) To punish for direct and indirect contempt;
(b) To preserve and enforce order in its immediate presence;
(c) To enforce order in proceedings before it, or before a person

or persons empowered to conduct a judicial investigation under its
authority;
(d) To compel obedience to its judgments, orders and processes,

and to the lawful orders of Judge out of court, in a case pending
therein;
(e) To control, in furtherance of justice, the conduct of its

ministerial officers, and of all other persons in any manner connected
with a case before it, in every manner appertaining thereto;
(f) To compel the attendance of persons testify in a case

pending therein;
938
(g) To administer or cause to be administered oaths in a case

pending therein, and in all other cases where it may be necessary in
the exercise of its powers;
(h) To amend and control its processes and orders so as to

make them conformable to law and justice;
(i) To authorize a copy of a lost or destroyed pleading or other

paper to be filed and used instead of the original, and to restore, and
supply deficiencies in its records and proceedings;
(j) To require the assistance of all agencies and offices of the

Government in the performance of its duties without additional
compensation; and
(k) To allow duly authorized leaders of duly registered farmers’

organizations to appear as counsel for their respective members
and/or organizations, subject to the basic duties and obligations
of officers of the court. Upon appeal, however, the parties shall be
represented by members of the Bar only.
Courts of Agrarian Relations may employ all auxiliary writs,

processes and other means necessary to carry their jurisdiction into
effect.
All writs and processes issued by the Courts of Agrarian

relations shall be served and executed free of charge by provincial
or city sheriffs, or by any person authorized by the said Courts, in
the same manner as writs and processes of Courts of First Instance.
SEC. 15. Disqualification of Judges. - No Judge of the Courts

of Agrarian Relations shall sit in any case in which he, or his wife or
child, is pecuniarily interested as heir, legatee, creditor or otherwise,
or in which he is related to either party within the sixth degree of
consanguinity or affinity, or to counsel within the fourth degree,
computed according to the rules of the civil law, or in which he has
been executor, administrator, guardian, trustee or counsel, without
939
the written consent of all parties in interest, signed by them and

entered upon the record.
SEC. 16. Rules of Procedure. - The Courts of Agrarian Relation

shall adopt uniform rules of procedure on matters not provided for
in this Decree in order to achieve a just, expeditious and inexpensive
determination of every action or proceeding filed before them. The
rules of Court shall not be applicable to agrarian cases, even in a
suppletory character. It is the spirit and intention of this Decree
that the Courts of Agrarian Relations shall utilize and employ
every and all reasonable means to ascertain the facts of every case
in accordance with justice and equity and the merits of the case,
without regard to technicalities of law and procedure. To this end,
each Court of Agrarian Relations shall have the authority to adopt
any appropriate measure or procedure in any situation or matter
not provided for or covered by this Decree and in the uniform rules
of procedure of the Courts of Agrarian Relations. All such special
measures or procedures, and the situations to which they are
applied shall be reported to the Supreme Court by the individual
Judges through the Executive Judge who shall furnish copies of
such reports to all the other Judges.
Where there is doubt in the application of uniform rules or in

the construction and interpretation of this Decree or of any contract
between the parties, the doubt shall be resolved in favor of the
tenant-farmers, agricultural lessees, settlers, owner-cultivators,
amortizing owner-cultivators, the Samahang Nayon, compact farms,
farmers’ cooperatives and other registered farmers’ associations or
organizations.
In criminal and expropriation cases the Rules of Court shall

apply.
In the hearing, investigation and determination of any

question or controversy, affidavits and counter-affidavits may be
allowed and are admissible in evidence.
940
Direct testimonies of witnesses shall be in narrative form

subject to cross examination.
In cases where the tenurial status of a person is in issue, the

Court of Agrarian Relations shall not issue an order restraining the
actual tiller from cultivating the land, or impounding the harvest
without providing him with at least fifty percent of the net harvest.
Should the impounding of the harvest be at the instance of

the landholder, he shall file a cash bond to be fixed by the Court,
to answer for such damages as may be suffered by the tiller who is
found to be a lawful tenant. In case of the malicious denial of the
tenancy relationship by the landholder, he shall be subject to the
payment of exemplary damages equivalent to at least the value of
the harvest impounded.
Where a party is a tenant-farmer, agricultural lessee or tiller,

settler, or amortizing owner-cultivator, he shall be entitled to the
rights of a pauper and/or indigent litigant and the privileges of
an indigent litigant under Republic Act Numbered sixty hundred
and thirty-five without further proof thereof. He shall continue to
enjoy such status as pauper and/or indigent litigant in the appellate
courts and until the case is finally disposed of.
An agricultural tiller, tenant or lessee who has been allowed

to litigate as a pauper and/or indigent litigant shall be entitled to
the issuance of a duly certified copy of the transcript of stenographic
notes of the hearing, which shall be given to him free of charge. Any
undue delay in the transcription of the stenographic notes or in the
issuance of a duly certified copy of said transcript in favor of said
party and any charging of fees against him in connection therewith
shall be dealt with administratively.
SEC. 17. Pleadings; Hearings; Limitation on Postponements. -

The defendant shall file his answer to the complaint (not a motion
to dismiss), within a non-extendible period of ten (10) days from
service of summons, and the plaintiff shall file his answer to the
counterclaim, if there be any, within a non-extendible period of five
941
(5) days. There shall be no declaration of default for failure to file

the answer within the period herein provided. Immediately upon
receipt of the last pleading completing the joinder of issues, or the
expiration of the period for filing the same, the Court shall set the
case for hearing. On the date of hearing but before actually receiving
evidence on the case, the Court shall endeavor to settle the case
amicably, Provided, That in no case shall any amicable settlement
work out to give the agricultural lessee or tenant less rights, benefits
or advantage than the law grants him; and, Provided, further,
That a judgment approving such amicable settlement shall not be
executory until after fifteen (15) days from notice. If an agreement
as to the whole or any part of the case is arrived at, the same shall
be reduced to writing, signed and acknowledged by the parties and
counsels, if present, before the Judge which shall be the basis of
a decision. Where no such agreement is effected, the Court shall
proceed with the trial, which shall be continuous until terminated.
The absence of counsel of any or both the parties shall not be a
ground for postponement or continuance, provided they were duly
notified. No motion to dismiss shall be entertained at any stage of
the proceedings.
No order of the Courts of Agrarian Relations on any issue,

question, matter or incident raised before them shall be contested
in any action or proceeding before the appellate courts until the
hearing shall have been terminated and the case decided on the
merits.
SEC. 18. Appeals. - An appeal may be taken to the Court of

Appeals by giving an oral or written notice of appeal with the trial
court within the period of fifteen (15) days from notice of order or
decision. A copy of the written notice of appeal shall be served within
the same period upon the adverse party. In case the notice of appeal
is orally made, the clerk of court shall reduce the same to writing,
which shall be signed by the appellant and a copy thereof served
within the same period by the clerk of court to the adverse party.
In case a motion for reconsideration is filed within that

period of fifteen (15) days, the notice of appeal shall be filed within
942
ten (10) days from notice of the resolution denying the motion
for reconsideration. Only one motion for reconsideration shall be
allowed a party.
The Court of Appeals shall affirm the decision or order or

the portions thereof appealed from if the findings of fact in the
said decision or order are supported by substantial evidence as
basis thereof, and the conclusions stated therein are not clearly
against the law and jurisprudence. The Court of Appeals shall not
be precluded from taking into consideration any issue, question or
incident, even if not raised, if resolution thereof is necessary for a
complete and just disposition of the case.
The Court of Agrarian Relations shall forward to the Court

of Appeals the complete records of the case within a non-extendible
period of fifteen (15) days from receipt of a notice of appeal, if no
motions for reconsideration are filed. In the event that motions
for reconsideration are filed, the records shall be forwarded to
the appellate court within a like period from receipt by the party
concerned of denial of the last motion for reconsideration.
Appeal shall not stay the decision or order except where the
ejectment of a tenant-farmer, agricultural lessee or tiller, settler, or
amortizing owner-cultivator is directed.
Upon receipt of the records of the case from the Court of

Agrarian Relations, the Court of Appeals may, if it deems necessary,
require the parties to file simultaneous memoranda within a non-
extendible period of fifteen (15) days from notice; the appellate court
shall decide the case within thirty (30) days from receipt of said
records or memoranda.
No motion for rehearing or reconsideration shall be allowed in

the Court of Appeals.
All cases of the Courts of Agrarian Relations now pending

before the Court of Appeals shall remain in the Division to which
they have been assigned, and shall be within sixty (60) days from
943
the effectivity of this Decree: Provided, however, That if the decision

or order be an affirmance in toto of the dispositive conclusion of the
judgment appealed from, then the Court of Appeals may, instead
of rendering an extended opinion, indicate clearly the trial court’s
findings of fact and pronouncements of law which have been adopted
as basis for the affirmance.
Upon the effectivity of this Decree, the Court of Appeals shall

designate at least two (2) of its Divisions to which all appealed
agrarian cases shall be assigned, and these cases shall have priority
over other cases.
The decisions or orders of the Court of Appeals may be

appealed to the Supreme Court by petition for review on certiorari
only on questions of law, within a non-extendible period of thirty
(30) days from receipt by the appellant of a copy of the decision or
order.
SEC. 19. Exercise by the Supreme Court of its Rulemaking

Power. - In order to achieve a just, expeditious and inexpensive
disposition of agrarian cases, the Supreme Court, in the exercise of
its rule-making power, may supplement, modify, alter and/or amend
the rules of practice and procedure herein provided, as well as such
additional rules of practice and procedure as may be promulgated
by the Courts of Agrarian Relations.
SEC. 20. Monthly Report. - Every Court of Agrarian Relations

shall submit to the Supreme Court within the first ten days of each
month a brief report for the previous month, showing the number
and nature of cases filed and tried, the places of hearing, and the
status of each case.
A copy of the report shall be furnished the Executive judge with

copies of the decisions rendered and orders issued during the month.
Such decisions and orders shall be complied by the Executive Judge,
and the decisions and orders in important cases shall be reported by
him in appropriate form, furnishing the Supreme Court, the Court
944
of Appeals and the Department of Agrarian Reform, copies thereof

together with their syllabi.
SEC. 21. Courtrooms, Offices and Facilities. - The courtrooms

and offices of the Courts of Agrarian Relations in the provinces shall
be provided by the respective provincial government; Provided,
however, That where a Court is stationed within a city the expenses
therefor shall be shared equally between the provincial and city
governments. The Courtrooms and offices shall be located, whenever
possible, in the same buildings as the Courts of First Instance.
Expenses for the maintenance, equipment, supplies, servicing, repair
and alteration thereof shall be borne by the national government.
SEC. 22. Administrative Provisions. - Until otherwise

provided by the Supreme Court each Branch shall have a personnel
complement composed of one (1) clerk of court and ex-officio sheriff,
one (1) deputy clerk of court, one (1) legal researcher, four (4) court
stenographers, one (1) interpreter, two (2) clerks, one (1) deputy
sheriff, one (1) bailiff, one (1) janitor, one (1) driver, and two (2)
security guards. The personnel complement of the Central Office
of the Courts shall be composed of (A) Office of the Executive
Judge — One (1) private secretary, one (1) executive assistant, one
(1) clerk-stenographer, one (1) driver and one (1) messenger; (B)
Management Staff — One (1) head of staff, one (1) assistant head
of staff, two (2) management analysts, two (2) statisticians, one (1)
personnel analyst, two (2) field auditors, and one (1) clerk-typist;
(C) Finance Division — one (1) chief, one (1) assistant chief, and
one (1) clerk; and its Budget Section — one (1) chief, one (1) budget
analyst and three (3) fiscal clerks; in its Accounting Section — one
(1) chief, one (1) accountant, three (3) accounting clerks, two (2)
bookkeepers, three (3) clerks and two (2) typists; and in its Cash
Section — one (1) cashier, two (2) cash clerks, and one (1) clerk-
typist; (D) Administrative Division — one (1) chief, one (1) assistant
chief, two (2) clerks and one (1) stenographer; and in its Personnel
Section — one (1) chief, one (1) training officer, two (2) personnel
clerks, two (2) leave clerks and one (1) clerk-typist; in its Records
Section — one (1) chief, two (2) records clerks and two (2) filers; in
its Property Section — one (1) chief, one (1) property clerk, two (2)
945
stock clerks, and two (2) laborers; in its Medical Section — one (1)
physician, one (1) dentist, one (1) dental aid and one (1) nurse; and
in its General Service Section — one (1) chief, one (1) chief security
guard, eight (8) security guards, two (2) auto mechanics, two (2)
laborers, two (2) drivers, one (1) electrician and five (5) janitors; and
(E) Legal Division — one (1) chief, one (1) assistant chief, and one
(1) clerk-typist; and in its Research Section — one (1) chief, eight
(8) attorneys and one (1) steno-typist, in its Publication Section —
one (1) chief, two (2) attorneys, two (2) steno-typist; two (2) syllabi
writers, one (1) mimeograph operator and one (1) janitor; and in its
Library Section — one (1) librarian, one (1) library assistant and
one (1) laborer.
The positions of Commissioners are hereby abolished.
The Supreme Court is hereby vested with authority to convert,

consolidate, merge or abolish such offices, services, divisions, staff
units and positions in the Courts of Agrarian Relations, provide for
or modify staffing patterns and salary scales, and create special
positions to suit the particular needs of any Branch of the Courts, in
order to allow them to effectively and expeditiously carry out their
functions under this Decree. In the interest of the public service, the
Chief Justice may, upon recommendation of the Judge of the Court
of Agrarian Relations concerned, authorize the substitution of other
positions in lieu of those provided herein.
The salaries of officials and employees in the Central Office

and in the Branches of the Court shall be determined by the
Supreme Court.
All officials and employees of the Central Office and the

Branches of the Court shall be appointed by the Chief Justice in
accordance with civil service laws, rules and regulations.
The present officials and employees of the Courts of Agrarian

Relations shall continue in office. However, unless reappointed
within a period of six (6) months from the effectivity of this Decree,
they shall be considered separated from the service as of the end of
946
that period, and shall be paid a gratuity at the rate equivalent to one
month’s salary for every year of service rendered in the government
based on the highest salary received and such other benefits to which
they may be entitled; Provided, That if said officials and employees
are eligible for retirement under any retirement law; they shall
have the option to retire and receive the gratuity or pension under
such law, payable from the appropriations of the Courts including
balances of certifications to accounts payable which have not been
reverted to surplus, any provision of law, decree, rule or regulation
SEC. 23. Appropriations. - The appropriations of the Courts of

Agrarian Relations authorized in Presidential Decree No. 733 and
other appropriation laws and decrees are hereby made available
and restructured to carry out the purposes of this Decree: Provided,
That in case said appropriations are not sufficient for the said
purposes as certified to by the Chief Justice the additional amount
of Five (5) Million Pesos is hereby automatically appropriated, and
shall be incorporated in subsequent appropriations laws.
SEC. 24. Miscellaneous Provision. - All government agencies

directly or indirectly involved in the agrarian reform program shall
make available to the Courts of Agrarian Relations the necessary
facilities to carry out the functions of said Courts.
SEC. 25. Separability of Provisions. - If for any reason any

section or provisions of this Decree shall be declared unconstitutional
or invalid by the Supreme Court, no other provision of this Decree
shall be affected thereby.
SEC. 26. Repealing Clause. - All decrees, laws, and orders,

or provisions thereof, inconsistent with the provisions of this
Decree are hereby repealed and modified accordingly. Chapter IX
of Republic Act numbered thirty-eight hundred and forty-four, as
amended, is hereby repealed.
SEC. 27. Effectivity. - This Decree shall take effect

immediately.
947
Done in the City of Manila, 17th day of June, in the year of

Our Lord, nineteen hundred and seventy-six.

By the President:
(Sgd.) JACOBO CLAVE

PD 946 repealed RA 3844 (Chap. IX).

PD 946 (sec. 12) was repealed or amended by RA 6657.
948
MALACAÑANG
Manila
CONVERTING THE BUREAU OF FARM MANAGEMENT OF THE

DEPARTMENT OF AGRARIAN REFORM INTO A BUREAU
OF LAND TENURE IMPROVEMENT
WHEREAS, the Department of Agrarian Reform has been

created and mandated by law to implement state policies and
decrees of agrarian reform;
WHEREAS, agrarian reform has been made the cornerstone

of reforms in the New Society, and under Presidential Decree Nos. 2
and 27, the government was set into motion to overhaul the system
of land tenure in order to fully emancipate the tenant-farmers from
their bondage;
WHEREAS, to effectively carry this out, there is a need to

increase the capability of the Department of Agrarian Reform in
developing and implementing plans and programs on the various
aspects of land tenure improvement; and
WHEREAS, the implementation of Presidential Decree No.

27 has spawned complex problems the solutions of which would
require greater concentration of efforts and resources. This can be
achieved by reorienting the functions of the Department’s personnel
at the field level.

SECTION 1. Creation of the Bureau of Land Tenure

Improvement. –The Bureau of Farm Management in the Department
of Agrarian Reform is hereby converted into the Bureau of Land
949
Tenure Improvement, to be headed by a Director who may be

assisted by an Assistant Director.
SEC. 2. Functions. –The Bureau shall be responsible for

providing staff services for the development of policies, plans
and programs, and standard operating procedures on land-
tiller-landowner identification, tenurial security and leasehold
arrangements, land transactions leading to the transfer of land
ownership to tenant-farmers including related records, land
valuation and landowners compensation, land tenure research, and
joint projects with other government offices and private institutions
to be established in tenanted areas and landed estates that will
improve land tenure and land use; for establishing and operating
a monitoring and information system on land tenure improvement,
and for performing such other functions that the Secretary may
assign pertaining to land tenure improvement.
SEC. 3. Functional Divisions. –The Bureau shall have the

following divisions:
(a) Land Transactions Division shall be responsible for

developing programs for the identification and maintenance
of a current inventory of tillers, landowners, landholdings
including crops and production thereon; and for all transactions
involving tenurial security, leasehold arrangements, land
transfers and change in land use. It shall be responsible for
developing standards for the valuation of lands acquired by
the government under the agrarian reform program and the
payment of the landowners thereof. It shall establish and
operate a monitoring and information system on land tenure
improvement.
(b) Land Tenure Research and Projects Division which shall

be responsible for preparing research designs on land tenure
improvement and the development of joint projects with other
government offices and private institutions in tenanted areas
and landed estates that will improve land tenure and land
use.
950
SEC. 4. Transfer of Personnel and Appropriations. –The

personnel, appropriations, records, equipment and property of the
converted Bureau of Farm Management shall be transferred to the
Bureau of Land Tenure Improvement.
SEC. 5. Field Personnel of the Department. –The field

personnel of the Department of Agrarian Reform particularly
those assigned to the Agrarian Reform Project Teams, shall
now be reoriented towards assuming primary responsibility for
implementing agrarian reform programs, particularly the policies,
plans and programs on land-tiller-landowner identification, tenurial
security and leasehold arrangements, land transactions leading to
the transfer of land ownership to tenant-farmers including related
records, land valuation and landowners’ compensation, land tenure
research and such other functions that the Office of the Secretary
may assign pertaining to land tenure improvement: Provided,
That in order not to disrupt the on-going process of the integrated
approach to agrarian report field implementation, the Agrarian
Reform Project Teams shall continue to undertake functions and
activities pertaining and related to project identification and
formulation; organization of compact and/or integrated farms; and
the establishment of cooperative-cultivatorship schemes: Provided,
further, That in order to avoid duplication of functions with the
Department of Agriculture, the Department of Agrarian Reform
shall not undertake agricultural, home and youth development
extension activities: Provided, furthermore, That the Department
of Agriculture shall assume primary responsibility for providing the
necessary agricultural extension services in agrarian reform areas:
Provided, finally, That in the agrarian reform areas agricultural
extension workers shall be assigned to specific areas of coverage in
consultation with the Department of Agrarian Reform.
SEC. 6. Repealing Clause. –All laws, rules and regulations

which are inconsistent with this decree are hereby repealed or
951
Done in the City of Manila, on this 18th day of August, in the

year of Our Lord, nineteen hundred and seventy-six.

By the President:

952
MALACAÑANG
MANILA
STRENGTHENING THE SECURITY OF TENURE OF

TENANT-TILLERS IN NON-RICE/CORN PRODUCING PRIVATE
AGRICULTURAL LANDS
WHEREAS, I have received disturbing reports that owners

of private agricultural lands, landholders, agricultural lessors,
legal possessors, civil law lessees, usufructuaries, or those acting
for and in their behalf planted to crops other than rice and/or corn,
including but not limited to those primarily planted to abaca,
banana, coconut, coffee, citrus, durian and other similar permanent
trees, are harassing or ejecting or removing or ousting or excluding
the tenant-tillers from their farmholdings in spite of the fact that
existing laws, particularly Republic Acts Nos. 1199, as amended,
and 3844, as amended, protect the security of tenure of these tenant-
tillers;
WHEREAS, these acts of the landowners are a threat to the

peace and order condition in the rural areas; and
WHEREAS, the tenant-tillers in such lands deserve the

utmost attention and assistance of the government to strengthen
their tenurial security by imposing stiffer penalties for violation of
such security of tenure.
NOW, THEREFORE, I, FERDINAND E. MARCOS President

SECTION 1. The tenure of the tenant-tillers in private

agricultural lands devoted to crops other than rice and/or corn,
including but not limited to those primarily planted to abaca,
banana, coconut, coffee, mango, durian, and other permanent fees,
shall be secured and no tenant-tiller shall be removed, ejected,
953
ousted or excluded from his farmholding unless for causes provided

by law and directed by a final decision or order of the court.
SEC. 2. No judge of the courts of agrarian relations, courts

of first instance, city or municipal courts or any other tribunal
or fiscal shall take cognizance of any ejectment case or any other
case designed to harass or remove a tenant of an agricultural
land primarily devoted to rice and/or corn, unless certified by the
Secretary of Agrarian Reform as a proper case for trial or hearing
by a court of judge or other officer of competent jurisdiction and, if
any such case is filed, the case shall first be referred to the Secretary
of Agrarian Reform or his authorized representative in the locality
for a preliminary determination of the relationship between the
contending parties. If the Secretary of agrarian Reform or his
authorized representative in the locality finds that the case is a
proper case for the court or judge or other hearing officer to hear, he
shall so certify and such court, judge or other hearing officer may
assume jurisdiction over the dispute or controversy.
The preliminary determination of the relationship between

the contending parties by the Secretary of Agrarian Reform, or his
authorized representative, is not binding upon the court, judge or
hearing officer to whom the case is certified as a proper case for
trial. Said court judge or hearing officer may, after due hearing,
confirm, reverse or modify said preliminary determination as the
evidence and substantial merits of the case may warrant.
SEC. 3. All cases still pending before any court, fiscal or other
investigating body which are not yet submitted for decision or
resolution shall likewise be referred to the Department of Agrarian
Reform for certification as provided in the preceding section.
SEC. 4. The penalty of arresto major or a fine of P1,000 or

both at the discretion of the court shall be imposed upon:
(a) Any judge or fiscal or other hearing officer who shall take
cognizance of any case designed to exclude, oust, eject, or
954
remove any tenant-tiller or who shall order the ejectment,

ouster, exclusion or removal of any tenant-tiller on the land
tilled by him without first complying with the provisions of
Section 2 hereof;
(b) Any officer or employee of the government, including

members of the Armed Forces of the Philippines, who executes
an order for the ouster, removal, exclusion or ejectment of
the tenant-tiller knowing that the said order is unlawful as
provided in Section 2 hereof; and
(c) Any landowners, landholders, agricultural lessor or

anybody acting for and in their behalf who by any act, scheme
or strategy shall eject, exclude, oust or remove and/or cause
the ejectment, exclusion, ouster or removal of the tenant-tiller
from his farmholding in contravention of this Decree.
SEC. 5. Cases involving violation of the penal provisions of

this Decree shall exclusively be cognizable by the Courts of Agrarian
Relations: Provided, however, That if such violation is committed by
a judge of the courts of general jurisdiction.
SEC. 6. The Department of Agrarian Reform is hereby

empowered to promulgate rules and regulations to implement this
Decree.
SEC. 7. The Secretary of the Department of National Defense

shall assist the Secretary of Agrarian Reform in the implementation
of this Decree.
SEC. 8. All previous or existing laws, orders, rules and

regulations or parts thereof in conflict or inconsistent herewith are
SEC. 9. This decree shall take effect immediately.
955


By the President :
(Sgd.) JUAN C. TUVERA

Presidential Assistant
PD 1038 was repealed or amended RA 6657.
956
MALACAÑANG
Manila
AMENDING FURTHER SECTION EIGHTY-SIX OF REPUBLIC

ACT NUMBERED THIRTY EIGHT HUNDRED AND
AGRARIAN REFORMS OF THE PHILIPPINES.”
WHEREAS, the Land Bank of the Philippines was established

to provide timely and adequate financial support in all phases of the
implementation of the Agrarian Reform Program of the Government.
WHEREAS, one of the major phases of such program is the

financing and/or guaranteeing of the acquisition of farm and home
lots transferred to the tenant-farmers pursuant to Presidential
Decree No. 27; and
WHEREAS, consistent with the policy on farmers’

participation and involvement in securing the benefits of agrarian
reforms, the farmers should have a voice in the governing body of
the Land Bank of the Philippines.

of the President, by virtue of the powers vested in me by the
SECTION 1. Section eighty-six of Republic Act Numbered

three thousand eight hundred and forty-four, as amended by
Presidential Decrees numbered two hundred fifty-one and four
hundred and forty-four, is further amended to read as follows:
“SEC. 86. The Board of Directors; membership:
Per Diem. –The affairs and business of the Bank shall be

directed and its property managed and preserved by a Board of
Directors consisting of seven (7) members to be composed of the
957
Secretary of Finance, as Chairman, the President of the Bank as

Vice-Chairman, the Secretary of Agrarian Reform and the Secretary
of Labor as ex-officio members. The President of the Philippines
shall appoint one (1) member of the Board who shall represent the
agrarian reform beneficiaries and the two (2) remaining members
shall be elected as hereinafter provided.

December, the stockholders shall meet to take up, among others,
the election of two (2) members of the Board of Directors for the
succeeding year. Each shareholder or proxy shall be entitled to as
many votes as he may have shares of stocks registered in his name
on the 31st day of October last preceding and held by him at the
time of the election. The two (2) members of the Board of Directors
shall be elected preferably from the holders of preferred shares on
the basis of the outstanding amount of share as follows:
(a) Not exceeding P100 million - one member
(b) Exceeding P100 million- two members.
The appointive member of the Board shall hold a term of office

for one year and shall continue to hold office until his successor shall
have been appointed and qualified.
The Board shall convene as often as necessary to discharge

its responsibilities properly, but shall meet at least once every two
weeks. The Board may be convoked either by the Chairman or in his
absence, the Vice-Chairman.
The presence of (4) members shall constitute a quorum. All

decisions of the board shall require the concurrence of at least four
(4) members.
No person shall be elected or appointed director of the Bank

unless he is a natural born citizen of the Philippines, not less
than thirty-five (35) years of age, of good moral character and has
attained proficiency, expertise and recognized competence in one or
958
more of the following: banking, finance, economics, law, agriculture,

agrarian reform, business management: Provided, further, that no
director, shareholder or employee of any other bank shall be eligible
for election or appointment as member of the Board of Directors of
the Bank.
The Chairman and the members of the Board shall receive

a per diem of two hundred fifty pesos for each session of the Board
attended but in no case to exceed two thousand pesos a month.
SEC. 2. Repealing Clause. –All provisions of existing laws,

decrees, orders, letters of instructions, rules and regulations
inconsistent herewith are hereby repealed and/or modified
accordingly.
SEC. 3. Effectivity. –This Decree shall take effect immediately.


By the President:

959
MALACAÑANG
Manila
REITERATING THE PROHIBITION AGAINST AGRICULTURAL

SHARE TENANCY IN ALL AGRICULTURAL LANDS AND
PROVIDING PENALTIES THEREFOR
WHEREAS, under the provisions of the Code of Agrarian

Reforms, agricultural share tenancy in private agricultural lands
covered by Presidential Decree No. 27 with the exceptions and/
or qualifications provided for therein, has been declared contrary
to public policy and automatically converted into agricultural
leasehold;
WHEREAS, Presidential Decree No. 2 proclaimed the whole

country as a land reform area;
WHEREAS, notwithstanding such provisions in the Code of

Agrarian Reforms and Presidential Decree No. 2, many landowners
landholders, civil law lessees, legal possessors, usufructuaries of
tenanted private agricultural lands, including persons acting for
and in their behalf still insist that the cropsharing system govern
the tenancy relationship between them and their tenants;
WHEREAS, the penal provisions of the Code of Agrarian

Reforms are inadequate to enforce full compliance with the declared
policy on leasehold, and therefore, it is imperative to strengthen
said penal provisions by including therein, landholders, civil law
lessees, legal possessors, usufructuaries, or persons acting for and
in their behalf, and by imposing stiffer penalties;
WHEREAS, the continuation of the feudal agricultural share

tenancy system adversely impedes and obstructs the implementation
of the Agrarian Reform Program of the New Society.
960

Constitution, do hereby decree and order the following:
SECTION 1. The leasehold system shall govern the relation

between the landowner, landholder, civil law lessee, legal possessor,
usufructuary, or any person acting for and in behalf, and the tenant-
farmer in all tenanted private agricultural lands that have come
under or are covered by and subject to the provisions of Presidential
Decree No. 27.
SEC. 2. In all cases covered by Section 1 hereof, the existence of

an actual sharing arrangement between the landowner, landholder,
civil law lessee, legal possessor, usufructuary, or any person
acting for and in his behalf, and his tenants shall give rise to the
presumption that such landowner, landholder, civil law lessee, legal
possessor, usufructuary or person has continued and maintained, or
has entered into a share tenancy contract or relationship with the
tenant.
SEC. 3. The landowner, landholder, civil law lessee, legal

possessor, usufructuary, or any person acting for and in his behalf,
shall be given one agricultural year from the promulgation of this
Decree before the penal provisions hereof shall operate against him.
In case the tenant is alleged to be unwilling to accept leasehold,
then the landowner, landholder, civil law lessee, legal possessor,
usufructuary or any person acting for and in his behalf, shall
report the matter to the Department of Agrarian Reform which
shall immediately give effect to the provisions of all laws governing
tenancy, making them retroactive whenever necessary and proper
to comply with said laws.
SEC. 4. The Department of Agrarian Reform is hereby

empowered to promulgate rules and regulations to implement this
Decree.
SEC. 5. The Secretary of National Defense shall assist the

Secretary of Agrarian Reform in the implementation of this Decree.
961
SEC. 6. Any landowner, landholder, civil law lessee, legal

possessor, usufructuary, or any person acting for and in behalf, who
shall violate Section 1 of this Decree by continuing and maintaining
the share tenancy system, or by entering into a share tenancy
contract or relationship with another, as tenant, shall, upon
conviction, suffer the penalty of prision mayor or a fine ranging from
P5,000 to P10,000, or both, in the discretion of the court. In the case
of juridical persons, the manager or the person who has charge of
the management or administration of the property, or in his absence
the person acting in his stead, shall be liable under this Section.
SEC. 7. Violations of the penal provision of this Decree shall

exclusively be cognizable by the Courts of Agrarian Relations.
SEC. 8. All provisions of existing laws, decrees, orders, and

rules and regulations inconsistent herewith are hereby repealed or
SEC 9. This Decree shall take effect immediately.
Done in the City of Manila, this 21st day of October in the


By the President:

962
REVISING THE BUDGET PROCESS IN ORDER TO

INSTITUTIONALIZE THE BUDGETARY INNOVATIONS
OF THE NEW SOCIETY
WHEREAS, the national budget is a major instrument for

development, requiring careful design of the preparation, legislation,
execution, and accountability phases of budgeting.
WHEREAS, the experience of the years has been reflected in

various improvements in the budget process, and embodied in C.A.
No. 246, R.A. No. 992, and P.D. No. 999;
WHEREAS, the budget process as implemented prior to

September 21, 1972 was not able to fully support national objectives
and plans;
WHEREAS, national interest calls for the institutionalization

of budgetary innovation realized during the New Society and
developed within the context of the Constitution of 1973.

Constitution, do hereby Order and Decree:
SECTION 1. Title. – This Decree shall be known as “Budget

Reform Decree of 1977.”
SEC. 2. Definition of Terms. – When used in this Decree:
a. “Budget” refers to the budget required to be prepared

pursuant to Section Sixteen (1), Article VIII of the
Constitution, and which is repeated in Section 13 of this
Decree.
b “Government” means the National Government, including

the Executive, the Legislative and the Judicial Branches,
and the Constitutional Commissions.
963
c. “Department and agency” and “department or agency”

mean all departments, bureaus, offices, boards,
commissions, courts, tribunals, councils, authorities,
administrations, centers, institutes, state colleges
and universities, and all other establishments and
instrumentalities of the National Government as defined
in the preceding paragraph.
d. “Current operating expenditures” refer to appropriations

for the purchase of goods and services for current
consumption or within the fiscal year, including the
acquisition of furniture and equipment normally used
in the conduct of government operations, and for
temporary construction for promotional, research and
similar purposes.
e. “Capital outlays” or “capital expenditures” refer to

appropriations for the purchase of goods and services, the
benefits of which extend beyond the fiscal year and
which add to the assets of Government, including
investments in the capital of government-owned or
controlled corporations and their subsidiaries.
f. “Expected results” mean services, products or benefits

that will accrue to the public, estimated in terms of
performance measures or targets.
g. “Government-owned or controlled corporations” are

corporations created by law as agencies of the State for
narrow and limited purposes, either owned wholly by the
State or wherein the Government is a majority stockholder,
in cases of stock corporations, or otherwise, agencies so
created where no stocks are issued but whose affairs are
conducted by a duly constituted board and which perform
proprietary functions.
h. “Continuing appropriations” refer to appropriations

available to support obligations for a specified purpose or
964
project, even when these obligations are incurred beyond

the budget year.
i. “Appropriation” is an authorization under past Acts

of Congress, Presidential Decrees or other legislative
enactment, for payments to be made with funds of the
government, under specified conditions and/or for specified
purposes.
j. “Allotments” are authorizations issued by the Budget

Commission to an agency, which allows it to incur
obligations within a specified amount that is within a
legislative appropriation.
k. “Obligations” are amounts which are committed to be paid

by government which arise from an act of a duly authorized
administrative officer which binds the government to the
immediate or eventual payment of a sum of money.
l. “Program” refers to the functions and activities necessary

for the performance of a major purpose for which a
government entity is established.
m. “Project” means a component of a program covering

a homogeneous group of activities that result in the
accomplishment of an identifiable output.
n. “Commissioner” refers to the Commissioner of the Budget.
BUDGET POLICY AND APPROACH

of the State to formulate and implement a National Budget that
is an instrument of national development, reflective of national
objectives, strategies and plans. The budget shall be supportive of
and consistent with the socio-economic development plan and shall
be oriented towards the achievement of explicit objectives and
expected results, to ensure that funds are utilized and operations
965
are conducted effectively, economically and efficiently. The national

budget shall be formulated within the context of a regionalized
government structure and of the totality of revenues and other
receipts, expenditures and borrowings of all levels of government
and of the government-owned or controlled corporations. The budget
shall likewise be prepared within the context of the national long-
term plan and of a long-term budget program.
SEC. 4. Planning and Budgeting Linkage. – The budget shall

be formulated as an instrument for the attainment of national
development goals and as part of the planning-programming-
budgeting continuum. Levels of revenue, expenditure and debt
shall be established in relation to macroeconomic targets of growth,
employment levels, and price level change, and shall be developed
consistent with domestic and foreign debt, domestic credit and
Balance of Payments objectives for the budget period. The aggregate
magnitudes of the budget shall be determined in close consultation
among the planning and fiscal agencies of government. Budgetary
priorities shall be those specified in the approved national plans,
keeping in mind the capability and performance of the
implementing agencies concerned. Agency budget proposals shall
explicitly state linkage to approved agency plans.
SEC. 5. National Resource Budget. – The finances of

government shall be analyzed and determined as the aggregate of
revenue, expenditure and debt of all units of government, including
the national government and its agencies and instrumentalities,
local government units and government-owned or controlled
corporations. The national government budget shall be evolved
within the framework of the total impact of government activity on
the national economy. The budgets of government corporations and
local governments shall be consistent in form and timing with that
of the national government, to facilitate comprehensive evaluation.
SEC. 6. Regional Budgeting. – The budgets of national

government agencies shall take into full and explicit consideration
the goals, plans and requirements of their respective regional
offices, in the interest of full government response to local thinking
966
and initiative. The budget preparation process shall originate at

regional and local levels, and shall be consolidated and reviewed
by the central offices of the various national agencies. The regional
development strategies and plans, including physical framework
and resource-use plans, shall be considered in the preparation of
the budget.
SEC. 7. Long-Term Budgeting. – The annual budgets of

the national government shall be prepared as an integral part of
a long-term budget picture. The long-term economic and physical
framework plans of government, multi- year requirements of
approved programs and projects, organizational and personnel
development strategies, and other commitments entered into or
otherwise assumed by government shall be specified in the budget
process.
SEC. 8. Development Projects. – The development process

requires the implementation of major development projects of
such size as to significantly affect the infrastructure program, debt
ceilings, the Balance of Payments, domestic credit, and government
expenditure levels. The budget process shall formally consider the
timing of major national projects, in order to ensure the observance
of established fiscal, monetary, international payments, and other
constraints.
SEC. 9. Performance and Financial Review. – The analysis

of agency operating performance, the evaluation of performance
relative to costs incurred and the review of agency operating systems
and procedures are inherent parts of the budget process. Agencies
shall therefore design and implement (a) management information
systems yielding both performance and financial information which
will adequately monitor and control budget implementation, and (b)
improvements in operating systems, procedures and practices, so as
to ensure that the targets approved in budget authorization are in
fact attained at minimum cost.
SEC. 10. Compensation and Position Classification. – The

size of personnel services expenditure relative to the total budget
967
and the number of agencies and personnel in government call for an

effective national compensation and position classification policy.
The Constitutional principles of a single compensation scheme for
the government and its instrumentalities is one of the bases of the
government budget process.
SEC. 11. Contingent Liabilities. – The contingent liabilities of

government shall be evaluated as part of the budget process, subject
to such limits and guidelines as may be approved by the President.
BUDGET PREPARATION
SEC. 12. Fiscal Year. – The fiscal year for all branches,
subdivisions, instrumentalities, departments, bureaus, offices and
agencies of the Government of the Republic of the Philippines,
including government-owned or controlled corporations and local
governments shall be the period beginning with the first day of
January and ending with the thirty-first day of December of each
calendar year.
SEC. 13. Submission of the Budget. – The President shall, in

accordance with section sixteen (1), Article VIII of the Constitution,
submit within thirty days from the opening of each regular session
of the National Assembly as the basis for the preparation of
the General Appropriations Act, a national government budget
of estimated receipts based on existing and proposed revenue
measures, and of estimated expenditures. The President shall
include in his budget submission the proposed expenditure level
of the Legislative and Judicial Branches and of Constitutional
bodies, which shall have undergone the same process of evaluation
and which shall have been subject to the same budgetary policies
and standards applicable to agencies in the Executive Branch.
The President may transmit to the National Assembly, from time
to time, such proposed supplemental or deficiency appropriations
as are, in his judgment, (a) necessary on account of laws enacted
after the transmission of the Budget, or (b) otherwise needed in the
public interest.
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SEC. 14. Form and Content of the Budget. – The budget proposal
of the President shall include current operating expenditures and
capital outlays. It shall comprise such funds as may be necessary for
the operation of the programs, projects and activities of the various
departments and agencies. The proposed General Appropriations
Act and other Appropriations Acts necessary to cover the budget
proposals shall be submitted to the National Assembly to accompany
the President’s budget submission. The budget shall be presented to
the National Assembly in such form and content as may be approved
by the President and may include the following:
a. budget message setting in brief the government’s budgetary

thrusts for the budget year, including their impact on
developing goals, monetary and fiscal objectives, and
generally on the implications of the revenue, expenditures
and debt proposals; and
b. summary financial statements setting forth:
(1) estimated expenditures and proposed appropriations

necessary for the support of the Government for the
ensuing fiscal year, including those financed from
borrowings;
(2) estimated receipts during the ensuing fiscal year

under laws existing at the time the budget is
transmitted and under the revenue proposals, if any,
forming part of the year’s financing program;
(3) actual appropriations, expenditures, and receipts

during the last completed fiscal year;
(4) estimated expenditures and receipts and actual or

proposed appropriations during the fiscal year in
progress;
(5) statements of the condition of the National Treasury

at the end of the last completed fiscal year, the
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estimated condition of the Treasury at the end of the

fiscal year in progress and the estimated condition
of the Treasury at the end of the ensuing fiscal year,
taking into account the adoption of financial proposals
contained in the budget and showing, at the same time,
the unencumbered and unobligated cash resources;
(6) essential facts regarding the bonded and other

long-term obligations and indebtedness of the
Government, both domestic and foreign, including
identification of recipients of loan proceeds; and
(7) such other financial statements and data as are

deemed necessary or desirable in order to make
known in reasonable detail the financial condition of
the government.
SEC. 15. Budget Levels. – The ordinary income of government

shall be primarily to provide appropriations for current operations,
except in case of a national emergency or serious financial stress,
the existence of which has been duly proclaimed by the President.
The level of aggregate revenue expenditure and debt shall be

jointly recommended to the President by the Budget Commission,
the Department of Finance, the National Economic and Development
Authority and the Central Bank of the Philippines, acting within
the Development Budget Coordination Committee of the National
Economic and Development Authority.
No appropriations for current operations and capital outlays

of the Government shall be proposed unless the amount involved
is covered by the ordinary income, or unless it is supported by a
proposal creating additional sources of funds or revenue, including
those generated from domestic and foreign borrowings, sufficient
to cover the same. Likewise, no appropriation for any expenditure,
the amount of which is not covered by the estimated income from
the existing sources of revenue or available current surplus, may be
970
proposed, unless it is supported by a proposal creating an additional

source of funds sufficient to cover the same.
Proposals creating additional sources of funds shall be

prepared in the form of revenue bills.
The provisions of this section shall not be construed as

impairing in any way the power of the National Assembly to enact
revenue and appropriation bills, nor the authority of the President to
propose special revenue and appropriation bills after the submission
of the budget.
SEC. 16. Budget Estimates. – Each head of department, office

or agency of the National Government, including the Legislative and
Judicial Branches, and including government-owned or controlled
corporations, shall submit his request for appropriations to the
Budget Commission in accordance with the budget calendar, format,
and such rules and regulations as may be issued in implementation
of this Decree.
The budget estimates of agencies shall include the following

information:
a. Objectives, functions, activities, programs and projects

showing the general character and relative importance
of the work to be accomplished or the services to be
rendered, and the principal elements of cost involved;
b. Linkage of the work and financial proposals to approved

development plans;
c. Estimated current operating expenditures and capital

outlays, with comparative data for the preceding and
current budget years;
d. Identification by region, pursuant to policies on the

regionalization of government operations;
971
e. Financial sources, reflecting all revenues, proceeds of

foreign and domestic borrowings, and other sources,
particularly those which accrue to the General Fund;
f. Contingent liabilities, including national government

guarantees of obligations of government-owned or
controlled corporations and their subsidiaries;
g. Brief description of the major thrusts and priority

programs and projects for the budget year, results
expected for each budgetary program and project, the
nature of work to be performed, estimated costs per unit
of work measurement, including the various objects of
expenditure for each project;
h. Organization charts and staffing patterns indicating the

list of existing and proposed positions with corresponding
salaries, and proposals for position classification and
salary changes, duly supported by adequate justification.
Consistent with the provisions of Article VIII, Section 16(3)

of the Constitution, the Commissioner shall review the budget
estimates as herein provided, including those of the Legislative
and Judicial Branches and of the Constitutional bodies and shall
submit his recommendations to the President.
SEC. 17. Regional Budgets. – The budgets of national

government agencies shall be prepared taking into full and careful
consideration the opportunities and requirements specific to the
various regions of the country. Where they are organized, regional
offices shall originate agency budget proposals, in accordance with
approved priorities and guidelines.
Agencies which are not regionalized shall nonetheless

estimate the amounts planned to be spent for each region of the
country.
972
The Commissioner shall identify by region the expenditure

programs of the national government agencies in the national
government budget, and release funds to national government
agencies in accordance with the approved regional distribution of
expenditures, specifying the region of destination.
Departments and agencies shall sub-allot in full and without

the imposition of reserves, the approved budget allocation of
their various regional offices, except as may be authorized by the
Commissioner, in case realignment of expenditures prove to be
necessary in the course of budget execution. The Commissioner shall
issue the rules and regulations needed to implement the provisions
of this section.
SEC. 18. Budget Evaluation. – Agency proposals shall be

reviewed on the basis of their own merits and not on the basis of
a given percentage or peso increase or decrease from a prior year’s
budget level, or other similar rule of thumb that is not based on
specific justification. Proposed activities, whether new or ongoing,
shall be evaluated using a zero-base approach and on the basis of
(a) relationship with the approved development plan, (b) agency
capability as demonstrated by past performance, (c) complementarity
with related activities of other agencies, and (d) other similar
criteria. The realization of savings in a given budget year and the
consequent non-utilization of funds appropriated or released to a
given agency shall not be a negative factor in the budget evaluation
for a subsequent year.
SEC. 19. Foreign-Assisted Projects. – The budgetary

implications of foreign-assisted projects shall be explicitly considered
at the time of project design and financing negotiation. The project
study shall specify the cash flow requirements of the project, among
others, for (a) payment of principal and interest, (b) peso component
of capital costs and project preparation, (c) infrastructure and
support facilities needed to be directly financed by government, (d)
operating and other expenditures which will be ultimately required
for General Fund support when the project is implemented, and
(e) peso requirements needed as counterpart. The concurrence
973
of the Budget Commission shall be obtained with respect to peso

requirements and implication on expenditure ceilings.
SEC. 20. Organizational Changes. – The budget may

reflect reorganization proposals, including the rearrangement,
reassignment, and consolidation of organizational units as are
approved by the President, which will simplify government
procedure, localize decision-making and implementation, and
otherwise facilitate government service to the public.
SEC. 21. Coordinating Bodies. – The budgets of coordinating

agencies, councils, task forces, authorities, committees, or other
similar bodies shall be limited to and used to fund only such
planning, coordinating and monitoring functions as are assigned to
it. Funds for implementation shall be budgeted and released to the
line implementing agencies concerned: provided, that the budgets
of coordinating bodies may include a lump-sum for purposes related
to their assigned functions, which lump-sum shall be sub-allotted
to implementing agencies and not used by the agency for its own
operations: provided, further, that funds budgeted for a given agency
falling within the jurisdiction of a coordinating body, may be subject
to release upon approval by the coordinating agency of such release
or of the agency’s work program.
SEC. 22. Budgetary Requirement of Government-Owned

or Controlled Corporations. – The internal operating budgets of
government-owned or controlled corporations and of chartered
institutions shall be approved by their respective governing
boards in accordance with a budget calendar and format as may
be approved by the President: provided, that such budgets shall
be subject to review and approval as part of the budget process in
cases where national government budgetary support is needed, in
terms of (a) capital or equity inputs, (b) operating contributions to
support specific activities undertaken by the institution as part of
its regular functions, and (c) guarantee of the national government
for obligations or contracts entered into by the corporations:
provided, further, that the submission of interim financial
statements may be required by the Commissioner.
974
SEC. 23. Tax and Duty Exemptions. – All units of government,

including government-owned or controlled corporations, shall
pay income taxes, customs duties and other taxes and fees as are
imposed under revenue laws: provided, that organizations otherwise
exempted by law from the payment of such taxes/duties may ask for
a subsidy from the General Fund in the exact amount of taxes/duties
due: provided, further, that a procedure shall be established by the
Secretary of Finance and the Commissioner of the Budget, whereby
such subsidiaries shall automatically be considered as both revenue
and expenditure of the General fund.
SEC. 24. Appropriation for Personal Services. –

Appropriations for personal services shall be considered as
included in the amount specified for each budgetary program and
project of each department, bureau, office or agency, and shall not
be itemized. The itemization of personal services shall be prepared
by the Commissioner for consideration and approval of the President
as provided in Section 30 hereof: provided, that the itemization of
personal services shall be prepared for all agencies of the Legislative,
Executive and Judicial Branches and the Constitutional bodies,
except as may be otherwise approved by the President for positions
concerned with national security matters.
SEC. 25. Department Approval of Proposed Appropriations.

– No legislative proposal which, if enacted, would authorize
subsequent appropriations, shall be transmitted to the President
by any bureau or agency, without the prior approval of the Head of
the Department concerned or by the Chairman or Chief Executive
Officer of a Cabinet level body which coordinates the multi-
sectoral formulation and implementation of a particular program
of expenditure involving one or more departments. No legislative
proposal involving the appropriation of funds shall be transmitted
to the National Assembly without the approval of the President.
BUDGET AUTHORIZATION
SEC. 26. Focus on Budget Policy. – The National Assembly

shall, during the discussion of the budget, focus on policy, budgetary
975
levels, thrusts and strategy. Details of agency expenditures shall

be considered as proper concerns of Executive Branch decision and
action.
SEC. 27. Limitation of Budget Debate. – Within seven (7)

consecutive session days for the submission of the budget, the
National Assembly shall, in plenary session, start the discussion
of the budget, including both expenditure and revenue proposal.
Debate shall be terminated on or before the eighteenth consecutive
session day from the beginning of the discussions and final action
shall be taken within three (3) consecutive session days thereafter.
SEC. 28. Prohibition Against the Increase of Appropriations. –

The National Assembly shall in no case increase the appropriation of
any project or program of any department, bureau, agency or office
of the Government over the amount submitted by the President
in his budget proposal. In case of any reduction in the proposed
appropriation for a project or program, a corresponding reduction
shall be made in the total appropriation of the department, office
or agency concerned and in the total of the General Appropriations
Bill.
SEC. 29. Prohibition Against Enactment of Additional Special

Provisions. – The National Assembly shall not add special provisions
in the budget earmarking the use of appropriations for specific
programs or activities nor shall it increase the amounts specified in
special provisions, beyond those proposed by the President.
SEC. 30. Content of the General Appropriations Act. – The

General Appropriations Act shall be presented in the form of
budgetary programs and projects for each agency of the government,
with the corresponding appropriations for each program and
project, including statutory provisions of specific agency or general
applicability. The General Appropriations Act shall not contain
any itemization of personal services, which shall be prepared by
the Commissioner after enactment of the General Appropriations
Act, for consideration and approval of the President.
976
SEC. 31. Automatic Appropriations. – All expenditures for

(a) personnel retirement premiums, government service insurance,
and other similar fixed expenditures, (b) principal and interest on
public debt, (c) national government guarantees of obligations which
are drawn upon, are automatically appropriated: provided, that no
obligations shall be incurred or payments made from funds thus
automatically appropriated except as issued in the form of regular
budgetary allotments.
SEC. 32. Supplemental Appropriations. – All appropriation

proposals shall be included and considered in the budget preparation
process. After the President shall have submitted the Budget, no
supplemental appropriation measure supported from existing
revenue measures shall be passed by the National Assembly.
However, supplemental or deficiency appropriations involving the
creation of new offices, programs or activities may be enacted if
accompanied and supported by new revenue sources.
SEC. 33. Reversion of Unexpected Balances of Appropriations,

Continuing Appropriations. – Unexpected balances of appropriations
authorized in the General Appropriation Act shall revert to the
unappropriated surplus of the General Fund at the end of the fiscal
year and shall not thereafter be available for expenditure except by
subsequent legislative enactment: provided, that appropriations
for capital outlays shall remain valid until fully spent or
reverted: provided, further, that continuing appropriations
for such current operating expenditures may be specifically
recommended and approved as such in support of projects
whose effective implementation calls for multi-year expenditure
commitments: provided, finally, that the President may authorize
the use of savings realized by an agency during a given year to meet
non-recurring expenditures in a subsequent year.
The balances of continuing appropriations shall be reviewed

as part of the annual budget preparation process and the President
may approve upon recommendation of the Commissioner, the
reversion of funds no longer needed in connection with the activities
funded by said continuing appropriations.
977
SEC. 34. – Loan Proceeds. Expenditures funded by foreign

and domestic borrowings shall be included within the expenditure
program of the agency concerned. Loan proceeds, whether in cash or
in kind, shall not be used without the corresponding release of funds
through a Special Budget as herein provided.
SEC. 35. Contingent Liabilities. – Government agencies,

particularly government-owned or controlled corporations,
shall periodically report to the Secretary of Finance and to the
Commissioner of the Budget on the status of obligations they have
entered into and which are the subject of government guarantees.
SEC. 36. Liability for Unauthorized Printing Press Revisions.

– It shall be unlawful for any person to make any unauthorized
revision of any figure, text or provision in the General Appropriations
Act and in the other budget documents during or in the process of
the printing. Any unauthorized change made either by addition,
modification or deletion, shall be null and void.
Persons who, in violation of this section, make any

unauthorized revision in the budget documents, shall be criminally
liable for falsification of legislative documents under the Revised
Penal Code. When the offender is a government official or employee,
he shall, in addition to criminal prosecution, be dismissed from the
service.
BUDGET EXECUTION
SEC. 37. Use of Appropriated Funds. – All moneys appropriated

for functions, activities, projects and programs shall be available
solely for the specific purposes for which these are appropriated.
SEC. 38. Allotment of Appropriations. – Authorized

appropriations shall be allotted in accordance with the procedure
outline hereunder:
a. Appropriations authorized for any department, office or

agency of the Government may be made available for
978
expenditure when the head of each department, office

or agency submits to the Commissioner a request for
allotment of funds showing the estimated amounts needed
for each function, activity, or purpose for which the funds
are to be expended, during the applicable allotment
period. The form and the time of submission of the request
for allotment showing the proposed quarterly allotments
of the whole authorized appropriation for the department,
office, or agency, shall be prescribed by the Commissioner.
b. In the administration of the allotment system herein

provided, each fiscal year shall be divided into four
quarterly allotment periods beginning, respectively, on
the first day of January, April, July, and October: provided,
that in any case where the quarterly allotment period
is found to be impractical or otherwise undesirable, the
Commissioner may prescribe a different period suited to
the circumstances.
c. Request for allotments shall be approved by the

Commissioner who shall ensure that expenditures
are covered by appropriations both as to amount and
purpose and who shall consider the probable needs of the
department, office or agency for the remainder of the fiscal
year or period for which the appropriation was made.
Acting under guidelines as may be issued by the President,
the Commissioner is authorized to approve amounts
different from agency estimates where necessary in
order to conform with the terms of the appropriation
and the prospective needs of the department, office or
agency. The Commissioner shall act promptly upon all
requests for allotment and shall notify every department,
office, or agency of its allotments at least five days before
the beginning of each allotment period. The notification,
which will be sufficient authority for the Chief Accountant
to enter the allotment in the books, shall include an
explanation for any change or modification in the request
of the head of the department, office or agency.
979
d. At the end of every quarter, each department, office or

agency shall report to the Commissioner the current
status of its appropriations, the cumulative allotments,
obligations incurred/liquidated, total disbursements, and
unliquidated obligations, unobligated and unexpected
balances, and the results of expanded appropriations.
Such department, office, or agency may initiate or request
for a change in allotments in order to adjust to altered
conditions, subject to such rules and regulations as may
be issued by the Commissioner.
e. Releases of funds appropriated for a given agency may be

made to its Regional Offices where dictated by the need
and urgency of regional activities.
f. The Commissioner shall have authority to modify or

amend any allotment previously issued. In case he shall
find at any time that the probable receipts from taxes or
other sources of any fund will be less than anticipated
and that as a consequence the amount available for the
remainder of the term of the appropriations or for any
allotment period will be less than the amount estimated
or allotted therefor, he shall, with the approval of the
President and after notice to the department or agency
concerned, reduce the amount or amounts allotted so as to
conform with targeted budgetary goals.
g. The Commissioner shall maintain control records

showing quarterly by funds, accounts, and other suitable
classifications as he may find necessary, the amounts
appropriated, the estimated revenues, the actual
revenues or receipts, the amounts allotted and available
for expenditures, the unliquidated obligations, actual
balances on hand, and the unencumbered balances of
the allotments for each department, office or agency
of the Government.
980
SEC. 39. Program of Expenditure. – The Commissioner shall

recommend to the President the year’s program of expenditure
for each agency of the government on the basis of authorized
appropriations. The approved expenditure program shall constitute
the basis for fund release during the fiscal period, subject to such
policies, rules and regulations as may be approved by the President.
SEC. 40. Special Budgets for Lump-Sum Appropriations. –

Expenditures from lump-sum appropriations authorized for any
purpose or for any department, office or agency in any annual General
Appropriations Act of other Act and from any fund of the national
Government, shall be made in accordance with a special budget to
be approved by the President, which shall include but shall not be
limited to the number of each kind of position, the designations, and
the annual salary proposed for which an appropriations is intended.
This provision shall be applicable to all revolving funds, receipts
which are automatically made available for expenditure for certain
specific purposes, aids and donations for carrying out certain
activities, or deposits made to cover the cost of special services to be
rendered to private parties. Unless otherwise expressly provided by
law, when any Board head of department, chief of bureau or office,
or any other official, is authorized to appropriate, allot, distribute
or spend any lump-sum appropriation or special, bond, trust, and
other funds, such authority shall be subject to the provision of this
section.
In case of any lump-sum appropriation for salaries and wages

of temporary and emergency laborers and employees, including
contractual personnel, provided in any General Appropriation Act
or other Acts, the expenditure of such appropriation shall be limited
to the employment of persons paid by the month, by the day, or by
the hour.
SEC. 41. Cash Budgets. – An operational cash budget shall

be implemented to ensure the availability of cash resources for
priority development projects and to establish a sound basis for
determining the level, type and timing of public borrowings. The
procedure, format, accounts, and other details necessary for the
981
execution, monitoring and control aspects of the system shall be

determined jointly by the Secretary of Finance, the Commissioner
of the Budget and the Chairman, Commission on Audit.
SEC. 42. Creation of Appropriation Reserves. – The

Commissioner may establish reserves against appropriations to
provide for contingencies and emergencies which may arise later
in the fiscal year and which would otherwise require a deficiency
appropriations.
The establishment of appropriation reserves shall not

necessarily mean that such portion of the appropriation will change
during the fiscal year justifying the use of the reserve, necessary
adjustments may be made by the Commissioner when requested
by the department, office or agency concerned.
SEC. 43. Suspension of Expenditure of Appropriations. –

Except as otherwise provided in the General Appropriations Act
and whenever in his judgment the public interest so requires, the
President, upon notice to the head of office concerned, is authorized
to suspend or otherwise stop further expenditure of funds allotted for
any agency, or any other expenditure authorized in the General
Appropriations Act, except for personal services appropriation
used for permanent officials and employees.
SEC. 44. Authority to Approve Fund Transfers. – The President

shall have the authority to transfer any fund appropriated for the
different departments, bureaus, offices and agencies of the Executive
Department which are included in the General Appropriations Act,
to any program, project, or activity of any department, bureau or
office included in the General Appropriations Act or approved after
its enactment.
The President shall, likewise, have the authority to augment

any appropriation of the Executive Department in the General
Appropriations Act, from savings in the appropriations of another
department, bureau, office or agency within the Executive Branch,
982
pursuant to the provisions of Article VIII, Section 16 (5) of the

Constitution.
SEC. 45. Authority to Use Savings in Appropriations to

Cover Deficits. – Except as otherwise provided in the General
Appropriations Act, any savings in the regular appropriations
authorized in the General Appropriations Act for programs and
projects of any department, office or agency, may, with the approval
of the President, be used to cover a deficit in any other item of
the regular appropriations: provided, that the creation of new
positions or increase of salaries shall not be allowed to be funded
from budgetary savings except when specifically authorized by
law: provided, further, that whenever authorized positions are
transferred from one program or project to another within the
same department, office or agency, the corresponding amounts
appropriated for personal services are also deemed transferred,
without, however increasing the total outlay for personal services of
the department, office or agency concerned.
SEC. 46. Certification of Availability of Funds. – No funds

shall be disbursed, and no expenditures or obligations chargeable
against any authorized allotment shall be incurred or authorized
in any department, office or agency without first securing the
certification of its Chief Accountant or head of accounting unit as to
the availability of funds and the allotment to which the expenditure
or obligation may be properly charged.
No obligation shall be certified to accounts payable unless the

obligation is founded on a valid claim that is properly supported
by sufficient evidence and unless there is proper authority for its
incurrence. Any certification for a non- existent or fictitious obligation
and/or creditor shall be considered void. The certifying official
shall be dismissed from the service, without prejudice to criminal
prosecution under the provisions of the Revised Penal Code. Any
payment made under such certification shall be illegal and every
official authorizing or making such payment, or taking part therein
or receiving such payment, shall be jointly and severally liable to
the government for the full amount so paid or received.
983
SEC. 47. Prohibition Against the Incurrence of Overdraft. –

Heads of departments, bureaus, offices and agencies shall not incur
nor authorize the incurrence of expenditures or obligations in excess
of allotments released by the Commissioner for their respective
departments, offices and agencies. Parties responsible for the
incurrence of overdrafts shall be held personally liable therefor.
SEC. 48. Adjustment of Appropriations for Reorganization. –

When under authority of law, a function or an activity is transferred or
assigned from one agency to another, the balances of appropriations
which are determined by the head of such department to be available
and necessary to finance or discharge the function or activity so
transferred or assigned may, with the approval of the President, be
transferred to and be made available for use by the agency to which
said function or activity is transferred or assigned for the purpose for
which said funds were originally available. Balances so transferred
shall be credited to any applicable existing appropriation account
or to new appropriation accounts which are hereby authorized to
be established, and shall be merged with any fund already in the
applicable existing or newly established appropriation account or
accounts and thereafter accounted for as one fund.
The funding requirements of agencies reorganized in

accordance with approved reorganization plans or reorganized
pursuant to law enacted after the approval of the general
Appropriations Act, are deemed appropriated and shall be available
for expenditure as soon as the reorganization plans are approved.
The Commissioner is hereby authorized to make necessary
adjustments in the appropriations to carry out the provisions of
this section. The department head concerned, with the approval of
the Commissioner, is hereby authorized to make necessary salary
adjustments resulting from final selection of personnel to fill the
positions in the staffing patterns of reorganized agencies, to make
necessary salary adjustments resulting from new appointments,
promotions or salary increases, subject to the provisions of P.D. No.
985.
984
SEC. 49. Liability for Illegal Expenditure. – Every expenditure

or obligation authorized or incurred in violation of the provisions of
this Decree or of the general and special provisions contained in the
annual General or other Appropriations Act shall be void. Every
payment made in violation of said provisions shall be illegal and
every official or employee authorizing or making such payment, or
taking part therein, and every person receiving such payment shall
be jointly and severally liable to the Government for the full amount
so paid or received.
Any official or employee of the Government knowingly

incurring any obligation, or authorizing any expenditure in
violation of the provisions herein, or taking part therein, shall be
dismissed from the service, after due notice and hearing by the duly
authorized appointing official. If the appointing official is other than
the President and should he fail to remove such official or employee,
the President may exercise the power of removal.
SEC. 50. Accrual of Income to Unappropriated Surplus of the

General Fund. – Unless otherwise specifically provided by law, all
income accruing to the departments, offices and agencies by virtue
of the provisions of existing laws, orders, and regulations shall
be deposited in the National Treasury or in and duly authorized
depository of the Government and shall accrue to the unappropriated
surplus of the General Fund of the Government: provided, that
amounts received in trust and from business-type activities of
government may be separately recorded and be disbursed in
accordance with such rules and regulations as may be determined
by the Permanent Committee created in section 51 hereof.
SEC. 51. Special, Fiduciary and Trust Funds. – Receipts

shall be recorded as income of Special, Fiduciary or Trust Funds or
Funds other than the General fund, only when authorized by law
and following such rules and regulations as may be issued by a
Permanent Committee consisting of the Secretary of Finance as
Chairman, and the Commissioner of the Budget and the Chairman,
Commission on Audit, as members. The same Committee shall
likewise monitor and evaluate the activities and balances of all
985
Funds of the national government other than the General fund

and may recommend for the consideration and approval of the
President, the reversion to the General fund of such amounts as are
(a) no longer necessary for the attainment of the purposes for which
said Funds were established, (b) needed by the General fund in
times of emergency, or (c) violation of the rules and regulations
adopted by the Committee: provided, that the conditions originally
agreed upon at the time the funds were received shall be observed in
case of gifts or donations or other payments made by private parties
for specific purposes.
SEC. 52. Service Fees and Honoraria. – Agencies are

authorized to charge fees, including honoraria and other reasonable
allowances, as compensation for consultation, seminars or training
programs, or technical services rendered to other government
agencies or private parties. Such fees or honoraria shall be recorded
as income of the government and subject to the usual accounting,
auditing and other pertinent requirements and to the provisions of
section 40 of this Decree.
SEC. 53. Administration of Lump-Sum Funds. – The Budget

Commission shall administer the Lump-Sum Funds appropriated
in the General Appropriations Act, except as otherwise specified
therein, including the issuance of Treasury Warrants covering
payments to implementing agencies or other creditors, as may be
authorized by the President.
SEC. 54. Cost Reduction. – Each head of department, bureau,

office or agency shall implement a cost reduction program for his
department, bureau, office or agency for the purpose of reducing
cost of operations and shall submit to the President reports on the
results of the implementation thereof. The Budget Commission
shall provide technical and other necessary assistance in the design
and implementation of cost reduction activities. An incentive award
not exceeding one month’s salary may be granted to any official or
employee whose suggestion for cost reduction has been adopted
and shall have actually resulted in cost reduction, payable from the
savings resulting therefrom.
986
SEC. 55. Authority to Use Savings for Certain Purposes.

– Savings in the appropriations provided in the General
Appropriations Act may be used for the settlement of the following
obligations incurred during a current fiscal year or previous fiscal
years as may be approved by the Commissioner in accordance with
rules and procedures as may be approved by the President:
a. Claims of officials, employees and laborers who died or

were injured in line of duty, including burial expenses as
authorized under existing law;
b. Commutation of terminal leaves of employees due to

retirement, resignation or separation from the service
through no fault of their own in accordance with the
provisions of existing law, including unpaid claims for
commutation of maternity leave of absence;
c. Payment of retirement gratuities or separation pay

of employees separated from the service due to
government reorganization;
d. Payment of salaries of employees who have been suspended

or dismissed as a result of administrative or disciplinary
action, or separated from the service through no fault of
their own and who have been subsequently exonerated
and/or reinstated by virtue of decisions of competent
authority.
e. Cash awards to deserving officials and employees in

accordance with the civil service law;
f. Salary adjustments of officials and employees as a result

of classification action under, and implementation of, the
provisions of the Compensation and Position Classification
Act, including positions embraced under the Career
Executive Service;
987
g. Peso support to any undertaking that may be entered

into by the government with international organizations,
including administrative and other incidental expenses;
h. Covering any deficiency in peso counterpart fund

commitments for foreign-assisted projects, as may be
approved by the President;
i. Priority activities that will promote the economic well-

being of the nation, including food production, agrarian
reform, energy development, disaster relief, and
rehabilitation.
j. Repair, improvement and provision of government

buildings and infrastructure and other capital assets
damaged by natural calamities;
k. Expenses in connection with official participation

in trade fairs, civic parades, celebrations, athletic
competitions and cultural activities, and payment of
expenses for the celebration of regular or special official
holidays;
l. Payment of obligations of the government or any of its

departments or agencies as a result of final judgment of
the Courts, and
m. Payment of valid prior year’s obligations of government

agencies with any other government office or agency,
including government-owned or controlled corporations.
SEC. 56. Appointment of Budget Officers. – No person shall

be appointed as budget officer in any department, bureau, office or
agency unless he meets qualification and/or training requirements
established by the Budget Commission as prerequisite to
appointment, in addition to other qualification requirements
prescribed by the Civil Service Commission for the position.
988
BUDGET ACCOUNTABILITY
SEC. 57. Evaluation of Agency Performance. – The President,

through the Commissioner, shall evaluate on a continuing basis the
quantitative and qualitative measures of agency performance as
reflected in the units of work measurement and other indicators of
agency performance, including the standard and actual costs per
unit of work.
SEC. 58. Budget Monitoring and Information System. –

The Commissioner shall determine accounting and other items
of information, financial or otherwise, needed to monitor budget
performance and to assess effectiveness of agencies’ operations
and shall prescribe the forms, schedule of submission, and other
components of reporting system, including the maintenance
of subsidiary and other records which will enable agencies to
accomplish and submit said information requirements: provided,
that the Commission on Audit shall, in coordination with the
Budget Commission, issue rules and regulations that may be
applicable when the reporting requirements affect accounting
functions of agencies: provided, further, that the applicable rules
and regulations shall be thus issued by the Commission on Audit
within a period of thirty (30) days after the Budget Commission
prescribes the reporting requirements.
SEC. 59. Monitoring of Expenditures. – Expenditures of

national government agencies shall be recorded so as to identify
expenditures as classified into such categories as may be determined
by the Budget Commission, including but not limited to the following:
(a) agency incurring the obligation, (b) program, project and activity,
(c) object of expenditure, including personal services, operating and
maintenance expenditures, equipment, and capital outlays, (d)
region or locality of use, (e) economic or functional classification of
the expenditure, (f) obligational authority and cash transactions
arising from fund releases, and such other classifications as may be
necessary for the budget process. The Commissioner of the Budget
shall determine the data and information requirements thus needed
and the Commission on Audit shall formulate the accounting rules
989
and regulations, including changes in the Chart of Accounts and the

general or subsidiary accounting records, as may be necessary to
generate the desired data and information. The Chief Accountants of
agencies and where necessary, accountants of regional offices, shall
submit the data needed by the Budget Commission in accordance
with such rules and regulations as it may formulate.
SEC. 60. Standard Costs. – The Budget Commission through

the Management Office and National Accounting Office, shall
develop standard costs for duly approved units of work measurement
for each agency’s budgetary projects or activities. These standards
costs shall be compared with actual unit costs and utilized in the
evaluation of agency budgetary performance.
SEC. 61. Review of Budgetary Programs. – The Commissioner

shall conduct a continuing review of the budgetary program and
project structure of each department, office or agency, the result of
which shall be the basis for modifying or amending such structure
for incorporation in the President’s budget proposals to the
National Assembly.
SEC. 62. Semi-Annual Report on Accomplishments of

Government Agencies. – The heads of departments, bureaus, offices
or agencies of the government shall submit a semi-annual report
of their accomplishments, both work and financial results, in
accordance with such content and format as may be prescribed by
the Commissioner. These reports shall be designed and used for the
purpose of monitoring the efficiency and effectiveness with which
budgeted funds are being utilized, and generally for verifying the
attainment of
SEC. 63. Failure to Submit Reports. – Failure on the part

of agency heads, chief accountants, budget officers, cashiers,
disbursing officers, administrative and/or personnel officers, and
other responsible officers of departments, bureaus, offices and
agencies to submit trial balances, work and financial plans, budgets,
reports of operation and income, plans, special budgets, reports of
operation and income, current agency plantilla of personnel and
990
such other report as may be necessary and required by the Budget

Commission shall automatically cause the suspension of payment
of their salaries until they have complied with the requirements
of the Budget Commission. No appropriation authorized in the
General Appropriations Act shall be made available to pay the
salary of any official or employee who violates the provisions of this
section, in addition to any disciplinary action that may be instituted
against such erring official or employee.
EXPENDITURE OF APPROPRIATED FUNDS
SEC. 64. Contracting of Activities. – Agencies may enter

into contracts with individuals or organizations, both public and
private, subject to provisions of law and applicable guidelines
approved by the President: provided, that contracts shall be for
specific services which cannot be provided by the regular staff of
the agency, shall be for a specific period of time, and shall have
a definite expected output: provided, further, that implementing,
monitoring and other regular and recurring agency activities shall
not be contracted for, except for personnel hired on an individual
and contractual basis and working as part of the organization, or
as otherwise may be approved by the President: provided, finally,
that the cost of contracted services shall not exceed the amount
that would otherwise be incurred had the work been performed
by regular employees of government, except as may be authorized
under this section.
SEC. 65. Authority to Receive Additional Compensation.

– Officials and employees who are duly appointed by competent
authority to any position in another government office or agency
in a current capacity, may, in the discretion of the President, be
allowed to receive additional compensation in the form of allowance
or honorarium at such rates he shall fix and subject to such
conditions as he may prescribe. Such additional compensation shall
be paid from the appropriations of the office or agency benefiting
from the concurrent service.
991
SEC. 66. Restriction on Salary Increases. – No portion

of the appropriations provided in the General Appropriations Act
shall be used for payment of any salary increase or adjustment
unless specifically authorized by law or appropriate budget circular
nor shall any appropriation for salaries authorized in the General
Appropriations Act, save as otherwise provided for under the
Compensation and Position Classification Act, be paid unless the
positions have been classified by the Budget Commission.
SEC. 67. Merit Increases. – The budgets of national government

agencies may provide for a lump-sum for merit increases, subject to
such terms and conditions as may be approved by the President.
Such lump-sum shall be used to fund salary increases approved
by the head of agency in recognition of meritorious performance:
provided, that the Civil Service Commission and the Budget
Commission shall jointly issue the rules and regulations governing
the granting of such merit increases.
SEC. 68. Salary for Substitutionary Service. – When an official

or employee is issued a duly approved appointment in a temporary
or acting capacity to take the place and perform the duties of another
who is temporarily absent from his post with pay, savings in the
appropriations of the department, bureau or office may be used for
the payment of his salary or differential, subject to the approval of
the Commissioner.
SEC. 69. Prohibition Against Payment of Salaries or Wages

of Officials and Employees on Strike Against the Government. –
Subject to existing civil service rules and regulations and the proper
administrative proceedings, no part of the funds of, or available for
expenditures by, any department, office or agency of the Government
shall be used to pay the salaries or wages of any official or employee
engaging in a strike against the Government of the Republic of the
Philippines, or who is a member of any organization of government
employees that, in the opinion of the Secretary of Justice, asserts
the right to strike against the Government of the Philippines.
992
SEC. 70. Additional Compensation for Overtime Service. –

Officials and employees of the National Government, when required
to work overtime after regular working hours during ordinary days,
during half-day sessions, or on Saturdays, Sundays and holidays,
by the heads of departments concerned, to finish work that must
be completed within a specified time, may be paid overtime
compensation from any unexpended balance of the appropriation
for salaries and wages authorized in the General Appropriations
Act and under such guidelines as may be issued by the President.
SEC. 71. Compensation of Persons Receiving Pension. – A

person receiving life pension, annuity, or gratuity as a result of
service in the national government of any local government unit,
or from any government-owned or controlled corporation, who is
reappointed to any position, the appropriation for the salary of
which is provided from funds of the office, shall have the option
to receive either the compensation for the position, or the pension,
gratuity or annuity, but in no case shall he receive both.
SEC. 72. Prohibition of Voluntary Service. – Unless otherwise

specifically approved by the President, no person shall be employed
or appointed in the government under the guise of voluntary service,
with compensation below the authorized hiring rate for the position,
but with privilege of transportation and/or representation expenses
in any form, or of receiving per diems, allowances, honoraria,
subsistence, quarters in cash or in kind, payable from government
funds: provided, that the application of this provision may be
waived to authorize voluntary service in the Armed Forces of the
Philippines or in connection with relief operations.
SEC. 73. Additional Compensation for School Faculty

Members. – Professors, instructors, teachers, or members of the
faculty of government schools, colleges and universities, when
required to teach more than their regular teaching loads may be
paid additional compensation not exceeding seventy-five percentum
of their basic salary.
993
SEC. 74. Laundry. – At the discretion of the department head

concerned, any official or employees of the national government
serving in any hospital, penal institution, or other similar institution,
who is required to wear a uniform during the performance of his
duties, may be granted laundry allowance in kind, or which may
be commuted at such rates as may be authorized by the Budget
Commission.
SEC. 75. Hazard Pay. – Upon recommendation of the

department head concerned and approval of the Commissioner,
hazard pay may be allowed to employees who are actually assigned
to danger or strife-torn areas, disease-infested places, or in
distressed or isolated stations and camps, which expose them to
great danger of contagion or peril to life. Such hazard pay shall be
paid from savings of the department concerned at such rates, terms
and conditions as the Commissioner may prescribe.
SEC. 76. Subsistence. – No official or employee of the national

government shall be given subsistence, the cost of which is payable
from any fund, except the following and only when an appropriation
therefor is specifically provided:
a. Marine officers, engineers and crew of government vessels,

launches, and motorboats, who shall take their meals
on the mess when aboard the said vessels, launches, or
motorboats;
b. Lightkeepers and other employees in light stations duly

authorized by the head of the department to receive
subsistence, who shall be furnished raw canned, or
preserved food supplies;
c. Officials and employees who are required to render

service within the premises of hospitals, penal
institutions, leper institutions, military installations,
and other similar institutions, for a continuous period
that includes meal time, may be allowed full subsistence
994
when required to live in said premises to make their

services available at any and all times;
d. Laborers temporarily fielded to isolated or unsettled

districts shall be furnished the usual rations or the
equivalent in cash, at the expense of the government.
In hospitals and leper institutions where there are no mess

halls or whenever these are inadequate personnel entitled to
subsistence allowance in kind may commute such subsistence
upon request of the personnel concerned subject to the approval by
the department head at authorized rates chargeable against the
appropriation for supplies and materials authorized in the General
Appropriations Act.
SEC. 77. Subsistence of Crew of Government Vessels. – The

subsistence allowance for the officers and crew of the coast guard
and revenue cutters and lighthouse tenders and other large vessels
operated by the Government shall be spent for conducting a mess
under the charge and administration of one or more members of the
complement in each vessel to be designated by the corresponding
head of department, and in accordance with regulations to be issued
by him. The person or persons so designated shall keep an account
of the advances of funds received and expenditures made therefrom
for the operation of the mess and shall render such report to the
corresponding Accounting Officer promptly at the end of each month.
SEC. 78. Furnished Quarters. – When the position of any

official or employee is provided with “furnished quarters”, such
official or employee shall be entitled to the use of such government-
owned furniture and equipment as are necessary for his board and
lodging and those for his family including children below twenty-
one years of age.
SEC. 79. Per Diems of Government Officials and Employees.

– When a government official or employee is authorized to travel
on official business outside of his permanent station, he shall be
entitled to per diems to cover his board and lodging in accordance
995
with his schedule: provided, that in addition to per diems, the

official or employee may be entitled to transportation expenses in
going to and coming from his destination and to daily allowance
while in the field: provided, further, that officials and employees
on travel status whose expenses for board and lodging are paid
directly or indirectly by government may not be entitled to receive
the per diems and allowances corresponding to such payments.
Department secretaries, heads of Constitutional bodies,

undersecretaries and all other positions of equivalent rank are
authorized the reimbursement of actual expenses supported by
receipts, within such limits as may be imposed under the provisions
of this section.
Officials and employees authorized to travel abroad may be

granted clothing allowance: provided, that no official or employee
shall be granted such clothing allowance oftener than once every
twenty-four months.
The rates of per diems and other allowances as authorized in

this section shall be determined by the President. The rates may be
changed from time to time upon recommendation of a Travel Rates
Committee which is hereby created, consisting of the Commissioner
of the Budget as Chairman and the Secretary of Foreign Affairs, the
Secretary of Tourism and the Chairman, Commission on Audit, or
their representatives, as members.
The Committee shall review travel rates and shall recommend

to the President for consideration and approval modification in rates
and policy when found to be warranted by actual domestic or foreign
travel costs, as the case may be.
Government-owned or controlled corporations shall observe

the rates established under this section: provided, that profit-
making corporations may adopt their own scales as may be approved
by the President.
996
The Travel Rates Committee shall issue the necessary rules

and regulations to enforce the provisions of this section.
SEC. 80. Additional Conditions for Payment of Travel

Expenses. – When travel is done by water and subsistence is not
included in the transportation cost, the amount actually and
necessarily spent for subsistence during such travel time shall be
paid, and no per diems shall be allowed in lieu thereof.
Per diems and travel allowances shall not be granted to

members of field parties or others for whom subsistence and/or
allowances in kind are supplied or other special provision made to
cover travel expenses.
The travel expenses of a government official or employee who

is assigned to render a special service to any private person or entity,
the expenses for which are payable by the latter, shall be paid from
a deposit which the private party shall be required to make
before the performance of the special service is commenced,
subject to the limitations and requirements herein provided for
travel expenses payable from government funds.
No official or employee of the Government who remains

temporarily at one station for a period longer than one month shall
be paid per diems in excess of one month, except upon the approval
of the head of department, and, in case his temporary stay in any
one place exceeds three months, payment of per diems in excess of
three months shall be made only upon the previous approval of the
Commissioner.
SEC. 81. Transportation of Members of Family of an Employee

Transferred from One Station to Another. – Whenever, due to the
exigencies of the service and not at his own request, an official or
employee is transferred from one station to another, said official or
employee and his spouse and children below twenty-one years of
age shall be entitled to transportation and freight for reasonable
and necessary baggage and household effects, at the expense of
997
the Government, to be paid from the appropriation for traveling

expenses of the bureau or office concerned.
SEC. 82. Purchase, Use, Operation and Maintenance of Motor

Transport Equipment. – No appropriation for equipment authorized
in the General Appropriations Act shall be used directly or indirectly
for the purchase of automobiles, jeeps, jitneys, station wagons,
motorcycles, trucks, launches, speedboats, airplanes, helicopters
and other types of motor transport equipment unless otherwise
specifically authorized by the President.
All departments, bureaus, offices, and agencies authorized

to purchase motor transport equipment including those acquired
through donations, gifts or gratuitous title are likewise authorized
to use, operate and maintain them for purposes of carrying out the
official functions and activities of the agency. These motor vehicles
shall be used strictly for official business, bear government plates
only, and after office hours to kept in a garage provided therefor
by the office or agency to which they belong, except, when in use
for official business outside office hours. The President, however,
may authorize exceptions from these provisions for officials of
government who work under extended hours or whose activities call
for special security arrangements. Any violation of the provisions
of this section shall subject the erring official or employee to
administrative disciplinary action and he shall be personally liable
for any loss or damage caused to the government or third persons.
The Commission on Audit shall issue rules and regulations

governing the use, operation and maintenance of government motor
transport equipment.
SEC. 83. Limitation of Rental or Motor Vehicles. – No

appropriations authorized in the General Appropriations Act shall
be used for renting motor transport equipment for a continuous
period of more than fifteen days, except as may be authorized by the
Commissioner.
998
SEC. 84. Limitation of Purchase of Supplies, Materials,

and Equipment Spare Parts. – Except as otherwise provided
in the General Appropriations Act, the stock on hand of supplies,
materials and equipment spare parts, acquired through ordinary
and emergency purchase, shall at no time exceed normal three-
month requirements, subject to the pertinent rules and regulations
issued by competent authority: provided, that department heads
may approve the build-up of stocks on hand of critical supplies
and materials, in anticipation of cost increases or requirements
of a national emergency, and specifying maximum quantities of
individual items, but in no case shall these stocks exceed more than
one year’s supply, unless otherwise approved by the President.
SEC. 85. Purchase of Locally Manufactured Products. –

All appropriations for the purchase of equipment, supplies and
materials authorized in the General Appropriations Act shall
be available only for locally manufactured equipment, parts,
accessories, medicines and drugs, supplies and materials, except
when none is available in the market or when the price of the locally
manufactured article exceed those determined by the Flag Law.
SEC. 86. Availability of Appropriations for Rental for Building

and Grounds. – Any appropriation authorized in any Act for rental
of buildings and grounds for any department, bureau, office or
agency shall be available for expenditure only when authorized by
the department head concerned. Such appropriation may also be
used for lease purchase arrangements.
With the concurrence of the Commissioner and the Secretary

of Finance, the head of the department may contract with any
government financial institution for loans intended for the
acquisition of land for the construction of an office building for any of
the agencies under the department. The annual amortization of the
loans shall be taken from the appropriations for rental authorized
under any Act for the department, bureau or office concerned.
SEC. 87. Misuse of Government Funds and Property. – Any

public official or employee who shall apply any government fund or
999
property under his administration or control to any use other than

that for which such fund or property is appropriated by law, shall
suffer the penalty imposed under the appropriate penal laws.
SEC. 88. Guidelines on Use of Appropriations. – The

President may supplement, change, adjust, modify or amend those
provisions of this Decree and other pertinent laws which govern
the expenditure of appropriated funds, including changes in rates
otherwise specified. The Budget Commission shall conduct on a
continuing basis and as part of its regular functions, studies and
analyses needed to improve upon existing guidelines and shall
submit these to the President with appropriate recommendations
and for promulgation as provided for under this section.
FINAL PROVISIONS
SEC. 89. Rules and Regulations. – The Budget Commission

shall issue the rules and regulations governing the implementation
of this Decree.
SEC. 90. Repealing Clause. – The provision of Sections 1656

and 1657 of the Revised Administrative Code, Commonwealth
Act No. 246, Republic Act No. 992, Presidential Decrees No. 75 and
999 and all laws, decrees, executive orders, rules and regulations
or parts thereof which are inconsistent with the provisions of this
Decree are hereby repealed and/or modified accordingly.
SEC. 91. Separability Clause. – If for any reason, any section

or provision of this Decree is declared to be unconstitutional or
invalid, other sections or provisions thereof which are not affected
thereby, shall continue in full force and effect.
SEC. 92. Effectivity. – This Decree shall take effect

immediately.
1000
Done in the City of Manila, this 30th day of July in the year of
Our Lord, nineteen hundred and seventy-seven.
PD 1177 s. 1977 repealed and/or modified accordingly ACT 2711 (secs. 1656 and 1657).
PD 1177 s. 1977 repealed and/or modified accordingly CA 246.
PD 1177 s. 1977 repealed and/or modified accordingly RA 992.
1001
MALACAÑANG
MANILA
GRANTING EMERGENCY MONTHLY INCENTIVE ALLOWANCE

TO LAWYERS IN THE BUREAU OF AGRARIAN LEGAL
ASSISTANCE AND IN THE REGIONAL AND FIELD
OFFICES OF THE DEPARTMENT OF AGRARIAN AND
PROVIDING APPROPRIATE FUNDS THEREFOR
WHEREAS, it is imperative that the agrarian reform program

of the government be implemented with maximum efficiency and
speed;
WHEREAS, in the implementation of the program there are

many legal problems that have arisen requiring the continuous and
dedicated service of the lawyers;
WHEREAS, the Bureau of Agrarian Legal Assistant (BALA)

of the Department of Agrarian Reform (DAR) is charged with the
functions, among others, of giving legal assistance and services to
the beneficiaries of the agrarian reform program;
WHEREAS, it has been ascertained that several lawyers

had left the BALA and other regional offices of the DAR and still
others are intending to leave due to the low salary being provided
for lawyer positions and the reason why several lawyer positions
remain unfilled while other agencies, including the private sector,
continue to attract applicants to their offices because they offer
higher salaries and many fringe benefits; and
WHEREAS, if the present situation is allowed to continue the

speedy termination of thousands of agrarian cases pending before
DAR and the various courts will be adversely affected and this will
be remedied by giving the remaining lawyers in the BALA and in
the DAR regional and field offices monthly incentive allowances to
1002
augment their low salaries and at the same time attract new lawyer
applicants.

SECTION 1. All lawyers in the Bureau of Agrarian Legal

Assistance and in the regional and field offices of the Department
of Agrarian Reform holding regular positions shall receive monthly
incentive allowance in the manner herein indicated, as follows:
Monthly Incentive Allowance

Position
1st Step 2nd Step 3rd Step
Group A P200 P100 P100
Trial Attorney II
Legal Officer III
Research Attorney I
Research Attorney II
Group B 250 150 150
Legal Officer IV
Senior Research Attorney
Group C 300 175 175
Trial Attorney III
Senior Legal Officer
Group D 350 200 200
Chief Legal Officer
Trial Attorney IV
Chief Research Attorney
Group E
Assistant Director 1,000
Director 1,500
SEC. 2. Regular and support personnel of the BALA who

are assigned in the Central office (Bureau Proper) shall be paid
monthly emergency incentive allowance at the rate of fifty percent
(50%) of the corresponding monthly rate provided for in Group A
1003
hereof. However, in cases of other DAR lawyers who are performing

supportive legal services shall be given fifty percent (50%) of the
incentive allowances corresponding to the above groupings were his
CCPC salary or CESO Rank belong.
SEC. 3. BALA lawyers whose positions are embraced in the

Career Executive Service (CES) shall continue to enjoy whatever
allowances they are entitled to receive under the CES simultaneously
with the allowance herein provided.
SEC. 4. The Secretary of Agrarian Reform shall, through

the recommendation of the BALA Director, promulgate rules and
regulations for the implementation of this Decree.
SEC. 5. In order to carry out the provisions of this Decree

the sum of THREE MILLION SEVEN HUNDRED TWENTY-
ONE AND TWO HUNDRED PESOS (P3,721,200.00) is hereby
appropriated from the National Treasury. However, for the current
calendar year, the amount necessary for the payment of the first
step of the incentive allowance plan hereof shall be taken from the
salary savings of the Department of Agrarian Reform. Thereafter,
the sum needed to fully implement the herein incentive allowance
plan shall be included in the Annual General Appropriations Act.
SEC. 6. All laws, decrees, executive orders, rules and

regulations, or part thereof inconsistent with this Decree are hereby
repealed, amended or modified accordingly.
SEC. 7. This incentive allowance plan provided herein shall

take effect on January 1, 1978.
Done in the City of Manila, this 10th day of June, in the year
of Our Lord, nineteen hundred and seventy-eight.

By the President:

1004
MALACAÑANG
Manila
DECLARING THE SAN PEDRO TUNASAN ESTATE OF THE

DEPARTMENT OF AGRARIAN REFORM SUITABLE FOR
RESIDENTIAL, COMMERCIAL OR INDUSTRIAL, OR
OTHER NON-AGRICULTURAL PURPOSES
WHEREAS, the San Pedro Tunasan Estate, now known as

the Laguna Resettlement Project, Located at San Pedro, Laguna,
and containing an area of 850 hectares, more or less, was acquired
on August 28, 1954 by the Government, through the National
Resettlement and Rehabilitation Administration (NARRA), for
redistribution and resale to, and agricultural development and
cultivation by, the bona fide tenants/occupants therein;
WHEREAS, in spite of years of occupation and cultivation,

the Estate has remained unproductive because it is rocky, rolling
and unirrigated and its thin layer of soil in certain areas is not
conducive to agricultural development;
WHEREAS, in studies made on land capability and use by

the Department of Agrarian reform and other agencies, it has
been established that the Estate is more suitable to residential,
commercial or industrial, or other non-agricultural uses;
WHEREAS, around the Estate are urban development

projects of various categories such as residential subdivisions,
commercial and industrial establishments;
WHEREAS, the rational utilization of the Estate for

residential, commercial or industrial and other non-agricultural
purposes will bring about decongestion of Metro Manila through
the establishment of low-cost housing projects and the dispersal of
industrial or commercial enterprises.
1005

SECTION 1. The Department of Agrarian Reform, as

Administrator of the San Pedro Tunasan Estate, is hereby ordered
to convert such estate into a commercial, industrial and residential
site and to transfer the same to the National Housing Authority.
SEC. 2. Individuals who have legally acquired farm lots in the

Estate under Orders of Award or Certificates of Land Transfer or
Agreements to Sell or Deeds of Sale, may sell or transfer their lots
covered thereby or convert the same for the purposes mentioned in
Section 1 hereof.
SEC. 3. Introduction of improvements on the land acquired

under this Decree shall be in accordance with human settlement,
land housing, and environmental planning policies and programs of
the government.
SEC. 4. Any provision of law, decree, executive order,

ordinances, rules and regulations inconsistent herewith are hereby
repealed, amended and/or modified accordingly.
DONE in the City of Manila, this 11th day of June, in the year

By the President:

1006
MALACAÑANG
Manila
PROCLAIMING URBAN LAND REFORM IN THE PHILIPPINES

AND PROVIDING FOR THE IMPLEMENTING MACHINERY
THEREOF
WHEREAS, it is declared objective of the New Society to effect

social, economic and political reforms attuned to the establishment
of a secure national community and to an improved quality of life
for all citizens and for all others who may sojourn upon our shores;
WHEREAS, the quality of human life in our times is

inescapably determined by the relationship among population,
resources, the environment, and intelligent policies;
WHEREAS, human settlements is an integrative concept

embracing the interdependence of man’s environment, human
shelters and structures, and the design and organization of human
communities consistent with a national framework plan, all for the
people’s security and well-being;
WHEREAS, land is the ultimate platform of all man’s

activities, and the crucial factor in determining the shape of human
settlements;
WHEREAS, the basic law of the land explicitly provides

for the regulation of the acquisition, ownership, use, enjoyment
and disposition of private property and for the equitable diffusion
of property ownership and profits which includes land and land
resources;
WHEREAS, the traditional concept of landownership has

aggravated the problem arising from urbanization such as the
proliferation of blighted areas and the worsening of the plight of
1007
the urban poor and has spawned valid and legitimate grievances in
urban centers giving rise to social tension and violent conflicts;
WHEREAS, a social reform objective of the New Society is to

renew blighted areas, improve the conditions of the urban poor and
resolve and redress legitimate grievances arising therefrom, while
at the same time providing incentives to progressive landowners
and developers who wish to develop their lands in accordance with
government plans and programs responsive to community welfare;
NOW, THEREFORE, in the light of the above premises, I,

FERDINAND E. MARCOS, President of the Philippines, by virtue
of the powers vested in me by the Constitution, do hereby order and
decree and make as part of the law of the land that:
SECTION 1. Title. This Act shall be known as the Urban

Land Reform Act.
SEC. 2. Declaration of Policy. It is hereby declared to be

the policy of the State a) to liberate our human communities from
blight, congestion, and hazard and to promote their development
and modernization; b) to bring out the optimum use of land as a
national resource for public welfare rather than as a commodity
of trade subject to price speculation and indiscriminate use; c) to
provide equitable access and opportunity to the use and enjoyment
of the fruits of the land; d) to acquire such lands as are necessary
to prevent speculative buying of land for public welfare; and e)
to maintain and support a vigorous private enterprise system
responsive to community requirements in the use and development
of urban lands.
SEC. 3. Definitions. As used in this Decree, the following words

and phrases shall have the following meanings and definitions:
(a) Development Rights, also known as “new use rights”, refers

to the right to use and/or develop land and improvements
thereon including putting them to a more intensive use,
1008
conversion to a more profitable use, increasing density and

the like.
(b) Land Assembly refers to the acquisition of lots varying

ownership through, among others, expropriation or negotiated
purchase, for the purpose of planning and development
unrestricted by individual property boundaries.
(c) Land Banking refers to the acquisition of land in advance of

actual need for the purpose of acquiring lands at existing use
value and disposing of them in a manner which would influence
land price formation and promote planned development.
(d) Land Exchange refers to the process of bartering land for

another piece of land and/or shares of stock of equal value in
a government or quasi-government corporation.
(e) Joint Ventures refers to the commitment, for more than

a limited duration, of funds, land resources, facilities and
services by two or more legally separate interests, to an
enterprise for their mutual benefit.
(f) Tenant refers to the rightful occupant of land and its

structures, but does not include those whose presence on the
land is merely tolerated and without the benefit of contract,
those who enter the land by force or deceit, or those whose
possession is under litigation.
(g) Urban lands refer to the lands which conform to any of the
following criteria:
1. In their entirety, all cities and municipalities which

have the population density of at least 1,000 persons
per square kilometer and where at least 50 percent of
the economically active population are engaged in non-
agricultural activities.
1009
2. All barangays comprising the former poblacion or

barangays including a part of the former poblacion
of cities or municipalities which have a population
density of greater than 500 but less than 1,000 persons
per square kilometer; and where at least 50 percent of
the economically active population engaged in non-
agricultural activities.
3. All barangays not included in items 1 and 2 above

which have a population size of at least 1,000 and where
at least 50 percent of the economically active population
are engaged in non-agricultural activities.
(h) Urbanizable lands refers to sites and land areas which,

considering present characteristics and prevailing conditions,
display a marked and high probability of becoming urban
lands within the period of five to ten years.
SEC. 4. Proclamation of Urban Land Reform Zones. The

President shall proclaim specific parcels of urban and urbanizable
lands as Urban land Reform Zones, otherwise known as Urban
Zones for purposes of this Decree, which may include Bagong
Lipunan Sites, as defined in P.D. 1396.
Upon proclamation, the Ministry of Human Settlements,

hereafter referred to as the Ministry, shall prepare the appropriate
development and zoning plans, and formulate the enforcement
and implementing guidelines which shall in force and effect upon
approval by the President and shall be enforced by the Ministry or
its attached agencies.
No urban land can be disposed of or used or constructed

on unless its disposition or use conforms with the development
and zoning plans of the Ministry, and the approved enforcement
and implementation guidelines in accordance with the Official
Development Registry System and the Development Use Permit
System provided for in Section 13 and 16 of this Decree.
1010
SEC. 5. Creation of an Urban Land Reform Coordinating

Council. An interagency body, to be known as the Urban Land
Reform Coordinating Council hereinafter referred to as the
Coordinating Council, is hereby constituted. It shall be composed
of the Ministers of Human Settlements, Agrarian Reform, Finance,
Justice, Local Government and Community Development, Industry,
National Resources, and the President of the Land Bank; with the
Minister of Human Settlements as the Chairman.
The Ministry, in conjunction with the Coordinating Council,

shall formulate the general policies and guidelines for the Urban
Land Reform Program and its rules and regulations, which shall
come into force and effect upon the approval of the President.
SEC. 6. Land Tenancy in Urban Land Reform Areas. Within

the Urban Zones legitimate tenants who have resided on the land
for ten years or more who have built their homes on the land
and residents who have legally occupied the lands by contract,
continuously for the last ten years shall not be dispossessed of the
land and shall be allowed the right of first refusal to purchase the
same within a reasonable time and at reasonable prices, under terms
and conditions to be determined by the Urban Zone Expropriation
and Land Management Committee created by Section 8 of this
Decree.
SEC. 7. Acquisition of Residential Lands for Existing Tenants

and Residents. In cases where the tenants and residents, referred to
in Section 6 of this Decree, are unable to purchase the said lands, the
Government shall acquire the land and/or improvements thereon
by expropriation or other land acquisition technique provided for
under Section 11 of this Decree.
In case of expropriation the Government shall acquire said

lands in accordance with the policies of existing law especially
Presidential Decree No. 76 as amended by paragraph 3 of
Presidential Decree No. 1224 and Section 1 of Presidential Decree
No. 1313 as herein amended.
1011
Upon the filing of the petition for expropriation and the

deposit in the Philippine National Bank at its main office or any
of its branches of the amount equivalent to ten per cent (10%) of
the declared assessment value in 1975, the Government, or its
authorized agency or entity shall immediately have possession,
control and disposition of the real property and the improvements
thereon with the power of demolition, if necessary, even pending
resolution of the issues that may be raised whether before the Court
of First Instance, Court of Agrarian Relations, or the higher Courts.
SEC. 8. Creation of Urban Zone Expropriation and Land

Management Committee. For the purpose of expropriating lands as
provided under Section 7, the Ministry is hereby vested with the
power of eminent domain.
To assist the Ministry in the exercise of this power, an Urban

Zone Expropriation and Land Management Committee, hereinafter
referred to as the Committee, shall be created in the city, town or
locality or within the Urban Zone, to be composed of members from
the relevant government and private sectors designated by the
Minister of Human Settlements, with the authorized representative
of the Ministry serving as the Chairman.
The Committee shall in addition to the above mentioned

function, formulate programs and projects specific to the Urban
Zones, specifying among others, the operative procedure for
land acquisition and its phasing, and shall recommend to the
Coordinating Council the appropriate made of disposition and other
related aspects of land management.
SEC. 9. Compulsory Declaration of Sale and Pre-emptive

Rights. Upon the proclamation by the President of an area as an
Urban Land Reform Zone, all landowners tenants and residents
thereupon are required to declare to the Ministry any proposal to
sell, lease or encumber lands and improvements thereon, including
the proposed price, rent or value of encumbrances and secure
approval of said proposed transaction.
1012
The Ministry shall have the pre-emptive right to acquire the

above mentioned lands and improvements thereon which shall
include, but shall not be limited to lands occupied by tenants as
provided for in Section 6 of this Decree.
SEC. 10. Innovative Land Acquisition Techniques. The

Ministry and/or its appropriate attached agency is hereby
authorized to utilize any innovative land acquisition techniques
as an alternative to land purchase and expropriation for the
purpose of acquiring lands within the proclaimed ULRZS and/or
Bagong Lipunan sites, including land assembly, land banking, land
exchange land consolidation and readjustment and joint venture
arrangements.
SEC. 11. Land Valuation. The Ministry of Finance shall

develop and utilize new valuation techniques and assessment
classification levels appropriate to the innovative acquisition
techniques and tax system provided for in this Decree.
SEC. 12. Official Development Registry. To provide the basis

for decisions of the Ministry with regard to land acquisition, exercise
of pre-emptive rights under Section 9 of this Decree and disposition
of lands, and to regulate transactions affecting land, the Ministry,
through the Human Settlements Regulatory Commission, shall
undertake on a continuing basis in every proclaimed Urban Zone,
registration of existing land rights and interests, and development
proposals of public and private entities through the establishment
of an Official Development Registry.
The Registry shall contain, among others, information on

detailed boundaries, of lands, titles to said lands and intent to
acquire and/or develop specific parcels of land, which information
shall be furnished by the holders of land rights and interested
developers.
SEC. 13. Role of the Bureau of Lands and the Land Registration
Commission. The Bureau of Lands and the Land Registration
1013
Commission shall provide the Ministry with the cadastral maps and
other information entered into the Development Registry.
The Land Registration Commission, shall prior to registration

of any transactions affecting properties in the Urban Zones, first
secure clearance from the Ministry.
SEC. 14. Land Disposition. The Government shall adopt, as a

general policy, a combination of land disposition techniques within
the Urban Land Reform Zones.
The Ministry is hereby authorized to utilize innovative land

disposition techniques in Urban Zones and/or Bagong Lipunan sites,
including neighborhood ownership, residential freeholds subject to
improvement conditions and the reservation of development rights,
and tenure in improvements separate from tenure in land. For
this purpose, the Human Settlements Development Corporation
created under P.D. 1396 as the corporate arm of the Ministry shall,
notwithstanding the prohibition contained in Section 7(e) of P.D.
1396 be authorized to dispose of lands in any of them manner
provided for in this Section.
The Ministry, in consultation with the Coordinating Council,

shall determine the appropriate land disposition schemes for each
Urban Zones.
SEC. 15. Development Use Permit System for Urban Land

Reform Areas. A comprehensive development use permit system
is hereby established in proclaimed Urban Zones and/or Bagong
Lipunan sites which shall govern the development of lands within
said areas.
Under this system, no development of lands, including its

use, alteration and construction thereon shall take place without
the corresponding Development Use Permit being issued by the
Ministry, through the Human Settlements Regulatory Commission.
1014
SEC. 16. Taxation. Within designated Urban Zones and/or

Bagong Lipunan sites, the government shall implement a taxation
system in support of the basic policies underlying the urban land
reform program.
For this purpose, the Ministry of Natural Resources and the

Ministry of Finance shall conduct an inventory, assessment of idle
lands throughout the Philippines, with priority given to Urban
Zones.
SEC. 17. Land Development Financing. To ensure and

encourage private participation in land development and
management activities the Ministry, with the appropriate public
and private agencies, shall develop and recommend for the
President’s approval appropriate programs which shall mobilize
land development funds from private individual group sources,
government financial institutions, joint public-private ventures,
and private financial institutions.
SEC. 18. Land Development Accounting. The Ministry shall,

where deemed necessary, institute a Land Development Accounting
System for Urban Zones and designated Bagong Lipunan sites,
which shall constitute a record of market transactions and
revenues related to Government land acquisition, development and
management activities.
SEC. 19. Public Hearings. The Ministry through the Human

Settlements Regulatory Commission shall, upon proclamation of
Urban Zones, conduct public hearings in order to allow the persons
affected by said proclamation and related acts, to present their
views, grievances and recommendations to the Ministry.
SEC. 20. Administrative Fines. Any violation of any

provisions of this Decree or any of the rules or regulations issued
thereunder shall be subject to the fines not exceeding ten thousand
pesos (P10,000) to be imposed by the Ministry through the Human
Settlements Regulatory Commission.
1015
SEC. 21. Penal Provisions. Any person, firm or corporation

who shall violate the provisions of this Decree and/or any rules or
regulations issued thereunder shall, upon conviction, be punished
by a fine of not more than twenty thousand pesos (P20,000) and/or
imprisonment of not more than ten years or both at the discretion
of the court, Provided that in the case of a corporation, firm,
partnership, or association, the penalty shall be imposed upon its
officials for such violation, and in case the guilty party is an alien,
he shall immediately be deported after payment of the fine and
serving the imprisonment.
Provided further, that every day that the violation shall be

carried on or permitted to be carried on shall be considered as a
separate offense.
SEC. 22. Repealing Clause. All laws, decrees, executive orders,

rules and regulations inconsistent herewith are hereby repealed,
amended or modified accordingly.
SEC. 23. Separability Clause. If, for any reasons, any section
or provision of the Decree is hereby declared to be unconstitutional
or invalid, the other provisions hereof not affected shall continue in
full force and effect.

By the President:
(Sgd.) JACOBO CLAVE

1016
MALACAÑANG
MANILA
AMENDING AND CODIFYING THE LAWS RELATIVE TO

REGISTRATION OF PROPERTY AND FOR OTHER
PURPOSES
WHEREAS, there is a need to update the Land Registration

Act and to codify the various laws relative to registration of property,
in order to facilitate effective implementation of said laws;
WHEREAS, to strengthen the Torrens system, it is deemed

necessary to adopt safeguards to prevent anomalous titling of real
property, and to streamline and simplify registration proceedings
and the issuance of certificates of title;
WHEREAS, the decrees promulgated relative to the

registration of certificates of land transfer and emancipation
patents issued pursuant to Presidential Decree No. 27 to hasten the
implementation of the land reform program of the country form an
integral part of the property registration laws;

of the Republic of the Philippines, by virtue of the powers vested in
me by the Constitution, do hereby order and decree the following:
CHAPTER I
GENERAL PROVISIONS
SECTION 1. Title of Decree. This Decree shall be known as

the PROPERTY REGISTRATION DECREE.
SEC. 2. Nature of registration proceedings; jurisdiction of

courts. Judicial proceedings for the registration of lands throughout
1017
the Philippines shall be in rem and shall be based on the generally

accepted principles underlying the Torrens system.
Courts of First Instance shall have exclusive jurisdiction over

all applications for original registration of title to lands, including
improvements and interests therein, and over all petitions filed
after original registration of title, with power to hear and determine
all questions arising upon such applications or petitions. The court
through its clerk of court shall furnish the Land Registration
Commission with two certified copies of all pleadings, exhibits,
orders, and decisions filed or issued in applications or petitions for
land registration, with the exception of stenographic notes, within
five days from the filing or issuance thereof.
SEC. 3. Status of other pre-existing land registration

system. The system of registration under the Spanish Mortgage Law
is hereby discontinued and all lands recorded under said system
which are not yet covered by Torrens title shall be considered as
unregistered lands.
Hereafter, all instruments affecting lands originally registered

under the Spanish Mortgage Law may be recorded under Section
113 of this Decree, until the land shall have been brought under the
operation of the Torrens system.
The books of registration for unregistered lands provided
under Section 194 of the Revised Administrative Code, as amended
by Act No. 3344, shall continue to remain in force; provided, that
all instruments dealing with unregistered lands shall henceforth be
registered under Section 113 of this Decree.
CHAPTER II
THE LAND REGISTRATION COMMISSION AND ITS

REGISTRIES OF DEEDS
SEC. 4. Land Registration Commission. In order to have a

more efficient execution of the laws relative to the registration of
lands, geared to the massive and accelerated land reform and social
1018
justice program of the government, there is created a commission to

be known as the Land Registration Commission under the executive
supervision of the Department of Justice.
SEC. 5. Officials and employees of the Commission. The Land

Registration Commission shall have a chief and an assistant chief
to be known, respectively, as the Commissioner and the Deputy
Commissioner of Land Registration who shall be appointed by
the President. The Commissioner shall be duly qualified member
of the Philippine Bar with at least ten years of practice in the
legal profession, and shall have the same rank, compensation and
privileges as those of a Judge of the Court of First Instance. The
Deputy Commissioner, who shall possess the same qualifications
as those required of the Commissioner, shall receive compensation
which shall be three thousand pesos per annum less than that of the
Commissioner. He shall act as Commissioner of Land Registration
during the absence or disability of the Commissioner and when
there is a vacancy in the position until another person shall have
been designated or appointed in accordance with law. The Deputy
Commissioner shall also perform such other functions as the
Commissioner may assign to him.
They shall be assisted by such number of division chiefs as may

be necessary in the interest of the functioning of the Commission, by
a Special Assistant to the Commissioner, and by a Chief Geodetic
Engineer who shall each receive compensation at the rate of three
thousand four hundred pesos per annum less than that of the
Deputy Commissioner.
All other officials and employees of the Land Registration

Commission including those of the Registries of Deeds whose salaries
are not herein provided, shall receive salaries corresponding to the
minimum of their respective upgraded ranges as provided under
paragraph 3.1 of Budget Circular No. 273, plus sixty per centum
thereof across the board, notwithstanding the maximum salary
allowed for their respective civil service eligibilities.
1019
The salaries of officials and employees provided in this Decree

shall be without prejudice to such benefits and adjustments as may
from time to time be granted by the President or by the legislature
to government employees.
All officials and employees of the Commission except

Registers of Deeds shall be appointed by the Secretary of Justice
upon recommendation of the Commissioner of Land Registration.
SEC. 6. General Functions.
(1) The Commissioner of Land Registration shall have the

(a) Issue decrees of registration pursuant to final

judgments of the courts in land registration proceedings
and cause the issuance by the Registers of Deeds of the
corresponding certificates of title;
(b) Exercise supervision and control over all Registers of

Deeds and other personnel of the Commission;
(c) Resolve cases elevated en consulta by, or on appeal

from decision of, Registers of Deeds;
(d) Exercise executive supervision over all clerks of court

and personnel of the Courts of First Instance throughout
the Philippines with respect to the discharge of their duties
and functions in relation to the registration of lands;
(e) Implement all orders, decisions, and decrees

promulgated relative to the registration of lands and
issue, subject to the approval of the Secretary of Justice,
all needful rules and regulations therefor;
(f) Verify and approve subdivision, consolidation, and

consolidation-subdivision survey plans of properties titled
under Act No. 496 except those covered by P.D. No. 957.
1020
(2) The Land Registration Commission shall have the

(a) Extend speedy and effective assistance to the

Department of Agrarian Reform, the Land Bank, and
other agencies in the implementation of the land reform
program of the government;
(b) Extend assistance to courts in ordinary and cadastral

land registration proceedings;
(c) Be the central repository of records relative to original

registration of lands titled under the Torrens system,
including subdivision and consolidation plans of titled
lands.
SEC. 7. Office of the Register of Deeds. There shall be at least

one Register of Deeds for each province and one for each city. Every
Registry with a yearly average collection of more than sixty thousand
pesos during the last three years shall have one Deputy Register of
Deeds, and every Registry with a yearly average collection of more
than three hundred thousand pesos during the last three years,
shall have one Deputy Register of Deeds and one second Deputy
Register of Deeds.
The Secretary of Justice shall define the official station and

territorial jurisdiction of each Registry upon the recommendation
of the Commissioner of Land Registration, with the end in view
of making every registry easily accessible to the people of the
neighboring municipalities.
The province or city shall furnish a suitable space or building

for the office of the Register of Deeds until such time as the same
could be furnished out of national funds.
SEC. 8. Appointment of Registers of Deeds and their Deputies

and other subordinate personnel; salaries. Registers of Deeds shall be
appointed by the President of the Philippines upon recommendation
1021
of the Secretary of Justice. Deputy Registers of Deeds and all other

subordinate personnel of the Registries of Deeds shall be appointed
by the Secretary of Justice upon the recommendation of the
Commissioner of Land Registration.
The salaries of Registers of Deeds and their Deputies shall be

at the following rates:
(1) First Class Registries The salaries of Registers of Deeds

in first class Registries shall be three thousand four hundred
pesos per annum less than that of the Deputy Commissioner.
(2) Second Class Registries The salaries of Registers of Deeds

in second class Registries shall be three thousand four hundred
pesos per annum less than those of Registers of Deeds in first
class Registries.
(3) Third Class Registries The salaries of Registers of Deeds

in third class Registries shall be three thousand four hundred
pesos per annum less than those of Registers of Deeds in
second class Registries.
(4) The salaries of Deputy Registers of Deeds and Second Deputy

Registers of Deeds shall be three thousand four hundred pesos
per annum less than those of their corresponding Registers of
Deeds and Deputy Registers of Deeds, respectively.
The Secretary of Justice, upon recommendation of the

Commissioner of Land Registration, shall cause the reclassification
of Registries based either on work load or the class of province/city,
whichever will result in a higher classification, for purposes of salary
adjustments in accordance with the rates hereinabove provided.
SEC. 9. Qualifications of Registers of Deeds and Deputy

Registers of Deeds. No person shall be appointed Register of Deeds
unless he has been admitted to the practice of law in the Philippines
and shall have been actually engaged in such practice for at least
three years or has been employed for a like period in any branch
1022
of government the functions of which include the registration of

property.
The Deputy Register of Deeds shall be a member of the

Philippine Bar. Provided, however, that no Register of Deeds or
Deputy Register of Deeds holding office as such upon the passage
of this Decree shall by reason hereof, be removed from office or be
demoted to a lower category or scale of salary except for cause and
upon compliance with due process as provided for by law.
SEC. 10. General functions of Registers of Deeds. The office of

the Register of Deeds constitutes a public repository of records of
instruments affecting registered or unregistered lands and chattel
mortgages in the province or city wherein such office is situated.
It shall be the duty of the Register of Deeds to immediately

register an instrument presented for registration dealing with real
or personal property which complies with all the requisites for
registration. He shall see to it that said instrument bears the proper
documentary and science stamps and that the same are properly
canceled. If the instrument is not registerable, he shall forthwith
deny registration thereof and inform the presentor of such denial
in writing, stating the ground or reason therefor, and advising him
of his right to appeal by consulta in accordance with Section 117 of
this Decree.
SEC. 11. Discharge of duties of Register of Deeds in case of

vacancy, etc.
(1) Until a regular Register of Deeds shall have been appointed

for a province or city, or in case of vacancy in the office, or upon
the occasion of the absence, illness, suspension, or inability of
the Register of Deeds to discharge his duties, said duties shall
be performed by the following officials, in the order in which
they are mentioned below, unless the Secretary of Justice
designates another official to act temporarily in his place:
1023
(a) For the province or city where there is a Deputy

Register of Deeds, by said Deputy Register of Deeds, or by
the second Deputy Register of Deeds, should there be one;
(b) For the province or city where there is no Deputy or

second Deputy Register of Deeds, by the Provincial or City
Fiscal, or any Assistant Fiscal designated by the Provincial
or City Fiscal;
(2) In case of absence, disability or suspension of the Register

of Deeds without pay, or in case of vacancy in the position,
the Secretary of Justice may, in his discretion, authorize the
payment of an additional compensation to the official acting
as Register of Deeds, such additional compensation together
with his actual salary not to exceed the salary authorized for
the position thus filled by him.
(3) In case of a newly-created province or city and pending

establishment of a Registry of Deeds and the appointment of
a regular Register of Deeds for the new province or city, the
Register of Deeds of the mother province or city shall be the
ex-officio Register of Deeds for said new province or city.
SEC. 12. Owner’s Index; reports. There shall be prepared in

every Registry an index system which shall contain the names of
all registered owners alphabetically arranged. For this purpose, an
index card which shall be prepared in the name of each registered
owner which shall contain a list of all lands registered in his name.
The Register of Deeds shall submit to the Land Registration

Commission within ten days after the month to which they pertain
his monthly reports on collections and accomplishments. He shall
also submit to the Commission at the end of December of each year,
an annual inventory of all titles and instruments in his Registry.
SEC. 13. Chief Geodetic Engineer. There shall be a Chief

Geodetic Engineer in the Land Registration Commission who shall
be the technical adviser of the Commission on all matters involving
1024
surveys and shall be responsible to him for all plats, plans and
works requiring the services of a geodetic engineer in said office.
He shall perform such other functions as may, from time to time, be
assigned to him by the Commissioner.
CHAPTER III
ORIGINAL REGISTRATION
I
ORDINARY REGISTRATION PROCEEDINGS
A. APPLICATIONS
SEC. 14. Who may apply. The following persons may file in
the proper Court of First Instance an application for registration of
title to land, whether personally or through their duly authorized
representatives:
(1) Those who by themselves or through their predecessors-in-

interest have been in open, continuous, exclusive and notorious
possession and occupation of alienable and disposable lands of
the public domain under a bona fide claim of ownership since
June 12, 1945, or earlier.
(2) Those who have acquired ownership of private lands by

prescription under the provision of existing laws.
(3) Those who have acquired ownership of private lands or

abandoned river beds by right of accession or accretion under
the existing laws.
(4) Those who have acquired ownership of land in any other

manner provided for by law.
Where the land is owned in common, all the co-owners shall

file the application jointly.
1025
Where the land has been sold under pacto de retro, the vendor
a retro may file an application for the original registration of the
land, provided, however, that should the period for redemption
expire during the pendency of the registration proceedings and
ownership to the property consolidated in the vendee a retro, the
latter shall be substituted for the applicant and may continue the
proceedings.
A trustee on behalf of his principal may apply for original

registration of any land held in trust by him, unless prohibited by
the instrument creating the trust.
SEC. 15. Form and contents. The application for land

registration shall be in writing, signed by the application or the
person duly authorized in his behalf, and sworn to before any officer
authorized to administer oaths for the province or city where the
application was actually signed. If there is more than one applicant,
the application shall be signed and sworn to by and in behalf of
each. The application shall contain a description of the land and
shall state the citizenship and civil status of the applicant, whether
single or married, and, if married, the name of the wife or husband,
and, if the marriage has been legally dissolved, when and how the
marriage relation terminated. It shall also state the full names and
addresses of all occupants of the land and those of the adjoining
owners, if known, and, if not known, it shall state the extent of the
search made to find them.
The application, shall, in form, be substantially as follows:
Court of First Instance of _________________
The undersigned, ______________________________________

______________________hereby applies (or apply) to have the land
hereinafter described brought under the operation of the Property
Registration Decree, and to have the title thereto registered and
confirmed:
1026
AND DECLARE . . . .
1. That the applicants/s is/are the owners of the land (by

virtue of inheritance or deed of sale or conveyance and/or
possession in accordance with Section 14 of said Decree),
together with the building and improvements thereon, with
the exception of the following: ____________________ which
is/are the property of _________________________ residing
at _________________________ The said land, consisting of
____________________ parcel/s is/are situated, bounded and
described as shown on the plan and technical descriptions
attached hereto and made a part hereof, with the following
exception __________________________
2. That said land at the last assessment for taxation was

assessed at P ____, Philippine currency, and the buildings and
other improvements at P ___________, Philippine currency.
3. That to the best of my/our knowledge and belief, there is no

mortgage or encumbrance of any kind whatsoever affecting
said land, nor any other person having any interest therein,
legal or equitable, or in possession, other than as follows: ___
________________________________________________________
4. That the applicant/s has/have acquired said land in the

following manner: ________________________________
(Note: Refer to Sec. 14 of said Decree. State also whether the
property is conjugal, paraphernal or exclusive property of the
applicant/s)
5. That said land is occupied by the following person: ________

____________________________________________________
6. That the names in full and addresses, as far as known to

the undersigned, of the owners of all adjoining properties,
of the persons mentioned in paragraphs 3 and 5, and of the
persons shown on the plan as claimants, are as follows: _____
________________________________________________________
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7. That the applicant/s is/are single or married to

____________________ (Note: if marriage has been legally
dissolved, state when and how the marriage relation
terminated)_____________________________________________
8. That the applicant’s/s’ full name, age, citizenship, residence,

and postal address/es is/are as follows: _____________________
______________________________________________
9. That (Note: If the land included in the application is

bounded by a public or private way or road, there should be
stated in this paragraph whether or not the applicant claims
any and what land within the limits of the way or road and
whether the applicant desires to have the line of the way or
road determined.) _______________________________________
10. That the following documents are attached hereto and

made a part hereof: ___________________________________ __
Signed at ___________________ this _____________________

day of ____________________, in the year nineteen hundred
and ______________________.
____________________
Applicant
____________________
(Post Office Address)

PROVINCE (OR CITY) OF _______________
On this _______________ day of _________________________,19

________ personally appeared before me the above- named ___
_______________________________________________ known to
me to be the person/s who executed the foregoing application
1028
and made oath that the statements therein are true of his/
their knowledge, information and belief.
The Residence Certificate/s ______________________ of the

applicant/s ______________ was/were exhibited to me being
No. _________________ issued at ___________________ dated
____________, 19 __________.
________________________
(Notary Public, or other Officer
authorized to administer oaths)
PTR NO. _________________
SEC. 16. Non-resident applicant. If the applicant is not a

resident of the Philippines, he shall file with his application an
instrument in due form appointing an agent or representative
residing in the Philippines, giving his full name and postal address,
and shall therein agree that the service of any legal process in the
proceedings under or growing out of the application made upon
his agent or representative shall be of the same legal effect as if
made upon the applicant within the Philippines. If the agent or
representative dies, or leaves the Philippines, the applicant shall
forthwith make another appointment for the substitute, and, if he
fails to do so the court may dismiss the application.
SEC. 17. What and where to file. The application for land
registration shall be filed with the Court of First Instance of the
province or city where the land is situated. The applicant shall file
together with the application all original muniments of titles or
copies thereof and a survey plan of the land approved by the Bureau
of Lands.
The clerk of court shall not accept any application unless it is

shown that the applicant has furnished the Director of Lands with
a copy of the application and all annexes.
1029
SEC. 18. Application covering two or more parcels. An

application may include two or more parcels of land belonging to the
applicant/s provided they are situated within the same province or
city. The court may at any time order an application to be amended
by striking out one or more of the parcels or by a severance of the
application.
SEC. 19. Amendments. Amendments to the application

including joinder, substitution, or discontinuance as to parties may
be allowed by the court at any stage of the proceedings upon just
and reasonable terms.
Amendments which shall consist in a substantial change

in the boundaries or an increase in area of the land applied for or
which involve the inclusion of an additional land shall be subject to
the same requirements of publication and notice as in an original
application.
SEC. 20. When land applied for borders on road. If the

application describes the land as bounded by a public or private
way or road, it shall state whether or not the applicant claims any
and what portion of the land within the limits of the way or road,
and whether the applicant desires to have the line of the way or
road determined.
SEC. 21. Requirement of additional facts and papers; ocular

inspection. The court may require facts to be stated in the application
in addition to those prescribed by this Decree not inconsistent
therewith and may require the filing of any additional paper. It may
also conduct an ocular inspection, if necessary.
SEC. 22. Dealings with land pending original registration. After

the filing of the application and before the issuance of the decree
of registration, the land therein described may still be the subject
of dealings in whole or in part, in which case the interested party
shall present to the court the pertinent instruments together with
a subdivision plan approved by the Director of Lands in case of
transfer of portions thereof and the court, after notice to the parties,
1030
shall order such land registered subject to the conveyance or

encumbrance created by said instruments, or order that the decree
of registration be issued in the name of the person to whom the
property has been conveyed by said instruments.
B. PUBLICATION, OPPOSITION AND DEFAULT
SEC. 23. Notice of initial hearing, publication, etc. The court

shall, within five days from filing of the application, issue an order
setting the date and hour of the initial hearing which shall not be
earlier than forty-five days nor later than ninety days from the date
of the order.
The public shall be given notice of the initial hearing of the

application for land registration by means of (1) publication; (2)
mailing; and (3) posting.
1. By publication.
Upon receipt of the order of the court setting the time for initial
hearing, the Commissioner of Land Registration shall cause
notice of initial hearing to be published once in the Official
Gazette and once in a newspaper of general circulation in
the Philippines: Provided, however, that the publication in
the Official Gazette shall be sufficient to confer jurisdiction
upon the court. Said notice shall be addressed to all persons
appearing to have an interest in the land involved including
the adjoining owners so far as known, and “to all whom it may
concern”. Said notice shall also require all persons concerned
to appear in court at a certain date and time to show cause
why the prayer of said application shall not be granted.
2. By mailing.
(a) Mailing of notice to persons named in the application. The

Commissioner of Land Registration shall also, within seven
days after publication of said notice in the Official Gazette,
as hereinbefore provided, cause a copy of the notice of initial
hearing to be mailed to every person named in the notice
whose address is known.
1031
(b) Mailing of notice to the Secretary of Public Highways, the

Provincial Governor and the Mayor. If the applicant requests
to have the line of a public way or road determined, the
Commissioner of Land Registration shall cause a copy of said
notice of initial hearing to be mailed to the Secretary of Public
Highways, to the Provincial Governor, and to the Mayor of
the municipality or city, as the case may be, in which the land
lies.
(c) Mailing of notice to the Secretary of Agrarian Reform, the

Solicitor General, the Director of Lands, the Director of Public
Works, the Director of Forest Development, the Director of
Mines and the Director of Fisheries and Aquatic Resources.
If the land borders on a river, navigable stream or shore, or
on an arm of the sea where a river or harbor line has been
established, or on a lake, or if it otherwise appears from the
application or the proceedings that a tenant-farmer or the
national government may have a claim adverse to that of
the applicant, notice of the initial hearing shall be given in
the same manner to the Secretary of Agrarian Reform, the
Solicitor General, the Director of Lands, the Director of Mines
and/or the Director of Fisheries and Aquatic Resources, as
may be appropriate.
3. By posting.
The Commissioner of Land Registration shall also cause a duly

attested copy of the notice of initial hearing to be posted by
the sheriff of the province or city, as the case may be, or by his
deputy, in a conspicuous place on each parcel of land included
in the application and also in a conspicuous place on the
bulletin board of the municipal building of the municipality or
city in which the land or portion thereof is situated, fourteen
days at least before the date of initial hearing.
The court may also cause notice to be served to such other

persons and in such manner as it may deem proper.
The notice of initial hearing shall, in form, be substantially

as follows:
1032
(Caption and Title)
NOTICE OF INITIAL HEARING
To (here insert the names of all persons appearing to

have an interest and the adjoining owners so far as known,
and to all whom it may concern):
An application (or petition) having been filed in the

above-entitled case by (full name and address) praying for
the registration and confirmation (or for the settlement and
adjudication, in case of petition in cadastral proceedings) of
title to the following described lands:
(Insert description)
You are hereby served this notice to appear before

this Court at its session to be held at _________________
on the ______________ day of _______________, 19 ______,
at _____________ o’clock in the _________ then and there to
present such claims as you may have to said lands or any
portion thereof, and to submit evidence in support of such
claim; and unless you appear at said Court at the time and
place aforesaid, your default will be recorded and the title to
the lands will be adjudicated and determined in accordance
with law and the evidence before the Court, and thereafter
you will forever be barred from contesting said application (or
petition) or any decree entered thereon.
Witness, the Hon. ________________________ Judge

of the Court of First Instance of _______ this _______ day of
_________________, in the year 19______.
Attest:
Commissioner of Land Registration
1033
SEC. 24. Proof of publication and notice. The certification of

the Commissioner of Land Registration and of the sheriff concerned
to the effect that the notice of initial hearing, as required by law,
has been complied with shall be filed in the case before the date of
initial hearing, and shall be conclusive proof of such fact.
SEC. 25. Opposition to application in ordinary proceedings. Any

person claiming an interest, whether named in the notice or not,
may appear and file an opposition on or before the date of initial
hearing, or within such further time as may be allowed by the court.
The opposition shall state all the objections to the application and
shall set forth the interest claimed by the party filing the same and
apply for the remedy desired, and shall be signed and sworn to by
him or by some other duly authorized person.
If the opposition or the adverse claim of any person covers

only a portion of the lot and said portion is not properly delimited
on the plan attached to the application, or in case of undivided
co-ownership, conflicting claims of ownership or possession, or
overlapping of boundaries, the court may require the parties to
submit a subdivision plan duly approved by the Director of Lands.
SEC. 26. Order of default; effect. If no person appears and

answers within the time allowed, the court shall, upon motion of
the applicant, no reason to the contrary appearing, order a default
to be recorded and require the applicant to present evidence. By
the description in the notice “To all Whom It May Concern”, all the
world are made parties defendant and shall be concluded by the
default order.
Where an appearance has been entered and an answer filed,

a default order shall be entered against persons who did not appear
and answer.
C. HEARING JUDGMENT AND DECREE OF

REGISTRATION
1034
SEC. 27. Speedy hearing; reference to a referee . The trial

court shall see to it that all registration-proceedings are disposed or
within ninety days from the date the case is submitted for decision.
The Court, if it deems necessary, may refer the case or any part
thereof to a referee who shall hear the parties and their evidence,
and the referee shall submit his report thereon to the Court within
fifteen days after the termination of such hearing. Hearing before
a referee may be held at any convenient place within the province
or city as may be fixed by him and after reasonable notice thereof
shall have been served the parties concerned. The court may render
judgment in accordance with the report as though the facts have
been found by the judge himself: Provided, however, that the court
may in its discretion accept the report, or set it aside in whole or in
part, or order the case to be recommitted for further proceedings:
SEC. 28. Partial judgment. In a case where only a portion of

the land subject of registration is contested, the court may render
partial judgment provided that a subdivision plan showing the
contested and uncontested portions approved by the Director of
Lands is previously submitted to said court.
SEC. 29. Judgment confirming title. All conflicting claims of

ownership and interest in the land subject of the application shall be
determined by the court. If the court, after considering the evidence
and the reports of the Commissioner of Land Registration and the
Director of Lands, finds that the applicant or the oppositor has
sufficient title proper for registration, judgment shall be rendered
confirming the title of the applicant, or the oppositor, to the land or
portions thereof.
SEC. 30. When judgment becomes final; duty to cause issuance

of decree. The judgment rendered in a land registration proceedings
becomes final upon the expiration of thirty days to be counted from
the data of receipt of notice of the judgment. An appeal may be taken
from the judgment of the court as in ordinary civil cases.
1035
After judgment has become final and executory, it shall

devolve upon the court to forthwith issue an order in accordance
with Section 39 of this Decree to the Commissioner for the issuance
of the decree of registration and the corresponding certificate of title
in favor of the person adjudged entitled to registration.
SEC. 31. Decree of registration. Every decree of registration

issued by the Commissioner shall bear the date, hour and minute
of its entry, and shall be signed by him. It shall state whether the
owner is married or unmarried, and if married, the name of the
husband or wife: Provided, however, that if the land adjudicated
by the court is conjugal property, the decree shall be issued in the
name of both spouses. If the owner is under disability, it shall state
the nature of disability, and if a minor, his age. It shall contain
a description of the land as finally determined by the court, and
shall set forth the estate of the owner, and also, in such manner as
to show their relative priorities, all particular estates, mortgages,
easements, liens, attachments, and other encumbrances, including
rights of tenant-farmers, if any, to which the land or owner’s estate
is subject, as well as any other matters properly to be determined in
pursuance of this Decree.
The decree of registration shall bind the land and quiet title
thereto, subject only to such exceptions or liens as may be provided
by law. It shall be conclusive upon and against all persons, including
the National Government and all branches thereof, whether
mentioned by name in the application or notice, the same being
included in the general description “To all whom it may concern”.
SEC. 32. Review of decree of registration; Innocent purchaser

for value. The decree of registration shall not be reopened or revised
by reason of absence, minority, or other disability of any person
adversely affected thereby, nor by any proceeding in any court for
reversing judgments, subject, however, to the right of any person,
including the government and the branches thereof, deprived of
land or of any estate or interest therein by such adjudication or
confirmation of title obtained by actual fraud, to file in the proper
Court of First Instance a petition for reopening and review of the
1036
decree of registration not later than one year from and after the
date of the entry of such decree of registration, but in no case
shall such petition be entertained by the court where an innocent
purchaser for value has acquired the land or an interest therein,
whose rights may be prejudiced. Whenever the phrase “innocent
purchaser for value” or an equivalent phrase occurs in this Decree,
it shall be deemed to include an innocent lessee, mortgagee, or other
encumbrancer for value.
Upon the expiration of said period of one year, the decree

of registration and the certificate of title issued shall become
incontrovertible. Any person aggrieved by such decree of registration
in any case may pursue his remedy by action for damages against
the applicant or any other persons responsible for the fraud.
SEC. 33. Appeal from judgment, etc. The judgment and orders
of the court hearing the land registration case are appealable to the
Court of Appeals or to the Supreme Court in the same manner as in
ordinary actions:
SEC. 34. Rules of procedure. The Rules of Court shall, insofar

as not inconsistent with the provision of this Decree, be applicable to
land registration and cadastral cases by analogy or in a suppletory
character and whenever practicable and convenient.
II
CADASTRAL REGISTRATION PROCEEDINGS
A. ORDER FOR SPEEDY SETTLEMENT AND

ADJUDICATION; SURVEY; NOTICES
Section 35. Cadastral Survey preparatory to filing of petition.
(a) When in the opinion of the President of the Philippines

public interest so requires that title to any unregistered
lands be settled and adjudicated, he may to this end direct
1037
and order the Director of Lands to cause to be made a

cadastral survey of the lands involved and the plans and
technical description thereof prepared in due form.
(b) Thereupon, the Director of Lands shall give notice to

persons claiming any interest in the lands as well as to the
general public, of the day on which such survey will begin,
giving as fully and accurately as possible the description
of the lands to be surveyed. Such notice shall be punished
once in the Official Gazette, and a copy of the notice in
English or the national language shall be posted in a
conspicuous place on the bulletin board of the municipal
building of the municipality in which the lands or any
portion thereof is situated. A copy of the notice shall also
be sent to the mayor of such municipality as well as to
the barangay captain and likewise to the Sangguniang
Panlalawigan and the Sangguniang Bayan concerned.
(c) The Geodetic Engineers or other employees of the

Bureau of Lands in charge of the survey shall give notice
reasonably in advance of the date on which the survey of
any portion of such lands is to begin, which notice shall be
posted in the bulletin board of the municipal building of
the municipality or barrio in which the lands are situated,
and shall mark the boundaries of the lands by monuments
set up in proper places thereon. It shall be lawful for such
Geodetic Engineers and other employees to enter upon the
lands whenever necessary for the purposes of such survey
or the placing of monuments.
(d) It shall be the duty of every person claiming an interest

in the lands to be surveyed, or in any parcel thereof,
to communicate with the Geodetic Engineer upon his
request therefor all information possessed by such person
concerning the boundary lines of any lands to which he
claims title or in which he claims any interest.
1038
(e) Any person who shall willfully obstruct the making of any
survey undertaken by the Bureau of Lands or by a licensed
Geodetic Engineer duly authorized to conduct the survey
under this Section, or shall maliciously interfere with the
placing of any monument or remove such monument, or
shall destroy or remove any notice of survey posted on the
land pursuant to law, shall be punished by a fine of not
more than one thousand pesos or by imprisonment for not
more than one year, or both.
B. PETITION; LOT NUMBERS
SEC. 36. Petition for registration. When the lands have been
surveyed or plotted, the Director of Lands, represented by the
Solicitor General, shall institute original registration proceedings
by filing the necessary petition in the Court of First Instance of the
place where the land is situated against the holders, claimants,
possessors, or occupants of such lands or any part thereof, stating in
substance that public interest requires that the title to such lands
be settled and adjudicated and praying that such titles be so settled
and adjudicated:
The petition shall contain a description of the lands and shall

be accompanied by a plan thereof, and may contain such other data
as may serve to furnish full notice to the occupants of the lands and
to all persons who may claim any right or interest therein.
Where the land consists of two or more parcels held or occupied

by different persons, the plan shall indicate the boundaries or limits
of the various parcels as accurately as possible. The parcels shall
be known as “lots” and shall on the plan filed in the case be given
separate numbers by the Director of Lands, which numbers shall
be known as “cadastral lot numbers”. The lots situated within each
municipality shall, as far as practicable, be numbered consecutively
beginning with number “one”, and only one series of numbers shall
be used for that purpose in each municipality. However in cities
or townsites, a designation of the landholdings by blocks and lot
1039
numbers may be employed instead of the designation by cadastral

lot numbers.
The cadastral number of a lot shall not be changed after final

decision has been entered decreasing the registration thereof, except
by order of court. Future subdivisions of any lot shall be designated
by a letter or letters of the alphabet added to the cadastral number
of the lot to which the respective subdivisions pertain. The letter
with which a subdivision is designated shall be known as its
“cadastral letter”: Provided, however, that the subdivisions of cities
or townsites may be designated by blocks and lot numbers.
C. ANSWER
SEC. 37. Answer to petition in cadastral proceedings. Any

claimant in cadastral proceedings, whether named in the notice
or not, shall appear before the court by himself or by some other
authorized person in his behalf, and shall file an answer on or before
the date of initial hearing or within such further time as may be
allowed by the court. The answer shall be signed and sworn to by the
claimant or by some other authorized person in his behalf, and shall
state whether the claimant is married or unmarried, and if married,
the name of the spouse and the date of marriage, his nationality,
residence and postal address, and shall also contain:
(a) The age of the claimant;
(b) The cadastral number of the lot or lots claimed, as

appearing on the plan filed in the case by the Director of Lands, or
the block and lot numbers, as the case may be;
(c) The name of the barrio and municipality in which the lots
are situated;
(d) The names and addresses of the owners of the adjoining

lots so far as known to the claimant;
1040
(e) If the claimant is in possession of the lots claimed and can

show no express grant of the land by the government to him or to his
predecessors-in-interest, the answer shall state the length of time
he has held such possession and the manner in which it has been
acquired, and shall also state the length of time, as far as known,
during which the predecessors, if any, held possession;
(f) If the claimant is not in possession or occupation of the

land, the answer shall fully set forth the interest claimed by him
and the time and manner of his acquisition;
(g) if the lots have been assessed for taxation, their last
assessed value; and
(h) The encumbrances, if any, affecting the lots and the names
of adverse claimants, as far as known.
D. HEARING; JUDGMENT; DECREE
SEC. 38. Hearing, Judgment, Decree. The trial of the case

may occur at any convenient place within the province in which the
lands are situated and shall be conducted, and orders for default
and confessions entered, in the same manner as in ordinary land
registration proceedings and shall be governed by the same rules.
All conflicting interests shall be adjudicated by the court and decrees
awarded in favor of the persons entitled to the lands or to parts
thereof and such decrees shall be the basis for issuance of original
certificates of title in favor of said persons and shall have the same
effect as certificates of title granted on application for registration of
land under ordinary land registration proceedings.
1041
CHAPTER IV
CERTIFICATE OF TITLE
SEC. 39. Preparation of decree and Certificate of Title. After the

judgment directing the registration of title to land has become final,
the court shall, within fifteen days from entry of judgment, issue an
order directing the Commissioner to issue the corresponding decree
of registration and certificate of title. The clerk of court shall send,
within fifteen days from entry of judgment, certified copies of the
judgment and of the order of the court directing the Commissioner to
issue the corresponding decree of registration and certificate of title,
and a certificate stating that the decision has not been amended,
reconsidered, nor appealed, and has become final. Thereupon, the
Commissioner shall cause to be prepared the decree of registration
as well as the original and duplicate of the corresponding original
certificate of title. The original certificate of title shall be a true
copy of the decree of registration. The decree of registration shall
be signed by the Commissioner, entered and filed in the Land
Registration Commission. The original of the original certificate of
title shall also be signed by the Commissioner and shall be sent,
together with the owner’s duplicate certificate, to the Register of
Deeds of the city or province where the property is situated for entry
in his registration book.
SEC. 40. Entry of Original Certificate of Title. Upon receipt

by the Register of Deeds of the original and duplicate copies of
the original certificate of title the same shall be entered in his
record book and shall be numbered, dated, signed and sealed by
the Register of Deeds with the seal of his office. Said certificate of
title shall take effect upon the date of entry thereof. The Register of
Deeds shall forthwith send notice by mail to the registered owner
that his owner’s duplicate is ready for delivery to him upon payment
of legal fees.
SEC. 41. Owner’s duplicate certificate of title. The owner’s

duplicate certificate of title shall be delivered to the registered
1042
owner or to his duly authorized representative. If two or more

persons are registered owners, one owner’s duplicate certificate
may be issued for the whole land, or if the co-owners so desire, a
separate duplicate may be issued to each of them in like form, but
all outstanding certificates of title so issued shall be surrendered
whenever the Register of Deeds shall register any subsequent
voluntary transaction affecting the whole land or part thereof or any
interest therein. The Register of Deeds shall note on each certificate
of title a statement as to whom a copy thereof was issued.
SEC. 42. Registration Books. The original copy of the original

certificate of title shall be filed in the Registry of Deeds. The same
shall be bound in consecutive order together with similar certificates
of title and shall constitute the registration book for titled properties.
SEC. 43. Transfer Certificate of Title. The subsequent certificate

of title that may be issued by the Register of Deeds pursuant to
any voluntary or involuntary instrument relating to the same land
shall be in like form, entitled “Transfer Certificate of Title”, and
likewise issued in duplicate. The certificate shall show the number
of the next previous certificate covering the same land and also the
fact that it was originally registered, giving the record number, the
number of the original certificate of title, and the volume and page
of the registration book in which the latter is found.
SEC. 44. Statutory liens affecting title. Every registered

owner receiving a certificate of title in pursuance of a decree of
registration, and every subsequent purchaser of registered land
taking a certificate of title for value and in good faith, shall hold
the same free from all encumbrances except those noted in said
certificate and any of the following encumbrances which may be
subsisting, namely:
First. Liens, claims or rights arising or existing under the laws

and Constitution of the Philippines which are not by law required to
appear of record in the Registry of Deeds in order to be valid against
subsequent purchasers or encumbrancers of record.
1043
Second. Unpaid real estate taxes levied and assessed within

two years immediately preceding the acquisition of any right over
the land by an innocent purchaser for value, without prejudice to
the right of the government to collect taxes payable before that
period from the delinquent taxpayer alone.
Third. Any public highway or private way established or

recognized by law, or any government irrigation canal or lateral
thereof, if the certificate of title does not state that the boundaries
of such highway or irrigation canal or lateral thereof have been
determined.
Fourth. Any disposition of the property or limitation on the

use thereof by virtue of, or pursuant to, Presidential Decree No. 27
or any other law or regulations on agrarian reform.
SEC. 45. Statement of personal circumstances in the

certificate. Every certificate of title shall set forth the full names of
all persons whose interests make up the full ownership in the whole
land, including their civil status, and the names of their respective
spouses, if married, as well as their citizenship, residence and postal
address. If the property covered belongs to the conjugal partnership,
it shall be issued in the names of both spouses.
SEC. 46. General incidents of registered land. Registered

land shall be subject to such burdens and incidents as may arise by
operation of law. Nothing contained in this decree shall in any way
be construed to relieve registered land or the owners thereof from
any rights incident to the relation of husband and wife, landlord
and tenant, or from liability to attachment or levy on execution,
or from liability to any lien of any description established by law
on the land and the buildings thereon, or on the interest of the
owner in such land or buildings, or to change the laws of descent, or
the rights of partition between co-owners, or the right to take the
same by eminent domain, or to relieve such land from liability to
be recovered by an assignee in insolvency or trustee in bankruptcy
1044
under the laws relative to preferences, or to change or affect in

any way other rights or liabilities created by law and applicable to
unregistered land, except as otherwise provided in this Decree.
SEC. 47. Registered land not subject to prescriptions. No title

to registered land in derogation of the title of the registered owner
shall be acquired by prescription or adverse possession.
SEC. 48. Certificate not subject to collateral attack. A certificate

of title shall not be subject to collateral attack. It cannot be altered,
modified, or canceled except in a direct proceeding in accordance
with law.
SEC. 49. Splitting, or consolidation of titles. A registered

owner of several distinct parcels of land embraced in and covered by
a certificate of title desiring in lieu thereof separate certificates, each
containing one or more parcels, may file a written request for that
purpose with the Register of Deeds concerned, and the latter, upon
the surrender of the owner’s duplicate, shall cancel it together with
its original and issue in lieu thereof separate certificates as desired.
A registered owner of several distinct parcels of land covered by
separate certificates of title desiring to have in lieu thereof a single
certificate for the whole land, or several certificates for the different
parcels thereof, may also file a written request with the Register of
Deeds concerned, and the latter, upon the surrender of the owner’s
duplicates, shall cancel them together with their originals, and
issue in lieu thereof one or separate certificates as desired.
SEC. 50. Subdivision and consolidation plans. Any owner

subdividing a tract of registered land into lots which do not constitute
a subdivision project as defined and provided for under P.D. No.
957, shall file with the Commissioner of Land Registration or with
the Bureau of Lands a subdivision plan of such land on which all
boundaries, streets, passageways and waterways, if any, shall be
distinctly and accurately delineated.
1045
If a subdivision plan, be it simple or complex, duly approved

by the Commissioner of Land Registration or the Bureau of
Lands together with the approved technical descriptions and the
corresponding owner’s duplicate certificate of title is presented for
registration, the Register of Deeds shall, without requiring further
court approval of said plan, register the same in accordance with
the provisions of the Land Registration Act, as amended: Provided,
however, that the Register of Deeds shall annotate on the new
certificate of title covering the street, passageway or open space, a
memorandum to the effect that except by way of donation in favor of
the national government, province, city or municipality, no portion
of any street, passageway, waterway or open space so delineated on
the plan shall be closed or otherwise disposed of by the registered
owner without the approval of the Court of First Instance of the
province or city in which the land is situated.
A registered owner desiring to consolidate several lots into

one or more, requiring new technical descriptions, shall file with
the Land Registration Commission, a consolidation plan on which
shall be shown the lots to be affected, as they were before, and as
they will appear after the consolidation. Upon the surrender of the
owner’s duplicate certificates and the receipt of consolidation plan
duty approved by the Commission, the Register of Deeds concerned
shall cancel the corresponding certificates of title and issue a new
one for the consolidated lots.
The Commission may not order or cause any change,

modification, or amendment in the contents of any certificate of
title, or of any decree or plan, including the technical description
therein, covering any real property registered under the Torrens
system, nor order the cancellation of the said certificate of title and
the issuance of a new one which would result in the enlargement of
the area covered by the certificate of title.
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CHAPTER V
SUBSEQUENT REGISTRATION
VOLUNTARY DEALINGS WITH REGISTERED LANDS
GENERAL PROVISIONS
SEC. 51. Conveyance and other dealings by registered owner. An

owner of registered land may convey, mortgage, lease, charge or
otherwise deal with the same in accordance with existing laws. He
may use such forms of deeds, mortgages, leases or other voluntary
instruments as are sufficient in law. But no deed, mortgage, lease,
or other voluntary instrument, except a will purporting to convey or
affect registered land shall take effect as a conveyance or bind the
land, but shall operate only as a contract between the parties and as
evidence of authority to the Register of Deeds to make registration.
The act of registration shall be the operative act to convey or

affect the land insofar as third persons are concerned, and in all
cases under this Decree, the registration shall be made in the office
of the Register of Deeds for the province or city where the land lies.
SEC. 52. Constructive notice upon registration. Every

conveyance, mortgage, lease, lien, attachment, order, judgment,
instrument or entry affecting registered land shall, if registered,
filed or entered in the office of the Register of Deeds for the province
or city where the land to which it relates lies, be constructive notice
to all persons from the time of such registering, filing or entering.
SEC. 53. Presentation of owner’s duplicate upon entry of

new certificate. No voluntary instrument shall be registered by
the Register of Deeds, unless the owner’s duplicate certificate is
presented with such instrument, except in cases expressly provided
for in this Decree or upon order of the court, for cause shown.
1047
The production of the owner’s duplicate certificate, whenever

any voluntary instrument is presented for registration, shall be
conclusive authority from the registered owner to the Register
of Deeds to enter a new certificate or to make a memorandum of
registration in accordance with such instrument, and the new
certificate or memorandum shall be binding upon the registered
owner and upon all persons claiming under him, in favor of every
purchaser for value and in good faith.
In all cases of registration procured by fraud, the owner may

pursue all his legal and equitable remedies against the parties to
such fraud without prejudice, however, to the rights of any innocent
holder for value of a certificate of title. After the entry of the
decree of registration on the original petition or application, any
subsequent registration procured by the presentation of a forged
duplicate certificate of title, or a forged deed or other instrument,
shall be null and void.
SEC. 54. Dealings less than ownership, how registered. No new

certificate shall be entered or issued pursuant to any instrument
which does not divest the ownership or title from the owner or from
the transferee of the registered owners. All interests in registered
land less than ownership shall be registered by filing with the
Register of Deeds the instrument which creates or transfers or
claims such interests and by a brief memorandum thereof made
by the Register of Deeds upon the certificate of title, and signed
by him. A similar memorandum shall also be made on the owner’s
duplicate. The cancellation or extinguishment of such interests
shall be registered in the same manner.
SEC. 55. Grantee’s name, nationality, etc., to be stated. Every

deed or other voluntary instrument presented for registration
shall contain or have endorsed upon it the full name, nationality,
residence and postal address of the grantee or other person acquiring
or claiming an interest under such instrument, and every deed
shall also state whether the grantee is married or unmarried, and
if married, the name in full of the husband or wife. If the grantee is
1048
a corporation or association, the instrument must contain a recital

to show that such corporation or association is legally qualified to
acquire private lands. Any change in the residence or postal address
of such person shall be endorsed by the Register of Deeds on the
original copy of the corresponding certificate of title, upon receiving
a sworn statement of such change. All names and addresses shall
also be entered on all certificates.
Notices and processed issued in relation to registered land in

pursuance of this Decree may be served upon any person in interest
by mailing the same to the addresses given, and shall be binding,
whether such person resides within or without the Philippines, but
the court may, in its discretion, require further or other notice to be
given in any case, if in its opinion the interest of justice so requires.
SEC. 56. Primary Entry Book; fees; certified copies. Each

Register of Deeds shall keep a primary entry book in which, upon
payment of the entry fee, he shall enter, in the order of their
reception, all instruments including copies of writs and processes
filed with him relating to registered land. He shall, as a preliminary
process in registration, note in such book the date, hour and minute
of reception of all instruments, in the order in which they were
received. They shall be regarded as registered from the time so
noted, and the memorandum of each instrument, when made on
the certificate of title to which it refers, shall bear the same date:
Provided, that the national government as well as the provincial
and city governments shall be exempt from the payment of such fees
in advance in order to be entitled to entry and registration.
Every deed or other instrument, whether voluntary or

involuntary, so filed with the Register of Deeds shall be numbered
and indexed and endorsed with a reference to the proper certificate
of title. All records and papers relative to registered land in the
office of the Register of Deeds shall be open to the public in the same
manner as court records, subject to such reasonable regulations as
the Register of Deeds, under the direction of the Commissioner of
Land Registration, may prescribe.
1049
All deeds and voluntary instruments shall be presented with

their respective copies and shall be attested and sealed by the
Register of Deeds, endorsed with the file number, and copies may
be delivered to the person presenting them.
Certified copies of all instruments filed and registered may

also be obtained from the Register of Deeds upon payment of the
prescribed fees.
(A) CONVEYANCES AND TRANSFERS
SEC. 57. Procedure in registration of conveyances. An owner

desiring to convey his registered land in fee simple shall execute
and register a deed of conveyance in a form sufficient in law. The
Register of Deeds shall thereafter make out in the registration
book a new certificate of title to the grantee and shall prepare and
deliver to him an owner’s duplicate certificate. The Register of
Deeds shall note upon the original and duplicate certificate the date
of transfer, the volume and page of the registration book in which
the new certificate is registered and a reference by number to the
last preceding certificate. The original and the owner’s duplicate of
the grantor’s certificate shall be stamped “canceled”. The deed of
conveyance shall be filled and indorsed with the number and the
place of registration of the certificate of title of the land conveyed.
SEC. 58. Procedure where conveyance involves portion of

land. If a deed or conveyance is for a part only of the land described
in a certificate of title, the Register of Deeds shall not enter any
transfer certificate to the grantee until a plan of such land showing
all the portions or lots into which it has been subdivided and the
corresponding technical descriptions shall have been verified
and approved pursuant to Section 50 of this Decree. Meanwhile,
such deed may only be annotated by way of memorandum upon
the grantor’s certificate of title, original and duplicate, said
memorandum to serve as a notice to third persons of the fact that
certain unsegregated portion of the land described therein has been
conveyed, and every certificate with such memorandum shall be
effectual for the purpose of showing the grantee’s title to the portion
1050
conveyed to him, pending the actual issuance of the corresponding

certificate in his name.
Upon the approval of the plan and technical descriptions, the

original of the plan, together with a certified copy of the technical
descriptions shall be filed with the Register of Deeds for annotation
in the corresponding certificate of title and thereupon said officer
shall issue a new certificate of title to the grantee for the portion
conveyed, and at the same time cancel the grantor’s certificate
partially with respect only to said portion conveyed, or, if the grantor
so desires, his certificate may be canceled totally and a new one
issued to him describing therein the remaining portion: Provided,
however, that pending approval of said plan, no further registration
or annotation of any subsequent deed or other voluntary instrument
involving the unsegregated portion conveyed shall be effected by
the Register of Deeds, except where such unsegregated portion was
purchased from the Government or any of its instrumentalities.
If the land has been subdivided into several lots, designated by
numbers or letters, the Register of Deeds may, if desired by the
grantor, instead of canceling the latter’s certificate and issuing a
new one to the same for the remaining unconveyed lots, enter on
said certificate and on its owner’s duplicate a memorandum of such
deed of conveyance and of the issuance of the transfer certificate to
the grantee for the lot or lots thus conveyed, and that the grantor’s
certificate is canceled as to such lot or lots.
SEC. 59. Carry over of encumbrances. If, at the time of any

transfer, subsisting encumbrances or annotations appear in the
registration book, they shall be carried over and stated in the new
certificate or certificates; except so far as they may be simultaneously
released or discharged.
(B) MORTGAGES AND LEASES
SEC. 60. Mortgage or lease of registered land. Mortgage and

leases shall be registered in the manner provided in Section 54 of
this Decree. The owner of registered land may mortgage or lease
it by executing the deed in a form sufficient in law. Such deed
1051
of mortgage or lease and all instruments which assign, extend,

discharge or otherwise deal with the mortgage or lease shall be
registered, and shall take effect upon the title only from time of
registration.
No mortgagee’s or lessee’s duplicate certificate of title shall

hereafter be issued by the Registers of Deeds, and those issued prior
to the effectivity of this Decree are hereby deemed canceled and
the holders thereof shall immediately surrender the same to the
Register of Deeds concerned.
SEC. 61. Registration. Upon presentation for registration of

the deed of mortgage or lease together with the owner’s duplicate,
the Register of Deeds shall enter upon the original of the certificate of
title and also upon the owner’s duplicate certificate a memorandum
thereof, the date and time of filing and the file number assigned to
the deed, and shall sign the said memorandum. He shall also note
on the deed the date and time of filing and a reference to the volume
and page of the registration book in which it is registered.
SEC. 62. Discharge or cancellation. A mortgage or lease on

registered land may be discharged or canceled by means of an
instrument executed by the mortgage or lessee in a form sufficient
in law, which shall be filed with the Register of Deeds who shall
make the appropriate memorandum upon the certificate of title.
SEC. 63. Foreclosure of Mortgage. (a) If the mortgage was

foreclosed judicially, a certified copy of the final order of the court
confirming the sale shall be registered with the Register of Deeds. If
no right of redemption exists, the certificate of title of the mortgagor
shall be canceled, and a new certificate issued in the name of the
purchaser.
Where the right of redemption exists, the certificate of title of

the mortgagor shall not be canceled, but the certificate of sale and the
order confirming the sale shall be registered by a brief memorandum
thereof made by the Register of Deeds upon the certificate of title.
In the event the property is redeemed, the certificate or deed of
1052
redemption shall be filed with the Register of Deeds, and a brief

memorandum thereof shall be made by the Register of Deeds on the
certificate of title of the mortgagor.
If the property is not redeemed, the final deed of sale executed

by the sheriff in favor of the purchaser at a foreclosure sale shall be
registered with the Register of Deeds; whereupon the title of the
mortgagor shall be canceled, and a new certificate issued in the
name of the purchaser.
(b) If the mortgage was foreclosed extrajudicially, a certificate

of sale executed by the officer who conducted the sale shall be filed
with the Register of Deeds who shall make a brief memorandum
thereof on the certificate of title.
In the event of redemption by the mortgagor, the same rule

provided for in the second paragraph of this section shall apply.
In case of non-redemption, the purchaser at foreclosure sale

shall file with the Register of Deeds, either a final deed of sale
executed by the person authorized by virtue of the power of attorney
embodied in the deed of mortgage, or his sworn statement attesting
to the fact of non-redemption; whereupon, the Register of Deeds
shall issue a new certificate in favor of the purchaser after the
owner’s duplicate of the certificate has been previously delivered
and canceled.
(C) POWERS OF ATTORNEY; TRUSTS
SEC. 64. Power of attorney. Any person may, by power of

attorney, convey or otherwise deal with registered land and the
same shall be registered with the Register of Deeds of the province
or city where the land lies. Any instrument revoking such power of
attorney shall be registered in like manner.
SEC. 65. Trusts in registered land. If a deed or other

instrument is filed in order to transfer registered land in trust, or
upon any equitable condition or limitation expressed therein, or to
1053
create or declare a trust or other equitable interests in such land

without transfer, the particulars of the trust, condition, limitation
or other equitable interest shall not be entered on the certificate;
but only a memorandum thereof shall be entered by the words “in
trust”, or “upon condition”, or other apt words, and by a reference
by number to the instrument authorizing or creating the same. A
similar memorandum shall be made upon the original instrument
creating or declaring the trust or other equitable interest with a
reference by number to the certificate of title to which it relates
and to the volume and page in the registration book in which it is
registered.
SRC. 66. Trust with power of sale, etc., how expressed. If the
instrument creating or declaring a trust or other equitable interest
contains an express power to sell, mortgage or deal with the land
in any manner, such power shall be stated in the certificate of title
by the words “with power to sell”, or “power to mortgage”, or by
apt words of description in case of other powers. No instrument
which transfers, mortgages or in any way deals with registered
land in trust shall be registered, unless the enabling power thereto
is expressly conferred in the trust instrument, or unless a final
judgment or order of a court of competent jurisdiction has construed
the instrument in favor of the power, in which case a certified copy
of such judgment or order may be registered.
SEC. 67. Judicial appointment of new trustee. If a new trustee

of registered land is appointed by a court of competent jurisdiction,
a new certificate may be issued to him upon presentation to
the Register of Deeds of a certified copy of the order or judicial
appointment and the surrender for cancellation of the duplicate
certificate.
SEC. 68. Implied, trusts, how established. Whoever claims an

interest in registered land by reason of any implied or constructive
trust shall file for registration with the Register of Deeds a sworn
statement thereof containing a description of the land, the name of
the registered owner and a reference to the number of the certificate
1054
of title. Such claim shall not affect the title of a purchaser for value
and in good faith before its registration.
II
INVOLUNTARY DEALINGS
SEC. 69. Attachments. An attachment, or a copy of any writ,

order or process issued by a court of record, intended to create or
preserve any lien, status, right, or attachment upon registered land,
shall be filed and registered in the Registry of Deeds for the province
or city in which the land lies, and, in addition to the particulars
required in such papers for registration, shall contain a reference to
the number of the certificate of title to be affected and the registered
owner or owners thereof, and also if the attachment, order, process
or lien is not claimed on all the land in any certificate of title a
description sufficiently accurate for identification of the land or
interest intended to be affected. A restraining order, injunction or
mandamus issued by the court shall be entered and registered on
the certificate of title affected, free of charge.
SEC. 70. Adverse claim. Whoever claims any part or interest in

registered land adverse to the registered owner, arising subsequent
to the date of the original registration, may, if no other provision is
made in this Decree for registering the same, make a statement in
writing setting forth fully his alleged right or interest, and how or
under whom acquired, a reference to the number of the certificate of
title of the registered owner, the name of the registered owner, and
a description of the land in which the right or interest is claimed.
The statement shall be signed and sworn to, and shall state the
adverse claimant’s residence, and a place at which all notices may be
served upon him. This statement shall be entitled to registration as
an adverse claim on the certificate of title. The adverse claim shall
be effective for a period of thirty days from the date of registration.
After the lapse of said period, the annotation of adverse claim may
be canceled upon filing of a verified petition therefor by the party
in interest: Provided, however, that after cancellation, no second
1055
adverse claim based on the same ground shall be registered by the

same claimant.
Before the lapse of thirty days aforesaid, any party in interest

may file a petition in the Court of First Instance where the land
is situated for the cancellation of the adverse claim, and the court
shall grant a speedy hearing upon the question of the validity of
such adverse claim, and shall render judgment as may be just
and equitable. If the adverse claim is adjudged to be invalid, the
registration thereof shall be ordered canceled. If, in any case, the
court, after notice and hearing, shall find that the adverse claim
thus registered was frivolous, it may fine the claimant in an amount
not less than one thousand pesos nor more than five thousand pesos,
in its discretion. Before the lapse of thirty days, the claimant may
withdraw his adverse claim by filing with the Register of Deeds a
sworn petition to that effect.
SEC. 71. Surrender of certificate in involuntary dealings. If

an attachment or other lien in the nature of involuntary dealing
in registered land is registered, and the duplicate certificate is
not presented at the time of registration, the Register of Deeds
shall, within thirty-six hours thereafter, send notice by mail to the
registered owner, stating that such paper has been registered, and
requesting him to send or produce his duplicate certificate so that a
memorandum of the attachment or other lien may be made thereon.
If the owner neglects or refuses to comply within a reasonable time,
the Register of Deeds shall report the matter to the court, and
it shall, after notice, enter an order to the owner, to produce his
certificate at a time and place named therein, and may enforce the
order by suitable process.
SEC. 72. Dissolution, etc. of attachments, etc. Attachments

and liens of every description upon registered land shall be
continued, reduced, discharged and dissolved by any method
sufficient in law, and to give effect to the continuance, reduction,
discharge or dissolution thereof the certificate or other instrument
for that purpose shall be registered with the Register of Deeds.
1056
SEC. 73. Registration of orders of court, etc. If an attachment

is continued, reduced, dissolved, or otherwise affected by an order,
decision or judgment of the court where the action or proceedings in
which said attachment was made is pending or by an order of a court
having jurisdiction thereof, a certificate of the entry of such order,
decision or judgment from the clerk of court or the judge by which
such decision, order or judgment has been rendered and under the
seal of the court, shall be entitled to be registered upon presentation
to the Register of Deeds.
SEC. 74. Enforcement of liens on registered land. Whenever

registered land is solved on execution, or taken or sold for taxes or
for any assessment or to enforce a lien of any character, or for any
costs and charges incident to such liens, any execution or copy of
execution, any officer’s return, or any deed, demand, certificate, or
affidavit, or other instrument made in the course of the proceedings
to enforce such liens and required by law to be recorded, shall be
filed with the Register of Deeds of the province or city where the land
lies and registered in the registration book, and a memorandum
made upon the proper certificate of title in each case as lien or
encumbrance.
SEC. 75. Application for new certificate upon expiration of

redemption period. Upon the expiration of the time, if any, allowed by
law for redemption after registered land has been sold on execution
taken or sold for the enforcement of a lien of any description, except
a mortgage lien, the purchaser at such sale or anyone claiming
under him may petition the court for the entry of a new certificate
of title to him.
Before the entry of a new certificate of title, the registered

owner may pursue all legal and equitable remedies to impeach or
annul such proceedings.
SEC. 76. Notice of lis pendens. No action to recover possession

of real estate, or to quiet title thereto, or to remove clouds upon
the title thereof, or for partition, or other proceedings of any kind
in court directly affecting the title to land or the use or occupation
1057
thereof or the buildings thereon, and no judgment, and no proceeding

to vacate or reverse any judgment, shall have any effect upon
registered land as against persons other than the parties thereto,
unless a memorandum or notice stating the institution of such
action or proceeding and the court wherein the same is pending, as
well as the date of the institution thereof, together with a reference
to the number of the certificate of title, and an adequate description
of the land affected and the registered owner thereof, shall have
been filed and registered.
SEC. 77. Cancellation of lis pendens. Before final judgment, a

notice of lis pendens may be canceled upon order of the court, after
proper showing that the notice is for the purpose of molesting the
adverse party, or that it is not necessary to protect the rights of the
party who caused it to be registered. It may also be canceled by the
Register of Deeds upon verified petition of the party who caused the
registration thereof.
At any time after final judgment in favor of the defendant,

or other disposition of the action such as to terminate finally all
rights of the plaintiff in and to the land and/or buildings involved,
in any case in which a memorandum or notice of lis pendens has
been registered as provided in the preceding section, the notice of
lis pendens shall be deemed canceled upon the registration of a
certificate of the clerk of court in which the action or proceeding was
pending stating the manner of disposal thereof.
CHAPTER VI
REGISTRATION OF JUDGMENTS; ORDERS; PARTITIONS
SEC. 78. Judgment for Plaintiff. Whenever in any action to

recover possession or ownership of real estate or any interest therein
affecting registered land judgment is entered for the plaintiff,
such judgment shall be entitled to registration on presentation
of a certificate of the entry thereof from the clerk of court where
the action is pending to the Register of Deeds for the province or
city where the land lies, who shall enter a memorandum upon the
1058
certificate of title of the land to which such judgment relates. If the

judgment does not apply to all the land described in the certificate
of title, the certificate of the clerk of the court where the action is
pending and the memorandum entered by the Register of Deeds
shall contain a description of the land affected by the judgment.
SEC. 79. Judgment adjudicating ownership. When in any

action to recover the ownership of real estate or an interest therein
execution has been issued in favor of the plaintiff, the latter shall
be entitled to the entry of a new certificate of title and to the
cancellation of the original certificate and owner’s duplicate of the
former registered owner. If the registered owner neglects or refuses
within a reasonable time after request of the plaintiff to produce
his duplicate certificate in order that the same may be canceled, the
court shall, on application and after notice, enter an order to the
owner to produce his certificate at the time and place designated,
and may enforce the order by suitable process.
SEC. 80. Execution of deed by virtue of judgment. Every court

rendering judgment in favor of the plaintiff affecting registered
land shall, upon petition of said plaintiff, order and parties before
it to execute for registration any deed or instrument necessary to
give effect to the judgment, and shall require the registered owner
to deliver his duplicate certificate to the plaintiff or to the Register
of Deeds to be canceled or to have a memorandum annotated
upon it. In case the person required to execute any deed or other
instrument necessary to give effect to the judgment is absent
from the Philippines, or is a minor, or insane, or for any reason
not amenable to the process of the court rendering the judgment,
said court may appoint a suitable person as trustee to execute such
instrument which, when executed, shall be entitled to registration.
SEC. 81. Judgment of partition. In proceedings for partition

of registered land, after the entry of the final judgment of partition,
a copy of such final judgment, certified by the clerk of the court
rendering the same, shall be filed and registered; thereupon, if the
land is set of to the owners in severalty, each owner shall be entitled
1059
to have his certificate entered showing the share set off to him in
severalty, and to receive an owner’s duplicate thereof.
If the land is ordered by the court to be sold, the purchaser

or his assigns shall be entitled to certificate of title entered in his
or their favor upon presenting a certified copy of the judgment
confirming the sale.
In case the land is ordered by the court to be assigned to

one of the parties upon payment to the others of the sum ordered
by the court, the party to whom the land is thus assigned shall
be entitled to have a certificate of title entered in his favor upon
presenting a certified copy of the judgment: Provided, however, that
any new certificate entered in pursuance of partition proceedings,
whether by way of set-off or of assignment or of sale, shall contain
a reference memorandum to the final judgment of partition, and
shall be conclusive as to the title to the same extent and against
the same persons as such judgment is made conclusive by the laws
applicable thereto: and provided, further, that any person holding
such certificate of title or a transfer thereof shall have the right to
petition the court at any time to cancel the memorandum relating to
such judgment or order and the court, after notice and hearing, may
grant the petition. Such certificate shall thereafter be conclusive
in the same manner and to the same extent as other certificates of
title.
SEC. 82. Registration of prior registered mortgaged or lease on

partitioned property. If a certified copy of a final judgment or decree
of partition is presented and it appears that a mortgage or lease
affecting a specific portion or an undivided share of the premises
had previously been registered, the Register of Deeds shall carry
over such encumbrance on the certificate of title that may be issued.
SEC. 83. Notice of insolvency. Whenever proceeding in

bankruptcy or insolvency, or analogous proceedings, are instituted
against a debtor who owns registered land, it shall be the duty of
the officer serving the notice of the institution of such proceedings
on the debtor to file a copy thereof with the office of the Register of
1060
Deeds for the province or city where the land of the debtor lies. The
assignee or trustee appointed by the court in such proceedings shall
be entitled to the entry of a new certificate of the registered land of
the debtor or bankrupt, upon presenting and filing a certified copy of
the assignment in insolvency or order or adjudication in bankruptcy
with the insolvent’s or bankrupt’s duplicate certificate of title; but
the new certificate shall state that it is entered to him as assignee
in insolvency or trustee in bankruptcy or other proceedings, as the
case may be.
SEC. 84. Judgment or order vacating insolvency

proceedings. Whenever any of the proceedings of the character
named in the preceding section against a registered owner, of which
notice has been registered, is vacated by judgment, a certified copy
of the judgment or order may be registered. Where a new certificate
has been entered in the name of the assignee or trustee, such
certificate shall be surrendered for cancellation and forthwith the
debtor shall be entitled to the entry of a new certificate to him.
SEC. 85. Land taken by eminent domain. Whenever any

registered land, or interest therein, is expropriated or taken
by eminent domain, the National Government, province, city,
municipality, or any other agency or instrumentality exercising
such right shall file for registration in the proper Registry a certified
copy of the judgment which shall state definitely, by an adequate
description, the particular property or interest expropriated, the
number of the certificate of title, and the nature of the public use.
A memorandum of the right or interest taken shall be made on
each certificate of title by the Register of Deeds, and where the fee
simple title is taken, a new certificate shall be issued in favor of
the National Government, province, city, municipality, or any other
agency or instrumentality exercising such right for the land so taken.
The legal expenses incident to the memorandum of registration or
issuances incident to the memorandum of registration or issuance
of a new certificate shall be for the account of the authority taking
the land or interest therein.
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SEC. 86. Extrajudicial settlement of estate. When a deed of

extrajudicial settlement has been duly registered, the Register of
Deeds shall annotate on the proper title the two-year lien mentioned
in Section 4 of Rule 74 of the Rules of Court. Upon the expiration
of the two-year period and presentation of a verified petition by the
registered heirs, devisees or legatees or any other party in interest
that no claim or claims of any creditor, heir or other person exist,
the Register of Deeds shall cancel the two-year lien noted on the
title without the necessity of a court order. The verified petition
shall be entered in the Primary Entry Book and a memorandum
thereof made on the title.
No deed of extrajudicial settlement or affidavit of adjudication

shall be registered unless the fact of extrajudicial settlement or
adjudication is published once a week for three consecutive weeks in
a newspaper of general circulation in the province and proof thereof
is filed with the Register of Deeds. The proof may consist of the
certification of the publisher, printer, his foreman or principal clerk,
or of the editor, business or advertising manager of the newspaper
concerned, or a copy of each week’s issue of the newspaper wherein
the publication appeared.
SEC. 87. Filing of letters of administration and will . Before

the executor or administrator of the estate of a deceased owner of
registered land may deal with the same, he shall file with the office of
the Register of Deeds a certified copy of his letters of administration
or if there is a will, a certified copy thereof and the order allowing the
same, together with the letters testamentary or of administration
with the will annexed, as the case may be, and shall produce the
duplicate certificate of title, and thereupon the Register of Deeds
shall enter upon the certificate a memorandum thereof, making
reference to the letters and/or will by their file number, and the
date of filing the same.
SEC. 88. Dealings by administering subject to court

approval. After a memorandum of the will, if any, and order allowing
the same, and letters testamentary or letters of administration have
been entered upon the certificate of title as hereinabove provided,
1062
the executor or administrator may alienate or encumber registered

land belonging to the estate, or any interest therein, upon approval
of the court obtained as provided by the Rules of Court.
SEC. 89. Land devised to executor. When it appears by will, a

certified copy of which with letters testamentary had already been
filed as provided in this Decree, that registered land is devised to the
executor to his own use, or upon some trust, the executor may have
the land transferred to himself upon the register in like manner and
subject to like terms and conditions and to like rights as in the case
of a transfer pursuant to a deed filed in the office of the Register of
Deeds.
SEC. 90. When executor empowered by will to sell, etc. When

the will of a deceased owner of registered lands, or an interest
therein, empowers the executor to sell, convey, encumber, charge or
otherwise deal with the land, a certified copy of the will and letters
testamentary being filed as provided in this Decree, such executor
may sell, convey, encumber, charge or otherwise deal with the land
pursuant to the power in like manner as if he were registered owner,
subject to the terms and conditions and limitations expressed in the
will.
SEC. 91. Transfer in anticipation of final distribution. Whenever

the court having jurisdiction of the testate or intestate proceedings
directs the executor or administrator to take over and transfer to the
devisees or heirs, or any of them, in anticipation of final distribution
a portion or the whole of the registered land to which they might
be entitled on final distribution, upon the filing of a certified copy
of such order in the office of the Register of Deeds, the executor or
administrator may cause such transfer to be made upon the register
in like manner as in case of a sale, and upon the presentation of the
owner’s duplicate certificate to the Register of Deeds, the devisees or
heirs concerned shall be entitled to the issuance of the corresponding
certificates of title.
SEC. 92. Registration of final distribution of estate. A certified

copy of the partition and distribution, together with the final
1063
judgment or order of the court approving the same or otherwise

making final distribution, supported by evidence of payment of
estate taw or exemption therefrom, as the case may be, shall be
filed with the Register of Deeds, and upon the presentation of the
owner’s duplicate certificate of title, new certificates of title shall be
issued to the parties severally entitled thereto in accordance with
the approved partition and distribution.
CHAPTER VII
ASSURANCE FUND
SEC. 93. Contribution to Assurance Fund. Upon the entry of

a certificate of title in the name of the registered owner, and also
upon the original registration on the certificate of title of a building
or other improvements on the land covered by said certificate, as
well as upon the entry of a certificate pursuant to any subsequent
transfer of registered land, there shall be paid to the Register of
Deeds one-fourth of one per cent of the assessed value of the real
estate on the basis of the last assessment for taxation purposes,
as contribution to the Assurance Fund. Where the land involved
has not yet been assessed for taxation, its value for purposes of
this decree shall be determined by the sworn declaration of two
disinterested persons to the effect that the value fixed by them is to
their knowledge, a fair valuation.
Nothing in this section shall in any way preclude the court

from increasing the valuation of the property should it appear
during the hearing that the value stated is too small.
SEC. 94. Custody and investment of fund. All money received

by the Register of Deeds under the preceding section shall be paid to
the National Treasurer. He shall keep this money in an Assurance
Fund which may be invested in the manner and form authorized by
law, and shall report annually to the Commissioner of the Budget
the condition and income thereof.
1064
The income of the Assurance Fund shall be added to the

principal until said fund amounts to five hundred thousand pesos,
in which event the excess income from investments as well as from
the collections of such fund shall be paid into the National Treasury
to the account of the Assurance Fund.
SEC. 95. Action for compensation from funds. A person who,

without negligence on his part, sustains loss or damage, or is
deprived of land or any estate or interest therein in consequence of
the bringing of the land under the operation of the Torrens system
of arising after original registration of land, through fraud or in
consequence of any error, omission, mistake or misdescription in any
certificate of title or in any entry or memorandum in the registration
book, and who by the provisions of this Decree is barred or otherwise
precluded under the provision of any law from bringing an action for
the recovery of such land or the estate or interest therein, may bring
an action in any court of competent jurisdiction for the recovery of
damages to be paid out of the Assurance Fund.
SEC. 96. Against whom action filed. If such action is brought

to recover for loss or damage or for deprivation of land or of any
estate or interest therein arising wholly through fraud, negligence,
omission, mistake or misfeasance of the court personnel, Register
of Deeds, his deputy, or other employees of the Registry in the
performance of their respective duties, the action shall be brought
against the Register of Deeds of the province or city where the land
is situated and the National Treasurer as defendants. But if such
action is brought to recover for loss or damage or for deprivation of
land or of any interest therein arising through fraud, negligence,
omission, mistake or misfeasance of person other than court
personnel, the Register of Deeds, his deputy or other employees of
the Registry, such action shall be brought against the Register of
Deeds, the National Treasurer and other person or persons, as co-
defendants. It shall be the duty of the Solicitor General in person
or by representative to appear and to defend all such suits with the
aid of the fiscal of the province or city where the land lies: Provided,
however, that nothing in this Decree shall be construed to deprive
the plaintiff of any right of action which he may have against any
1065
person for such loss or damage or deprivation without joining the

National Treasurer as party defendant. In every action filed against
the Assurance Fund, the court shall consider the report of the
Commissioner of Land Registration.
SEC. 97. Judgment, how satisfied. If there are defendants

other than the National Treasurer and the Register of Deeds and
judgment is entered for the plaintiff and against the National
Treasury, the Register of Deeds and any of the other defendants,
execution shall first issue against such defendants other than the
National and the Register of Deeds. If the execution is returned
unsatisfied in whole or in part, and the officer returning the same
certificates that the amount due cannot be collected from the land
or personal property of such other defendants, only then shall the
court, upon proper showing, order the amount of the execution
and costs, or so much thereof as remains unpaid, to be paid by the
National treasurer out of the Assurance Fund. In an action under
this Decree, the plaintiff cannot recover as compensation more than
the fair market value of the land at the time he suffered the loss,
damage, or deprivation thereof.
SEC. 98. General Fund when liable. If at any time the

Assurance Fund is not sufficient to satisfy such judgment, the
National Treasurer shall make up for the deficiency from any funds
available in the treasury not otherwise appropriated.
SEC. 99. Subrogation of government to plaintiff’s rights. In

every case where payment has been made by the National Treasurer
in accordance with the provisions of this Decree, the Government of
the Republic of the Philippines shall be subrogated to the rights of
the plaintiff against any other parties or securities. The National
Treasurer shall enforce said rights and the amount recovered shall
be paid to the account of the Assurance Fund.
SEC. 100. Register of Deeds as party in interest. When it appears

that the Assurance Fund may be liable for damages that may be
incurred due to the unlawful or erroneous issuance of a certificate
of title, the Register of Deeds concerned shall be deemed a proper
1066
party in interest who shall, upon authority of the Commissioner

of Land Registration, file the necessary action in court to annul or
amend the title.
The court may order the Register of Deeds to amend or cancel a

certificate of title or to do any other act as may be just and equitable.
SEC. 101. Losses not recoverable. The Assurance Fund shall

not be liable for any loss, damage or deprivation caused or occasioned
by a breach of trust, whether express, implied or constructive or
by any mistake in the resurveyed or subdivision of registered land
resulting in the expansion of area in the certificate of title.
SEC. 102. Limitation of Action. Any action for compensation

against the Assurance Fund by reason of any loss, damage or
deprivation of land or any interest therein shall be instituted within
a period of six years from the time the right to bring such action first
occurred: Provided, That the right of action herein provided shall
survive to the legal representative of the person sustaining loss or
damage, unless barred in his lifetime; and Provided, further, That
if at the time such right of action first accrued the person entitled to
bring such action was a minor or insane or imprisoned, or otherwise
under legal disability, such person or anyone claiming from, by
or under him may bring the proper action at any time within two
years after such disability has been removed, notwithstanding the
expiration of the original period of six years first above provided.
CHAPTER VIII
REGISTRATION OF PATENTS
SEC. 103. Certificates of title pursuant to patents. Whenever

public land is by the Government alienated, granted or conveyed
to any person, the same shall be brought forthwith under the
operation of this Decree. It shall be the duty of the official issuing
the instrument of alienation, grant, patent or conveyance in behalf
of the Government to cause such instrument to be filed with the
Register of Deeds of the province or city where the land lies, and
1067
to be there registered like other deeds and conveyance, whereupon

a certificate of title shall be entered as in other cases of registered
land, and an owner’s duplicate issued to the grantee. The deed,
grant, patent or instrument of conveyance from the Government to
the grantee shall not take effect as a conveyance or bind the land
but shall operate only as a contract between the Government and
the grantee and as evidence of authority to the Register of Deeds
to make registration. It is the act of registration that shall be the
operative act to affect and convey the land, and in all cases under
this Decree, registration shall be made in the office of the Register
of Deeds of the province or city where the land lies. The fees for
registration shall be paid by the grantee. After due registration and
issuance of the certificate of title, such land shall be deemed to be
registered land to all intents and purposes under this Decree.
CHAPTER IX
CERTIFICATE OF LAND TRANSFER, EMANCIPATION

PATENT,
AFFIDAVIT OF NON-TENANCY
SEC. 104. Provisional Register of Documents. The Department

of Agrarian Reform shall prepare by automate data processing a
special registry book to be known as the “Provisional Register of
Documents issued under PD-27” which shall be kept and maintained
in every Registry of Deeds throughout the country. Said Registry
Book shall be a register of:
a. All Certificates of Land Transfer (CLT) issued pursuant to

P.D. No. 27; and
b. All subsequent transactions affecting Certificates of

Land Transfer such as adjustments, transfer, duplication and
cancellations of erroneous Certificates of Land Transfer.
SEC. 105. Certificates of Land Transfer Emancipation

Patents. The Department of Agrarian reform shall pursuant to
P.D. No. 27 issue in duplicate, a Certificate of Land Transfer for
1068
every land brought under “Operation Land Transfer”, the original

of which shall be kept by the tenant-farmer and the duplicate, in the
Registry of Deeds.
After the tenant-farmer shall have fully complied with the

requirements for a grant of title under P.D. No. 27, an Emancipation
Patent which may cover previously titled or untitled property shall
be issued by the Department of Agrarian Reform.
The Register of Deeds shall complete the entries on the

aforementioned Emancipation Patent and shall assign an original
certificate of title number in case of unregistered land, and in
case of registered property, shall issue the corresponding transfer
certificate of title without requiring the surrender of the owner’s
duplicate of the title to be canceled.
In case of death of the grantee, the Department of Agrarian

Reform shall determine his heirs or successors-in-interest and shall
notify the Register of Deeds accordingly.
In case of subsequent transfer of property covered by an

Emancipation Patent or a Certificate of Title emanating from an
Emancipation Patent, the Register of Deeds shall affect the transfer
only upon receipt of the supporting papers from the Department of
Agrarian Reform.
No fee, premium, of tax of any kind shall be charged or imposed

in connection with the issuance of an original Emancipation Patent
and for the registration or related documents.
SEC. 106. Sale of agricultural land; affidavit. No voluntary

deed or instrument purporting to be a subdivision, mortgage, lease,
sale or any other mode of encumbrance or conveyance of private
agricultural land principally devoted to rice or corn or any portion
thereof shall be registered unless accompanied by an affidavit of the
vendor or executor stating that the land involved is not tenanted, or
if tenanted, the same is not primarily devoted to the production of
rice and/or corn.
1069
If only a portion of the land is primarily devoted to the

production of rice and/or corn, and such area so devoted is tenanted,
no such deed or instrument shall be registered unless accompanied
by an affidavit stating the area (size) of the portion which is tenanted
and primarily devoted to rice and/or corn, and stating further that
the deed or instrument covers only the untenanted portion or that
which is not primarily devoted to the production of rice and/or corn.
A memorandum of said affidavit shall be annotated on the certificate
of title. The Register of Deeds shall cause a copy of the registered
deed or instrument, together with the affidavit, to be furnished the
Department of Agrarian Reform Regional Office where the land is
located. The affidavit provided in this section shall not be required
in the case of a tenant-farmer who deals with his Certificate of Land
Transfer or Emancipation Patent in accordance with law.
CHAPTER X
PETITIONS AND ACTIONS AFTER ORIGINAL REGISTRATION
SEC. 107. Surrender of withhold duplicate certificates. Where

it is necessary to issue a new certificate of title pursuant to any
involuntary instrument which divests the title of the registered
owner against his consent or where a voluntary instrument cannot
be registered by reason of the refusal or failure of the holder to
surrender the owner’s duplicate certificate of title, the party in
interest may file a petition in court to compel surrender of the same
to the Register of Deeds. The court, after hearing, may order the
registered owner or any person withholding the duplicate certificate
to surrender the same, and direct the entry of a new certificate or
memorandum upon such surrender. If the person withholding the
duplicate certificate is not amenable to the process of the court, or if
not any reason the outstanding owner’s duplicate certificate cannot
be delivered, the court may order the annulment of the same as well
as the issuance of a new certificate of title in lieu thereof. Such new
certificate and all duplicates thereof shall contain a memorandum
of the annulment of the outstanding duplicate.
1070
SEC. 108. Amendment and alteration of certificates. No erasure,

alteration, or amendment shall be made upon the registration book
after the entry of a certificate of title or of a memorandum thereon
and the attestation of the same be Register of Deeds, except by order
of the proper Court of First Instance. A registered owner of other
person having an interest in registered property, or, in proper cases,
the Register of Deeds with the approval of the Commissioner of Land
Registration, may apply by petition to the court upon the ground
that the registered interests of any description, whether vested,
contingent, expectant or inchoate appearing on the certificate, have
terminated and ceased; or that new interest not appearing upon the
certificate have arisen or been created; or that an omission or error
was made in entering a certificate or any memorandum thereon,
or, on any duplicate certificate; or that the same or any person
on the certificate has been changed; or that the registered owner
has married, or, if registered as married, that the marriage has
been terminated and no right or interests of heirs or creditors will
thereby be affected; or that a corporation which owned registered
land and has been dissolved has not convened the same within three
years after its dissolution; or upon any other reasonable ground;
and the court may hear and determine the petition after notice to
all parties in interest, and may order the entry or cancellation of a
new certificate, the entry or cancellation of a memorandum upon a
certificate, or grant any other relief upon such terms and conditions,
requiring security or bond if necessary, as it may consider proper;
Provided, however, That this section shall not be construed to give
the court authority to reopen the judgment or decree of registration,
and that nothing shall be done or ordered by the court which shall
impair the title or other interest of a purchaser holding a certificate
for value and in good faith, or his heirs and assigns, without his
or their written consent. Where the owner’s duplicate certificate is
not presented, a similar petition may be filed as provided in the
preceding section.
All petitions or motions filed under this Section as well as

under any other provision of this Decree after original registration
shall be filed and entitled in the original case in which the decree or
registration was entered.
1071
SEC. 109. Notice and replacement of lost duplicate certificate. In

case of loss or theft of an owner’s duplicate certificate of title, due
notice under oath shall be sent by the owner or by someone in his
behalf to the Register of Deeds of the province or city where the land
lies as soon as the loss or theft is discovered. If a duplicate certificate
is lost or destroyed, or cannot be produced by a person applying for
the entry of a new certificate to him or for the registration of any
instrument, a sworn statement of the fact of such loss or destruction
may be filed by the registered owner or other person in interest and
registered.
Upon the petition of the registered owner or other person

in interest, the court may, after notice and due hearing, direct
the issuance of a new duplicate certificate, which shall contain a
memorandum of the fact that it is issued in place of the lost duplicate
certificate, but shall in all respects be entitled to like faith and credit
as the original duplicate, and shall thereafter be regarded as such
for all purposes of this decree.
SEC. 110. Reconstitution of lost or destroyed original

of Torrens title. Original copies of certificates of title lost or
destroyed in the offices of Register of Deeds as well as liens and
encumbrances affecting the lands covered by such titles shall be
reconstituted judicially in accordance with the procedure prescribed
in Republic Act No. 26 insofar as not inconsistent with this Decree.
The procedure relative to administrative reconstitution of lost or
destroyed certificate prescribed in said Act is hereby abrogated.
Notice of all hearings of the petition for judicial reconstitution

shall be given to the Register of Deeds of the place where the land
is situated and to the Commissioner of Land Registration. No order
or judgment ordering the reconstitution of a certificate of title
shall become final until the lapse of thirty days from receipt by the
Register of Deeds and by the Commissioner of Land Registration of
a notice of such order or judgment without any appeal having been
filed by any of such officials.
1072
CHAPTER XI
SCHEDULE OF FEES: SPECIAL FUND
SEC. 111. Fees payable. The fees payable to the Clerk of

Court, the Sheriff, the Register of Deeds and the Land Registration
Commission shall be as follows:
A. Fees payable to the Clerk of Court. The fees payable to the

clerk of court or his deputies shall be as follows:
1. For filing an application for the registration of land, the

fees shall be based on the assessed value of the property for
the current year, in accordance with the following schedule
(a) When the value of the property does not exceed two
thousand pesos, fifteen pesos for the first five hundred
pesos, or fractional part thereof, and five pesos for each
additional five hundred pesos, or fractional part thereof.
(b) When the value of the property does not exceed two
thousand pesos but does not exceed ten thousand pesos,
thirty five pesos for the first three thousand pesos, or
fractional part thereof, and five pesos for each additional
one thousand pesos, or fractional part thereof.
(c) When the value of the property is more than ten

thousand pesos but does not exceed one hundred thousand
pesos, eighty pesos for the first twenty thousand pesos, or
fractional part thereof, and ten pesos for each additional
ten thousand pesos, or fractional part thereof.
(d) When the value of the property is more than one

hundred thousand pesos but does not exceed five hundred
thousand pesos, one hundred eighty pesos for the first one
hundred twenty-five thousand pesos, or fractional part
thereof, and twenty pesos for each additional twenty-five
thousand pesos, or fractional part thereof.
1073
(e) When the value of the property is more than five

hundred thousand pesos, five hundred twenty pesos for
the first five hundred fifty thousand pesos, or fractional
part thereof, and forty pesos for each additional fifty
If the property has not been assessed for taxation, the fees
above prescribed shall be based on the current market
value; and the applicant shall file with his application a
sworn declaration of three disinterested persons that the
value fixed by him is to their knowledge a fair valuation.
2. For filing a petition for review of judgment and decree, or

other claim adverse to the registered owner, for each petition,
twenty pesos.
3. For filing a petition after the decision has become final,

twenty pesos. If it affects land decrees in more than one case,
for each additional case, one peso. If it affects several lots
or parcels of land in which the petitioners have no common
interest, each of such petitioners shall pay the corresponding
fees as if separate petitions had been filed by him.
B. Fees payable to the Sheriff. The sheriff shall collect fees

for his services rendered in connection with land registration and
cadastral proceedings as follows:
1. For posting notices of initial hearing of land registration

cases in conspicuous places on the lands described in the
notice, for each parcel of land on which a copy of such notice is
posted, besides travel fees, three pesos.
2. For posting notices of initial hearing of cadastral cases in

conspicuous places on the lands included in the survey, for
each group of one hundred lots on which a copy of the notice is
posted, besides travel fees, three pesos.
1074
3. For posting one copy of a notice of initial hearing in a

conspicuous place upon the municipal building of the city,
municipality, or municipal district in which the land or
portion thereof lies, besides travel fees, three pesos.
4. For serving notices upon cadastral claimants to appear

before the court, travel fees only as provided in the Rules of
Court.
5. For all other services not mentioned above, the same fees
including travel fees as provided in the Rules of Court for
similar services.
C. Fees payable to the Register of Deeds. The Register of

Deeds shall collect fees for all services rendered by him under this
Decree in accordance with the following schedule:
1. Original certificate of title. For the entry of one original

certificate of title and issuance of one owner’s duplicate
certificate, ten pesos for the first parcel of land described
thereon and five pesos for each additional parcel.
2. Entry fee. For each entry fee in the primary entry book, five
pesos.
3. Attachment, levy, etc. For the annotation of an attachment,

levy, writ of execution, adverse claim, five pesos for each
parcel of land affected thereby.
4. Lis Pendens, etc. For the annotation of a notice of lis

pendens, or of any document or order in connection therewith,
for each of land affected thereby, five pesos.
5. Release of encumbrance. For the annotation of a release

of any encumbrance, except mortgage, lease, or other lien for
the cancellation of which a specific fee is prescribed herein,
for each parcel of land so released, five pesos; but the total
1075
amount of fees to be collected shall not exceed the amount of

fees paid for the registration of such encumbrance.
6. Court Order. For the annotation of an order of the court

for the amendment of, or the making of a memorandum
on, a certificate of title, except inclusion of buildings or
improvements, or any order directing the registration of a
document, or of any right or interest referred to in said order,
or the cancellation of a certificate of title and/or the issuance
of a new one, ten pesos for each certificate of title on which the
annotation is made, in addition to the fees prescribed under
paragraphs sixteen or seventeen, as the case may be, of this
subsection, in the same are also due for the registration of
such document, right or interest.
7. Building. For the annotation of an order of the court for the

inclusion of building and/or improvement in a certificate of
title, ten pesos for each certificate of title.
8. Powers of attorney, letters of administration, appointment

of guardian, resolution or revocation thereof. For registering
and filing a power of attorney, letters of administration or
letters testamentary whether or not accompanied by a copy of
the testament, certificate of allowance of a will with attested
copy of the will annexed, appointment of guardian for a minor
or incompetent person, appointment of receiver, trustee, or
administrator, articles of incorporation of any corporation,
association or partnership, or resolution of its board of
directors empowering an officer or member thereof to act in
behalf of the same, twenty pesos; and for the annotation of
such papers on certificates of title when required by existing
laws or regulations, five pesos for each certificate of title so
annotated: Provided, however, that when the certificate of
allowance of a will and the letters testamentary or letters
of administration are filed together, only one fee shall be
collected. For registering an instrument of revocation of any
of the paper mentioned above, five pesos, and if annotated
1076
on the corresponding certificate of title, three pesos for each

certificate of title.
9. Notice of tax lien, loss, etc. For the annotation of a notice of

tax lien of any description notice of lost duplicate or copy of a
certificate of title, order of the court declaring such duplicate
or copy null and void, notice of change of address, or the
cancellation of any such annotation, for each certificate of
title, five pesos.
10. Carry over of annotation. For transferring the memorandum

of an encumbrance of any kind from one certificate of title
which is canceled to a new one in lieu thereof, for each
memorandum thus transferred, five pesos.
11. Annotation on additional copy of title. For any memorandum

made in a standing co-owner’s copy of a certificate of title after
a similar memorandum has been made in the original thereof,
of each certificate of title, five pesos.
12. No specific fee. For any memorandum made in a certificate

of title for which no specific fee is prescribe above, for each
certificate of title, five pesos.
13. Transfer to trustee, executor, administrator receiver. For

the issuance of a transfer certificate of title, including its
duplicate, to a trustee, executor, administrator, or receiver,
or for the cancellation of such certificate of title and issuance
of a new one, including its duplicate, to the cestui que trust
in case of trusteeship, ten pesos. If the certificate covers more
than one parcel or lot, an additional fee of five pesos shall be
collected for each additional parcel or lot.
14. Transfer certificate of title. For the issuance of a transfer

certificate of title, including its duplicate, to a person other
than those named in the next preceding paragraph, ten pesos,
in addition to the fees hereinafter prescribed in paragraph
sixteen or seventeen, as the case may be, of this subsection, if
1077
the same are also due. If the certificate covers more than one
parcel or lot, an additional fee of five pesos shall be collected
for each additional parcel or lot.
15. Additional copy of title. For the issuance of a new owner’s

duplicate or a co-owner’s copy of a certificate of title, or any
additional duplicate or copy thereof, ten pesos for the first page
and five pesos for each subsequent page, or fraction thereof.
16. Registration fee. For the registration of a deed of sale,

conveyance, transfer, exchange, partition, or donation; a deed
of sale with pacto de retro, conditional sale, sheriff’s sale at
public auction, sale for non-payment of taxes, or any sale
subject to redemption, or the repurchase or redemption of the
property so sold; any instrument, order, judgment or decree
divesting the title of the registered owner, except in favor
of a trustee, executor, administrator or receiver; option to
purchase or promise to sell; any mortgage, surety, bond, lease,
easement, right-of-way, or other real right or lien created or
constituted by virtue of a distinct contract or agreement, and
not as an incidental condition of sale, transfer or conveyance;
the assignment, enlargement, extension or novation of a
mortgage or of any other real right, or a release of mortgage,
termination of lease, or consolidation of ownership over a
property sold with pacto de retro; where no specific fee is
prescribed therefor in the preceding paragraphs, the fees
shall be based on the value of the consideration in accordance
with the following schedule:
(a) Six thousand pesos maximum. When the value of the

consideration does not exceed six thousand pesos, seven
pesos for the first five hundred pesos, or fractional part
thereof, and three pesos for each additional five hundred
pesos, or fractional part thereof.
(b) Thirty thousand pesos maximum. When the value of

the consideration is more than six thousand pesos but
does not exceed thirty thousand pesos, or fractional part
1078
thereof, and eight pesos for each additional two thousand

pesos, or fractional part thereof.
(c) One hundred thousand pesos maximum. When the

value of the consideration is more than thirty thousand
pesos but does not exceed one hundred thousand pesos,
one hundred fifty pesos for the first thirty-five thousand
pesos, or fractional part thereof, and fourteen pesos or
each additional five thousand pesos, or fractional part
thereof.
(d) Five hundred thousand pesos maximum. When the

value of the consideration is more than one hundred
thousand pesos but does not exceed five hundred thousand
pesos, three hundred fifty-two pesos for the first one
hundred ten thousand pesos, or fractional part thereof,
and twenty pesos for each additional ten thousand pesos,
or fractional part thereof.
(e) More than five hundred thousand pesos. When the value
of the consideration is more than five hundred thousand
pesos, one thousand one hundred sixty-two pesos for the
first five hundred twenty thousand pesos, or fractional
part thereof, and thirty pesos for each additional twenty
17. Fees for specific transactions. In the following

transactions, however, the basis of the fees collectible under
paragraph sixteen of this subsection, whether or not the value
of the consideration is stated in the instrument, shall be as
hereunder set forth:
(a) Exchange. In the exchange of real property the basis

of the fees to be paid by each party shall be the current
assessed value of the properties acquired by one party
from the other, in addition to the value of any other
consideration, if any, stated in the contract.
1079
(b) Hereditary transfer. In the transmission of an

hereditary estate without partition or subdivision of the
property among the heirs, devisees or legatees, although
with specification of the share of each in the value of the
estate, the basis shall be the total current assessed value
of the property thus transmitted.
(c) Partition of hereditary estate; Conjugal property. In

the partition of an hereditary estate which is still in the
name of the deceased, in which determinate properties
are adjudicated to each heir devisee or legatee, or to each
group of heirs, devisees or legatees, the basis of the fees
to be paid by each person or group, as the case may be,
shall be the total current assessed value of the properties
thus adjudicated to each person or group. In the case,
however, of conjugal property, the basis of the fees for
the registration of one-half thereof in the name of the
surviving spouse shall be the total current assessed value
of the properties adjudicated to said spouse.
(d) Subdivision or partition. In the partition of real

property held in common by several registered co-owner’s
the basis of the fees to be paid by each co-owner or group of
co-owners shall be the total assessed value of the property
taken by each co-owner or group.
(e) Conveyance: several lots and parties. In the sale,

conveyance or transfer of two or more parcels of land in
favor of two or more separate parties but executed in
one single instrument, the basis shall be the total selling
price paid by each party-buyer, or, in the case of lump
sum consideration, such portion thereof as apportioned in
accordance with the assessed value of the respective land
acquired by each party-buyer.
(f) Conveyance of properties in different places. In the sale,

conveyance, or transfer of properties situated in different
1080
cities or provinces, the basis of the fees in each Registry

of Deeds where the instrument is to be registered shall
be the total selling price of the properties situated in the
respective city or province, or, in the case of lump sum
consideration, such portion thereof as obtained for those
properties lying within the jurisdiction of the respective
registry after apportioning the total consideration of
the sale, conveyance or transfer in accordance with the
current assessed value of such properties.
(g) Conveyance of mortgaged properties. In the sale,

conveyance, or transfer of a mortgaged property, the basis
shall be the selling price of the property proper plus the
full amount of the mortgage, or the unpaid balance thereof
if the latter is stated in the instrument. If the properties
are situated in different cities or provinces, the basis of
the fees in each Registry of Deeds where the instrument
is to be registered shall be such sum as obtained for the
properties situated in the respective city or province after
apportioning in accordance with the current assessed
values of said properties the total amount of consideration
as above computed, unless the selling price of the
properties in each city or province and the proportionate
share thereof in the amount of unpaid balance of the
mortgage are stated in the instrument, in which case,
the aggregate of such selling price and share shall be the
basis. In any case, however, where the aggregate value of
the consideration as above computed shall be less than
the current assessed value of the properties in the city or
province concerned, such assessed value shall be the basis
of the fees in the respective Registry.
(h) Mortgage of properties in different places. In a

mortgage affecting properties situated in different cities
or provinces, the basis of the fees in each Registry of Deeds
where the document is to be registered shall be such
amount as obtained for the properties lying within the
1081
jurisdiction of said Registry after apportioning the total

amount of the mortgage in accordance with the current
assessed value of such properties.
(i) Release of mortgage. In the release of a mortgage

the basis of the fees shall be an amount equal to ten per
centum of the total amount of obligation secured by the
mortgage. If the properties are situated in different cities
or provinces, the basis of the fees in each Registry shall be
ten per centum of such sum as obtained for the properties
in the respective city or province after apportioning the
amount of the mortgage in accordance with the current
assessed values of such properties. In the case of a partial
release, the fees shall be based on ten per centum of the
current assessed value of the property so released in
the respective city or province; Provided, however, That
where several partial releases had been registered, the
fees corresponding to the final release shall be computed
on the basis of ten per centum of the difference between
the amount of the mortgage and the aggregate of the
consideration used as basis for the collection of the fees
paid for the registration of all previous partial releases.
(j) Certificate of sale. In a certificate of sale at public auction

by virtue of an order of execution or sale for delinquency
in the payment of taxes, or repurchase of the property so
sold, the basis of the fees in each Registry shall be ten per
centum of the selling or repurchase price of the property
lying within the jurisdiction of the Registry.
(k) Affidavit of consolidation of ownership. In an affidavit

for the consolidation of ownership over a property sold with
pacto de retro or pursuant to an extra judicial foreclosure
under the provisions of Act Numbered Thirty-one hundred
and thirty-five, as amended, the basis of the fees in each
Registry shall be an amount equivalent to ten per centum
of the consideration of the sale in the respective city or
province.
1082
(l) Contract of lease. In contracts of lease, the basis of the

fees in each Registry shall be the sum total to be paid by
the lessee for the properties situated in the respective
city or province during the entire period specified in the
contract, including the extension contemplated by the
parties which may be given effect without the necessity
of further registration. If the period is from year to year,
or otherwise not fixed, the basis shall be the total amount
of rentals due for thirty months. If the rentals are not
distributed, the total amount thereof as above computed
shall be apportioned to said properties in accordance with
their assessed values, and the proportionate sum thus
obtained for each city or province shall be the basis of the
fees to be collected in the Registry concerned.
(m) Termination of lease. In the termination of lease, the

basis of the fees in each registry shall be ten per centum of
the amount used as basis for the collection of the fees paid
for the registration of said lease.
(n) Option to purchase or promise to sell. In contracts of

option to purchase or promise to sell, the basis of the fees
in each Registry shall be ten per centum of the current
assessed value of the property subject of such contract in
the respective city or province.
(o) Consideration not stated or fixed or less than assessed

value. In other transactions where the actual value of
the consideration is not fixed in the contract or cannot
be determined from the terms thereof, or, in case of a
sale, conveyance, or transfer, the consideration stated is
less than the current assessed value of the property, the
basis of the fees shall be the current assessed value of the
property involved in the transaction. If the properties are
situated in different cities or provinces, the basis of the
fees in each Registry shall be the current assessed value of
the properties lying within the jurisdiction of the Registry
concerned.
1083
18. Issuance of copy of document. For furnishing copies of any

entry, decree, document, or other papers on file, fifty centavos
for each hundred words of fraction thereof contained in the
copies thus furnished.
19. Certified copy. For certifying a copy furnished under the

next preceding paragraph, for each certification, five pesos for
one page and one peso for each additional page certified.
20. Certification. For issuing a certificate relative to, or

showing the existence or non-existence of, an entry in
the registration books or a document on file, for each such
certificate containing not more than two hundred words, five
pesos; if it exceeds that number an additional fee of one peso
shall be collected for every hundred words, or fraction thereof,
in excess of the first two hundred words.
21. Research fee. For services rendered in attending to request

for reference or researches on any records or documents on
file in the Registry, there shall be collected two pesos per
document or record.
D. Fees payable to the Commissioner of Land Registration.

The fees payable to the Commissioner of Land Registration shall be
as follows:
1. For verification and approval of subdivision plans, the fee

shall be:
(a) For each lot ………………………………....................P2.00

For each corner of a lot, irrespective of
whether such corner is
(b) common to two or more lots …………........................ 0.20
(c) For each traverse station............................................ 0.10
(d) For each observation ………..…………………............ 0.50
(e) In case the plan is a resurveyed or relocation
plan an additional 40 per cent of the rates
prescribed above shall be collected.
1084
Provided, however, that the total fee as computed above,

whether for subdivision and/or consolidation-subdivision survey,
resurveyed or relocation plan, shall in no case be less than P8.00
per plan.
2. For changing or correcting the name of any person appearing

on the subdivision plan or other plan in order to have it
conform to that stated in the certificate of title covering the
land, and for the cancellation of an approved plan when so
requested by the interested party, there shall be a fee of P5.00
per plan.
3. The rates of fees prescribed in paragraph 1 and 2, inclusive,

shall apply to similar services rendered in connection with
the examination, verification, and approval of consolidation,
consolidation-subdivision, resubdivision, and reconsolidation
plans, special work order plans on the basis of certified copies
of technical descriptions of plans approved by the Land
Registration Commission or the Bureau of Lands, private
surveys, and other plans of similar nature.
In the computation of fees relative to lots subject of

consolidation and consolidation-subdivision plans, a fee of two
pesos shall be collected per lot as appearing in the old survey
in addition to the fee collectible in paragraph 1 hereof for the
new lots.
4. For the preparation of a plan in a tracing cloth of any

survey, the data of which are available in the Commission,
except when the same is merely traced from an existing plan,
the fees shall be computed as follows:
(a) When the plan to be so prepared contains only one lot:
1. For the first ten corners or fraction thereof......P40.00

2. For the next ten corners or fraction thereof ......... 6.00
3 For each corner in excess of the first
twenty corners ....................................................... 0.40
1085
(b) When the plan to be so prepared contains two or more

lots:
1. For the first lot, which must be the

biggest of the group, irrespective of the
number of its corner ..........................................P40.00
2. For each additional lot, irrespective of the
number of its corners, said lot being adjacent
to the first lot or any other lot............................P15.00
3. For each non-adjacent lot (other than
the first charged lot), irrespective of the
number of its corners..........................................P20.00
4. If any lot contains more than twenty
corners for each corner of such lot in the
first twenty corners...............................................P0.40
5. For the preparation of a plan in tracing cloth, to be traced

from an existing plan, complete with bearings and distances
of corners and tie lines, the fee shall be 30 per centum of the
fees prescribed in paragraph 4 above.
6. For the preparation of a plan in tracing cloth, to be copied

from an existing plan, complete with bearings and distances
of sides and tie-lines, but using a different scale, the fee shall
be 50 per centum of the fees prescribed under paragraph 4
above, if made on a reduced scale; or 60 per centum of the
same fees, if made on an enlarged scale.
7. For the preparation of a simple plan or sketch of any

available survey or plan on any paper other than a tracing
cloth, the fee on the basis of each lot, shall be as follows:
(a) For the first ten corners or fraction

thereof......................................................................P20.00
(b) For the second ten corners or fraction
thereof.......................................................................... 5.00
(c) For the third ten corners or fraction
thereof ......................................................................... 2.00
1086
(d) For each corner in excess of the first

thirty corners............................................................... 0.20
(e) If the sketch is prepared in tracing cloth, add
to the total fees as above computed........................... 5.00
(f) If the plan or sketch so prepared contains the
bearing and distances of the sides and tie-lines,
add to the total fees as above computed
10 per centum thereof.
8. For furnishing a plan copy (blue-print, or white print) of

any plan on file in the Commission, the fee shall be as follows:
(a) For the copy of any size not exceeding

forty square decimeters ...........................................P3.00
(b) For one copy of more than forty square
decimeters but not exceeding eighty square
decimeters in size........................................................ 6.00
(c) For one copy of more than eighty square
decimeters but not exceeding one hundred
twenty square decimeter in size ................................ 9.00
(d) For one copy in excess of one hundred twenty
square decimeters in size, the basis rate of
nine pesos plus for every twenty square
decimeters or fraction thereof in excess ................... 0.50
9. For the preparation of technical descriptions, other than

mere copying from an existing copy, there shall be collected
the following fees:
(a) For technical descriptions of lots or parcels,

typewritten in triplicate and double-spaced,
including certification:
1. For each lot ..........................................................P3.00
2. For each corner of a lot........................................... 0.20
3. For each extra carbon copy, extra charge.............. 0.20
4 Minimum total charge............................................ 3.00
1087
(b) For lot description prepared in tracing

cloth (on tabulated form) including certification:
1. For each sheet ......................................................P1.50
2. For each lot............................................................. 0.20
3. For each corner in excess of ten for a lot............... 0.10
(c Any common corner shall be counted as many
items as there are lots to which it pertains.
10. For certification of plans or copies of plans as to the

correctness of the same, per plan or print copy P3.00 and for
the issuance of all other certification P5.00 plus one 30-centavo
documentary stamp to be affixed thereto.
11. For inspection of land subject of private surveys, simple

or complex subdivision plans, or consolidation, consolidation-
subdivision, resubdivision, or reconsolidation plans, special
work orders, and other plans of similar nature for the purpose
of verification and/or approval:
(a) For each plan with an aggregate area of

1,000 sq. m. or less................................................P100.00
(b) For each subdivision with an aggregate area
of more than 1,000 sq. m.:
1. For the first 1,000 s.m...........................................P100.00
2. For every succeeding 1,000 sq. m. or
fraction thereof.......................................................... 10.00
12. For actual field work of subdivision survey, relocation

survey and resurveyed of land, the fees shall be as follows:
(a) Subdivision survey:
1. Rural (Agricultural)
Area Survey Fee

For the first hectare ………. P 350.00
For the 2nd ha. to 10th ha An additional 60.00 per ha.
For the 11th ha. to 20th ha. An additional P30.00 per ha.
1088
For the 21st ha. to 30th ha. An additional P20.00 per ha.
For the 31st ha. to 200th ha. An additional P10.00 per ha.
For the 201st ha. or over An additional P8.00 per ha.
A fraction of a hectare shall be considered one hectare.
2. Urban (Solar):
First 200 sq. m. or less ……… P350.00

Succeeding 201 sq. m. or more ……….. P20.00
(b) Relocation Survey or Resurveyed: 100 sq. m.
The fee for relocation survey or resurveyed shall be one

hundred fifty per cent (150%) of the amount of survey fee collectible
on the basis of the schedule of fees for subdivision survey as provided
in the preceding paragraph plus one per cent (1%) of the assessed
value of the land.
Special Account. Twenty per centum of all the collections of

the Registers of Deeds and of the Land Registration Commission
under this Section and Sections 118 and 116 of this Decree shall be
appropriated and upon approval of a budget for it by the Ministry of
the Budget, such amounts shall be disbursed and all offices under
the Land Registration Commission, for the purchase of necessary
equipment, for payment of allowances of officials and employees
of the Commission, including those of the Registries of Deeds, as
authorized by the Commissioner, for contracts regarding security
printing of Land title forms, for survey contracts, and for the
maintenance and other operating expenses of the Commission.
CHAPTER XII
FORMS USED IN LAND REGISTRATION AND

CONVEYANCING
SEC. 112. Forms in conveyancing. The Commissioner of

Land Registration shall prepare convenient blank forms as may be
1089
necessary to help facilitate the proceedings in land registration and

shall take charge of the printing of land title forms.
Deeds, conveyances, encumbrances, discharges, powers

of attorney and other voluntary instruments, whether affecting
registered or unregistered land, executed in accordance with law
in the form of public instruments shall be registerable: Provided,
that, every such instrument shall be signed by the person or persons
executing the same in the presence of at least two witnesses who
shall likewise sign thereon, and shall acknowledged to be the free
act and deed of the person or persons executing the same before
a notary public or other public officer authorized by law to take
acknowledgment. Where the instrument so acknowledged consists
of two or more pages including the page whereon acknowledgment
is written, each page of the copy which is to be registered in the
office of the Register of Deeds, or if registration is not contemplated,
each page of the copy to be kept by the notary public, except the page
where the signatures already appear at the foot of the instrument,
shall be signed on the left margin thereof by the person or persons
executing the instrument and their witnesses, and all the ages
sealed with the notarial seal, and this fact as well as the number of
pages shall be stated in the acknowledgment. Where the instrument
acknowledged relates to a sale, transfer, mortgage or encumbrance
of two or more parcels of land, the number thereof shall likewise be
set forth in said acknowledgment.
CHAPTER XIII
DEALINGS WITH UNREGISTERED LANDS
SEC. 113. Recording of instruments relating to unregistered

lands. No deed, conveyance, mortgage, lease, or other voluntary
instrument affecting land not registered under the Torrens system
shall be valid, except as between the parties thereto, unless
such instrument shall have been recorded in the manner herein
prescribed in the office of the Register of Deeds for the province or
city where the land lies.
1090
(a) The Register of Deeds for each province or city shall keep
a Primary Entry Book and a Registration Book. The Primary Entry
Book shall contain, among other particulars, the entry number, the
names of the parties, the nature of the document, the date, hour
and minute it was presented and received. The recording of the
deed and other instruments relating to unregistered lands shall be
effected by any of annotation on the space provided therefor in the
Registration Book, after the same shall have been entered in the
Primary Entry Book.
(b) If, on the face of the instrument, it appears that it is

sufficient in law, the Register of Deeds shall forthwith record the
instrument in the manner provided herein. In case the Register of
Deeds refuses its administration to record, said official shall advise
the party in interest in writing of the ground or grounds for his
refusal, and the latter may appeal the matter to the Commissioner
of Land Registration in accordance with the provisions of Section
117 of this Decree. It shall be understood that any recording made
under this section shall be without prejudice to a third party with
a better right.
(c) After recording on the Record Book, the Register of Deeds

shall endorse among other things, upon the original of the recorded
instruments, the file number and the date as well as the hour and
minute when the document was received for recording as shown
in the Primary Entry Book, returning to the registrant or person
in interest the duplicate of the instrument, with appropriate
annotation, certifying that he has recorded the instrument after
reserving one copy thereof to be furnished the provincial or city
assessor as required by existing law.
(d) Tax sale, attachment and levy, notice of lis pendens,

adverse claim and other instruments in the nature of involuntary
dealings with respect to unregistered lands, if made in the form
sufficient in law, shall likewise be admissible to record under this
section.
1091
(e) For the services to be rendered by the Register of Deeds

under this section, he shall collect the same amount of fees prescribed
for similar services for the registration of deeds or instruments
concerning registered lands.
CHAPTER XIV
REGISTRATION OF CHATTEL MORTGAGES
SEC. 114. Recording of chattel mortgages. A chattel mortgage

shall be recorded in the office of the Register of Deeds of the province
or city where the mortgagor resides as well as where the property is
situated or ordinarily kept.
SEC. 115. Manner of recording chattel mortgages. Every

Register of Deeds shall keep a Primary Entry Book and a Registration
Book for chattel mortgages; shall certify on each mortgage filed
for record, as well as on its duplicate, the date, hour, and minute
when the same was by him received; and shall record in such books
any chattel mortgage, assignment or discharge thereof, and any
other instrument relating to a recorded mortgage, and all such
instruments shall be presented to him in duplicate, the original to
be filed and the duplicate to be returned to the person concerned.
The recording of a mortgage shall be effected by making an

entry, which shall be given a correlative number, setting forth the
names of the mortgagee and the mortgagor, the sum or obligation
guaranteed, date of the instrument, name of the notary before
whom it was sworn to or acknowledged, and a note that the property
mortgaged, as well as the terms and conditions of the mortgage, is
mentioned in detail in the instrument filed, giving the proper file
number thereof. The recording of other instruments relating to a
recorded mortgage shall be effected by way of annotation on the
space provided therefor in the Registration Book, after the same
shall have been entered in the primary Entry Book.
The Register of Deeds shall also certify the officer’s return of

sale upon any mortgage, making reference upon the record of such
1092
officer’s return to the volume and page of the record of the mortgage,
and a reference of such return on the record of the mortgage itself,
and give a certified copy thereof, when requested, upon payment of
the legal fees for such copy thereof, when requested, upon payment
of the legal fees for such copy and certify upon each mortgage
officer’s return of sale or discharge of mortgage, and upon any
other instrument relating to such a recorded mortgage, both on
the original and in the duplicate, the date, hour, and minute when
the same is received for record and record such certificate index of
mortgagors and mortgagees, which record and index shall be open
to public inspection.
Duly certified copies of such records and of filed instruments

shall be receivable as evidence in any court.
SEC. 116. Fees for chattel mortgages, etc. The register of

Deeds shall collect the following fees for services rendered by him
under this section:
1. Entry fee. For entry or presentation of any document in

the Primary Entry Book, five pesos. Supporting papers presented
together with the principal document need not be charged any entry
or presentation fee unless the party in interest desires that they be
likewise entered.
2. Chattel Mortgage. For filing and recording each chattel

mortgage, including the necessary certificates and affidavits, the
fees established in the following schedule shall be collected:
(a) Six thousand pesos maximum. When the amount of the

mortgage does not exceed six thousand pesos, seven pesos for the
first five hundred pesos, or fractional part thereof, and three pesos
for each additional five hundred pesos, or fractional part thereof.
(b) Thirty thousand pesos maximum. When the amount of

the mortgage is more than six thousand pesos but does not exceed
thirty thousand pesos, forty-eight pesos for the initial amount not
1093
exceeding eight thousand pesos, and eight pesos for each additional
two thousand pesos or fractional part thereof.
(c) One hundred thousand pesos maximum. When the amount

of the mortgage is more than thirty thousand pesos but does not
exceed one hundred thousand pesos, one hundred fifty pesos for
the initial amount not exceeding thirty-five thousand pesos, and
fourteen pesos for each additional five thousand pesos of fractional
part thereof.
(d) Five hundred thousand pesos maximum. When the

amount of the mortgage is more than one hundred thousand pesos
but does not exceed five hundred thousand pesos, three hundred
fifty-two pesos for the initial amount not exceeding one hundred ten
thousand pesos and twenty pesos for each additional ten thousand
pesos or fractional part thereof.
(e) More than five hundred thousand pesos. When the amount
of the mortgage is more than five hundred thousand pesos, one
thousand one hundred sixty-two pesos for the initial amount not
exceeding five hundred twenty thousand pesos, and thirty pesos for
each additional twenty thousand pesos or fractional part thereof:
Provided, however, that registration of the mortgage in the province
where the property is situated shall be sufficient registration and
provided, further, that if the mortgage is to be registered in more
than one city or province, the Register of Deeds of the city or province
where the instrument is first presented for registration shall collect
the full amount of the fees due in accordance with the schedule
prescribed above, and the Register of Deeds of the other city of
province where the same instrument is also to be registered shall
collect only a sum equivalent to twenty per centum of the amount
of fees due and paid in the first city of province, but in no case shall
the fees payable in any Registry be less than the minimum fixed in
this schedule.
3. Conveyance of mortgaged property, etc. For recording

each instrument of sale, conveyance, or transfer of the property
1094
which is subject of a recorded mortgage, or of the assignment of

mortgage credit, the fees established in the preceding schedule
shall be collected on the bases of ten per centum of the amount of
the mortgage or unpaid balance thereof, provided, that the latter is
stated in the instrument.
4. Notice of attachment. For recording each notice of

attachment, including the necessary index and annotations, eight
pesos.
5. Release of mortgage. For recording such release of mortgage,

including the necessary index and references, the fees established
in the schedule under paragraph (b) above shall be collected on the
basis of five per centum of the amount of the mortgage.
6. Release of attachment. For recording each release of

attachment, including the proper annotations, five pesos.
7. Sheriff’s return of sale. For recording each sheriff’s return

of sale, including the index and references, seven pesos.
8. Power of attorney, appointment of guardian, administrator

or trustee. For recording a power of attorney, appointment of judicial
guardian, administrator, or trustee, or any other instrument in
which a person is given power to act in behalf of another in connection
with a mortgage, ten pesos.
9. No specific fee. For recording each instrument or order

relating to a recorded mortgage, including the necessary index and
references, for which no specific fee is provided above, five pesos.
10. Certified copy. For certified copies of records, such fees as

are allowed by law for copies kept by the Register of Deeds.
11. Certification. For issuing a certificate relative to, or

showing the existence or non-existence of an entry in the registration
book, or a document on file, for each such certificate containing not
1095
more than two hundred words, five pesos; if it exceeds that number,
an additional fee of one peso shall be collected for every one hundred
words or fractional part thereof, in excess of the first two hundred
words.
12. Research Fee. For services rendered in attending to

requests for references to, or researches on any document on file in
the Registry, there shall be collected a fee of two pesos per document.
CHAPTER XV
CONSULTAS
SEC. 117. Procedure. When the Register of Deeds is in doubt

with regard to the proper step to be taken or memorandum to be
made in pursuance of any deed, mortgage or other instrument
presented to him for registration, or where any party in interest
does not agree with the action taken by the Register of Deeds with
reference to any such instrument, the question shall be submitted
to the Commissioner of Land Registration by the Register of Deeds,
or by the party in interest thru the Register of Deeds.
Where the instrument is denied registration, the Register of

Deeds shall notify the interested party in writing, setting forth the
defects of the instrument or legal grounds relied upon, and advising
him that if he is not agreeable to such ruling, he may, without
withdrawing the documents from the Registry, elevate the matter
by consulta within five days from receipt of notice of the denial of
registration to the Commissioner of Land Registration.
The Register of Deeds shall make a memorandum of the

pending consulta on the certificate of title which shall be canceled
motu proprio by the Register of Deeds after final resolution or
decision thereof, or before resolution, if withdrawn by petitioner.
The Commissioner of Land Registration, considering the

consulta and the records certified to him after notice to the parties
1096
and hearing, shall enter an order prescribing the step to be taken or

memorandum to be made. His resolution or ruling in consultas shall
be conclusive and binding upon all Registers of Deeds, provided, that
the party in interest who disagrees with the final resolution, ruling
or order of the Commissioner relative to consultas may appeal to
the Court of Appeals within the period and in manner provided in
CHAPTER XVI
FINAL PROVISIONS
SEC. 118. Appropriation. There is hereby appropriated

initially the sum of TWELVE MILLION THREE HUNDRED FORTY
THOUSAND PESOS (P12,340,000.00) from the National Treasury
not otherwise appropriated for the implementation of this decree;
thereafter, said sum shall be added to the regular appropriation act
of every year.
SEC. 119. Postage exemption. No postage stamps or mailing

charges shall be required in all matters transmitted by the Land
Registration Commission or any of its Registry of Deeds in the
implementation of Sections 21, 40, 106, 118 and 117 of this Decree.
SEC. 120. Repealing clause. All laws, decrees, orders, rules

and regulations, or parts thereof, in conflict or inconsistent with
any of the provisions of this Decree are hereby repealed or modified
accordingly.
SEC. 121. Separability clause. In the event that any provision

of this Decree is declared unconstitutional, the validity of the
remainder shall not be affected thereby.
SEC. 122. Effectivity. This Decree shall take effect upon its
approval.
1097

By the President:
(Sgd.) JACOBO CLAVE

1098
MALACAÑANG
MANILA
AMENDING SECTION SIXTY-TWO OF REPUBLIC ACT

FORTY-FOUR, AS AMENDED, OTHERWISE KNOWN AS
THE CODE OF AGRARIAN REFORM OF THE PHILIPPINES
WHEREAS, the farmer-beneficiary who has fully paid the

cost of his farm and/or homelots to the Land Bank of the Philippines
under Section Sixty-two of Republic Act Numbered Three Thousand
Eight Hundred and Forty-Four, is legally enjoined from using said
property as collateral for loans to be obtained from public or private
lending institutions:
WHEREAS, under the existing provision, a farmer-beneficiary

who is still amortizing the cost of his land is better situated than a
beneficiary who has already paid in full the cost of the land for being
given an opportunity to secure loans and credit assistance thru the
use of the Certificate of Land Transfer (CLT) as collateral;
WHEREAS, the operative effects of such provision, besides

being iniquitous on the part of the farmer-beneficiary who has
fully paid for his land, could lead to a situation where a farmer
beneficiary would defer the full payment of the purchase price if
only to enable him to use his landholdings as collateral for any loan
that he intends to obtain thereby;

Constitution, do hereby order and decree;
SECTION 1. Section Sixty-two of Republic Act Numbered

Three Thousand Eight Hundred and Forty-four, as amended,
1099
otherwise known as the Code of Agrarian Reform of the Philippines,

“SEC. 62. Limitation of Land Rights. Except in hereditary

succession by one heir, landholding acquired under this Code shall
not be sold or transferred except in favor of the Government, valued
at its acquisition cost plus cost of improvements. Said landholding
may be mortgaged or encumbered in favor of any financing or
banking institution up to the original cost of acquisition thereof to
be guaranteed by the Samahang Nayon or duly recognized farmers
cooperative where the farmer is a full-pledged member; Provided,
That in case of default, the loan becomes immediately due and
demandable and the mortgagor is given a grace period of one year
within which to settle his obligation: Provided, Further, That in case
of non-payment within one year grace period, the landholding shall
be disposed of only in favor of the Government which shall endeavor
to substitute the defaulting farmer-beneficiary preferable with a
new one who does not own any land duly certified by the Ministry
of Agrarian Reform and who shall be subrogated to the rights and
shall assume the obligations of the replaced farmer-beneficiary,
subject, however, to the preferential, right of first refusal of the
other heirs of the latter: Provided, Further, That a purchaser who
acquired his landholding under a contract to sell from Land Bank,
or has been issued an Order of Award, may also secure a loan from
any financing or banking institution in an amount not exceeding his
equity on said landholding.
1100
Done in the City of Manila, this 16th day of January, in the

year of Our Lord, nineteen hundred and eighty-one.

By the President:

PD 1817 amended RA 3844 (sec. 62).
1101
MALACAÑANG
MANILA

`
AUTHORIZING AN ADJUSTMENT OF THE FUNDING SUPPORT
OF THE PHILIPPINE COCONUT AUTHORITY AND
INSTITUTING A PROCEDURE FOR THE MANAGEMENT
OF SUCH FUND
WHEREAS, the Philippine Coconut Authority (PCA) was

created to implement and attain the declared national policy of
promoting the rapid integrated development and growth of the
coconut and other palm oil industry in all its aspects;
WHEREAS, historically, the defunct Philippine Coconut

Administration (PHILCOA) received no regular government
financial support and had to depend on the coconut industry for
its operational budget, and similarly, the PCA ever since its
creation relied mainly on its share of the CCSF assessment/levy
collections which accounts for ninety percent (90%) of its budgetary
requirements;
WHEREAS, the fluctuation in the world market prices

of coconut products which accounts for the impermanence of the
levy necessitates the provision of a continuing and self-sustaining
funding system to support the operations of PCA;
WHEREAS, from the beginning, it has been the intention of

the law pursuant to Section 13, Chapter VI of Republic Act No. 1145
and Section 3(k), Article II of P.D. 1468, that PCA derive support
from the coconut industry;
WHEREAS, the authorized amount of support from the

industry has remained unchanged since 1954, and in view of the
1102
expanded functions and responsibilities of PCA, public interest

and welfare dictate that an immediate adjustment of the industry
support be made in order to provide this agency with adequate
financial means and resources to more effectively carry out its task;

me by the Constitution and laws, do hereby decree and order the
following:
SECTION 1. The PCA fee imposed and collected pursuant to

the provisions of R.A. No. 1145 and Sec. 3(k), Article II of P.D. 1468,
is hereby increased to three centavos per kilo of copra or husked
nuts or their equivalent in other coconut products delivered to and/
or purchased by copra exporters, oil millers, desiccators and other
end-users of coconut products. The fee shall be collected under such
rules that PCA may promulgate, and shall be paid by said copra
exporters, oil millers, desiccators, and other end-users of coconut
products, receipt of which shall be remitted to the National Treasury
on a quarterly basis.
SEC. 2. The receipt and process of all collections pursuant to

Section 1 hereof, shall be utilized exclusively for the operations of the
Philippine Coconut Authority and shall be released automatically
by the National Treasury upon approval by the PCA Governing
Board of its budgetary requirements, as an exception to P.D. 1234
and the budgetary processes provided in P.D. 1177, as amended.
SEC. 3. All laws, decrees, orders, letters of instructions, rules

and regulations or portions thereof contrary to the provisions of this
Decree are hereby deemed repealed or amended accordingly.
1103
Done in the City of Manila this 21st day of December, in the

year of our Lord nineteen hundred and eighty-two.

By the President :
(Sgd.) JOAQUIN T. VENUS, JR.

Deputy Presidential Executive Assistant
1104
MALACAÑANG
MANILA
TO FURTHER ENCOURAGE THE PRODUCTION OF RICE, CORN

AND OTHER PRIORITY CROPS
WHEREAS, self-sufficiency in food and other agricultural

food commodities is a primary concern of the state;
WHEREAS, in line with the agricultural production program

of the government, it is necessary to provide incentives for the
production of rice, corn and other priority crops to the entire
agricultural sector to encourage participation in the production
of such crops by devoting uncultivated lands or lands planted to
crops other than rice and corn to the production of these vital food
commodities;
WHEREAS, it is also necessary to allay the underlying fear

on the part of the landowners that lands which are planted to crops
other than rice or corn but shifted to the production of rice, corn and
other priority crops will be covered by the land transfer program
under P.D. 27;

Constitution, do hereby order and decree as follows:
SECTION 1. Any private agricultural land, whether classified

as landed estate or not, presently idle or devoted to crops other
than rice or corn but suited to the production of rice, corn and
other priority crops, which may now or hereafter be planted to or
intercropped with rice, corn and other priority crops shall not be
covered by the land transfer program as embodied in P.D. 27, as
amended.
1105
SEC. 2. For purposes of implementing this Decree, the Ministry

of Agriculture and Food shall certify as to the previous planting of
all affected lands and the shift to the hereinabove designated crops.
SEC. 3. The Ministry of Agrarian Reform and the Ministry

of Agriculture and Food shall jointly promulgate such rules and
regulations as may be necessary to implement this Decree.
of Our Lord, nineteen hundred and eighty-four.

By the President :

1106
EXECUTIVE ISSUANCES – EXECUTIVE ORDERS
Executive Orders
1107
1108
MALACAÑANG
MANILA
BY THE PRESIDENT OF THE PHILIPPINES
EXECUTIVE ORDER NO. 8, s. 2001
ESTABLISHING THE OFFICE OF THE PRESIDENTIAL ADVISER

ON AGRICULTURAL MODERNIZATION UNDER THE
OFFICE OF THE PRESIDENT
WHEREAS, the administration of President Gloria

Macapagal-Arroyo has declared agriculture modernization founded
on social equity as among the main components to win the battle
against poverty within the decade;
WHEREAS, there is an urgent need for all government

agencies relevant to agricultural modernization to program their
activities toward such end;
WHEREAS, there is a need for a coordinating body that shall

coordinate, on behalf of the President, the thrust of agricultural
modernization;
WHEREAS, under the Administrative Code of 1987, the

President has the continuing authority to reorganize the Office of
the President;
NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO,

President of the Republic of the Philippines, by virtue of the powers
vested in me by law, do hereby establish the Office of the Presidential
Adviser on Agricultural Modernization (OPAAM) under the Office
of the President and provide the necessary funds.
SECTION 1. Functions of OPAAM. — The OPAAM shall have

the following functions:
1109
a) Monitor and recommend policies, programs and other

measures relating to agricultural modernization;
b) Unify and converge plans and programs of the different

government agencies involved in activities related to agricultural
modernization;
c) Consolidate and submit periodic reports to the President on

the status of agricultural modernization programs; and
d) Perform other functions to attain the objective of agricultural

modernization as the President my direct.
SEC. 2. Organization of the OPAAM. — The OPAAM shall

be headed by a Presidential Adviser on Agricultural Modernization
with a Cabinet rank. It shall have a staff which will function
under the supervision and control of the Presidential Adviser on
Agricultural Modernization.
SEC. 3. Coordination with relevant agencies. — The OPAAM

shall coordinate with the following agencies for policy and program
coordination relating to agricultural modernization, namely:
1. Department of Agriculture (DA)

2. Department of Agrarian Reform (DAR)
3. Department of Science and Technology (DOST)
4. Department of Trade and Industry (DTI)
5. Department of the Interior and Local Government (DILG)
6. Commission on Higher Education (CHED)
7. Department of Public Works and Highways (DPWH)
8. Department of Transportation and Communication (DOTC)
9. Such other offices as the President may designate.
SEC. 4. Appropriation of Funds. — The Office of the President

shall release funds for the organization of the OPAAM and for its
initial operations. Henceforth, funds sufficient to carry out the
functions and objectives of the OPAAM shall be appropriated every
fiscal year in the General Appropriations Act.
1110
SEC. 5. Repealing Clause. — All executive issuances, orders,

rules and regulations which are inconsistent with any provision
of this Executive Order are hereby revoked, amended or modified
accordingly.
SEC. 6. Effectivity. — This Executive Order shall take effect

immediately.
City of Manila, March 26th 2001.

By the President:
(Sgd.) RENATO S. DE VILLA

Executive Secretary
1111
MALACAÑAN PALACE
MANILA

INDIGENOUS PEOPLES FROM THE DEPARTMENT OF
THE ENVIRONMENT AND NATURAL RESOURCES TO
THE OFFICE OF THE PRESIDENT OF THE PHILIPPINES
WHEREAS, Republic Act No. 8371, otherwise known as

the “Indigenous Peoples Rights Act”, approved on 29 October
1997, created the National Commission on Indigenous Peoples,
an independent agency under the Office of the President, as the
primary government agency that will formulate and implement
policies, plans and programs to promote and protect the rights and
well-being of the Indigenous Cultural Communities/Indigenous
Peoples and recognize their ancestral domains as well as their
rights thereto;
WHEREAS, Executive Order No. 364 dated 27 September

2004, as amended, placed the National Commission on Indigenous
Peoples under the Department of Agrarian Reform to consolidate in
said department all concerns regarding asset reform which cover,
among others, ancestral domain reform;
WHEREAS, Executive Order No. 726 dated 23 May 2008

transferred the National Commission on Indigenous Peoples to
the Department of Environment and Natural Resources to help
preserve the cultural and natural heritage of Indigenous Cultural
Communities/Indigenous People;
WHEREAS, Executive Order No. 746 dated 01 August 2008

temporarily transferred the National Commission on Indigenous
Peoples to the Office of the President for a period of six (6) months
because of developments in the local and international socio-political
1112
landscape at that time which required priority attention from the

highest government authorities;
WHEREAS, the National Commission on Indigenous Peoples

later reverted back to the Department of Environment and Natural
Resources and is now under said department;
WHEREAS, there is an urgent need to clearly define

the administrative attachment of the National Commission on
Indigenous Peoples in keeping with the legislative intent, address
the needs and aspirations of the Indigenous Cultural Communities/
Indigenous Peoples with regards to their rights and welfare by the
highest officials of the land, and ensure consistency in policies,
programs, project coordination and implementation;
WHEREAS, Section 17, Article VII of the Constitution

provides that the President shall have control of all the executive
departments, bureaus and offices and shall ensure that all laws be
faithfully executed;
WHEREAS, Section 31 (2) and (3), Chapter 10, Title III, Book
III of the Administrative Code of 1987 grants the President the
continuing authority to reorganize the administrative structure of
the Office of the President and for this purpose, transfer functions
and agencies to the Office of the President from other departments
or agencies.
NOW, THEREFORE, I, BENIGNO S. AQUINO III, President

of the Philippines, by virtue of the powers vested in me by law, do
hereby order:
SECTION 1. Transfer. – The National Commission on

Indigenous Peoples (NCIP) is hereby transferred from the
Department of Environment and Natural Resources to the Office
of the President to ensure concerted efforts in formulating and
implementing policies, programs and projects geared towards the
protection and promotion of the rights and welfare of Indigenous
Cultural Communities/Indigenous Peoples.
1113
SEC. 2. Repealing Clause. – All other executive issuances,

orders, rules, regulations or parts thereof inconsistent with the
provisions of this Executive Order are hereby repealed or modified
accordingly.
SEC. 3. Effectivity. – This Executive Order shall take effect

immediately upon publication in a newspaper of general circulation.
DONE in the City of Manila, this 8th day of November in the

year of Our Lord, Two Thousand and Ten.

By the President:
(Sgd.) PAQUITO N. OCHOA, JR.

Executive Secretary
1114
MALACAÑANG
MANILA
PROVIDING FOR THE CREATION OF THE PRESIDENTIAL

COMMISSION TO FIGHT POVERTY
WHEREAS, mass poverty is the principal problem confronting

the nation today, underpinning many national problems and
challenges and affecting the great majority of the population;
WHEREAS, the Constitution explicitly mandates in its

declaration of principles and state policies that “the State shall
promote a just and dynamic social order that will . . . free the
people from poverty through policies that provide adequate social
services, promote full employment, a rising standard of living, and
an improved quality of life for all”;
WHEREAS, there is need to formulate a comprehensive

program to address the poverty problem and design innovative
ways to solve it;
WHEREAS, the government has committed itself to

measurable targets and accomplishments in combatting the poverty
problem;
WHEREAS, there is a need for well organized interventions

that will empower the poor so that they can exercise a more vital
role in their development and in the formulation of public policy;
WHEREAS, there is a need for a body which shall gather

under one umbrella all government activities designed to help our
poor households and communities to catch up with more progressive
ones;
1115
WHEREAS, to address poverty, the body should undertake

three main types of intervention: ensure the delivery of basic social
services to the poorest communities and to make sure that every
poor family has a decent minimum of health, nutrition, housing
and education; ensure that the poor gain access to agrarian reform,
skills training and extension services that will open livelihood
opportunities and jobs to them; help poor communities organize
cooperatively — to empower them to take a greater role in their
development and to make their voices heard in the making of public
policy;
WHEREAS, efficient intervention requires ensuring access to

and ownership of resource and capability building.
NOW, THEREFORE, I, FIDEL V. RAMOS, President of the

Republic of the Philippines, by virtue of the sovereign will of the
Filipino people and the powers vested in me by the laws of the land,
do hereby order:
SECTION 1. The Commission. — There is hereby created

under the Office of the President, a Presidential Commission to
Fight Poverty, hereinafter referred to as the Commission, which
shall oversee all government activities on poverty alleviation to
ensure pro-poor bias, focus on the poorest of the poor and most
needed services, and accelerated implementation of government
programs and projects.
SEC. 2. Composition. — The Commission shall be composed

of the following:
a) Executive Secretary or his designated Deputy;
b) Secretary of Social Welfare and Development;
c) Secretary of Interior and Local Government;
d) Secretary of Budget and Management;
1116
e) Director-General of the National Economic Development

Authority; and
f) Three (3) representative from the private sector, to be

appointed by the President.
The President shall designate the Chairman from among

members of the Commission.
SEC. 3. Functions. — The Commission shall have, among

others, the following functions:
a) Prepare a blue print of action that shall embody the

Administration’s poverty alleviation framework and translate this
into short, medium and long-term targets. This shall reflect the
priority action areas of the Administration;
b) Monitor the implementation and impact of government

poverty alleviation programs, projects and activities;
c) Coordinate and integrate government poverty alleviation

efforts;
d) Review and evaluate the level of performance of concerned

agencies and activities;
e) Prod and facilitate the implementation of poverty alleviation

activities;
f) Communicate to the public government’s poverty alleviation

activities and its impact;
g) Provide the support and assistance needed by local

government units to ensure that they deliver the basic services to
their respective constituencies;
h) Ensure that all government pro-poor programs build the

capability of our people to be empowered and to be self-reliant.
1117
SEC. 4. Implementing Agencies. — All existing programs and

projects shall continue to be implemented by concerned agencies.
The Commission shall call on any government agencies/bodies as
it may deem necessary. It may set up task forces/mechanisms to
address specific poverty issues.
SEC. 5. Technical/Administrative Support. — The Presidential

Management Staff in coordination with the Presidential Commission
on Urban Poor shall provide the technical and administrative
support to the Commission.
SEC. 6. Monitoring Arm. — The Presidential Action Center

shall be the monitoring arm of the Commission on the government’s
pro-poor programs.

immediately.
DONE, in the City of Manila, this 15th day of August, in the

year of our Lord, Nineteen Hundred and Ninety-two.

By the President:
(Sgd.) DIONISIO C. DE LA SERNA

Sr. Deputy Executive Secretary
1118
MALACA ÑANG
MANILA
PROVIDING OPPORTUNITIES FOR THE DEVELOPMENT

OF BENEFICIARIES UNDER THE COMPREHENSIVE
LAND REFORM PROGRAM TO BECOME PRODUCTIVE
ENTREPRENEURS, PROVIDING THE MECHANISM
THEREFOR AND FOR OTHER PURPOSES
WHEREAS, the State has launched numerous indispensable

programs, projects, incentives and facilities for the realization of the
desired agrarian reform;
WHEREAS, the State, thru these undertakings, has envisioned

that Comprehensive Agrarian Reform Program beneficiaries shall
become independent entrepreneurs of the lands conveyed to them
and ultimately serve as the basis of Philippine agriculture;
WHEREAS, it has been observed that despite all these efforts

and lapse of time, holders of Certificate of Land Ownership Awards
have not freed themselves totally from the bondage of poverty and
dependence from government subsidies;
WHEREAS, the State has now pinpointed that the monstrous

impediment to the attainment of the desired objectives is the
non-acceptability by financial institutions of the lands covered
by Certificate of Land Ownership Award as collateral to secure
agricultural loans applied for by their registered owners;
WHEREAS, allowing them to use their Certificate of Land

Ownership Awards as collateral with the lending institutions
will make them invulnerable from “loan sharks” and thereby
transforming them into productive partners of the government;
1119
NOW, THEREFORE, I, JOSEPH EJERCITO ESTRADA,

President of the Philippines, by virtue of the powers vested in me by
law, do hereby order:
SECTION 1. Acceptability as Loan Collateral. Lands covered

by Certificate of Land Ownership Award shall now be accepted
as collateral to secure loans by their registered owners, with the
consent of the farmers cooperative to which he is a member, with
the government financial institutions, as well as, with the private
financial institutions: Provided, That the loan proceeds shall be used
exclusively in the furtherance of the agricultural productivity of the
land and related activities: Provided, further, That the foreclosure
of the lands provided herein shall, upon failure of the mortgagor to
redeem the same within the period allowed by law, be redeemed
by the farmers cooperative to which the mortgagor is a member:
Provided, furthermore, That in case of default of said cooperative,
the same may be redeemed by any neighboring cooperatives or
qualified beneficiaries under the Comprehensive Agrarian Reform
Program: Provided, finally, That when the foreclosure of the
mortgaged property took place after the lapse of the prohibitory
period provided for under Section 27 of the Republic Act No. 6657,
the same may be sold to auction to any qualified person, natural or
juridical, to own a land.
SEC. 2. Loan Value. Holders of Certificate of Land Ownership

Award availing of the benefits provided for under this Executive
Order shall be allowed the maximum loan value provided for under
Republic Act No. 337, as amended.
SEC. 3. Monitoring of Loan Proceeds. The concerned financial

institution, for monitoring purposes, shall notify the Department of
Agrarian Reform to ensure that the loan proceeds obtained herein
shall be used solely for the productivity of the land and related
activities.
SEC. 4. Penalty for Violations. The deviation by the mortgagor

in the use of the loan proceeds obtained herein shall give rise for
the aforesaid farmers cooperative to take over the cultivation
1120
and management of the land subject of mortgage until the said

cooperative has recovered the amount of loan, necessary expenses
relative thereto, and a management fee of five (5%) percent of the
produced of the land.
SEC. 5. Call on the Monetary Board. In order to realize the

desired objectives of this Executive Order, the Monetary Board is
hereby called upon to exempt the lands covered by the Certificate of
Land Ownership Award from its authority in reducing the maximum
loan ratios of the lands used as collateral to secure a loan.
SEC. 6. Repealing Clause. All Executive Order, issuances,

rules and regulations, or parts thereof, inconsistent with the
accordingly.
SEC. 7. Effectivity. This Executive Order shall take effect

immediately.
DONE in the City of Manila, this 23rd day of September, in

the year of Our Lord, Nineteen Hundred and Ninety-Eight.
(Sgd.) JOSEPH EJERCITO ESTRADA
By the President:
(Sgd.) RONALDO B. ZAMORA

Executive Secretary
1121
MALACAÑAN PALACE
MANILA
WHEREAS, poverty reduction, resource conservation and

protection, productivity enhancement, climate change mitigation
and adaptation, are among the priority programs of the government;
WHEREAS, there is a need to consolidate and harmonize all

greening efforts such as Upland Development Program, Luntiang
Pilipinas and similar initiatives of the government, civil society and
private sector under a National Greening Program;
WHEREAS, the Department of Environment and Natural

Resources (DENR) is the primary agency responsible for the
conservation, management, development and proper use of the
country’s environmental and natural resources;
WHEREAS, the Department of Agriculture (DA) is the lead

agency to boost farmers’ income and reduce poverty in the rural
sector;
WHEREAS, the Department of Agrarian Reform (DAR)

is the lead agency in the implementation of agrarian reform and
sustainable rural development programs;
WHEREAS, the DA, DENR, DAR pursuant to Joint

Memorandum Circular No. 1 series 2010 have adopted a Convergence
Initiative to integrate and strengthen development framework
between and among national government, local government agencies
and other stakeholders, wherein complementary human, physical
and financial resources are efficiently and effectively deployed;
WHEREAS, Executive Order No. 23 series 2011 has mandated

the DA-DAR-DENR Convergence Initiative to develop a National
1122
Greening Program in cooperation with the Department of Education

(DepEd), Commission on Higher Education (CHED), Department of
Social Welfare and Development (DSWD), Department of Budget
and Management (DBM), private sector and other concerned
agencies and institutions.

hereby order and declare the implementation of a National Greening
Program (NGP) as a government priority.
SECTION 1. Declaration of Policy. It is the policy of the State

to pursue sustainable development for poverty reduction, food
security, biodiversity conservation, and climate change mitigation
and adaptation.
SEC. 2. Coverage. The National Greening Program shall

plant some 1.5 Billion trees covering about 1.5 Million hectares for
a period of six (6) years from 2011 to 2016, in the following lands of
the public domain:
2.1 Forestlands
2.2 Mangrove and protected areas
2.3 Ancestral domains
2.4 Civil and military reservations
2.5 Urban areas under the greening plan of the LGUs
2.6 Inactive and abandoned mine sites; and
2.7 Other suitable lands
All other greening efforts of the private sector and civil society
shall be harmonized under the NGP.
1123
SEC. 3. Strategies. In order to ensure the successful

implementation of the NGP, the following strategies shall be
adopted:
3.1 Social Mobilization
3.1.1 All students, identified by the DepEd and CHED and

all government employees shall be individually required to plant
a minimum of ten (10) seedlings per year in areas determined by
the Convergence Initiative. Private sectors and civil society groups
shall likewise be encouraged to participate in the NGP.
3.1.2 With appropriate assistance from the government

and the private sector, the Peoples’ Organizations (POs) shall be
given the primary responsibility of maintaining and protecting the
established plantations.
3.2 Harmonization of Initiatives
3.2.1 All tree planting initiatives such as the Upland

Development Program, Luntiang Pilipinas and similar activities of
the government, private sector, LGUs and the civil society shall be
harmonized under the NGP.
3.2.2 All government institutions, especially DA, DAR, DENR,

CHED and DepEd shall produce appropriate quality seedlings
annually for the NGP. Technical assistance shall be provided by
DA, DENR, and DAR under the Convergence Initiative.
3.3 Provision of Incentives
3.3.1 All proceeds from agroforestry plantations, duly

accounted by the DENR, shall accrue to the NGP beneficiary
communities to address food security and poverty reduction.
3.3.2 NGP beneficiary communities shall be considered

priority in the Conditional Cash Transfer (CCT) Program.
1124
3.3.3 Appropriate incentives shall be developed by the

Convergence Initiative to encourage rainforestation, particularly
in the protected area.
3.4 Monitoring and Management of Database
3.4.1 The DA, DAR, DENR, shall develop a centralized

database and provide regular monitoring and timely report on the
progress of the NGP.
3.4.2 The Convergence Initiative shall engage the private

sector, civil society and academe in the monitoring and evaluation
of the NGP.
SEC. 4. Oversight Committee and Lead Agency. The members

of the Steering Committee under the DA-DAR-DENR Convergence
Initiative shall constitute the NGP Oversight Committee, to be
chaired by the DENR. The DENR shall be the lead agency for the
NGP.
SEC. 5. Partner Agencies/Stakeholders. The NGP shall

be implemented in partnership with the following agencies/
stakeholders, whose responsibilities shall include but not limited to
the following:
5.1 DA-DAR-DENR
5.1.1 Nursery establishment and seedling production
5.1.2 Site identification and site preparation
5.1.3 Social mobilization
5.1.4 Tree planting
5.1.5 Monitoring and evaluation
5.1.6 Technical support and extension services
1125
5.1.7 Provision of certified seeds of agronomic crops
5.1.8 Provision of access roads and trails to planting site
5.1.9 Provision of post harvest and processing facilities
5.1.10 Technical assistance in product development and

marketing
5.2 Department of Education (DepEd)/Commission on

Higher Education (CHED)
5.2.1 Student mobilization
5.2.2 Nursery establishment, seedling production and tree

planting
5.2.3 Information, Education and Communication
5.2.4 Provision of extension services
5.2.5 Monitoring and evaluation
5.3 Department of Social Welfare and Development (DSWD)
5.3.1 Provision of Conditional Cash Transfer to NGP

beneficiaries
5.3.2 Social mobilization
5.4 Department of Budget and Management (DBM)
5.4.1 Allocation of funds for all activities of the NGP
5.5 Department of Interior and Local Government (DILG)
5.5.1 Provision of transportation, security and fire protection

amenities
1126
5.6 Local Government Units (LGUs)
5.6.1 Establishment of nurseries and production of planting

materials
5.6.2 Development of greening plan for urban and suburban

areas
5.6.3 Lead the establishment of communal tree farms for

firewood and other domestic uses
5.6.4 Construction of access roads and trails to the planting

sites
5.6.5 Provision of medical support
5.6.6 Technical assistance and extension of services
5.7 Department of Health (DOH)
5.7.1 Provision of transportation and medical support
5.8 Department of Public Works and Highways (DPWH)
5.8.1 Provision of transportation in the hauling of seedlings

and volunteer planters
5.8.2 Assistance in the construction of access roads and trails

to the planting sites
5.9 Department of Transportation and Communications

(DOTC)
5.9.1 Provision of transport for participants
5.9.2 Provision of communication facilities
1127
5.10 Department of National Defense (DND)
5.10.1 Nursery establishment and seedling production
5.10.2 Site preparation
5.10.3 Provision of transportation support
5.10.4 Provision of security
5.11 Department of Science and Technology (DOST)
5.11.1 Development and transfer of appropriate technologies
5.12 Department of Justice (DOJ)
5.12.1 Nursery establishment and production of planting

materials
5.12.2 Provision of transportation
5.13 National Commission on Indigenous Peoples (NCIP)
5.13.1 Mobilization of participation of indigenous peoples
5.13.2 Identification of sites for NGP inside ancestral domains
5.13.3 Supervision of forest protection activities inside

ancestral domains
5.14 Technical Education and Skills Development Authority

(TESDA)
5.14.1 Technical assistance in products development
1128
5.15 Philippine Amusement and Gaming Corporation

(PAGCOR)
5.15.1 Provision of funds for seedling production and other

related activities of the NGP
5.16 All other government agencies, instrumentalities,

including government-owned and controlled corporations (GOCCs),
state universities and colleges (SUCs), shall provide full support
and assistance to the NGP.
SEC. 6. Implementing Guidelines. All participating agencies/

institutions, within fifteen (15) days from the date of this Executive
Order, shall issue their respective guidelines to implement the
NGP, copy furnished the NGP Oversight Committee.
SEC. 7. Funding Mechanisms. Funds needed for the

implementation of the NGP for the current year shall be provided by
the DBM and funding for the succeeding years shall be incorporated
in the regular appropriation of participating agencies.
SEC. 8. Separability Clause. Any portion or provision of this

Executive Order that maybe declared unconstitutional shall not
have the effect of nullifying other provisions hereof, as long as such
remaining portions can still subsist and can be given effect in their
entirety.
SEC. 9. Repealing Clause. All rules and regulations and

other issuances or parts thereof, which are inconsistent with this
Executive Order, are hereby repealed or modified accordingly.

immediately upon its publication in a newspaper of general
circulation.
1129

year of our Lord, Two Thousand and Eleven.

By the President:

Executive Secretary
1130
MALACAÑAN PALACE
MANILA
STRENGTHENING THE PRESIDENTIAL COMMISSION FOR

THE URBAN POOR
WHEREAS, Section 10, Article XIII of the 1987 Constitution

provides that “Urban or rural poor dwellers shall not be evicted nor
their dwellings demolished, except in accordance with law and in a
just and humane manner;”
WHEREAS, on 29 September 2011, the Commission on

Human Rights (CHR) issued an “Advisory on the Right to Adequate
Housing and Humane Treatment of Informal Settlers;”
WHEREAS, Executive Order (EO) No. 82 (s. 1986), as

amended, created the Presidential Commission for the Urban Poor
(PCUP) under the Office of the President (OP) to coordinate the
speedy implementation of government policies and programs for the
urban poor;
WHEREAS, Administrative Order (AO) No. 111 (s. 1989)

directed concerned government departments, agencies and offices
to coordinate with PCUP and actively participate in tri-sectoral
dialogues and activities concerning the urban poor;
WHEREAS, Republic Act (RA) No. 7279 otherwise known

as the “Urban Development and Housing Act (UDHA) of 1992,”
requires local government units (LGUs), in coordination with PCUP,
to afford program beneficiaries an opportunity to be heard and to
participate in the decision-making process over matters involving
the protection and promotion of their collective interests;
1131
WHEREAS, Section 28 of RA No. 7279 and its implementing

rules and regulations uphold the constitutionally-guaranteed rights
of the homeless and underprivileged citizens;
WHEREAS, EO No. 152 (s. 2002), as amended by EO No.

708 (s. 2008), directed PCUP to monitor all demolition and eviction
activities involving the homeless and underprivileged citizens;
WHEREAS, there is a need to strengthen the mandate of

PCUP to achieve the strict observance of the law and the Ten-Point
Covenant of the President with the urban poor;
WHEREAS, EO No. 364 (s. 2004) placed PCUP under the

supervision and control of the Department of Land Reform (DLR),
now known as the Department of Agrarian Reform (DAR) by virtue
of EO No. 456 (s. 2005). However, the concerns of the urban poor
go beyond undertaking a continuing program of land reform and
housing and shall therefore include the totality of all factors for
decent living and support services designed to alleviate the plight of
the urban poor; and
WHEREAS, Section 31, Chapter 10, Title III, Book III of the
Administrative Code of 1987 provides for the continuing authority
of the President to reorganize the administrative structure of the
OP.

of the Philippines, by virtue of the power vested in me by the
Constitution and existing laws, do hereby order:
SECTION 1. Transfer of PCUP to the OP. The PCUP shall

be transferred to the OP to effectively coordinate, formulate, and
evaluate policies and programs concerning the urban poor.
SEC. 2. Social Preparation Activities. The PCUP shall

undertake social preparation activities related to asset reform,
human development and basic social services, employment and
1132
livelihood, and other programs of the government for the urban

poor.
SEC. 3. Representation in HUDCC, Key Shelter Agencies

(KSAs) and in Local Housing Boards. The PCUP shall participate in
policy discussions relating to the urban poor in board meetings of the
Housing and Urban Development Coordinating Council (HUDCC),
key shelter agencies (KSAs), Local Housing Boards (LHB) or other
similar bodies.
SEC. 4. Institutional Arrangements and Support. (1) The

PCUP, HUDCC, Department of Social Welfare and Development
(DWSD), Department of Justice (DOJ), Department of the Interior
and Local Government (DILG) and the National Anti-Poverty
Commission (NAPC), in coordination with the CHR, shall jointly
formulate the necessary operational mechanisms and guidelines to
ensure strict compliance with Section 28 of RA No. 7279, as well as
the implementation of the provisions of this Order, within forty-five
(45) days from the issuance hereof.
(2) All other heads of departments, agencies, bureaus, and

offices, including government-owned or controlled corporations, as
well as local government units, civil society or people’s organizations,
shall render full assistance and cooperation and provide such other
information and data as may be required to carry out its functions
pursuant to this Order.
SEC. 5. Submission of Periodic Reports. The PCUP shall

submit quarterly reports to the OP, relative to the status of
compliance with the provisions of this Order and the pertinent
provisions of the law governing eviction and demolition activities.
SEC. 6. Separability Clause. If any provision of this EO is

declared invalid or unconstitutional, the other provisions unaffected
shall remain valid and subsisting.
1133
SEC. 7. Repealing Clause. All other executive issuances not

consistent with the provisions of this order are hereby amended,
modified, or repealed accordingly.
SEC. 8. Effectivlty Clause. This EO shall take effect

immediately upon its publication in a newspaper of general
circulation.
DONE, in the City of Manila, this 29th day of March, in the

year of our Lord, Two Thousand and Twelve.

By the President:

Executive Secretary
1134
MALACANAN PALACE
MANILA
DIRECTING ALL DEPARTMENTS, BUREAUS, OFFICES AND

INSTRUMENTALITIES OF THE GOVERNMENT TO
IDENTIFY LANDS OWNED BY THE GOVERNMENT
DEVOTED TO OR SUITABLE FOR AGRICULTURE FOR
DISTRIBUTION TO QUALIFIED BENEFICIARIES

advances the duty of the State to enact measures that protect and
enhance the right of all people to human dignity, reduce social,
economic and political inequalities, and remove cultural inequities
by equitably diffusing wealth and political power for the common
good;

declares it a policy of the State to undertake the just distribution
of all agricultural lands, subject to such priorities and reasonable
retention limits as the Congress may prescribe, taking into account
ecological, developmental, or equity considerations, and subject to
the payment of just compensation;
WHEREAS, Republic Act (RA) No. 3844 institutes policies

in order to provide a vigorous and systematic land acquisition,
resettlement and distribution program, and Presidential Decree
No. 27 (s. 1972) orders the emancipation of all tenant farmers of
private agricultural lands primarily devoted to rice and corn under
a system of sharecrop or lease-tenancy;
WHEREAS, RA No. 6657, or the “Comprehensive Agrarian

Reform Law of 1988,” as amended, which was enacted on 10
June 1988, implemented the agrarian reform provisions of the
1135
Constitution by instituting the Comprehensive Agrarian Reform

Program (CARP) and providing mechanisms for its implementation;
WHEREAS, pursuant to Sections 4 and 7 of RA No. 6657, as

amended, lands owned by the Government devoted to or suitable for
agriculture are covered under the CARP and are to be planned and
programmed for acquisition and distribution by the Department
of Agrarian Reform (DAR), in coordination with the Presidential
Agrarian Reform Council (PARC), to the qualified beneficiaries
thereunder;
WHEREAS, Executive Order (EO) No. 292, or the

“Administrative Code of 1987,” vests in the DAR the following
mandates:
(i) Provide central direction and coordination to the national

agrarian reform program, extended to transform farm lessees and
farm tenants into owner-cultivators of economic family-size farms
to improve their living conditions;
(ii) Formulate and implement policies, plans and programs for

the distribution and cultivation of all agricultural lands, including
sugar and coconut lands, with the participation of farmers,
farmworkers, landowners, cooperatives, and other independent
farmers’ organizations; and
(iii) Provide leadership in developing support services to

tenant-owners, farm managers, and other cultivators and render
adequate assistance in finance, marketing, production and other
aspects of farm management;
WHEREAS, EO No. 129-A (s. 1987) or the “Reorganization

Act of the Department of Agrarian Reform,” further vests in the
DAR the power to acquire, administer, distribute, and develop
agricultural lands for agrarian reform purposes;
WHEREAS, EO No. 292 vests in the Department of Justice

(DOJ) the mandate to act as the principal agency to administratively
1136
settle and adjudicate all disputes, claims and controversies solely

between or among the agencies of the National Government,
including government-owned or -controlled corporations;
WHEREAS, EO No. 292 mandates the Department of

Environment and Natural Resources (DENR) to carry out the
State’s constitutional mandate to control and supervise the
judicious disposition, utilization, management and conservation of
the country’s natural resources;
WHEREAS, EO No. 292 mandates the Department

of Agriculture (DA), through its Bureau of Soils and Water
Management, to render assistance on matters relative to the
utilization and management of soil as vital agricultural resources
and formulate measures and guidelines for effective soil, land, and
water resource utilization, as well as soil conservation in croplands
and other agricultural areas;
WHEREAS, Section 17, Article VII of the 1987 Constitution

provides that the President shall have control of all executive
departments, bureaus and offices and shall ensure the faithful
execution of laws;
NOW, THEREFORE, I, RODRIGO ROA DUTERTE, President

me by the Constitution and existing laws, do hereby order:
SECTION 1. Acquisition of Government-Owned Agricultural

Lands. Subject to the limitations and conditions provided under
applicable laws, rules and issuances, the DAR shall acquire all
lands devoted to or suitable for agriculture, which are owned by
the departments, bureaus, offices and instrumentalities of the
Government, and which are no longer actually, directly and
exclusively used or necessary for the purpose for which they have
been reserved or acquired, for the purpose of eventual distribution
to qualified beneficiaries.
1137
SEC. 2. Identification of Government-Owned Agricultural

Lands. Within thirty (30) days from the effectivity of this Order,
all departments, bureaus, offices and instrumentalities of the
Government shall identify their lands devoted to or suitable for
agriculture and no longer actually, directly and exclusively used
or necessary for the purpose for which they have been reserved or
acquired, and thereafter submit a list thereof to the DAR, indicating
the location and area of the said lands, actual use and legal basis of
ownership.
The submission shall include certified true copies of all

pertinent documents in their custody relative to the identified lands,
including certificates of title or other proofs of authority to utilize the
same. In case of lands which are subject of actions pending before
judicial or quasi-judicial tribunals, the submission must include a
report on the status of the pending action.
The DAR, in coordination with the DENR, shall cause the

preparation of an inventory of government-owned lands devoted
to or suitable for agriculture and no longer actually, directly and
exclusively used or necessary for the purpose for which they have
been reserved or acquired. Agencies whose lands are covered by
such inventory shall be furnished a copy thereof.
The foregoing notwithstanding, the lands owned by the

agencies as indicated in their submitted lists and those included in
the inventory prepared by the DAR shall be subjected to validation
under the succeeding Section.
SEC. 3. Validation and Segregation. The DAR, in coordination

with the DA and the DENR, shall undertake the validation of lands
identified pursuant to Section 2 hereof, taking into consideration
their suitability for agricultural use, limitations on their use under
existing laws and issuances, their respective metes and bounds,
and such other relevant criteria that may be provided under the
implementing rules and regulations of this Order.
1138
SEC. 4. Transfer and Distribution. Subject to restrictions

under applicable laws, rules and issuances, the DAR shall acquire
the identified lands of concerned agencies for eventual distribution
thereof to qualified beneficiaries, for cultivation or agricultural use.
SEC. 5. Implementing Rules and Regulations (IRR). Within

sixty (60) days from the effectivity of this Order, the DAR and
the DOJ shall jointly formulate the IRR regarding the validation,
segregation, transfer and distribution of government-owned lands
identified pursuant to Section 2 hereof, including the criteria for the
validation of such lands, identification of qualified beneficiaries, and
mechanisms and procedures in case of related protests or appeals.
For this purpose, the DAR and DOJ shall require the
participation of the following agencies: DENR, DA, Department
of National Defense, Department of Budget and Management,
Department of the Interior and Local Government, Department of
Public Works and Highways, Department of Trade and Industry,
Department of Finance, Department of Labor and Employment,
National Economic and Development Authority, National Irrigation
Administration, Land Bank of the Philippines, Commission on
Higher Education and the National Commission on Indigenous
Peoples.
The DAR and the DOJ shall provide for an expeditious

procedure for the resolution of protests involving the validation
and segregation of government-owned lands identified pursuant to
Section 2 hereof.
SEC. 6. Agency Support. All other government offices

and agencies are directed to render such prompt and necessary
assistance, subject to applicable laws, rules and regulations, to fully
implement the provisions of this Order.
SEC. 7. Funding. The amount necessary for the initial

implementation of this Order shall be charged against sources to be
identified by Department of Budget and Management. Thereafter,
1139
the funding requirements for the implementation of this Order shall

be included in the annual budget of the concerned agencies.
SEC. 8. Repeal. In the event that any provision of this Order

or any part hereof is declared invalid, illegal, or unconstitutional,
the provisions not thereby affected shall remain in full force and
effect.
SEC. 9. Separability. All other issuances or parts thereof

that are inconsistent with the provisions of this Order are hereby
SEC. 10. Effectivity. This Order shall take effect fifteen (15)
days after its publication in the Official Gazette or a newspaper of
DONE in the City of Manila this 15th day of February in the

year of Our Lord, Two Thousand and Nineteen.

By the President:
(Sgd.) SALVADOR C. MEDIALDEA

Executive Secretary
1140
MALACAÑANG
RESIDENCE OF THE PRESIDENT

OF THE PHILIPPINES
MANILA
CREATING THE COMMITTEE ON NON-MEMBER AGENCIES

FOR LAND REFORM
WHEREAS, there are now operating various agencies in

agriculture providing essential services to that sector;
WHEREAS, these agencies exercise functions auxiliary

to those to be performed by the administrative machinery of the
Agricultural Land Reform Code for the attainment of the objectives
of the Code; and
WHEREAS, it is essential to coordinate the related activities

of such agencies and land reform machinery for the implementation
of the reforms envisaged by the Code in the most economical and
expeditious manner;
NOW, THEREFORE, I, Diosdado Macapagal, President of the

Philippines, by virtue of the powers vested in me by law, do hereby
create the Committee on Non-Member Agencies for Land Reform.
The Committee shall be composed of the heads of the following

agrarian agencies:
1. The Bureau of Animal Industry

2. The Bureau of Plant Industry
3. The Bureau of Soils
4. The Bureau of Lands
5. The Bureau of Forestry
1141
6. The Bureau of Agricultural Economics

7. The Bureau of Public Works (Irrigation Division)
8. The Presidential Assistant on Community Development
9. The Irrigation Service Unit (DPWC)
The Chairman of the National Land Reform Council shall be

the Chairman of the Committee.
The Committee shall meet from time to time upon the call
of the Chairman for the purpose of determining the manner and
of working out ways by which the agencies represented in such
Committee shall cooperate in the implementation of the reforms
intended by the Agricultural Land Reform Code.
Done in the City of Manila, this 19th day of March, in the year
of Our Lord, nineteen hundred and sixty-four.
(Sgd.) DIOSDADO MACAPAGAL

By the President:
(Sgd.) CALIXTO O. ZALDIVAR

1142
MALACAÑANG
MANILA
PROVIDING FOR THE IMPLEMENTATION OF THE HYBRID

RICE PROGRAM, TRANSFERRING THE PHILIPPINE
RICE RESEARCH INSTITUTE FROM THE DEPARTMENT
OF AGRICULTURE TO THE OFFICE OF THE PRESIDENT
WHEREAS, the Government is committed to the creation of

one million new jobs in agriculture and fisheries under the “One
Million Jobs” Program;
WHEREAS, by virtue of Administrative Order (A.O.) No. 25

dated December 12, 2001, the Government embarked on the Hybrid
Rice Program and the Department of Agriculture, the Department
of Trade and Industry, the National Food Authority and their
respective allied agencies were authorized to accelerate and
intensify the promotion of the utilization of hybrid rice technology;
WHEREAS, under the Hybrid Rice Program, hybrid rice

planting targets shall cover 135,000 hectares in 2002, 200,000
hectares in 2003 and 300,000 hectares in 2004 in the major irrigated
rice producing provinces;
WHEREAS, the utilization of hybrid rice technology is

expected to increase productivity and create new jobs;
WHEREAS, by virtue of Executive Order No. 1061 dated

November 5, 1985 as amended by Executive Order No. 60 dated
November 7, 1986, the Philippine Rice Research Institute was
established under the Department of Agriculture, to develop, in
coordination with the University of the Philippines at Los Baños, a
national rice research program so as to sustain and further improve
the gains already made in rice production, improve the income
1143
and economic condition of small rice farmers, expand employment

opportunities in the rural areas, and ultimately promote the general
welfare of the people through self-sufficiency in rice production;
WHEREAS, there is a need to place the Philippine Rice

Research Institute under the Office of the President for closer
administrative supervision and to reconstitute the Board of Trustees
to enhance its effectiveness;
WHEREAS, under Section 31, Chapter 10, Title III, Book III
of the Administrative Code of 1987, the President has the continuing
authority to reorganize the administrative structure of the Office of
the President.

vested in me by law, do hereby order:
SECTION 1. Lead Agency. The Philippine Rice Research

Institute (PHILRICE) shall be the primary Government agency
responsible for the Hybrid Rice Program (“Program”) and the
promotion of the utilization of hybrid rice technology.
The PHILRICE shall recommend to the President the

designation of a Program Coordinator who shall direct, manage and
supervise the day-to-day operations of the Program and the delivery
of various program support interventions to the various provinces
included in the Program.
The PHILRICE may call upon any agency of the Government

for such assistance as may be necessary to attain the objectives and
targets of the Program.
SEC. 2. Transfer. – The PHILRICE is hereby transferred from

the Department of Agriculture (DA) to the Office of the President.
1144
SEC. 3. Reconstitution. – The Board of Trustees of PHILRICE

is hereby reconstituted and Section 4 of Executive Order No. 1061
dated November 5, 1985, as amended by Executive Order No. 60
dated November 7, 1986, is hereby further amended to read as
follows:
“SECTION 4. Board of Trustees. – The corporate powers of

the Institute shall be exercised, and all its business activities and
properties shall be controlled by a Board of Trustees, hereinafter
referred to as the Board, composed of the Presidential Adviser for
One Million Jobs as Ex-Officio Chairman and twelve (12) other
members to be appointed by the President of the Philippines upon
recommendation of the Presidential Adviser for One Million Jobs.
The appointive members of the Board shall serve for two (2) years.
The Board shall meet regularly at least once a month or as

often as the exigencies of the service demand. The presence of at least
seven (7) members shall constitute a quorum, and the majority vote
of the members present, there being a quorum shall be necessary
for the adoption of any resolution, rule, regulation, decision or any
other act of the Board.
The members of the Board, including the Chairman, shall

receive per diem, as the Board may determine, for each Board
Meeting actually attended: Provided, That such per diem shall
not exceed Two Thousand Pesos (P2,000.00) during any one
month for each member. The said members shall also be entitled
to reimbursable transportation and representation allowances in
going to and coming from Board Meetings and transacting official
business for the Institute.”
SEC. 4. Hybrid Rice Action Teams. – The PHILRICE

shall, in coordination with the concerned agencies and provincial
governments, organize Hybrid Rice Action Teams for each of the
provinces included in the Program. The Hybrid Rice Action Teams
shall be composed of agriculturists, agrarian reform officers,
irrigation officers, representatives of the National Food Authority
1145
and representatives of the stakeholders of the Program from the

farming and business sectors.
The Hybrid Rice Action Teams shall identify suitable rice

production areas, recommend partners to the farming and business
sector of the rice industry, supervise production activities at the
farm level, facilitate delivery of extension services and ensure the
financing and marketing of the Program.
SEC. 5. Reports. – The PHILRICE shall submit periodic

reports to the President on the status of the implementation of the
Program.
SEC. 6. Funding. – To ensure the attainment of targets of

the Program as specified in A.O. No. 25, the DA shall allocate and
realign the amount of Four Hundred Fifty Million Pesos (P450
Million) from its Agricultural and Fisheries Modernization Program
budget as funding support for the Program.
For the CY 2002 requirements of the Program, the Department

of Budget and Management (DBM) shall ensure the timely release
of funds to the DA, which shall immediately sub-allot and transfer
the said funds to the PHILRICE.
For CY 2003 and CY 2004, appropriations for the Program

shall be included in the budget proposal of the PHILRICE to achieve
the targets of 200,000 hectares and 300,000 hectares respectively.
SEC. 7. Repeal. – All orders, rules, regulations and issuances,

or parts thereof, which are inconsistent with this Executive Order,
are hereby repealed or modified accordingly.
SEC. 8. Effectivity. – This Executive Order shall take effect

immediately upon approval.
1146
City of Manila, March 04, 2002.

By the President:
(Sgd.) ALBERTO G. ROMULO

Executive Secretary
EO 76 s. 2002 amended EO 60 s. 1986 (sec. 1).

1147
MALACAÑANG
MANILA
STRENGTHENING THE ENFORCEMENT OF THE AGRI-AGRA

LAW (PD 717) AND LAUNCHING THE NDC AGRI-AGRA
ERAP BONDS FOR RURAL DEVELOPMENT
WHEREAS, the Government has, as a matter policy, given the

highest priority to the development of the agricultural and agrarian
sectors and in connection therewith, has called upon the private
sector to share in the responsibility of promoting and improving the
productivity of these sectors;
WHEREAS, a basic social policy has been laid by Presidential

Decree No. 717, entitled “Providing an Agrarian Reform Credit
and Financing System for Agrarian Reform Beneficiaries Through
Banking Institutions” or the Agri-Agra Law, requiring the banking
sector to allocate at least 25% of its loanable funds for agricultural
credit in general, of which 10% of said loanable funds shall be made
available to agrarian reform beneficiaries as defined therein;
WHEREAS, various related Republic Acts have expanded the

modes of compliance by the banking sector with PD 717, to wit:
Section 9, RA 7721
Extension of development loans for educational institutions,

cooperatives, hospitals and other medical services; socialized or
low-cost housing and local government units without national
government guarantee
Section 11(b), RA 7835
Mandatory investment of all unused Agri-Agra allocation

funds in socialized and low cost housing
1148
Section 8, RA 7900
Exemption of banks from compliance requirement of PD 717

when at least 5% of loanable funds are directly lent to farmers’
association or cooperatives
WHEREAS, there is a need to increase and further improve

compliance by the banking sector with the provisions of PD 717
through an alternative compliance mechanism to be able to increase
the productivity of the agriculture and agrarian sectors;
WHEREAS, Section 4 of PD 717 allows the banking sector

to invest in government securities declared eligible by the Bangko
Sentral ng Pilipinas (BSP), and invest any portion of the amount
set aside for agrarian reform credit not actually loaned out as a
mechanism for alternative compliance with the requirements of PD
717;
WHEREAS, Section 9 of PD 1648, the Revised Charter of

the National Development Company (NDC), authorizes NDC to
issue, upon recommendation of the Secretary of Finance (DOF)
and approval of the President, tax exempt bonds and securities
guaranteed by the government to finance its operations;
WHEREAS, there is a need to authorize the issuance of long

term bonds by NDC which shall be called NDC Agri-Agra Economic
Recovery through Agricultural Productivity (ERAP) Bonds to
support projects for economic growth under a revitalized rural
development program undertaken by NDC in cooperation with the
Department of Agrarian Reform (DAR) and the private sector;
NOW THEREFORE, I, JOSEPH EJERCITO ESTRADA,

President of the Republic of the Philippines, for the effective and
efficient implementation of PD 717 and in order to address the
government’s priority program, by virtue of the powers vested in
me by law, do hereby order:
1149
SECTION 1. Title. This Executive Order shall otherwise be

known as the “Launching of the NDC Agri-Agra Economic Recovery
through Agricultural Productivity (ERAP) Bonds for Rural
Development.”
SEC. 2. Enforcement of PD 717 and Institution of Penalties.

The BSP shall intensify the enforcement of PD 717 for the banking
sector to support the credit requirements of the agricultural and
agrarian reform sectors and shall institute the necessary penalties
for non-compliance.
SEC. 3. Authorizing the Issuance of NDC Agri-Agra ERAP

Bonds in support of Alternative Compliance Mechanisms and Rural
Credit Mobilization. NDC is hereby authorized to undertake the
issuance of the NDC Agri-Agra ERAP Bonds in the total amount
of up to Fifty Billion Pesos (P50,000,000,000.00) which shall be
guaranteed by the Republic of the Philippines.
The features of the NDC Agri-Agra ERAP bonds shall be

determined and fixed by NDC in consultation with the DOF, which
features shall be competitive with existing bonds and securities in
circulation in the Philippine market.
The purchase or underwriting of these bonds by the banking

sector shall serve as compliance by it with the provisions PD 717.
SEC. 4. Mobilization and Utilization of the Proceeds of the

NDC Agri-Agra ERAP Bonds. The proceeds from the issuance of the
NDC Agri-Agra ERAP Bonds, hereinafter referred to as the Fund,
shall be jointly managed by NDC and DAR.
The Fund shall be used exclusively for the development of

the agriculture and agrarian sectors and in the implementation
of identified development priority projects of NDC and of the
Department of Agriculture and Agrarian Reform for these
sectors, such as but not limited to, rice production joint ventures,
1150
establishment of food chains, livestock and agri-processing support

services and facilities and similar undertakings.
Consistent with NDC’s mandate as the corporate vehicle of

the government, the NDC shall act as the DAR’s corporate arm in
the mobilization and utilization of the Fund.
SEC. 5. Implementing Rules and Regulations. The BSP, in

close coordination with DOF, DAR and NDC, shall promulgate
the implementing rules and regulations necessary to effectively
implement, and improve compliance by the banking sector with, the
provisions of PD 717 and this Executive Order.
The implementing rules and regulations shall utilize an

integrated, holistic or systematic approach in defining the scope of
beneficiaries of the Fund, to include but not limited to providers of
production input, critical social development services or products,
processors, distributors, or markets of communities which have
agrarian reform beneficiaries or landless peasants.
The implementing rules and regulations shall also utilize

alternative modes of fund utilization to improve the efficiency and
effectiveness of projects in these sectors, to include guarantees,
concessional co-financing loans, equity or quasi-equity and quasi-
debt instruments in project trusts bonds or securities of qualified
project enterprises, and such other modes as may be determined by
the NDC and DAR.
SEC. 6. Taxation. Pursuant to Section 9, PD 1648, interest

income on the Agri-Agra ERAP Bonds shall be exempt from the
payment of taxes.
SEC. 7. Repealing Clause. All issuances, executive or

administrative orders, and/or rules and regulations or parts thereof,
which are inconsistent herewith are hereby repealed or modified
accordingly.
1151

year of our Lord, nineteen hundred and ninety eight.

By the President:

Executive Secretary
1152
MALACANAN PALACE
MANILA
CREATING AN INTER-AGENCY TASK FORCE ON ZERO

HUNGER
WHEREAS, Section 11, Article XIII of the Constitution

provides that the State shall adopt an integrated and comprehensive
approach to health development, which shall endeavor to make
essential goods, health and other social services available to all the
people at affordable cost;
WHEREAS, Paragraph 2, Article 11 of the International

Covenant on Economic, Social and Cultural Rights provides
that States Parties recognize the fundamental right of everyone
to be free from hunger, and shall take, individually and through
international cooperation, measures to improve methods of
production, conservation and distribution of food;
WHEREAS, the United Nations 2030 Agenda for Sustainable

Development identifies as Sustainable Development Goal No. 2, the
objective of ending hunger, achieving food security and improved
nutrition, and promoting sustainable agriculture;
WHEREAS, involuntary hunger, food security, undernutrition,

and child wasting, stunting and mortality, continue to be serious
concerns in the country;
WHEREAS, there is a need to carefully coordinate, rationalize,

monitor and assess the efforts of concerned government agencies
and instrumentalities to ensure a whole-of-government approach to
eradicating hunger and achieving food security; and
1153

departments, bureaus and offices, and shall ensure that the laws
are faithfully executed;
NOW, THEREFORE, I, RODRIGO ROA DUTERTE,

the Constitution and existing laws, do hereby order:
SECTION 1. Creation of the Inter-Agency Task Force on Zero

Hunger. The Inter-Agency Task Force on Zero Hunger (Task Force)
is hereby created, to be composed of the following:
Chairperson : The Cabinet Secretary

Vice Chairpersons : Secretary, Department of Social
Welfare and Development
Secretary, Department of Agriculture
Members : Secretary, Department of Agrarian
Reform
Secretary, Department of Budget and
Management
Secretary, Department of Education
Secretary, Department of Environment
and Natural Resources
Secretary, Department of Health
Secretary, Department of Labor and
Employment
Secretary, Department of the Interior
and Local Government
Secretary, Department of Trade and
Industry
Secretary, Department of Science and
Technology
Secretary, Presidentia
Communications Operations Office
Director General, National Economic
and Development Authority
Chairperson, Commission on Higher
Education
1154
The Task Force members may designate an alternate to

represent their respective offices in their absence. Such alternate
must be fully authorized to decide for and on behalf of the Task
Force member.
SEC. 2. Powers and Functions of the Task Force. The Task

Force shall ensure that government policies, initiatives and projects
on attaining zero hunger shall be coordinated, responsive and
effective. Towards this end, the Task Force shall have the following
powers and functions:
a. Formulate a National Food Policy (NFP), which shall outline

national priorities based on a comprehensive understanding of the
problem of hunger and related issues, and shall provide a roadmap
for achieving zero hunger, taking into consideration existing laws
and issuances, as well as international law and treaty obligations.
The NFP shall include initiatives for ending hunger, achieving
food security, improving nutrition, and promoting sustainable
agriculture;
b. Coordinate and rationalize the efforts of concerned

government agencies and instrumentalities to ensure a whole-of-
government approach to attaining zero hunger;
c. Monitor and evaluate, through the identification of key

performance indicators, the government’s progress in ending
hunger, achieving food security, improving nutrition, and promoting
sustainable agriculture;
d. Create technical working groups from among its

member-agencies to address particular concerns relative to the
implementation of this Order;
e. Prepare and submit to the President annual reports

on the state of hunger, food security, nutrition and agricultural
production in the country, as well as the Task Force’s initiatives
and recommendations relative thereto; and
1155
f. Perform such other functions as may be directed by the

President.
SEC. 3. Secretariat. The Task Force shall have a Secretariat

to be composed of personnel from its member-agencies, which shall
provide administrative, operational and technical assistance to the
Task Force.
SEC. 4. Support of Government Agencies. The Task Force may

enlist the support and assistance of other government agencies and
instrumentalities in the attainment of the objectives of this Order.
Local government units are enjoined to render such necessary
assistance to the Task Force in the implementation of this Order.
SEC. 5. Funding. The initial funding requirements for the

implementation of this Order shall be charged against the current
appropriations of the member -agencies of the Task Force. The
budgetary requirements for the succeeding years shall be included
in the annual budget proposals of the concerned agencies.
SEC. 6. Separability. If any provision of this Order is declared

invalid or unconstitutional, the remaining provisions not affected
thereby shall continue to be in full force and effect.
SEC. 7. Repeal. Orders and issuances inconsistent with this

Order are hereby repealed or amended accordingly.
SEC. 8. Effectivity. This Order shall take effect immediately.
DONE, in the City of Manila, this 10th day of January, in the

year of our Lord, Two Thousand and Twenty.

By the President:

Executive Secretary
1156
MALACAÑANG
MANILA
ESTABLISHING PRIORITIES AND PROCEDURES IN

EVALUATING AREAS PROPOSED FOR LAND CONVERSION
IN REGIONAL AGRI-INDUSTRIAL CENTERS/REGIONAL
INDUSTRIAL CENTERS, TOURISM DEVELOPMENT
AREAS AND SITES FOR SOCIALIZED HOUSING
WHEREAS, EO 129-A and RA 6657 or the Comprehensive

Agrarian Reform Law empower the Department of Agrarian Reform
(DAR) to approve or disapprove land use conversion;
WHEREAS, RA 7160 or the Local Government Code of 1991

empowers cities and municipalities to reclassify agricultural lands
to non-agricultural uses and formulate their comprehensive land
use plans;
WHEREAS, RA 7279 of the Urban Development and Housing

Act of 1992 mandates the various local government units to identify
sites for socialized housing and their integration into Comprehensive
Land Use Plans and Zoning Ordinances of their respective cities or
municipalities;
WHEREAS, Administrative Order 20 or Interim Guidelines

on Agricultural Land Use Conversion (Series 1992) provides that
all irrigated and economically irrigable lands covered by irrigation
projects with firm funding commitments shall be non-negotiable for
conversion;
WHEREAS, the Medium Term Philippine Development

Plan (MTPDP), 1993-1998, identifies major industrial and tourism
development programs that would promote development in the
different regions of the country;
1157
WHEREAS, LOI 1350 Providing for the Institutional

Framework for National Physical Planning mandates the creation
of the National Land Use Committee to serve as the coordinative
mechanism for land use and physical planning at the national and
regional levels;
WHEREAS, EO 72 Providing for the Preparation and

Implementation of the Comprehensive Land Use Plans of Local
Government Units Pursuant to the Local Government Code of
1991 and Other Pertinent Laws mandates the establishment of
a Provincial Land Use Committee in every province to assist the
Sangguniang Panlalawigan in reviewing the comprehensive land
use plans of component cities and municipalities;
WHEREAS, while there is a need to allocate land for non-

agricultural areas, there is also a need to promote the judicious
use of land and other physical resources based on the principle of
sustainable development;
WHEREAS, priorities and procedures for evaluating areas for

land conversion are being established for the purpose of preserving
prime agricultural lands while at the same time facilitating the
conversion process for priority government projects as identified in
the MTPDP as well as guiding developments in various parts of the
country;
NOW THEREFORE, I, FIDEL V. RAMOS, President of the

Philippines, by virtue of the powers vested in me by law do hereby
direct the compliance by all agencies and local government units
concerned of the following:
SECTION 1. Definition of Priority Development Areas Land

Conversion.
Priority development areas for land conversion are (a)

specific sites in regional agri-industrial centers/regional industrial
centers (RAICs/RICs) identified by the Department of Trade and
Industry (DTI) and the Department of Agriculture (DA); (b) tourism
1158
development areas (TDAs) identified by the Department of Tourism

(DOT) as indicated in the current Medium Term Philippine
Development Plan, and (c) sites identified by the local government
units (LGUs) for socialized housing, which are presently used for
agricultural purposes and which need conversion approval from the
Department of Agrarian Reform (DAR).
SEC. 2. Institutional Mechanisms and Procedures for

Evaluation of Priority Development Areas.
2.1. Sites in RAICs/RICs and Tourism Development Areas
(a) The Regional Land Use Committees (RLUCs) shall be

primarily responsible for the evaluation of priority development
areas for land conversion as identified by the DTI, DA and DOT.
The evaluation shall be undertaken in close coordination with Local
Government Units (LGUs) concerned. For this purpose, the Regional
Development Councils (RDCs) and the Cordillera Executive Board
(CEB) of the Cordillera Administrative Region (CAR) are hereby
ordered to convene their respective RLUCs. The Regional Planning
and Development Board (RPDB) of the Autonomous Region in
Muslim Mindanao (ARMM) is likewise ordered to do the same.
(b) The Regional Director of the National Economic and

Development Authority shall serve as Chairman of the RLUC,
except in the case of the ARMM where the Head of the Regional
Planning and Development Office (RPDO) shall serve as the RLUC
Chairman. The RLUCs shall have as members the Regional directors
of the Departments of Agriculture, Agrarian Reform, Environment
and Natural Resources, Interior and Local Governments, Public
Works and Highways, Science and Technology, Transportation
and Communications, Trade and Industry, Tourism, and the
Housing and Land Use Regulatory Board. In addition, it shall
have two representatives from non-government organizations,
people’s organizations and the private sector to be selected by their
respective RDC, CEB or RPDB. For this purpose, the Housing and
Urban Development Coordinating Council (HUDCC) shall be the
1159
Co-Chairman. In addition, a Vice-Chairman shall be selected from

among the members of the RLUC.
(c) The RLUCs are empowered to call upon any government

agency, including government owned or controlled corporations and
other government entities, to assist in their work.
(d) The RLUCs and concerned government agencies shall

evaluate whether the priority development areas for land conversion
are: i) non-negotiable for conversion, as provided for in AO 20, s.
1992, as determined by the Department of Agriculture (DA); and
ii) already distributed subject to Sec. 65 of RA 6657 or covered by
a notice of acquisition or voluntarily offered for coverage under the
Comprehensive Agrarian Reform Program (CARP), as determined
by the DAR. In case a site falls within these areas, alternative
industrial or tourism sites shall be identified by the RLUC in close
coordination with concerned LGU and lead agencies.
(e) The RLUCs, through their respective RDCs, CEB or

RPDB, shall submit their recommendations to the National Land
Use Committee (NLUC) within three months upon submission of
the proposed sites. Thereafter, the NLUC shall make the necessary
recommendations for the review and approval of the DAR Secretary.
2.2 Sites for Socialized Housing
(a) The local government units, through the Local Development

Council Technical Secretariat, in coordination with the HUDCC,
National Housing Authority (NHA), the Housing and Land Use
Regulatory Board (HLURB), the National Mapping Resource and
Information Authority (NAMRIA), the Department of Environment
and Natural Resources (DENR)/Land Management Bureau (LMB)
shall identify lands for socialized housing for the immediate and
future needs of the underprivileged and homeless. For this purpose,
the City Planning and Development Office/Municipal Planning
and Development Office (CPDO/MPDO) shall use the site selection
criteria provided under the “Guidelines for the Inventory of Lands
1160
and Sites for Socialized Housing” under RA 7279 as circularized in

DILG Memorandum Circular No. 90-03 dated 06 January 1993.
(b) In component cities and municipalities, the Provincial

Land Use Committee (PLUC), organized pursuant to EO No. 72 s.
1993, shall assist the Sangguniang Panlalawigan in the review and
evaluation of sites identified as suitable for socialized housing.
In highly urbanized and independent component cities, the

RLUC shall review and evaluate sites identified as suitable for
socialized housing.
(c) The RLUC/PLUC shall evaluate whether the identified

sites for socialized housing subject for land conversion are: i) non-
negotiable for conversion, as provided for in AO 20 s. 1992, as
determined by the DA; and (ii) already distributed subject to Sec.
65 of RA 6657 or covered by a notice of acquisition or voluntarily
offered for coverage under the CARP, as determined by the DAR. In
case a site falls within these areas, alternative sites for socialized
housing shall be identified by the LGU concerned.
(d) The RLUC/PLUC shall call upon the concerned CPDO/

MPDO or any government agency, including government owned or
controlled corporations and other government entities, to assist in
its work.
(e) The PLUC shall submit the results of its evaluation to

the Sangguniang Panlalawigan within 3 months upon submission
of the proposed sites identified by the LGUs. The Sangguniang
Panlalawigan shall in turn submit the recommended sites for
socialized housing which need land use conversion to the DAR
Secretary for consideration. Likewise, the RLUC shall submit the
results of its evaluation to their respective RDC, CEB, or RPDB
within 3 months upon receipt of the proposed sites identified by
the concerned LGUs. The RDC, CEB or RPDB shall then submit
the recommended sites for socialized housing which need land use
conversion to the DAR Secretary for consideration.
1161
SEC. 3. All priority development areas shall form part of

the maximum allowable limits provided under Sec. 20 of RA 7160.
Furthermore, in case the total agricultural land area of a specific
site exceeds the maximum allowable limits as provided for in Sec.
20 of the LGC, as determined by the HLURB in coordination with
the DA and DAR, the NEDA Secretariat shall make the necessary
recommendation to the President.
SEC. 4. The DAR, DA and the NEDA Secretariat, in

coordination with concerned agencies shall conduct an annual
review of the mechanism and the process for evaluation as well as
the status of conversion in regional agri-industrial center/regional
industrial centers, tourism development areas, and sites for
socialized housing. If, in the course of said review, the need to utilize
irrigable lands or non-viable irrigated systems for non-agricultural
purposes becomes evident, the Cabinet Cluster on Agri-Industrial
Development may recommend their utilization for non-agricultural
purposes, subject to the conditions agreed upon by the Cluster, and
subject further, to final approval by the President.
SEC. 5. All other applications for land conversion shall

continue to be governed by existing rules and procedures of the
DAR.
SEC. 6. The DAR and the NEDA Secretariat shall jointly

issue guidelines to implement this Order.
SEC. 7. This Order shall take effect immediately.

year of our Lord nineteen hundred and ninety three.

By the President:
(Sgd.) TEOFISTO T. GUINGONA, JR.

Executive Secretary
1162
MALACAÑANG
MANILA
CONSTITUTING THE COUNCIL FOR EXTENSION, RESEARCH

AND DEVELOPMENT IN AGRICULTURE AND FISHERIES
WHEREAS, it is a declared policy of the State to promote

research and development to attain national development goals;
WHEREAS, the Agriculture and Fisheries Modernization Act

of 1997 (RA 8435) mandates the Department of Agriculture (DA),
in coordination with the Department of Science and Technology
(DOST) and other concerned agencies, to enhance, support and
consolidate existing national research and development system in
agriculture and fisheries;
WHEREAS, there is a need for an effective mechanism to

undertake the integration of all agriculture and fisheries extension
and research and development (R & D) efforts of the government;

SECTION 1. Constitution of the Council for Extension,

Research and Development. The Council for Extension, Research
and Development in Agriculture and Fisheries, hereinafter referred
to as CERDAF, is hereby constituted.
The CERDAF shall be composed of the following:
a. Secretary of Agriculture Chairman

b. Secretary of Science and Technology Vice Chairman
1163
c. Secretary of Environment and Natural

Resources Member
d. Secretary of Agrarian Reform Member
e. Director-General of the National Economic
and Development Authority Member
f. Chairman of the Commission on Higher
Education Member
g. Executive Director of the Philippine
Council for Agriculture, Forestry, Natural
Resources Research and Development Member
h. Executive Director of the Philippine
Council for Aquatic and Marine Research
and Development Member
President of the League of Provinces Member
j. President of the League of Municipalities Member
k. National Chairman of the Fisheries and
Aquatic Resources Management Council Member
l. President of the Chamber of Fisheries and
Aquatic Resources of the Philippines Member
m. Two representatives from the academe Member
n. One representatives each from a national
farmers organization and a national
fisherfolk organization Member
o. One representative each from the crops,
livestock and processing sectors Member
p. Three research, development and
extension experts Member
The academe shall be represented by heads of national

universities specializing in agriculture and fishery.
The representatives from the academe, farmers and fisherfolk

organization, crops, livestock and processing sectors, and the R & D
experts shall be appointed by the Chairman as recommended by the
other members of CERDAF.
SEC. 2. Functions. The CERDAF shall have the following

functions:
1164
a. Enhance coordination of government institutions involved

in agriculture and fisheries R & D and extension, and pursue the
integration of R & D and extension efforts of the government;
b. Encourage the participation of the private sector in the

development of a national R & D and extension agenda;
c. Prepare and oversee the implementation of a more

comprehensive and responsive R & D and extension program
for agriculture and fisheries to enhance and make full use of the
National Research and Development System in Agriculture and
Fisheries (NARDSAF) and the National Extension System for
Agriculture and Fisheries (NESAF), our national network on R & D
and extension, respectively, established under RA 8435;
d. Set policies that will promote agriculture and fishery R &

D and extension, and govern Philippine relation with international
institutions involved in R &D;
e. Approve the allocation of funds from local and foreign

sources for R & D and extension programs, projects and activities;
f. Adopt policies to strengthen the institutional efficiency of

the national R & D and extension system, including the setting
up of a monitoring and evaluation system on the effectiveness and
efficiency of its various components;
g. Review and approve national R & D and extension plans

and programs developed by the NARDSAF and NESAF;
h. Create committees, technical working groups and

commodity items to facilitate the accomplishment of CERDAF’s
objectives; and
Formulate implementing rules and regulations as may be

necessary to carry out its functions.
1165
SEC. 3. Secretariat. The Bureau of Agricultural Research

and the Agricultural (BAR) and the Agricultural Training Institute
(ATI) shall serve as the secretariat of the CERDAF.
The BAR shall provide technical and administrative support

for R & D activities of the CERDAF, while the ATI shall provide
assistance on extension and training matters. The specific functions
of the BAR and the ATI shall be in accordance with the implementing
rules and regulations of RA 8435.
To upgrade the capabilities of BAR and ATI staff, they shall

undertake the following:
a. Develop a staffing pattern, based on the science and

technology career system for its technical personnel to be approved
by CERDAF, and thus entitle its staff to a system of benefits
equivalent to those enjoyed by the science and technical personnel
of the Department of Science and Technology;
b. Draw from state colleges and universities, institutes

and centers, scientists, professors, technical experts, for detail or
secondment at BAR and ATI to accelerate the upgrading of their
technical competence; and
c. Provide detailed staff an honoraria system based on the

Magna Carta for Science and Technical Personnel or at least 75
percent of their basic pay at their mother units for those detailed on
a full-time basis.
SEC. 4. Relationship of CERDAF with Other Multi-

Sectoral Councils and Other Agencies under the Department of
Agriculture. The CERDAF shall collaborate with the Philippine
Council for Agriculture, Forestry, Natural Resources Research and
Development (PCARRD), the Philippine Council for Aquatic and
Marine Research and Development (PCAMRD) and other concerned
agencies and institutions in the following areas:
a. Formulation of R & D agenda and programs;
1166
b. Screening of proposals and monitoring of ongoing R & D

projects in the country;
c. Development of methodologies and systems for effective R

& D planning in agriculture and fisheries, emphasizing the quality
and intensity of participation of farmers, fishers and the private
sector in setting the R & D and extension agenda and the allocation
of resources;
d. Development of output-oriented performance standards for

staff, institutions and programs in agriculture and fisheries R & D;
e. Establishment of an efficient and effective computerized

system of monitoring and evaluation of R & D staff and institutions,
including database required for the assessment of research
excellence, performance and capacity;
f. Development and administration of a career development

program and a unified merit promotion system for scientific and
technical personnel in agriculture and fishery R & D and extension;
g. Development and administration of an incentive system to

support high quality scientific journals in agriculture and fishery;
h. Development of a human resource maintenance system

for providing incentives and benefits to technical and scientific
personnel in agriculture and fishery to ensure that agriculture
and fishery institutions gain and maintain a competitive edge in
attracting and maintaining their staff;
i. Provision of technical assistance in the improvement of

institutional and staff capabilities; and
j. Formulation of guidelines in planning and implementation

of agriculture and fisheries research.
SEC. 5. Funding. The funds required to operate CERDAF shall

be drawn from the appropriations of the Department of Agriculture.
1167
SEC. 6. Repealing Clause. All other laws, decrees, orders, rules

and regulations or parts thereof inconsistent with the provisions of
this Executive Order are hereby repealed or amended accordingly.

immediately.
DONE in the City of Manila, this 22nd day of July in the Year
of Our Lord, Nineteen Hundred and Ninety Nine.

By the President:

Executive Secretary
1168

OF THE PHILIPPINES
Malacañang
REORGANIZING THE MINISTRY OF AGRARIAN REFORM AND

FOR OTHER PURPOSES
RECALLING that the reorganization of the government is

mandated expressly in Article II, Section I (a), and Article III of the
Freedom Constitution;
HAVING IN MIND that, pursuant to Executive Order no.

5 (1986), it is directed that necessary and proper changes in the
organizational and functional structures of the government, its
agencies and instrumentalities, be effected in order to promote
efficiency and effectiveness in the delivery of public services;
TAKING NOTE that the agricultural sector of the Philippine

economy has been the prime mover of economic growth;
CONVINCED that the agrarian sector, in its present state,

requires a thoroughgoing transformation in order to be more effective
in fulfilling its primary role in sustained national development;
CONSIDERING that an expanded and comprehensive

agrarian reform program is viewed by the new government as
the main strategy for democratizing ownership and control of all
agricultural lands;
AFFIRMING that in order to ensure the effective

implementation of this comprehensive agrarian reform program,
there is an urgent need to expand the functions and strengthen the
machinery of the Ministry of Agrarian Reform;
NOW, THEREFORE, I, CORAZON C. AQUINO, President

1169
sovereign will of the Filipino people and the Freedom Constitution,

do hereby order:
SECTION 1. Title. This Executive Order shall otherwise

be known as the Reorganization Act of the Ministry of Agrarian
Reform.
SEC. 2. Reorganization. The Ministry of Agrarian Reform

hereinafter, referred to as Ministry, is hereby reorganized,
organizationally and functionally, in accordance with the provisions
of this Executive Order.
SEC. 3. Declaration of Policy. It is the declared policy of the

State to completely abolish all remnants of feudalism and all other
types of unjust tenurial arrangements, implement a comprehensive
agrarian reform program, increase the productivity of the direct
producers, and strengthen the agricultural base for increased
industrialization.
Pursuant to this policy, the State shall:
(a) Establish owner-cultivated, economic, family-size farms

and collectively-owned/cooperatively-cultivated farms as the
foundation of Philippine agriculture;
(b) Prohibit absentee land ownership;
(c) Rechannel and divert landlord capital in agriculture to

industrial development;
(d) Assist in the preservation and conservation of prime lands

for agricultural purposes;
(e) Encourage the establishments and protect the autonomy

and independence of institutions of farmers and farmworkers that
will safeguard their interests and ensure their dignified existence,
free from pernicious restraints and practices;
1170
(f) Create just and viable socio-economic structures in

agriculture conducive to greater productivity and higher incomes
through the cooperative system of production, processing, marketing,
distribution, and credit services;
(g) Accelerate the agrarian reform program and develop

agrarian communities for full utilization of land and for human
growth and development;
(h) Institutionalize partnerships between government and

organizations of farmers and farmworkers in agrarian reform policy
formulation, program implementation and evaluation;
(i) Provide specific investment opportunities, alternative

employment, and other incentives for landowners affected by
agrarian reform;
(j) Ensure adequate funding support for the agrarian reform

program as well as timely, affordable, and appropriate financing
schemes to its beneficiaries;
(k) Implement an agricultural land tax scheme that will

prevent land hoarding and/or speculation.
SEC. 4. Mandate. The Ministry shall be responsible for

implementing the new agrarian reform program and, for such
purpose, it is authorized to:
(a) Acquire, determine the value of, subdivide into family-size

farms or organize into collective or cooperative farms and develop
private agricultural lands for distribution to qualified tillers, actual
occupants, and displaced urban poor;
(b) Administer and dispose of all cultivable portions of the

public domain proclaimed/reserved as resettlement areas for
agricultural purposes by the President;
1171
(c) Acquire, by purchase or grant, real estate properties

suited for agriculture that have been foreclosed by the national
government;
(d) Undertake land consolidation, land reclamation, land

forming, and conservation in areas subject to agrarian reform;
(e) Compensate the landowners covered by agrarian reform;
(f) Issue emancipation patents to farmers and farmworkers

who have been given lands under the agrarian reform program as
may be provided for by law;
(g) Provide free legal services to agrarian reform beneficiaries

and resolve agrarian conflicts and land tenure problems;
(h) Develop and implement alternative land tenure systems

such as cooperative farming and agro-industrial estates, among
others;
(i) Undertake extensive information and education programs

on agrarian reform among the beneficiaries, the government sector,
and the general public;
(j) Undertake land use management and land development

studies and projects in agrarian reform areas;
(k) Approve or disapprove the conversion, restructuring or

readjustment of agricultural lands into non-agricultural uses;
(l) Monitor and evaluate the progress of agrarian reform

implementation;
(m) Assist the Office of the Government General Counsel

(Office of the Solicitor General) in providing evidence for the
reversion proceedings to be filed with respect to lands of the public
domain, occupied by private individuals and their tenants or farm
workers which are subject to land reform, and real rights connected
1172
therewith which have been acquired in violation of the Constitution

or the public land laws, or through corrupt practices; no transfer or
disposition of such lands or real rights shall be allowed until after
the lapse of one year from the ratification of the new Constitution;
(n) Submit progress reports to the Office of the President, to

Congress, and to the people at the end of each year and at all times
make available to the general public information on the current
status of its programs.
SEC. 5. Powers and Functions. Pursuant to the mandate of

the Ministry, and in order to ensure the successful implementation
of the expanded and comprehensive agrarian reform program as
envisioned in this Executive Order is hereby authorized to:
(a) Advise the President on the promulgation of executive/

administrative orders, other regulative issuances and legislative
proposals designed to strengthen agrarian reform and protect the
interests of the beneficiaries thereof;
(b) Implement all agrarian laws, and for this purpose, issue
subpoena, subpoena duces tecum, writs of execution of its decisions,
and other legal processes to ensure successful and expeditious
program implementation; the decision or order of the Ministry is
immediately executory even if it is appealed, unless enjoined by a
restraining order or writ of preliminary injunction, as the case may
be, issued by the proper appellate agency or courts;
(c) Establish and promulgate operational policies, rules and

regulations and priorities for agrarian reform implementation;
(d) Coordinate program implementation by the Ministry

of Agrarian Reform, the Land Bank of the Philippines, and other
relevant civilian and military government agencies mandated to
support the agrarian reform program;
(e) Acquire, administer, distribute, and develop private

agricultural lands covered by the agrarian reform program;
1173
(f) Undertake surveys of lands covered by agrarian reform;
(g) Issue emancipation patents to farmers and farm workers

covered by agrarian reform for both private and public lands and,
when necessary, make administrative corrections of the same;
(h) Provide free legal services to agrarian reform beneficiaries

and resolve agrarian conflicts and land-tenure related problems as
(i) Promote the organization and development of cooperatives

and other associations of agrarian reform beneficiaries;
(j) Conduct continuing education and promotion programs

on agrarian reform for beneficiaries, landowners, government
personnel, and the general public;
(k) Institutionalize the participation of farmers, farm

workers, other beneficiaries, and agrarian reform advocates in
agrarian reform policy formulation, program implementation, and
evaluation;
(l) Have exclusive authority to approve or disapprove

conversion of agricultural lands for residential, commercial,
industrial, and other land uses as may be provided for by law;
(m) Call upon any government agency, including the Armed

Forces of the Philippines, and non-governmental organizations
(NGOs) to extend full support and cooperation to program
implementation;
(n) Exercise such other powers and functions as may be

provided for by law or assigned by the President, to promote
efficiency and effectiveness in the delivery of public services.
SEC. 6. Minister of Agrarian Reform. The authority and

responsibility for the exercise of the mandate of the Ministry and
for the discharge of its powers and functions shall be vested in the
1174
Minister of Agrarian Reform, hereinafter referred to as Minister,

who shall have supervision and control over the Ministry and shall
be appointed by the President.
SEC. 7. Office of the Minister. The Office of the Minister shall

be composed of the Minister and his immediate staff.
SEC. 8. Deputy Ministers. The Minister shall be assisted by

three (3) Deputy Ministers, appointed by the President upon the
recommendation of the Minister, one for field operations, one for
services and one for staff bureaus.
SEC. 9. Assistant Ministers. The Minister shall also be

assisted by seven (7) Assistant Ministers, appointed by the President
upon the recommendation of the Minister, one to head the Research
and Planning Service, one to head the Finance and Physical Assets
Management Service, one to head the Administrative, Personnel
and Management Service, one to head the Legal and Public
Assistance Service, and one each for the Area Office Luzon, Visayas,
and Mindanao.
SEC. 10. Organizational Structure. The Ministry, in addition

to the Ministry Proper comprising the Offices of the Minister,
Deputy and Assistant Ministers, and the services, shall consist of
its Bureaus, Regional Field Offices, Provincial Offices, Team Offices,
Action Groups, and attached agencies.
SEC. 11. Services of the Ministry. The Services of the Ministry

shall be as follows:
(a) The Research and Planning Service, which shall be

responsible for coordinating and initiating the development,
integration and prioritization of plans, programs, and projects of
the Ministry for judicious allocation of resources and effective and
efficient implementation by the field units; it shall also be responsible
for coordinating or initiating research, monitoring, evaluation
and maintaining a statistics center in relation to agrarian reform
program implementation;
1175
(b) The Finance and Physical Assets Management Service,

which shall be responsible for proper and timely allocation of
funds to support approved programs, projects, and activities, the
appropriate control and accounting of funds including management
improvement and control, and the management of the physical
assets of the Ministry;
(c) The Administrative, Personnel and Management Service,

which shall be responsible for providing the Ministry with effective,
efficient and economical services relating to personnel management,
career development, welfare, and administrative services, and
management systems;
(d) The Legal and Public Assistance Service, which shall be

responsible for the review of contracts and other legal matters, the
rendition of legal assistance to ministry personnel and to the public,
and the performance of public relations functions.
SEC. 12. Bureaus. The Ministry shall have the following staff
bureaus:
(a) The Bureau of Land Acquisition and Distribution, which

shall be responsible for the development of policies, plans, programs,
standard operating procedures and for providing functional
supervision and technical assistance relative to the acquisition and
distribution of private agricultural lands covered by the agrarian
reform program, including land-tiller-landowner identification, land
valuation, and landowners’ compensation, transfer of ownership
to actual tillers, leasehold arrangements, stewardship, and land
transfer actions;
(b) The Bureau of Land Development, which shall be

responsible for the development of policies, plans, and programs,
and for providing functional and technical assistance relative to
land surveys, land use, capability, and classification, engineering
services, and land consolidation;
1176
(c) The Bureau of Agrarian Legal Assistance, which shall be

responsible for developing guidelines, plans and programs for legal
assistance and for providing legal services for agrarian clientele,
including developing, maintaining, and coordinating para-legal
services for agrarian reform beneficiaries;
(d) The Bureau of Agrarian Reform Information and

Education, which shall be responsible for developing and conducting
continuing training and education programs for the acquisition of
knowledge, and development of skills and favorable attitudes among
beneficiaries and personnel of the Ministry and other agencies, and
the increase of awareness, participation, and acceptance of agrarian
reform by the public through the dissemination of information and
communication materials;
(e) The Bureau of Agrarian Reform Beneficiaries Development,

which shall be responsible for the development of plans, programs,
and policies, and for providing functional and technical assistance
relative to the development of settlement areas into viable agrarian
communities; it shall also be responsible for promoting the
organization of agrarian reform beneficiaries, liaison with farmer
and farm worker organizations to ensure the raising of farm incomes,
the promotion of all forms of farm cooperation, the achievement of
a dignified existence and the creation of a viable economic structure
conducive to greater productivity and higher farm income.
SEC. 13. Regional Field Offices. The Ministry shall have

twelve (12) Regional Offices. Each Regional Office shall be headed
by a Regional Director.
The Regional Office shall be responsible for supervising the

implementation of laws, policies, plans, programs, projects, rules,
and regulations of the Ministry in its administrative region. For
such purposes, it shall have the following functions:
(a) Prepare and submit plans and programs for the region on:
(1) Land acquisition and distribution;
1177
(2) Information and education;

(3) Land use management and land development;
(4) Legal and para-legal services; and
(5) Agrarian reform beneficiaries development;
(b) Provide technical assistance to Provincial Offices,

Agrarian Reform Teams, and Action Groups in the implementation
of approved plans and programs;
(c) Conduct operations research and evaluation of agrarian

reforms implementation within the region;
(d) Coordinate with other government and private agencies

and farmer and farm workers organizations at the regional level,
to carry out programs/projects for the general welfare of agrarian
reform beneficiaries;
(e) Maintain an information system in coordination with the

established monitoring system;
(f) Review and evaluate reports and other documents

submitted by the Provincial and Team Offices, Action Groups, and
agrarian-reform clientele;
(h) Submit periodic feedback as may be necessary in the

service of the Ministry’s clientele.
SEC. 14. Provincial Offices. The Ministry shall have Provincial

Offices as may be necessary in promoting efficiency and effectiveness
in the delivery of public services. Each Provincial Office shall be
headed by a Provincial Agrarian Reform Executive Officer.
The Provincial Office shall be responsible for directing and

coordinating the operations and activities of the Agrarian Reform
Teams and Action Groups operating within the province and has
the following functions:
1178
(a) Set priorities, specific targets, schedules, and deadlines for

the execution of approved plans, programs, and projects on:
(1) Land acquisition, distribution, transfer of land ownership

to actual tillers, including land-tiller-landowner identification,
tenurial security, leasehold arrangements, land surveys, land
valuation and landowners’ compensation as may be provided for by
law;
(2) Continuing information and education programs on

agrarian reform;
(3) Encouraging the organization and development of

agrarian reform beneficiaries’ cooperatives and other associations
and institutionalizing farmer-government partnership in agrarian
reform policy formulation, program implementation, and evaluation;
(4) Landowners’ compensation and rechannelling landowner

capital to industrial development;
(5) Development and implementation of alternative

land tenure systems such as cooperative farming, cooperative-
cultivatorship schemes, and agro-industrial estates, among others;
(6) Land use management;
(7) Compact farming, integrating farming system, sloping

agricultural land technology, and other land conservation measures
in agrarian reform areas, in coordination with farmer and farm
workers organizations;
(8) Provision for legal services to farmers covered by agrarian

reform and resolution of agrarian conflicts and land tenure problems;
(b) Provide administration services to the Agrarian Reform

Teams and Action Group within the province;
1179
(c) Provide legal services to agrarian reform beneficiaries

in cases arising from or connected with agrarian reform disputes,
handling of expropriation proceedings, registering cooperatives
and reviewing and acting on all matters initially investigated and
elevated by Agrarian Reform Teams;
(d) Provide technical assistance to Agrarian Reform Teams

and Action Groups in the implementation of approved plans and
programs;
(e) Coordinate with government, private agencies, and farmer

and farm worker organizations at the provincial level, to carry out
programs;
(f) Conduct periodic performance audit survey in collaboration

with the regional office and monitor agrarian reform program
accomplishments, including operational problems and constraints,
and recommend appropriate remedial measures for effective
(g) Perform such other functions as may be necessary in the

service of the Ministry’s clientele.
SEC. 15. Team Offices and Action Groups. The Ministry

shall have as many team offices as necessary to cover several
municipalities. Each Team Office is to be headed by a Team Manager
and shall be composed of several Action Groups.
The Team Office shall be responsible for directly implementing

agrarian reform programs and delivering expected results. For such
purpose, it shall have the following functions:
(a) Implement policies and programs on land acquisition and

distribution and transfer of landowners to actual tillers, including
identification of farms, landowners, and beneficiaries, leasehold
arrangements, land valuation, landowner’s compensation and
transfer actions as determined in accordance with law;
1180
(b) Undertake continuing information and education programs

on agrarian reform among the beneficiaries thereof;
(c) Encourage and promote the organization and development

of agrarian reform beneficiaries and assist in the registration of
organized cooperatives;
(d) Institutionalize beneficiaries’ participation in agrarian

reform policy formulation and program implementation;
(e) Organize/establish compact farms, land consolidation,

integrated farm systems, sloping agricultural land technology and
other cooperative-cultivate-cultivatorship schemes;
(f) Provide assistance in agrarian reform research;
(g) Provide assistance to various legal services, including legal

information and legal counselling, documentation and preliminary
processing of applications for patents and applications to purchase
lots, preliminary investigation of conflicting claims of lot boundaries
and appraisal of properties, and mediation of different problems
arising from tenancy relationships; execution and registration of
lease contracts, initial investigation of administrative cases, and
other legal services;
(h) Provide assistance on project identification, formulation,

and development that would uplift the socio-economic status of the
beneficiaries including projects that would channel landlord capital
to industrial development;
(i) Coordinate with other government and private agencies

and farmer and farm worker organizations within the area of
coverage for effective program/project implementation;
(j) Submit periodic reports on program/project accomplishments

including identified problems and recommended solutions thereto;
1181
(k) Implement projects supportive of national priority

programs which the Ministry is committed to assist;
(l) Perform such other functions as may be assigned from time

to time, to promote efficiency and effectiveness in the delivery of
public services.
The Action Groups shall include four (4) personnel of

the Ministry, two (2) representatives of farmer/farm worker
organizations, and one (1) representative of the municipal mayor.
SEC. 16. Foundation. The Foundation for the Agrarian

Reform Movement of the Philippines (FARM-Philippines) is hereby
created. It shall administer, operate, and manage programs and
projects developed by the Bureau of Agrarian Reform Beneficiaries
Development within agrarian reform areas and initiate alternative
livelihood projects for displaced small landowners. The Foundation
will be authorized to raise funds and to contract foreign and
domestic loans for its projects. The legal instruments essential in
accomplishing the purposes of this Section shall be submitted to
the President and other authorities, as may be proper, within one
hundred twenty (120) days from the approval of this Executive
Order.
SEC. 17. New Structure and Pattern. Upon the approval

of this Executive Order, the officers (the term “officer” as used in
this Executive Order is intended to be within the meaning of the
term “official,” as is used in the Freedom Constitution and the
succeeding Constitution) and employees of the Ministry shall, in
a hold-over capacity, continue to perform their respective duties
and responsibilities and receive the corresponding salaries and
benefits unless in the meantime they are separated from the service
pursuant to Executive Order No. 17 (1986).
The new position structure and staffing pattern of the

Ministry shall be approved and prescribed by the Minister within
one hundred twenty (120) days from the approval of this Executive
Order and the authorized positions created thereunder shall be
1182
filled with regular appointments by him or by the President as the

case may be. Those incumbents whose positions are not included
therein or who are not reappointed shall be deemed separated
from the service. Those separated from the service shall receive the
retirement benefits to which they may be entitled under existing
laws, rules and regulations. Otherwise, they shall be paid the
equivalent of one-month basic salary for every year of service, or the
equivalent nearest fraction thereof favorable to them on the basis
of highest salary received, but in no case shall such payment exceed
the equivalent of 12 months salary.
No court or administrative body shall issue any writ or

preliminary injunction or restraining order to enjoin the separation/
replacement of any officer or employee effected under this Executive
Order.
SEC. 18 Prohibition Against Change. No change in the

reorganization herein prescribed shall be valid except upon prior
approval of the President for the purpose of promoting efficiency
and effectiveness in the delivery of public services.
SEC. 19. Notice or Consent Requirement. If any

reorganizational change herein authorized is of such substance or
materiality as to prejudice third persons with rights recognized by
law or contract such that notice to or consent of creditors is required
to be made or obtained pursuant to any agreement entered into with
any of such creditors, such notice or consent requirement shall be
complied with prior to the implementation of such reorganizational
change.
SEC. 20. Change of Nomenclature. In the event of the

adoption of a New Constitution which provides for a presidential
form of government, the Ministry shall be called Department of
Agrarian Reform and the titles of Minister, Deputy Minister and
Assistant Minister shall be changed to Secretary, Deputy Secretary
and Assistant Secretary, respectively.
1183
SEC. 21. Funding. Funds needed to carry out the provisions

of this Executive Order shall be taken from funds available in the
Ministry.
SEC. 22. Implementing Authority of Minister. The Minister

shall issue such rules, regulations and other issuances as may be
necessary to ensure the effective implementation of the provision of
this Executive Order.
SEC. 23. Separability. Any portion or provision of this

Executive Order that may be declared unconstitutional shall not
have the effect of nullifying other portions or provisions hereof, as
long as such remaining portions or provisions can still subsist and
be given effect in their entirety.
SEC. 24. Repealing Clause. All other laws, decrees, rules,

regulations, other issuances, or parts thereof, which are inconsistent
with this Executive Order, are hereby repealed or modified
accordingly.

immediately upon its approval.
APPROVED in the City of Manila, Philippines, this 30th day

of January in the year of Our Lord, Nineteen Hundred and Eighty-
seven.

By the President:
(Sgd.) JOKER P. ARROYO

Executive Secretary
EO 129 s. 1987 was amended by EO 129-A s. 1987.
1184
MALACAÑANG
MANILA
CREATING AN INTER-AGENCY COORDINATING COMMITTEE

TO PREPARE AND COORDINATE IMPLEMENTATION OF A
LAND ADMINISTRATION AND MANAGEMENT PROGRAM
WHEREAS, the rational administration and management of

the country’s land resources are vital to the optimum allocation and
utilization thereof as resources of sustainable economic development;
WHEREAS, there is a recognition of the constraints that

hamper the effective allocation and utilization of the country’s land
resources;
WHEREAS, prudent land management and administration is

vital in fighting poverty, promoting economic growth and managing
resources sustainability;
WHEREAS, it is necessary that the efforts of different

government agencies be coordinated and consolidated in one body
in order to address the problems associated with management and
administration of the country’s land resources;

SECTION 1. There is hereby created an inter-agency

coordinating committee (IACC) to prepare and coordinate
implementation of a land administration and management program
(LAMP) to be composed of:
1185
1. The Department of Environment and Natural

Resources (DENR) Chairman
• Land Management Bureau
• Forest Management Bureau
• Mines and GeoSciences Bureau
• Protected Areas and Wildlife Bureau
• Environmental Management Bureau
• Ecosystems Research and Management Bureau
• National Mapping and Resources Information
Authority
2. The Department of Justice (DOJ) Vice-Chairman
• Land Registration Authority
• Commission on the Settlement of Land Problems
3. The Department of Budget and
Management (DBM) Member
4. The Department of Finance (DOF) Member
• Bureau of Local Government Finance
• Bureau of Internal Revenue
5. The Department of Agrarian Reform (DAR) Member
6. The Department of Agriculture (DA) Member
• Bureau of Soil and Water Management
7. The Department of the Interior and
Local Government (DILG) Member
8. The National Economic and Development
Authority (NEDA) Member
9. The Housing and Urban Development
Coordinating Council (HUDCC) Member
• Housing and Land Use Regulatory Board
• National Housing Authority
10. The Public Estates Authority (PEA) Member
11. The League of Cities Member
12. The League of Provinces Member
13. The League of Municipalities Member
The afore-named members shall be represented by at least an

Undersecretary with respect to the Departments and the head of
agency with respect to the bureaus and agencies concerned.
1186
SEC. 2. The IACC-LAMP shall have the following functions

and duties:
1. Coordinate and monitor all government actions and

responses on management and administration of land resources
with respect to the preparation and implementation of a long term
program of action on land management and administration;
2. Identify specific issues relating to management

and administration of the said lands and formulate policies,
recommendation and plans of actions to address the same;
3. Coordinate with other government agencies in providing

immediate action to problems brought to their attention;
4. Report to the President the actions taken to address specific

issues on the management and administration of the country’s land
resources;
5. Create working groups as may be deemed necessary and

call on representatives from other sectors to tackle specific issues;
and
6. Prepare and adopt implementing/operating guidelines as

may be necessary to ensure smooth operations of the committee and
implementation of this Executive Order.
7. Perform such other functions and duties as may be necessary

to achieve the objective of the committee.
SEC. 3. The Committee shall be provided with an initial budget

of Twenty Million Pesos (P20,000,000.00), or such amount as may be
allotted and approved by the President, upon the recommendation
of the Committee Chairman, subject to the usual accounting and
auditing requirements. Appropriation for the succeeding years
shall be incorporated in the budget proposals of the Office of the
President.
1187
SEC. 4. An IACC Secretariat, to provide administrative and

technical support to the Committee, shall be created at the Land
Management Bureau to be headed by its director.
SEC. 5. The Executive Order shall take effect immediately.
DONE in the City of Manila, this 24th day of JULY, in the

year of Our Lord, nineteen hundred and ninety nine.

By the President:

Executive Secretary
1188
MALACAÑANG
MANILA
EXECUTIVE ORDER NO. 129-A, s. 1987
MODIFYING EXECUTIVE ORDER NO. 129 REORGANIZING AND

STRENGTHENING THE DEPARTMENT OF AGRARIAN
REFORM AND FOR OTHER PURPOSES
WHEREAS, Executive Order No. 129 dated January 30, 1987

was suspended;
WHEREAS, Presidential Proclamation No. 131 and Executive

Order No. 229, both dated July 22, 1987 instituted a Comprehensive
Agrarian Reform Program (CARP) and provided the mechanisms
for its implementation;
WHEREAS, Executive Order No. 229 vests on the Department

of Agrarian Reform quasi-judicial powers to determine and
adjudicate agrarian reform matters;
WHEREAS, there is a need to strengthen and expand the

functions of the Department of Agrarian Reform to be more effective
in implementing the Comprehensive Agrarian Reform Program;
WHEREAS, under Article XVIII, Section 6, of the 1987

Constitution, the President shall continue to exercise legislative
powers until the First Congress convenes;

Constitution, do hereby order:
SECTION 1. Title. — This Executive Order shall otherwise

be known as the Reorganization Act of the Department of Agrarian
Reform.
1189
SEC. 2. Reorganization. — The Department of Agrarian

Reform is hereby reorganized structurally and functionally,
hereinafter referred to as the Department, in accordance with the
provisions of this Executive Order.
SEC. 3. Declaration of Policy. — It is the declared policy

of the State to completely abolish all remnants of feudalism and
all other types of unjust tenurial arrangements, implement the
comprehensive agrarian reform program, increase the productivity
of the direct producers, and strengthen the agricultural base for
increased industrialization.
Pursuant to this policy, the State shall:
a. Establish owner-cultivated economic, family-size farms and

collectively- owned/cooperatively-cultivated farms as the foundation
of Philippine agriculture;
b. Prohibit absentee land ownership;
c. Rechannel and divert landlord capital in agriculture to

d. Assist in the preservation and conservation of prime lands

for agricultural purposes;
e. Encourage the establishment and protect the autonomy

and independence of institutions of farmers and farmworkers that
will safeguard their interests and ensure their dignified existence,
free from pernicious restraints and practices;
f. Create just and viable socio-economic structures in

agriculture conducive to greater productivity and higher incomes
through the cooperative system of production, processing, marketing,
distribution, and credit services;
g. Accelerate the disposition of public alienable, disposable,

and cultivable land to actual cultivators and other qualified
1190
beneficiaries and develop agrarian communities for full utilization

of land for human growth and development;
h. Institutionalize partnerships between government and

organizations of farmers and farmworkers in agrarian reform policy
formulation, program implementation, and evaluation;
i. Provide specific investment opportunities, alternative

employment, and other incentives for landowners affected by
agrarian reform;
j. Ensure adequate funding support for the agrarian reform

program as well as timely, affordable, and appropriate financing
schemes to its beneficiaries;
k. Implement an agricultural land tax scheme that will

prevent land hoarding and/or speculation.
SEC. 4. Mandate. — The Department shall be responsible for

implementing the Comprehensive Agrarian Reform Program and,
for such purpose, it is authorized to:
a. Acquire, determine the value of, subdivide into family-size

farms or organize into collective of cooperative farms and develop
private agricultural lands for distribution to qualified tillers, actual
occupants, and displaced urban poor;
b. Administer and dispose all cultivable portions of the

public domain declared as alienable and disposable for agricultural
purposes transferred to it by the Department of Environment and
Natural Resources;
c. Acquire, by purchase or grant, real estate properties suited

for agriculture that have been foreclosed by the national government;
d. Undertake land consolidation, land reclamation, land

forming, and conservation in areas subject to agrarian reform;
1191
e. Facilitate the compensation of landowners covered by

agrarian reform;
f. Issue emancipation patents to farmers and farmworkers

who have been given lands under the agrarian reform program as
g. Provide free legal services to agrarian reform beneficiaries

and resolve agrarian conflicts and land tenure problems;
h. Develop and implement alternative land tenure systems

such as cooperative farming and agro-industrial estates, among
others;
i. Undertake land use management and land development

studies and projects in agrarian reform areas;
k. Approve or disapprove the conversion, restructuring or

readjustment of agricultural lands into non-agricultural uses;
l. Monitor and evaluate the progress of agrarian reform

implementation;
m. Assist the Office of the Solicitor General in providing

evidence for the reversion proceedings to be filed with respect to
lands of the public domain, occupied by private individuals and
their tenants or farmworkers which are subject to land reform,
and real rights connected therewith which have been acquired in
violation of the Constitution or the public land laws or through
corrupt practices;
n. Submit progress reports to the Office of the President, to

Congress, and to the people at the end of each year and at all times
make available to the general public information on the current
status of its programs.
SEC. 5. Powers and Functions. — Pursuant to the mandate the

Department, and in order to ensure the successful implementation
1192
of the Comprehensive Agrarian Reform Program, the department is

hereby authorized to:
a. Advise the President and the Presidential Agrarian Reform

Council on the promulgation of executive/administrative orders,
other regulative issuances and legislative proposals designed
to strengthen agrarian reform and protect the interests of the
beneficiaries thereof;
b. Implement all agrarian laws, and for this purpose, punish

for contempt and issue subpoena, subpoena duces tecum, writs
of execution of its decisions, and other legal processes to ensure
successful and expeditious program implementation; the decisions
of the Department may in proper cases, be appealed to the Regional
Trial Courts but shall be immediately executory notwithstanding
such appeal;
c. Establish and promulgate operational policies, rules and

d. Coordinate program implementation with the Land Bank of

the Philippines and other relevant civilian and military government
agencies mandated to support the agrarian reform program;
e. Acquire, administer, distribute, and develop agricultural

lands for agrarian reform purposes;
f. Undertake surveys of lands covered by agrarian reform;
g. Issue emancipation patents to farmers and farmworkers

covered by agrarian reform for both private and public lands and
when necessary make administrative corrections of the same;
h. Provide free legal services to agrarian reform beneficiaries

and resolve agrarian conflicts and land-tenure related problems as
1193
i. Promote the organization and development of cooperatives

j. Conduct continuing education and promotion programs

on agrarian reform for beneficiaries, land-owners, government
k. Institutionalize the participation of farmers, farmworkers,

other beneficiaries, and agrarian reform advocates in agrarian
l. Have exclusive authority to approve or disapprove conversion

of agricultural lands for residential, commercial, industrial, and
other land uses as may be provided for by law;
m. Call upon any government agency, including the Armed

Forces of the Philippines, and non-governmental organizations
(NGOs) to extend full support and cooperation to program
implementation;
n. Exercise such other powers and functions as may be provided

for by law or directed by the President, to promote efficiency and
effectiveness in the delivery of public services.
SEC. 6. Structural Organization. — The Department shall

consist of the Department Proper, the staff offices, the staff
bureaus and the regional/provincial/municipal agrarian reform
offices.
The Department Proper shall consist of the following:
a. Office of the Secretary;

b. Offices of the Undersecretaries;
c. Offices of the Assistant Secretaries;
d. Public Affairs Staff;
e. Special Concerns Staff;
f. Agrarian Reform Adjudication Board.
1194
The staff sectoral bureaus, on the other hand, shall be

composed of:
a. Bureau of Land Acquisition and Distribution;

b. Bureau of Land Development;
c. Bureau of Agrarian Legal Assistance;
d. Bureau of Agrarian Reform Information and Education;
e. Bureau of Agrarian Reform Beneficiaries Development.
The field offices shall consist of the Department regional

offices, the provincial offices and the municipal agrarian reform
office.
SEC. 7. Secretary of Agrarian Reform. — The authority and

responsibility for the exercise of the mandate of the Department
and the discharge of its powers and functions shall be vested in the
Secretary of Agrarian Reform, hereinafter referred to as Secretary,
who shall have supervision and control over the Department and
shall be appointed by the President.
SEC. 8. Office of the Secretary. — The Office of the Secretary

shall consist of the Secretary, his immediate staff, the Public Affairs
Staff and the Special Concerns Staff.
SEC. 9. Undersecretary. — The Secretary shall be assisted by

four (4) Undersecretaries who shall be appointed by the President
upon the recommendation of the Secretary. The Secretary is hereby
authorized to delineate, assign and/or reassign the respective
functional areas of responsibility of the Undersecretaries, provided,
That such responsibility shall be with respect to the mandate
and objectives of the Department; and provided, Further, that
no Undersecretary shall be assigned primarily administrative
responsibilities.
SEC. 10. Assistant Secretary. — The Secretary and the

Undersecretaries shall also be assisted by seven (7) Assistant
Secretaries, who shall be appointed by the President upon the
recommendation of the Secretary. The Secretary is hereby authorized
1195
to delineate, assign and/or reassign the respective functional areas

of responsibility of the Assistant Secretaries, provided, That such
responsibility shall be with respect to the mandate and objectives of
the Department.
SEC. 11. Public Affairs Staff. — There is hereby created a

Public Affairs Staff, under the office of the Secretary, to be headed
by a Director and assisted by an Assistant Director, which shall
serve as the public information arm of the Department. It shall
be responsible for disseminating information and agrarian reform
policies, plans, programs and projects; and respond to public queries
related to the implementation of the agrarian reform program.
SEC. 12. Special Concerns Staff. — There is hereby created

a Special Concerns Staff under the Office of the Secretary, to be
headed by a Director and assisted by an Assistant Director, which
shall be responsible for handling priority areas/subjects identified
by the Secretary that necessitate special and immediate attention.
SEC. 13. Agrarian Reform Adjudication Board. — There is

hereby created an Agrarian Reform Adjudication Board under the
Office of the Secretary. The Board shall be composed of the Secretary
as Chairman, two (2) Undersecretaries as may be designated by the
Secretary, the Assistant Secretary for Legal Affairs, and three (3)
others to be appointed by the President upon the recommendation
of the Secretary as members. A Secretariat shall be constituted
to support the Board. The Board shall assume the powers and
functions with respect to the adjudication of agrarian reform cases
under Executive Order No. 229 and this Executive Order. These
powers and functions may be delegated to the regional offices of
the Department in accordance with rules and regulations to be
promulgated by the Board.
SEC. 14. Planning and Project Management Office. — There

is hereby created a Planning and Project Management Office within
the Department Proper which shall be responsible for coordinating
and initiating the development, integration and prioritization of
plans, programs and projects of the Department; monitoring and
1196
evaluating agrarian reform program implementation; establishing

linkages with foreign funding institutions; and coordinating the
activities of the different Offices, Bureaus and Attached Agencies
of the Department.
SEC. 15. Policy and Strategic Research Office. — There is

hereby created a Policy and Strategic Research Office within the
Department Proper which shall be responsible for establishing and
implementing a computerized management information system as
well as for coordinating and/or initiating research and studies for
planning and policy formulation purposes.
SEC. 16. Finance, Management and Administrative Office. —

There is hereby created a Finance, Management and Administrative
Office within the Department Proper which shall be responsible
for the proper and timely allocation of funds to support approved
programs, projects and activities; the appropriate management
control and accounting of funds; the management of the Department’s
physical assets; and the provision of services to ensure effective and
efficient personnel management and manpower career development,
and for the establishment of management systems and procedures.
SEC. 17. Field Operations Office. — There are hereby

created Field Operations Offices for Luzon, Visayas and Mindanao
within the Department Proper which shall monitor and assess the
implementation of the Department’s policies, plans and programs
at the regional, provincial and municipal levels.
SEC.18. Legal Affairs Office. — There is hereby created a

Legal Affairs Office within the Department Proper which shall be
responsible for the review of contracts and other legal matters, the
rendition of legal assistance to Department personnel and those
who will be affected by the agrarian reform program.
SEC. 19. Bureau of Land Acquisition and Distribution.

— There is hereby created the Bureau of Land Acquisition and
Distribution which shall absorb the relevant functions of the
Bureaus of Land Acquisition, Distribution and Development, and
1197
of Land Tenure Improvement. The Bureau of Land Acquisition and

Distribution, to be headed by a Director and assisted by an Assistant
Director, shall be responsible for the development of policies,
plans, programs, standard operating procedures, and for providing
technical assistance, relative to the acquisition and distribution of
private agricultural lands covered by the agrarian reform program,
including land tiller-landowner identification, land valuation, and
landowners’ compensation, transfer of ownership to actual tillers,
leasehold arrangements, stewardship, and land transfer actions.
SEC. 20. Bureau of Land Development. — There is hereby

created the Bureau of Land Development which shall absorb the
relevant functions of the Bureau of Land Acquisition, Distribution
and Development. The Bureau of Land Development, to be headed
by a Director and assisted by an Assistant Director, shall be
responsible for the development of policies, plans and programs,
and for providing technical assistance, relative to land surveys, land
use, capability and classification, engineering services, and land
consolidation.
SEC. 21. Bureau of Agrarian Legal Assistance. — The Bureau

of Agrarian Legal Assistance shall be strengthened and shall be
responsible for developing guidelines, plans and programs for legal
assistance including developing, maintaining and coordinating para-
legal services for those who will be affected by the Comprehensive
Agrarian Reform Program. It shall be headed by a Director and
assisted by an Assistant Director.
SEC. 22. Bureau of Agrarian Reform Information and

Education. — There is hereby created the Bureau of Agrarian
Reform Information and Education which shall absorb the functions
of the Agrarian Reform Education Service which is abolished by this
Executive Order. The Bureau of Agrarian Reform Information and
Education, to be headed by a Director and assisted by an Assistant
Director, shall be responsible for developing and conducting
continuing training and education programs for the acquisition of
knowledge, value formation, and development of skills and favorable
attitudes among beneficiaries and personnel of the Department
1198
and other agencies, and the increase of awareness, participation

and acceptance of agrarian reform by the public through the
dissemination of information and communication materials.
SEC. 23. Bureau of Agrarian Reform Beneficiaries

Development. — There is hereby created the Bureau of Agrarian
Reform Beneficiaries Development which shall absorb the relevant
functions of the Bureau of Resettlement. The Bureau of Agrarian
Reform Beneficiaries Development, to be headed by a Director
and assisted by an Assistant Director, shall be responsible for the
development of policies, plans and programs, and for providing
technical assistance, relative to the development of settlement areas
into viable agrarian communities. It shall also be responsible for
promoting the organization of agrarian reform beneficiaries, liaison
with farmer and farm workers organizations to ensure the raising
or farm incomes, the promotion of all forms of farm cooperation, the
achievement of a dignified existence and the creation of a viable
economic structure conducive to greater productivity and higher
farm income.
SEC. 24. Regional Offices. — The Department shall have

twelve (12) Regional Offices. Each Regional Office shall be headed by
a Regional Director who shall be assisted by an Assistant Regional
Director for Operations and an Assistant Regional Director for
Administration.
The Regional Offices shall be responsible for the

implementation of laws, policies, plans, programs, projects, rules
and regulations of the Department in its administrative region. For
such purpose, it shall have the following functions:
a. Prepare and submit plans and programs for the region on:
1) Land Acquisition and distribution;
2) Information and education;
3) Land use management and land development;
4) Agrarian reform beneficiaries development;
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b. Provide technical assistance to Provincial Offices and

Municipal Agrarian Reform Offices in the implementation of
approved plans and programs;
c. Conduct operations research and evaluation of agrarian

reform implementation within the region;
d. Coordinate with other government and private agencies

and farmer and farm workers organizations at the regional level, to
carry out the programs/projects for the general welfare of agrarian
reform beneficiaries;
e. Maintain an information sy stem in coordination with the

established monitoring systems;
f. Review and evaluate reports and other documents

submitted by the Provincial Offices and Municipal Agrarian Reform
Offices and agrarian reform clientele;
g. Submit periodic feedback as may be necessary in the

service of the Department’s clientele.
SEC. 25. Provincial Offices. — The Agrarian Reform District

Offices are hereby abolished and in their stead the Department shall
create Provincial Agrarian Reform Offices as may be necessary in
promoting efficiency and effectiveness in the delivery of its services.
Each Provincial Agrarian Reform Office shall be headed by a
Provincial Agrarian Reform Officer.
The Provincial Agrarian Reform Offices shall be responsible

for directing and coordinating the operations and activities of the
Municipal Agrarian Reform Offices operating within the province
and has the following functions:
a. Set priorities, specific targets, schedules, and deadlines for

the execution of approved plans, programs, and projects on:
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1) Land acquisition, distribution, transfer of land ownership

to actual tillers, including land-tiller-landowner identification,
tenurial security, leasehold arrangements, land surveys, land
valuation and landowner’s compensation as may be provided for by
law;
2) Continuing information and education programs on

agrarian reform;
3) Encouraging the organizational development of agrarian

reform beneficiaries cooperatives and other associations and
institutionalizing farmer-government partnership in agrarian
4) Landowners’ compensation and rechanneling landowner

capital to industrial development;
5) Development and implementation of alternative land tenure

systems such as cooperative farming, cooperative cultivatorship
schemes, and agro- industrial estates, among others;
6) Land use management;
7) Compact farming, integrated farming system, sloping

agricultural land technology, and other land conservation measures
in agrarian reform areas, in coordination with farmer and farm
workers organizations;
8) Provision of legal services to those affected by agrarian

reform and resolution of agrarian conflicts and land tenure problems;
b. Provide administrative services to the Municipal Agrarian

Reform Offices within the province;
c. Provide legal services to agrarian reform beneficiaries in

cases arising from or connected with agrarian reform disputes,
handling of expropriation proceedings, registering cooperatives
1201

elevated by Municipal Agrarian Reform Office;
d. Provide technical assistance to Municipal Agrarian Reform

Offices in the implementation of approved plans and programs;
e. Coordinate with governmental, private agencies, and

farmer and farm worker organizations at the provincial level, to
carry out programs;
f. Conduct periodic performance audit survey in collaboration

with the regional office and monitor agrarian reform program
accomplishments, including operational problems and constraints,
and recommend appropriate remedial measures for effective
g. Perform such other functions as may be necessary in the

service of the Department’s clientele;
SEC. 26. Municipal Agrarian Reform Offices. — The

Department shall have as many Municipal Agrarian Reform Offices
as may be necessary in promoting efficiency and effectiveness in
the delivery of its services, which shall be headed by a Municipal
Agrarian Reform Officer.
The Municipal Agrarian Reform Office shall be responsible

for directly implementing agrarian reform programs and delivering
expected results at the municipal level. For such purpose, it shall
have the following functions:
a. Implement policies and programs on land acquisition and

distribution and transfer of landowners to actual tillers, including
identification of farms, landowners, and beneficiaries, leasehold
arrangements, land valuation, landowner’s compensation and
transfer actions as determined in accordance with law;
b. Undertake continuing information and education programs

on agrarian reform among the beneficiaries thereof;
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c. Encourage and promote the organization and development

of agrarian reform beneficiaries and assist in the registration of
organized cooperatives;
d. Institutionalize beneficiaries’ participation in agrarian

reform policy formulation and program implementation;
e. Organize/establish compact farms, land consolidation,

integrated farm system, sloping agricultural land technology and
other cooperative-cultivatorship schemes;
f. Provide assistance in agrarian reform research;
g. Provide assistance to various legal services, including legal

information and legal counselling, documentation and preliminary
processing of applications for patents and applications to purchase
lots, preliminary investigation of conflicting claims of lot boundaries
and appraisal of properties, and mediation of different problems
arising from implementation of the agrarian reform program;
execution and registration of lease contracts, initial investigation of
administrative cases, and other legal services;
h. Provide assistance on project identification, formulation,

and development that would uplift the socio-economic status of the
beneficiaries including projects that would channel landlord capital
to industrial development;
i. Cooperative with other government and private agencies

and farmer and farm worker organizations within the area of
coverage for effective program/project implementation;
j. Submit periodic reports on program/projects accomplishments

including identified problems and recommended solutions thereto;
k. Implement projects supportive of national priority programs

which the Department is committed to assist;
1203
l. Perform such other functions as may be assigned from time

to time, to promote efficiency and effectiveness in the delivery of
public services.
SEC. 27. Attached Agency. —
a. The Department shall, subject to the approval of the

Presidential Agrarian Reform Council, create the Foundation for the
Agrarian Reform Movement of the Philippines (FARM-Philippines)
to administer, operate, and manage programs and projects developed
by the Department and initiate alternative livelihood projects for
displaced small landowners. It shall be attached to the office of
the Secretary and shall be governed by a Board of Trustees. The
Foundation will be authorized to raise funds and to contract foreign
and domestic loans for its projects.
SEC. 28. Transitory Provisions. — In accomplishing the acts of

reorganization herein prescribed, the following transitory provisions
shall be complied with, unless otherwise provided elsewhere in this
Executive Order:
a. The transfer of a government unit shall include the functions,

appropriations, funds, records, equipment, facilities, chosen in
action, rights, other assets, and liabilities, if any, of the transferred
unit as well as the personnel thereof, as may be necessary, who shall,
in a hold-over capacity, continue to perform their respective duties
and responsibilities and receive the corresponding salaries and
benefits. Those personnel from the transferred unit whose positions
are not included in the Department’s new position structure and
staffing pattern approved and prescribed by the Secretary or who
are not reappointed shall be deemed separated from the service and
shall be entitled to the benefits provided in the second paragraph of
Section 29 hereof.
b. The transfer of functions which results in the abolition

of the government unit that exercised them shall include the
appropriations, funds, records, equipment, facilities, chosen in
action, rights, other assets and personnel as may be necessary to
1204
the proper discharge of the transferred functions. The abolished

unit’s remaining appropriations and funds, if any, shall revert to
the General Fund and its remaining assets, if any, shall be allocated
to such appropriate units as the Secretary shall determine or shall
otherwise be disposed in accordance with the Government Auditing
Code and other pertinent laws, rules and regulations. Its liabilities,
if any, shall likewise be treated in accordance with the Government
Auditing Code and other pertinent laws, rules and regulations. Its
personnel shall, in a hold-over capacity, continue to perform their
duties and responsibilities and receive their corresponding salaries
and benefits. Its personnel whose positions are not included in
the Department’s structure and staffing pattern approved and
prescribed by the Secretary under Section 29 hereof or who are not
reappointed, shall be deemed separated from the service and shall
be entitled to the benefits provided in the second paragraph of the
same Section 29.
c. Any transfer of functions which does not result in the

abolition of the government unit that has exercised them shall include
the appropriations, funds, records, equipment, facilities, chosen in
action, rights, and assets and personnel as may be necessary to the
proper discharge of the transferred functions. The liabilities, if any,
that may have been incurred in connection with the discharge of
the transferred functions, shall be treated in accordance with the
Government Auditing Code and other pertinent laws, rules and
regulations. Such personnel shall, in a hold-over capacity, continue
to perform their duties and responsibilities and receive their
corresponding salaries and benefits unless in the meantime they are
separated from the service. Any personnel, whose positions are not
included in the Department’s new position structure and staffing
pattern approved and prescribed by the Secretary under Section
29 hereof or who are not reappointed, shall be deemed separated
from the service and shall be entitled to the benefits provided in the
second paragraph of the same Section 29.
d. In case of the abolition of a government unit which does

not result in the transfer of its functions to another unit, the
appropriations and funds of the abolished entity shall revert to
1205
the General Fund, while the records, equipment, facilities, chosen

in action, rights, and other assets thereof shall be allocated to
such appropriate entities as the Secretary shall determine or
shall otherwise be disposed in accordance with the Government
Auditing Code and other pertinent laws, rules and regulations.
The liabilities of the abolished units shall be treated in accordance
with the Government Auditing Code and other pertinent laws, rules
and regulations, while the personnel thereof, whose position, is not
included in the Department’s new position structure and staffing
pattern approved and prescribed by the Secretary under Section
29 hereof or who has not reappointed, shall be deemed separated
from the service and shall be entitled to the benefits provided in the
second paragraph of the same Section 29.
e. In case of merger or consolidation of government units, the

new or surviving unit shall exercise the functions (subject to the
reorganization herein prescribed and the laws, rules and regulations
pertinent to the exercise of such functions) and shall acquire
the appropriations, funds, records, equipment, facilities, chosen
in action, rights, other assets, liabilities, if any, and personnel,
as may be necessary, of the units that compose the merged unit
shall in a hold-over capacity, continue to perform their respective
duties and responsibilities and receive their corresponding salaries
and benefits unless in the meantime they are separated from the
service. Any such personnel, whose positions are not included in the
Department’s new position structure and staffing pattern approved
and prescribed by the Secretary under Section 29 hereof or who are
not reappointed, shall be deemed separated from the service and
shall be entitled to the benefits provided in the second paragraph of
the same Section 29.
f. In case of termination of a function which does not result in

the abolition of the government unit which performed such function,
the appropriations and funds intended to finance the discharge of
such function shall revert to the General Fund while the records,
equipment, facilities, chosen in action, rights and other assets used
in connection with the discharge of such function shall be allocated
to the appropriate units as the Department shall determine or
1206
shall otherwise be disposed in accordance with the Government

Auditing Code and other pertinent laws, rules and regulations. The
liabilities, if any, that may have been incurred in connection with
the discharge of such function shall likewise be treated in accordance
with the Government Auditing Code and other pertinent laws, rules
and regulations. The personnel who have performed such function,
whose positions are not included in the Department’s new position
structure and staffing pattern approved and prescribed by the
Secretary under Section 29 hereof or who have not been reappointed,
shall be deemed separated from the service and shall be entitled to
the benefits provided in the second paragraph of the same Section
29 hereof.
SEC. 29. New Structure and Pattern. — Upon approval of

this Executive Order, the officers and employees of the Department
shall, in a hold-over capacity, continue to perform their respective
duties and responsibilities and receive the corresponding salaries
and benefits unless in the meantime they are separated from
government service.
The new position structure and staffing pattern of the

Department shall be approved and prescribed by the Secretary
within sixty (60) days from the effectivity of this Executive Order
and the authorized positions created thereunder shall be filled with
regular appointments by him or by the President as the case may be.
Those incumbents whose positions are not included therein or who
are not reappointed shall be deemed separated from the service.
Those separated from the service shall receive the retirement
benefits to which they be entitled under existing laws, rules and
regulations. Otherwise, they shall be paid the equivalent of one
(1) month basic salary for every year of service in the government
or a fraction thereof, computed on the basis of the highest salary
received, but in no case shall such payment exceed the equivalent of
twelve (12) months salary.
SEC. 30. Periodic Performance Evaluation. — The Department

of Agrarian Reform is hereby required to formulate and enforce a
system of measuring and evaluating periodically and objectively the
1207
performance of the Department and submit the same annually to

the President.
SEC. 31. Notice or Consent Requirement. — If any

reorganizational change herein authorized is of such substance or
materiality as to prejudice third persons with rights recognized by
law or contract such that notice to or consent of creditors is required
to be made or obtained pursuant to any agreement entered into with
any of such creditors, such notice or consent requirement shall be
complied with prior to the implementation of such reorganizational
change.
SEC. 32. Prohibition Against Structural Changes. — No

change in the reorganization herein prescribed shall be valid except
upon prior approval of the President for the purpose of promoting
efficiency and effectiveness in the delivery of public services.
SEC. 33. Funding. — Funds needed to carry out the provisions

of this Executive Order shall be taken from funds available in the
Department.
SEC. 34. Implementing Authority of the Secretary. — The

Secretary shall issue orders, rules and regulations and other
issuances as may be necessary to ensure the effective implementation
of the provisions of this Executive Order.
SEC. 35. Separability. — Any portion or provision of this

Executive Order that may be declared unconstitutional shall not
have the effect of nullifying other portions or provisions hereof as
long as such remaining portions or provisions can still subsist and
be given effect in their entirety.
SEC. 36. Repealing Clause. — All laws, ordinances, rules

and regulations and other issuances or parts thereof, which are
inconsistent with this Executive Order, are hereby repealed or
1208

immediately.
APPROVED in the City of Manila, Philippines, this 26th day

of July, in the year of Our Lord, nineteen hundred and eighty-seven.

By the President:

Executive Secretary
EO 129-A s. 1987 amended EO 129 s. 1987.
1209
MALACANAN PALACE
MANILA
TRANSFERRING THE PHILIPPINE CROP INSURANCE

CORPORATION (PCIC) FROM THE DEPARTMENT OF
AGRICULTURE TO THE DEPARTMENT OF FINANCE,
AND REORGANIZING THE PCIC BOARD OF DIRECTORS
WHEREAS, Presidential Decree No. 1467 (s. 1978), as

amended by Republic Act (RA) No. 8175 or the “Revised Charter
of the Philippine Crop Insurance Corporation Act of 1995,” created
the PCIC to provide insurance protection to farmers against losses
arising from natural disasters, plant diseases and pest infestation;
WHEREAS, pursuant to Executive Order (EO) No. 74 (s. 2002),

the PCIC is currently attached to the Department of Agriculture
(DA) for policy and program coordination, and general supervision;
WHEREAS, the Department of Finance (DOF) is the

agency primarily responsible in ensuring the sound and efficient
management of the financial resources of the government, its
subdivisions, agencies and instrumentalities, and is mandated
to formulate, institutionalize and administer fiscal policies in
coordination with other concerned subdivisions, agencies and
instrumentalities of government;
WHEREAS, in order for the PCIC to effectively perform its

mandate of providing insurance protection to farmers in the most
cost-efficient manner, there is a need to align its plans and programs
with national development policies and the government’s overall
fiscal plan;
WHEREAS, Section 5 of RA No. 10149 or the “GOCC

Governance Act of 2011,” provides that the Governance Commission
1210
for GOCCs (GCG) shall evaluate and ascertain whether a GOCC

should be reorganized, merged, streamlined, abolished or privatized,
and if upon its determination that it is to the best interest of the State
that a GOCC should be reorganized, merged, streamlined, abolished
or privatized, it shall make the appropriate recommendation to the
President;
WHEREAS, the DOF, DA and the GCG recommended the

transfer of the PCIC from the DA to the DOF, and the reorganization
of the PCIC Board of Directors to ensure that the operations of
the PCIC are rationalized and monitored centrally in order that
government assets and resources are used effectively, and the
government’s exposure to all forms of liabilities including subsidies
is warranted and incurred through prudent measures;
WHEREAS, a modernized agriculture founded on social

equity is one of the key components of the government’s national
agenda for poverty alleviation and national development; and
WHEREAS, pursuant to Section 17, Article VII of the

Constitution, the President shall have control over Executive
departments, bureaus and offices;

SECTION 1. Attachment of the PCIC to the DOF. The PCIC

is hereby transferred from the Department of Agriculture and
attached to the Department of Finance for policy and program
coordination, and general supervision.
SEC. 2. Reorganization of the PCIC Board. The PCIC Board of

Directors is hereby reorganized as follows:
1211
Chairperson : Secretary, Department of Finance

Vice-Chairperson : Secretary, Department of Agriculture
Members : President, Philippine Crop Insurance
Corporation
President, Land Bank of the Philippines
President and General Manager,
Government
Service Insurance System
Representative from the private
insurance industry, to be nominated by
the Secretary of Finance
Representative from the subsistence
farmer's sector, preferably representing
agrarian reform beneficiaries/
cooperatives/associations, who shall be
selected and nominated by the
different farmers' organizations and/or
cooperatives
SEC. 3. Separability. If any provision of this Order is declared

invalid or unconstitutional, the other provisions not affected thereby
shall remain valid and subsisting.
SEC. 4. Repeal. All orders, rules and regulations, and other

issuances inconsistent with the provisions of this Order are hereby
revoked or modified accordingly.
DONE, in the City of Manila, this 14th day of September, in

the year of our Lord, Two Thousand and Twenty-One.
By the President:

Executive Secretary
1212
MALACAÑANG
MANILA
INSTITUTING THE PRESIDENTIAL GOLDEN PLOW AWARD IN

RECOGNITION OF EXTRAORDINARY AND OUTSTANDING
SERVICE OR CONTRIBUTION BY INDIVIDUALS, GROUPS
OF INDIVIDUALS AND INSTITUTIONS TO THE CAUSE
OF LAND REFORM
WHEREAS, in the pursuit of the objectives of the Land Reform

Program in the Philippines men with vision, reason, and courage in
personal commitment, are bringing about a society of independent,
self-reliant and responsible citizens; and
WHEREAS, it is fitting to recognize these individuals, groups

of individuals and institutions who have rendered selfless service or
contribution to the cause of land reform;

President of the Philippines, by virtue of the powers vested in
me by law, do hereby create a Presidential Award to be known as
“THE PRESIDENTIAL GOLDEN PLOW AWARD,” described and
awarded as follows:
SECTION 1. The award shall recognize the vision, reason and

courage of those who selflessly render extraordinary and outstanding
service or contribution to humanity in the implementation of the
lend reform program.
SEC. 2. The service or contribution groups of individuals or

institutions with far-reaching consequences and emulative effect to
Man and Society, shall be recognized and awarded.
1213
SEC. 3. This system of award seeks to encourage others to

emulate those who rendered extraordinary and outstanding service
or contribution for the public good and interest; and those who
promoted and advanced international amity through mutual help
and assistance, brought about by an awareness and recognition of
interdependence among peoples and individuals and the changing
concept of private property in a christian society.
SEC. 4. The design of the decoration shall be heraldically

described as follows:
A symbolic sheaf of golden harvest with a plow superimposed;
Above, a crest of sampaguita garland, and below, a scroll with

the inscription, “SAGISAG NG PAGLILINGKOD.”
“THE PRESIDENTIAL GOLDEN PLOW AWARD FOR

LAND REFORM” shall be inscribed at the back of the medallion
itself.
SEC. 5. The symbolism and significance of the decoration are

as follows:
a. The green and gold ribbon from which the medallion hangs
represents the colors of Land Reform in the Philippines.
b. The sampaguita garland above the sheaf symbolizes the

Philippine National Flower. It stands for purity and oneness of
purpose, the flower of one’s oblation to humanity.
c. The sheaf of golden harvest symbolizes the totality of

individuals, farmers, landowners, government personnel, and the
communities as a whole bound together by mutual understanding
and cooperation among themselves for the common weal.
d. The plow symbolizes the basic tool of agriculture; and the

values of Filipino tradition, strength of character, unity of purpose,
1214
untiring dedication and steadfast devotion to the cause of Man, and

effervescent determination to serve Society.
e. The color of gold symbolizes fulfillment.
f. The inscription, “SAGISAG NG PAGLILINGKOD” means

that the recipient has rendered extraordinary and outstanding
service or contribution beyond the call of duty to humanity; that his
sacrifices promoted the aspirations and objectives of land reform;
and that the fruits of his toils or significant contributions have
brought about the social and economic uplift of the people and the
nation, as well as the realization of social justice and understanding
among peoples.
g. The term “Land Reform” inscribed on the other side of the

medallion represents the revolutionary program of government that
effects agrarian tenurial improvement for national progress.
SEC. 6. Scope of the Award. The scope of the award shall

include persons in the following fields of endeavor:
a. PUBLIC SERVICE – Extraordinary and outstanding

service or contribution for the public good and interest by a private
citizen or individual, group of private citizens or individuals or
private institutions.
b. INTERNATIONAL UNDERSTANDING – Extraordinary

and outstanding service or contribution in the promotion ad
advancement of international amity through mutual help and
assistance by individuals, groups of individuals or institutions,
whether private or governmental, domestic or foreign.
c. GOVERNMENT SERVICE – Extraordinary and outstanding

service or contribution for the public good and interest in any field
of land reform by any officer or employee of the Government of the
Republic of the Philippines.
1215
SEC. 7. There shall be three categories of awards for every

field of endeavor, namely: (1) individual, (2) group of individuals ,
and ( 3 ) institutional.
SEC. 8. There shall be one award for each of the three fields
of endeavor. These are: ( a ) one award for Public Service, ( b ) one
award for International Understanding, and ( c ) one award for
Government Service.
SEC. 9. An award may be joint between individuals, groups of

individuals, institutions, or between any two of the three categories
or among the three categories which / who are considered by the
National Land Reform Council, upon recommendation of the
Committee on Awards, to be equally deserving of recognition in a
given year.
SEC. 10. Any extraordinary and outstanding work

performance, accomplishment or achievement and/or contribution
by a deceased person or by a group of persons some of whom are
deceased may be the subject of an award.
SEC. 11. Screening and Selection. – There is created a

Committee on Awards composed of a chairman end four members to
be named annually during the month of September by the Chairman
of the National Land Reform Council from among prestigious
government personnel and/or among prominent private citizens or
individuals, Filipinos or foreigners.
The Committee shall screen the nominees for award and shall
submit its recommendation to the National Land Reform Council
for final selection.
SEC. 12. Standards or criteria for Selection. – No work

shall merit an award unless it has been found by experience or
expert scrutiny to be extraordinary and outstanding within the
scope of the award and is manifestly of the nature that exemplifies
the lofty ideals of land reform.
1216
In evaluating candidates for the awards, the Committee on

Awards, shall consider the following criteria:
a. Performance of an extraordinary and outstanding service

or contribution for the public good and interest, specifically in the
furtherance of the objectives of land reform.
b. Evidences of sustained effect of contribution or work

performance over and above the normal duty requirements of a
given individual, group of individuals, or institutions.
c. Contribution to the cause of land reform or performance

of extraordinary and outstanding service is of such far-reaching
consequence and emulative effect on Man and his Society.
SEC. 13. Procedure. – The award shall be open to any person,

group of persons, regardless of race, creed, sex, or nationality; or
institutions, whether private or governmental, domestic or fore
The following procedural guidelines shall be observed:
a. To come under consideration for an award, a person,

group of persons or an institution shall be recommended in writing
by someone with the competence therefor in accordance with the
pertinent provisions of this Order.
b. Competence to submit proposals shall be enjoyed by

persons, both Filipinos and foreigners, within the particular field of
endeavor concerned in conformity with paragraphs (c) , (i) , (j) and
(k) of this Section.
c. Every year during the month of September, the Chairman

of the National Land Reform Council shall send out invitations to
those who are chosen by the Council from the names of competent
persons recommended by the Committee on Awards in accordance
with the pertinent provisions of paragraphs (i) , (j) and (k) of this
Section.
1217
d. Personal applications for an award shall not be considered.
e. The awards shall be made annually starting with the year

1968 End every year thereafter.
If, however, it is considered that none of the proposals that

have come under consideration merit recognition, the National
Land Reform Council may omit awards in one or more categories in
any or all field of endeavor in a given year.
f. Only contribution and/or work performance or

accomplishment achieved within the five years immediately
preceding the granting of the award shall be considered.
The preceding paragraph notwithstanding, order work

may be considered if their significance has not become apparent
until recently.
g. Presentation of the awards shall be made in Manila,

Republic of the Philippines, on the Anniversary of the signing of the
Agricultural Land Reform Cede, Republic Act No. 3844, which is the
eighth day of August.
In addition to the decoration, an appropriate certificate shall

be presented to each awardee with a citation indicating the basis of
selection of the awardee.
h. Each year the National Land Reform Council shall consider

proposals submitted pursuant to paragraph (f) hereof end received
in the Secretariat to the Council, Quezon City, Republic of the
Philippines, during the preceding year up to and including the
thirty-first dry of December.
Only proposals supported by adequate evidence and submitted

by competent persons invited to nominate shall be considered.
1218
i. Public Service Award. – Competence to submit proposals for

the award on extraordinary and outstanding service or contribution
by a private citizen or individuals or private institutions may be
enjoyed by:
(1) Persons who have received the Presidential Golden Plow

Award for Public Service;
(2) Heads of state or private educational institutions;
(3) Leaders of private institutions or organizations, national

in scope, whose purposes are: to work for improving the status of
farmers and farmhands or laborers, encourage cottage industries,
increase and diversify agricultural production, improve rural health
and education, promote cooperative movement for rural credit,
improve production and marketing of farm products, promote the
dissemination as well as free discussion of information and matters
of public interest, stimulate and promote rural improvements and
proper development of human and natural resources, train rural
reconstruction personnel or cooperate with the State in carrying out
programs of rural reconstruction, and all other activities related to
and connected with land reform; and
(4) Other persons who, because of their work, study or

background are in close touch with individuals, groups or associations
identified with the purposes above indicated.
j. International Understanding Award. – Competence to

submit proposals for the award on extraordinary and outstanding
service or contribution in International Understanding may be
enjoyed by:

Award for International Understanding;
(2) Heads of United Nations Missions and Regional

Cooperation Organizations in the Philippines;
1219
(3) Heads of diplomat Philippines;
(4) Leaders of private and governmental institutions or

organizations, interna
the promotion and advancement of international amity,
friendship and understanding through mutual help and assistance
between and among peoples of different countries;
(5) Other persons who, because of their work, study or

background, are in close touch with individuals, groups or
associations identified with the purposes above stated.
k. Government Service Award – Competence to submit

proposals for the award on extraordinary and outstanding service
or contribution in any field of land reform may be enjoyed by:

Award for Government Services;
(2) Heads of commissions, bureaus or offices for the

enhancement of the civil service system;
(3) Heads of institutes or colleges of public administration in

state or private universities;
(4) Leaders or private institutions or organizations, national

in scope, whose purposes are: to work for the enhancement of
the government service; to encourage research and studies of
government activities; and to promote employee welfare; and
(5) Other persons, who, because of their work, study or

background, are in a position to follow and watch closely the careers
of public servants.
SEC. 14. This order shall take effect immediately except as

herein otherwise provided.
1220
Done in the City of Manila, this 1st day of October, in the year
of Our Lord, nineteen hundred and sixty-eight.

By the President:
(Sgd.) JOSE. J. LEIDO, JR.

1221
MALACAÑANG
MANILA
ESTABLISHING THE FARMERS TRUST DEVELOPMENT

PROGRAM AND PROVIDING INSTITUTIONAL REFORMS
AND FUND MECHANISMS FOR MOBILIZING LONG TERM
PRIVATE SECTOR CAPITAL FOR RURAL DEVELOPMENT
WHEREAS, the government’s priority goals of poverty

eradication, food security, global competitiveness and empowerment
of the farmer require the creation of new institutional structures
and mechanisms that can expand medium and long term private
sector investments in agriculture;
WHEREAS, the achievement of these goals requires the

voluntary consolidation of small farm operations into medium and
large scale integrated enterprises that can access long term capital
for critical modernization requirements needed to attain global
competitiveness;
WHEREAS, the provision of incentives requires an

institutional shift from direct subsidies and inputs towards risk-
aversion mechanisms such as insurance, securities and guaranty
schemes that enable diversification and formation of medium and
large scale integrated farm enterprises;
WHEREAS, the Department of Agrarian Reform (DAR)

is tasked to directly assist farmers, who are society’s most
impoverished, vulnerable and economically non-competitive sector,
by undertaking innovative schemes to improve farm productivity
and income;
WHEREAS, to enable the formation of integrated farm

enterprises, the Department of Finance (DOF) must take the lead
1222
in catalyzing investments and developing long term capital market

for agriculture through appropriate financial support, incentives
and fund mechanism, including tapping of credits allocated to the
agriculture and agrarian sectors under the Agri-Agra law
WHEREAS, the Quedan and Rural Credit Guarantee

Corporation (Quedancor) is mandated under RA 7393 (Quedancor
Charter) to provide credit, investment and guaranty mechanisms
to assist small farmers, producers and fisherfolk, and is also
mandated under RA 8435 (Agriculture and Fisheries Modernization
Act of 1997) to consolidate and manage the guaranty funds of the
government and to establish a centralized government capability
for agricultural guaranty.

President of the Republic of the Philippines by virtue of the authority
SECTION 1. Establishment of the Farmers Trust Development

Program. The Farmers Trust Development Program, hereinafter
referred to as the Program, is hereby established. The Program
shall promote, authorize and support the voluntary consolidation
of small scale agricultural landholdings into medium and large
scale farm enterprises through a usufruct trust arrangement with a
Service Consortium, to be chosen by the participating farmers and
approved by the DAR.
SEC. 2. Components. The Program shall have the following

components:
a. Farmers Trust. Individual agricultural landholdings in

suitable commodity belt areas, can be made available to a Farmers
Trust Enterprise through the conveyance of the usufructuary rights
to the Trust, by the respective owners or rights holders, who shall
retain ownership and title to the properties, and share in the income
of the enterprise under an equitable arrangement.
1223
The farm owners may opt to work for the enterprise with
priority to employment. For ease of organization, the farmers may
be represented by a properly authorized cooperative, federation or
farmer association.
b. Service Consortium. The Service Consortium shall

undertake the organization and development of the Trust
Enterprise and assist in securing capital resources through the
system of project securitization and issuance of project participation
certificates. The Consortium, which shall be chosen by the farmers or
land rights holders, shall also provide a total package of production
inputs and services, to include a unified management system,
organizational support, supply of key technologies, equipment
and other modernization requirements to put the Enterprise’s
productivity at par with international standards, and provide the
critical arrangements for an assured market. The type of services
to be provided by the Consortium shall be entirely demand-driven.
c. Trust Agreement. The farmer or land rights holder and the

Service Consortium shall enter into a trust agreement defining the
undertakings of both Parties. The agreement shall include the (1)
conveyance of the usufructuary rights of the individual land rights
holders to the Farmers Trust to be formed under a Trustee Bank to be
appointed by the Parties; (2) package of critical services; (3) project
inputs and resources to be provided by the Service Consortium;
(4) life term of the agreement and exit options; (5) economic and
equitable profit sharing arrangement; and (6) other accountabilities
and duties of the Parties to the Trustee Bank as the enforcer of the
agreement, the custodian of the assets, cash flows of the project, and
protector of the rights of investors and creditors of the Trust.
d. Project Securitization. The Farmers Trust Enterprise shall

be funded mainly through the capital formation or financing system
of project securitization as validly developed and practiced under
Philippine laws, which shall be structured appropriately to conform
with the nature of the varying assets, cash flows and business
objectives of the Enterprise as well as to provide adequate security
and incentives for the investors.
1224
e. Asset Pool Formation. The usufruct rights of the land

holders and the assets and receipts of the entire project or Trust
Enterprise shall constitute the Asset Pool of the enterprise. These
assets shall be placed under the trusteeship service of a reputable
banking institution.
f. Approval of Land Rights Conveyance. The conveyance

of usufruct rights over landholdings to a Farmers Trust shall be
approved by DAR or DENR depending on land jurisdiction, and
shall bind the government to the terms of the conveyance for the
period of the Trust arrangement.
g. Enterprise Business Plan. The project shall be governed

in accordance with an approved and disclosed Enterprise Business
Plan, which shall show the viability of the project and govern the
implementation, receipts and disbursement of funds, recovery/
payment of investments and distribution of the revenue/profits to
the Parties to the Trust.
h. Project Participation Certificates. The Farmers Trust shall

issue Project Participation Certificates to private investors, backed
up by the Trust’s asset pool.
i. Guaranty Coverage. The Project Participation Certificates

issued by the Farmers Trust shall be extended appropriate guaranty
coverage by the Quedancor.
j. Private Nature of the Funds. The funds of the Trust shall

be private in nature and thus, shall be accounted and treated as
private funds in accordance with generally accepted auditing rules
and standards.
k. Insurance Coverage and Exit Option. The Farmers Trust

shall provide insurance protection to participating farmers and
other groups in case of force majeure or bad management by
enterprise administrators by ensuring that important decisions
made by the Trust are duly consulted with all participants of the
1225
trust arrangement. The Farmers Trust shall also provide an exit

option to the Parties.
SEC. 3. Program Committee. A Program Committee is hereby

constituted to coordinate Program implementation and formulate
guidelines and mechanisms that will, among others, provide
additional protection to participating farmers and identify risk
levels and sharing arrangements of Trust participants.
The Committee shall be chaired by the Secretary of Agrarian

Reform with the Secretary of Agriculture, Secretary of Finance,
Secretary of Environment and Natural Resources and Quedancor
President as members. The Committee may call upon other
departments and agencies for assistance in the implementation of
the Program.
SEC. 4. Funding Support for the Program. The DOF and its
attached agencies are hereby directed to extend their support to the
capital formation strategies and measures that may be undertaken
for the Farmers’ Trust Development Fund, and to find ways and
means as may be legally feasible to enlarge and strengthen the
guaranty capability of Quedancor.
a. Department of Finance. Pursuant to the objectives of the

DOF to pump prime or catalyze investments and economic activity
in the agricultural sector, the department is hereby authorized to
provide assistance in the following areas:
(1) Project Preparation and Start-up Fund
To support the interim requirements needed to firm up,

document and start-up the specific projects that form the basis of
the Farmers Trust Development Fund, the DOF is authorized to
provide funding for these requirements.
(2) Farmers Trust Development Fund and Farmers Trust

Guaranty Fund
1226
To catalyze and support the establishment of the Farmers

Trust Development Fund and the Farmers Trust Guaranty Fund,
the DOF is authorized to provide funds and coordinate with other
agencies, particularly the Bangko Sentral ng Pilipinas, for other
incentives needed.
(3) Sovereign Guaranty
The DOF is authorized to issue the sovereign guaranty of the

Republic of the Philippines in accordance with this issuance and the
charter of Quedancor.
b. The Farmers Trust Development Fund. The DAR, in

coordination with the DOF, shall cause the establishment of the
Farmers Trust Development Fund under a Special Purpose Vehicle
(SPV), created according to and based upon an acceptable and viable
project as presented in an Enterprise Business Plan and audited
with due diligence. The SPV shall issue Farm Development Trust
Certificates, the proceeds of which shall finance designated Farmers
Trust Enterprises or purchase the Project Participation Certificates
thereof. The purchase of the Farm Development Trust Certificates
by banking institutions shall be deemed as compliance with the
Agri-Agra law under the alternative compliance mechanism of PD
717.
c. The Farmers Trust Guaranty Fund. The Quedancor is

authorized to establish a Farmers Trust Guaranty Fund to support
the Program and guaranty the securities issued by the Farmers
Trust Development Fund in accordance with Section 23 of RA 7393
(Quedancor charter).
SEC. 5. Role of Quedan and Rural Credit Guarantee

Corporation. The Quedancor shall extend utmost guaranty
coverage support for Project Participation Certificates issued for
DAR-sponsored Farm Development Trust Enterprises, as may be
legally feasible and in consonance with the broadened mandate of
Quedancor under AFMA as well as its original mandate.
1227
SEC. 6. Agri-Agra Compliance. The purchase of Farmers Trust

Certificates that may be issued for the financing of Farmers Trust
Enterprises take on the nature of loans extended to the enterprise,
which represent the associated interests of the members and/or the
joint venture.
The Project Participation Certificates, when duly covered

by the Quedancor guaranty system, merit treatment as eligible
securities for Agri-Agra law compliance. The Bangko Sentral ng
Pilipinas shall provide the necessary implementing rules and official
issuances for guidance and compliance by banking institutions.
Additional incentives in the form of additional eligibilities of the
securities as bank reserves, liquidity reserves and others may be
considered.
SEC. 7. Applicability of the Trust Mechanism to Other Rural

Sector Activities. The Trust mechanism as described and authorized
herein may be applied with appropriate modifications to fisheries,
pasture lands, forest lands and other productive enterprises suited
for consolidation.
Holders of agricultural lands under titled ownership or

long-term lease from government under pasture, forestry or other
arrangements, may join or initiate a Farmers Trust.
Such endeavors shall be subject to the approval of the DAR,

DENR or DA, depending on the land jurisdiction.
SEC. 8. Repealing Clause. All issuances, executive and

administrative orders, rules and regulations or parts thereof
which are inconsistent herewith are hereby repealed or modified
accordingly.
Section 9. Effectivity. This Executive Order shall take effect

immediately.
1228
Done in the City of Manila, this 27Th day of September, in the

year of our Lord, nineteen hundred and ninety nine.

By the President:

Executive Secretary
1229
MALACANAN PALACE
MANILA
TRANSFERRING THE NATIONAL IRRIGATION

ADMINISTRATION FROM THE OFFICE OF THE
PRESIDENT TO THE DEPARTMENT OF AGRICULTURE
WHEREAS, Section 1, Article XII of the Constitution provides

that the State shall promote industrialization based on sound
agricultural development and agrarian reform;
WHEREAS, Republic Act (RA) No. 3601 created the National

Irrigation Administration (NIA) as a body corporate, with the
purpose of expanding irrigated farmlands to support crop production,
increase the productivity of our farmers, and ensure a stable supply
of farm commodities;
WHEREAS, to enhance and coordinate the efforts of

government agencies in the agricultural sector, Executive Order
No. 165 (s. 2014) transferred the NIA, among other agencies, from
the Department of Agriculture (DA) to the Office of the President
(OP);
WHEREAS, due to the effects of climate change and the

COVID-19 pandemic, which significantly affected the state of food
security in the Philippines, there is a need to optimize the country’s
water resources to adapt to these challenges, and pave the way for
the modernization and industrialization of the agricultural sector;
WHEREAS, there is a need to integrate relevant agencies in

the agricultural sector in the fulfillment of their complementary
governmental mandates;
1230
WHEREAS, Section 17, Article VII of the Constitution states

that the President shall have control of all executive departments,
bureaus and offices;
WHEREAS, Section 31, Chapter 10, Title Ill, Book Ill of

EO No. 292 or the “Administrative Code of 1987,” provides that
the President has the continuing authority to reorganize the
administrative structure of the OP, including the transfer of any
agency under the OP to any other department or agency; and
WHEREAS, Section 5 of RA No. 10149 or the “GOCC

Governance Act of 2011,” provides that the Governance Commission
for GOCCs (GCG) shall evaluate and ascertain whether a
government-owned or -controlled corporation (GOCC) should be
reorganized, and if upon its determination that it is to the best
interest of the State that a GOCC should be reorganized, it shall
make the appropriate recommendation to the President;

SECTION 1. Transfer of the NIA. The NIA is hereby

transferred from the OP to the DA.
SEC. 2. Directive to the GCG. The GCG is hereby directed to

study the reorganization of the NIA Board of Directors, and submit
to the OP, through the Executive Secretary, its recommendation
thereon. Pending the submission by the GCG of its recommendation,
the DA Secretary is hereby designated as Acting Chairman of the
NIA Board.
SEC. 3. Repeal. All orders, rules and regulations, and

issuances or parts thereof inconsistent with this Order are hereby
repealed, amended or modified accordingly.
SEC. 4. Separability. In the event that any provision of

this Order or any part thereof is declared invalid, illegal or
1231
unconstitutional, the provisions not affected thereby shall remain

DONE, in the City of Manila, this 25th day of April, in the year
of Our Lord, Two Thousand and Twenty-Two.
By the President:

Executive Secretary
1232
MALACAÑANG
MANILA
CREATING THE NATIONAL COUNCIL ON FOOD SECURITY

AND JOB CREATION
WHEREAS, Article II, Section 9 of the Constitution provides

that the State shall free the people from poverty through policies
that provide adequate social services, promote full employment and
improve the quality of life for all;
WHEREAS, Section 2 of RA 8435, otherwise known as the

Agriculture and Fisheries Modernization Act of 1997, declares
that the State shall enable those who belong to the agriculture and
fisheries sector to participate and share in the fruits of development
and growth, and that the State shall ensure the availability,
adequacy, accessibility and affordability of food supplies for all
times;
WHEREAS, in the pursuit of the mandate provided by

the Constitution and existing laws, the national government is
committed to ensure the attainment of sustainable food security at
all times;
WHEREAS, Section 2, Chapter I, Title IV, Book IV of

the Administrative Code of 1987 mandates the Department of
Agriculture to plan, formulate, execute, regulate, and monitor
programs and activities relating to agriculture, food production and
supply;
WHEREAS, Section 31, Chapter 10, Title III, Book III, of

the Administrative Code of 1987 vests upon the President of the
Philippines the continuing authority to reorganize her office.
1233

the Constitution and existing laws, do hereby order:
SECTION 1. Organization and Composition of the National

Council on Food Security and Job Creation. – The National Council
on Food Security and Job Creation, herein referred to as the Food
and Jobs Council, is hereby constituted, and shall be composed of
the following:
Secretary of Agriculture Co-Chairman

(Government Sector)
Presidential Adviser on Food Security and Co-Chairman
Job Creation with Cabinet rank(representing
the Private sector)
Secretary of Trade and Industry Member
Secretary of Environment and Member
Natural Resources
Secretary of Agrarian Reform Member
Secretary of Finance Member
Secretary of Budget and Management Member
Secretary of Labor and Employment Member
Secretary of Transportation Member
and Communication
SEC 2. Functions and Responsibilities of the Council:
1. To design, adopt, and monitor a comprehensive National

Food Security and Job Creation Plan in consonance with the
Medium and Long-Term Agricultural and Fisheries Modernization
Plan, as provided for in Republic Act 8435;
2. To serve as an inter-agency Council to oversee and to

supervise various cross-cutting plans, programs, and policies related
to food security, such as but not limited to the following:
2.1. Optimization of the agrarian reform communities for food

productivity;
1234
2.2. Efficient transportation of food within various production

centers in the country;
2.3. Conservation of marine resources, soil fertility and other
natural endowments necessary for food production;
2.4. Increasing the role of local government units in food
production;
2.5. Defining the strategic role of our trading partners in
providing food for the country, as well as markets for our agricultural
products.
3. To serve as a coordinating forum for various policies, laws,

rules and regulations that need to be devised, amended or proposed,
in order to attain food security; and
4. To generate and mobilize resources from domestic and

foreign resources, for the implementation of the National Food
Security and Job Creation Plan, as well as rationalize the use and
the equitable distribution of additional resources to the LGU’s.
SEC 3. Organization of the National Secretariat. – The

National Agricultural and Fisheries Council (NAFC) shall be the
National Secretariat of the Council.
SEC 4. Inter-Agency Coordination. – All concerned

departments and their attached agencies, LGUs, government-
owned and controlled corporations and other instrumentalities of
the government are hereby directed to cooperate and give their
full support to the Council to ensure effective performance of their
functions.
SEC 5. Administrative and Implementing Guidelines. – The

Council shall adopt administrative guidelines as may be necessary
to implement this Executive Order.
SEC 6. Effectivity. – This Order shall take effect immediately.
1235
Done in the City of Manila, this 30th day of JANUARY, in the

year of Our Lord, two thousand three.

By the President:
(Sgd.) ALBERTO G. ROMULO

Executive Secretary
1236
MALACAÑANG
MANILA
AMENDING EXECUTIVE ORDER NO. 155 ABOLISHING THE

COUNCIL FOR INVESTMENTS IN TRADE, INDUSTRY,
TOURISM, AGRICULTURE, NATURAL RESOURCES,
TRANSPORTATION, COMMUNICATIONS AND SERVICES
AND REFOCUSING AND STRENGTHENING THE
INVESTMENT ONE-STOP ACTION CENTER AND
CREATING THE POSITION OF INVESTMENT OMBUDSMAN
WHEREAS, a more intensive generation of investments from

local and foreign investors is needed to sustain development efforts;
WHEREAS, there is a need to entrench new policies with new

administrative procedures at the implementation level to provide
assistance to current and potential investors and to enhance the
coordination and complementation efforts of government to promote
investments;
WHEREAS, Executive Order No. 136, s. 1987, created a

Council for Investments in Trade, Industry, Tourism, Agriculture,
Natural Resources, Transportation, Communications and Services
to coordinate investment development efforts of the government
and to promote the country as an attractive investment area in
identified sectors;
WHEREAS, EO 136 further created an Investment One-Stop

Action Center (OSAC) under the Board of Investments to provide
assistance to local and foreign investors by providing information,
advice, and guidance on pertinent laws and procedures relative
to doing business in the Philippines and to accept and act on
applications for investments;
1237
WHEREAS, pursuant to the Cabinet agreement on 18

August 1992, investment promotion units were established in key
government offices to assist OSAC in their respective areas;
WHEREAS, the President has continuing authority to

reorganize the administrative structure of the Office of the President
pursuant to Executive Order No. 292 (Administrative Code of 1987);
WHEREAS, under Section 77 of the General Provisions of

Republic Act No. 8745 or FY 1999 General Appropriations Act, the
President may direct changes in the organization and key positions
in any department, bureau or agency; and
WHEREAS, there is a need to refocus and strengthen the

OSAC in order to be more responsive to the needs of investors in
view of the highly competitive global environment.

vested in me by law and the Constitution, do hereby order the
following:
SECTION 1. ABOLISHING THE COUNCIL FOR

INVESTMENTS. The Council for Investments in Trade, Industry,
Tourism, Agriculture, Natural Resources, Transportation,
Communications and Services, created pursuant to EO 136 s. 1987,
is hereby abolished and its budget and plantilla of personnel is
hereby transferred to the Board of Investments..
SEC. 2. CREATING THE OFFICE OF THE INVESTMENT

OMBUDSMAN. There is hereby created an Office of the Investment
Ombudsman which shall be under the direct supervision of the
Chairman of the Board of Investments. It shall be headed by an
Investment Ombudsman who shall be appointed by the President
upon recommendation of the BOI Chairman.
The Investment Ombudsman shall be designated as a Special

Deputy of the Ombudsman.
1238
The Investment Ombudsman shall be assisted by a Director

for the Complaints and Action Center for Investments and a Director
for the Quick Response One-Stop Action Center for Investments,
both of whom shall also be appointed by the President upon
recommendation of the BOI Chairman.
The Office of the Investment Ombudsman shall have a full-

time staff complement for the services directly supportive to the
SEC. 3. RENAMING AND REFOCUSING THE OSAC. The

Investment One-Stop Action Center of the Board of Investments,
created pursuant to EO 136, s. 1987 shall be transferred from the
Board of Investments and hereby re-named Quick Response One-
Stop Action Center for Investments (QROSACI) and shall be under
the Office of the Investment Ombudsman.
SEC. 4. FUNCTIONS OF THE QROSACI. The QROSACI

shall serve as clearing house for potential investors and undertake
due diligence on the capabilities of potential investors. In this
regard, the QROSACI shall undertake the following functions to
assist investors with the desired credentials:
a. Provide advise, guidance and information on various laws,

rules and regulations governing investments and the conduct of
business in the Philippines, including incentives that can be availed
of;
b. Facilitate the processing of all investment-related

requirements by concerned agencies including local government
units (e.g., licenses and permits, importation, taxation, etc., by
ensuring that all frontline agencies perform their tasks within
prescribed standards and parameters;
c. Coordinate closely with the Investment Facilitation

Specialists which shall be part of a network providing current and
prospective investors with answers to technical and legal inquiries
1239
and fast action on the approval of investment-related permits and

licenses.
d. Improve time and quality standards for processing of

investment-related papers in government agencies; and
e. Coordinate with private sector organizations, the heads

of which may be invited to constitute an Advisory Council which
shall provide information, advice and feedback on the investment
development efforts of the government.
f. Promulgate rules of procedure for the effective exercise of

its powers, functions, and duties.
g. Perform such other functions as may be directed by the

President and/or the Secretary of Trade and Industry.
SEC. 5. COORDINATING MECHANISM AND DESIGNATION

OF INVESTMENT SPECIALISTS. The Investment Ombudsman
shall establish a coordinating mechanism for addressing investor
concerns with the following concerned government departments
and agencies: Department of Trade and Industry, Department of
Finance, Department of Environment and Natural Resources,
Department of Agriculture and Food, Department of Agrarian
Reform, Department of Tourism, Department of Interior and Local
Government, Department of Justice, Bureau of Immigration,
Bureau of Customs, Bureau of Internal Revenue, the Housing Land
Use Regulatory Board and the Philippine National Police, to further
enhance the services of the QROSACI. For this purpose, Investment
Facilitation Specialists shall be designated by the aforementioned
government departments and agencies, whose rank shall not be
less than third in rank therein. The designation of the Investment
Facilitation Specialists shall be confirmed by a memorandum of
agreement (MOA) between the Investment Ombudsman and the
head of the department or agency within thirty (30) days after the
Office of the Investment Ombudsman becomes operational.
1240
The Investment Facilitation Specialist should have authority

to provide the QROSACI and investors with answers to technical
and legal inquiries as well as take fast action on the approval of
investment-related permits and licenses submitted by the QROSACI.
Whenever a more detailed evaluation of documents and papers
are necessary, the Investment Specialist shall be responsible for
monitoring the status of such documents and papers and ensuring
that they are returned to the QROSACI and the applicant in the
shortest possible time or within the prescribed time period.
SEC. 6. FUNCTIONS OF THE INVESTMENT OMBUDSMAN.

The Office of the Investment Ombudsman shall act as a Complaints
and Action Center for Investment and, as Special Deputy of the
Ombudsman, shall have the following powers and functions:
a. Conduct Inquiries: Inquire into acts or omissions of any

public official or employee of the Government, or of any office, agency
or instrumentality thereof concerned with the entry of local and
foreign investments, including local government units and officials,
which the Investment Ombudsman may consider to be:
* contrary to law or regulation;

* unreasonable, unfair, oppressive, irregular or inconsistent
with the general course of the operations of a public officer, employee,
office or agency;
* an error in the interpretation or application of law, rules or
regulations, or a gross or palpable error in the appreciation of facts;
* based on improper motives or corrupt considerations;
* unclear or inadequately explained when reasons should
have been revealed;
* inefficiently performed or otherwise objectionable.
b. Direct Performance: Direct, upon complaint of any

investor, or at its own instance, any public official or employee or
any office, agency or instrumentality, including local government
units and officials, as well as any government-owned or controlled
corporation with original charter, to perform and expedite any act
or duty required by law to facilitate the entry of local and foreign
1241
investment, or to stop, prevent and correct any abuse or impropriety

in the performance of duties.
c. Submission of Documents: Direct, in any appropriate case,

and subject to such limitations as may be provided by law, any
public official or employee, or any office, agency, or instrumentality,
including local government units and officials, as well as any
government-owned or controlled corporation with original charter,
to furnish copies of documents relating to contracts or transactions
entered into by such office involving the entry of local or foreign
investment or to examine, if necessary, pertinent records and
documents.
d. Request Assistance and Information: Request any

government agency or local government unit for assistance and
information necessary in the discharge of its responsibilities.
e. Publicity for Deterrence Purposes: With due prudence.,

publicize matters covered by its inquiries or investigations when
circumstances so warrant.
f. Recommend Reforms: Determine the causes of inefficiency;

red tape, mis-management, fraud and corruption in the offices
concerned with the entry of local and foreign investment and make
recommendations for their elimination and the observance of high
standards of ethics and efficiency.
g. Promulgate Rules: Promulgate its rules of procedure and

exercise such other powers or perform such functions or duties as
may be provided by law.
SEC. 6. FUNDING. The Secretary of Budget and Management

is hereby directed to allocate funds from the Organizational
Adjustment Fund or from any available fund under the annual
appropriations of the government to support the Office of the
Investment Ombudsman.
1242
Funds for the operations of the Office of the Investment

Ombudsman shall be released through the Secretary of Trade and
Industry, subject to the submission of the Staffing Pattern and Work
and Financial Plan to the Department of Budget and Management.
SEC. 7. REPORTING SYSTEM. The Investment Ombudsman,

through the Secretary of Trade and Industry, shall submit quarterly
reports to the Office of the President on steps taken to address
investors concerns.
SEC. 8. SEPARABILITY CLAUSE. In the event that the

provisions of this Executive Order are hereby declared to be
separable and in the event any provision or part thereof is declared
unconstitutional the other provisions or part thereof which are not
affected thereby shall remain in full force and effect.
SEC. 9. REPEALING CLAUSE. All issuances, orders, rules

and regulations or parts thereof which are inconsistent with the
accordingly.
SEC. 9. EFFECTIVITY. This Executive Order takes effect

immediately.
DONE in the City of Manila, this 23rd day of November, in

the Year of Our Lord, Nineteen Hundred and Ninety-nine.

By the President:

Executive Secretary
EO 180 s. 1999 amended EO 155 s. 1999.
1243
MALACAÑANG
MANILA
CREATING SOCIALIZED HOUSING ONE-STOP PROCESSING

CENTERS TO FACILITATE THE PROCESSING AND
ISSUANCE OF PERMITS, CLEARANCES, CERTIFICATIONS
AND LICENSES APPROPRIATE AND NECESSARY FOR
THE IMPLEMENTATION OF SOCIALIZED HOUSING
PROJECTS, AND DIRECTING ALL GOVERNMENT
AGENCIES CONCERNED TO SUPPORT THE OPERATIONS
OF THE SAID CENTERS
WHEREAS, consistent with Section 9, Article III of the

Constitution which mandates the provision of decent housing
and basic services to the underprivileged and homeless, the
present Administration through the various housing agencies of
the government, has embarked on a massive socialized housing
program;
WHEREAS, to attain targets set under the government’s

socialized housing program, maximum private sector participation
is imperative;
WHEREAS, in undertaking socialized housing projects

contemplated under Republic Act No. 7279 otherwise known as
the Urban Development and Housing Act of 1992, the developer/
proponent must secure the appropriate and necessary permits,
clearances, certifications and licenses from various government
agencies which include the Department of Agrarian Reform (DAR),
the Department of Environment and Natural Resources (DENR),
the Department of Agriculture (DA), the Housing and Land Use
Regulatory Board (HLURB), and the local government units (LGUs)
concerned;
1244
WHEREAS, despite various tax and other incentives offered

by government to developers/proponents of socialized housing
projects, maximum private sector participation is not realized in
view of existing processes in the issuance of permits, clearances,
certifications and licenses which are found to be cumbersome and
time-consuming, thereby causing considerable delays in project
implementation and resulting in added costs that further impair
the affordability of socialized housing units;
WHEREAS, Section 20 of Republic Act No. 7279 mandates

the creation of one-stop offices in the different regions of the
country to handle the processing, approval and issuance of permits,
clearances, certifications and licenses and that the same be issued
within ninety (90) days from submission of all requirements by the
developer/proponent; and
WHEREAS, there is a need to implement the above-mentioned

statutory mandate to further strengthen the on-going efforts
to streamline bureaucratic procedures and hasten government
processing and issuance of permits, clearances, certifications and
licenses.

Republic of the Philippines, by virtue of the powers vested in me by
the law, do hereby order:
SECTION 1. Creation of Socialized Housing One-Stop

Processing Centers – The creation of Socialized Housing One-
Stop Processing Centers (SHOPCs) is hereby directed in all
the administrative regions of the country to be manned by
representatives from the following agencies:
a. The Housing and Urban Development Coordinating Council

(HUDCC);
b. The Housing and Land Use Regulatory Board (HLURB);
c. The Department of Agrarian Reform (DAR);
1245
d. The Department of Environment and Natural Resources-

Land Management Bureau (DENR-LMB);
e. The Department of Agriculture (DA); and
f. The Department of the Interior and Local Government

(DILG);
The above-named agencies are hereby directed to designate

an organic official/employee to man their respective Desks in all
SHOPCs. In this connection, the Heads of said agencies shall,
subject to existing laws and as far as practicable, delegate sufficient
authority to their respective Desks to evaluate and process
applications to undertake socialized housing projects, as well as
supporting documents therefor, render final or appropriate action
thereon, and sign and issue the corresponding permits, clearances,
certifications and licenses therefor.
The Chamber of Real Estate and Builders Associations, Inc.

(CREBA) or any other non-governmental organization involved in
socialized housing projects, and the League of Governors and City
Mayors of the Philippines (LGCMP), may be invited and asked by
the HUDCC to set up their Desks in the SHOPCs to provide private
sector monitoring of the operations of the SHOPCs and provide
such other services to facilitate coordination among and between
the SHOPC Desks, other government agencies and applicant
developers/proponents.
SEC. 2. Powers of the SHOPCs. – Subject to existing laws and

the provisions of the preceding Section, the SHOPCs shall, within
their respective regions and through the respective Desks of the
above-named agencies, exercise the following powers:
a. Issue Locational Clearances, Conversion Orders or

Certificates of Exemption (from the coverage of the Comprehensive
Agrarian Reform Program [CARP]), Development Permits and
Licenses to Sell in favor of applicant developers/proponents of
socialized housing projects;
1246
b. Issue Environmental Clearance Certificate whenever

required;
c. Determine disturbance compensation for tenant-farmers/

farmworkers affected by the land conversion and ensure that
affected tenant-farmers/farmworkers are duly compensated;
d. Ensure the simplification of processing and approval of

licenses, permits and clearances to comply with the 90-day period
mandated under Section 20 of Republic Act No. 7279; and
e. Call on other agencies/entities for support/assistance as

may be deemed necessary to attain the objectives set forth under
this order.
SEC. 3. Agency Responsibilities. – The SHOPC Desks shall

have the following responsibilities:
1. HUDCC Desk
a. Coordinate, monitor and exercise administrative supervision

over the SHOPC;
b. Determine administrative and operational costs of the

SHOPC and pro-rate the contribution of each Desk to said costs;
c. In consultation with the agencies concerned, determine the

number of staff/personnel required for the effective operation of the
SHOPC;
d. Identify and call upon other government agencies or offices

whose support is vital to the operation of the SHOPC;
e. Prepare and submit to the HUDCC head office, status

reports on the operations and performance of the SHOPC; and
f. Perform such other responsibilities as may be required.
1247
2. HLURB Desk
a. Accept applications for socialized housing projects;
b. Inspect the proposed project site and determine its

suitability for socialized housing purposes;
c. Recommend to the DAR Desk, the conversion of lands

suitable for socialized housing;
d. Evaluate the application, technical plans as well as other

supporting documents and papers in support of the application, and
recommend final approval thereof to the concerned LGU;
e. Issue Locational Clearances and Licenses to Sell;
f. Subject to par. 4 (a) below, certify that the proposed project

site is not included in the DENR list/map of environmentally critical
areas; and
g. Perform such other responsibilities as may be required.
3. DAR Desk
a. Determine and fix the amount of disturbance compensation

based on the formula jointly set by the Department of Agriculture
(DA) and Department of Agrarian Reform (DAR) pursuant to Sec.
7 (1) of RA No. 6389, and ensure that the affected tenant-farmers/
farmworkers are duly compensated;
b. Evaluate applications for land conversion/exemption

from CARP coverage that may be referred or recommended by the
HLURB Desk, and in meritorious cases, issue conversion/exemption
certificates therefor; and
c. Perform such other responsibilities as may be required.
4. DENR – LMB Desk
1248
a. Issue Environmental Clearance Certificates relative to

applications for projects located within environmentally critical
areas but only until such time that the SHOPCs have been furnished
with maps and listings of such areas;
b. Verify land surveys and other pertinent plans submitted by

applicant developers/proponents;
c. Evaluate and approve subdivision surveys; and
d. Perform such other responsibilities as may be required
5. DILG Desk
a. Coordinate with the concerned Sanggunian/LGU to

facilitate the required approvals for the project, viz., development/
building permits; and
b. Perform such other responsibilities as may be required.
6. CREBA or Non-Governmental Organization or LGCMP

Desks
a. Assist the HUDCC in monitoring the operations and

activities of the SHOPCs to ensure compliance with the provisions
of this Order and the guidelines which may be promulgated in
connection therewith; and
b. Conduct liaison activities between the various Desks of the

SHOPCs and other government agencies, viz., the various offices
of the Provincial/City Registers of Deeds, including providing
manpower support to the SHOPCs, to facilitate processing and
approval of applications/documents.
SEC. 4. Processing Guidelines and Flow Chart. – The agencies

named in Section 1 hereof shall jointly promulgate specific guidelines
as well as a flow chart to expedite and simplify the processing and
approval of applications for permits, clearances, certifications
1249
and licenses required to undertake socialized housing projects, in

compliance with the mandate that such applications be acted upon
within the 90-day period prescribed under Section 20 of Republic
Act No. 7279, which guidelines may be revised from time to time,
when the need arises.
SEC. 5. Submission of Certain Documents and Maps to

the SHOPCs by Concerned Agencies. – To ensure the successful
operation of the SHOPCs, the following agencies shall, within thirty
(30) days from issuance of this Order, submit to the HUDCC, the
following documents and maps, which shall be updated regularly,
but at least every quarter, whenever requested:
1. DA
a. Masterlist and corresponding maps of irrigated and

irrigable lands; and
b. Complete listing of the crops and value of annual yields on

irrigated and irrigable lands and other types of agricultural lands.
2. All Cities and Municipalities
a. Town/city zoning plans;
b. Land-use maps and zoning ordinances; and
c. List and corresponding maps of lands identified as suitable

for socialized housing projects/purposes.
3. DENR-EMB
a. Complete list and corresponding maps of environmentally

critical areas and lands actually used or reserved as parks for flora
and fauna, forests and watersheds, and other similar purposes, and
other areas necessary, to maintain or assure ecological balance and
environmental protection.
1250
4. HLURB
a. Land-use maps and town/city plans approved by the

HLURB prior to June 15, 1988; and
b. List and corresponding maps of urban and urbanizable

areas.
5. DAR
a. Master list and maps of lands covered by Voluntary Offer to

Sell (VOS), Notice of Acquisition (NA) or Notice of Coverage issued
pursuant to the CARP; and
b. Master list of bona-fide tenant-farmers duly identified as

CARP beneficiaries.
SEC. 6. Developer/Proponent’s Undertaking and Penalties

for Non-Compliance. – (a) To assure completion of the socialized
housing project, the applicant developer/proponent shall file
together with his application a sworn Undertaking stating that
the proposed socialized housing project shall be completed or fully
developed within a period of one (1) year from the issuance of the
permits, clearances, certificates and licenses therefor for projects
having a land area of less than five (5) hectares, and at the rate of
at least five (5) hectares per year for projects with a land area of five
(5) hectares or more.
(b) In addition to the penalties imposed under existing laws,

executive and administrative issuances, the following sanctions
shall be imposed on a developer/proponent who has failed to comply
with his Undertaking, made misrepresentations in his application,
or is found to have committed any act or omission to circumvent the
intent and purposes of this Order, as follows:
1. Cancellation/suspension of previously issued permits,

clearances, certifications and licenses in connection with the
approved socialized housing project; and/or
1251
2. Permanent or limited suspension from engaging in any

business related to real estate development or housing projects;
and/or
3. Reversion of the land (project site) to its original status as

agricultural land.
The agencies named in Section 1 hereof shall jointly

promulgate the appropriate guidelines to implement the provisions
of this section.
SEC. 7. Fees. – In addition to the fees fixed and collected by

the concerned agencies in connection with the permits, clearances,
certifications and licenses to be issued in favor of an applicant
developer/proponent, the SHOPCs are authorized to impose
additional fees and charges as may be determined by the HUDCC.
SEC. 8. Administrative and Operational Costs. – The

component agencies shall include in their respective annual budgets
their pro-rata share in the administrative and operational costs of
the SHOPCs, in consultation with the HUDCC.
SEC. 9. Separability Clause. – In the event any provision

hereof is declared invalid by any competent court or tribunal, the
other provisions hereof unaffected thereby shall remain in full force
and effect.
SEC. 10. Repealing Clause. – All executive or administrative

issuances or parts thereof inconsistent herewith are hereby amended
1252
DONE in the City of Manila, this 27th day of June in the year
of Our Lord, Nineteen Hundred and Ninety-Four.

By the President:

Executive Secretary
1253
MALACAÑANG
MANILA
CREATING THE OVERSIGHT AND EXECUTIVE COMMITTEES

FOR THE NATIONAL GOVERNMENT’S MAJOR SOCIAL
REFORM AGENDA
WHEREAS, In line with the overall objective of national

unity, the Executive Branch spearheaded the formulation of major
national agenda to set the framework and direction for the efforts of
all sectors of Philippine society;
WHEREAS, these major national agenda were framed with

the active participation of the legislative branch, the private sector
and non-government organizations;
WHEREAS, there are three existing major agenda of the

national government, specifically: the Social Pact for Empowered
Economic Development (SPEED); the results of the consultations
of the National Unification Commission; and, the Social Reform
Agenda;
WHEREAS, there are separate oversight, coordinating and

monitoring mechanisms to ensure that various government and
sectoral commitments that have been incorporated in each of the
agenda are implemented and accomplished;
WHEREAS, to attain complementation of commitments

for higher impact to identified beneficiaries, efficiency and cost-
effectiveness in terms of savings of resources, the oversight,
coordinating and monitoring mechanisms as well as the secretariat
support for the three major agenda will have to be integrated.
1254

SECTION 1. Organizational Mechanisms. The following shall

constitute the organizational mechanism to ensure implementation
of the commitments under the Social Pact, results of the consultations
of the National Unification Commission and Social Reform Agenda.
1.1 Oversight Committee: The Legislative-Executive

Development Advisory Council. The Legislative-Executive
Development Advisory Council is hereby designated to serve as the
Oversight Committee which shall undertake the overall supervision,
coordination and integration of the national government’s three (3)
major agenda.
The Oversight Committee shall have the following functions:
a. Oversee and ensure the implementation of commitments

under the Social Pact, results of NUC consultations, and Social
Reform Agenda;
b. Review and approve a master plan that will effectively

integrate the three (3) major agenda; and,
c. Determine all necessary policy and other interventions to

ensure the successful implementation of the commitments under
the three (3) agenda.
1.2 The Executive Committee: The Social Reform Agenda

Council. The Social Reform Agenda Council is hereby designated as
the Executive Committee for the national government’s major social
reform agenda.
a. Functions. The Executive Committee shall have the

following specific functions:
1255
a.1 Coordinate all concerns/requirements with various

government agencies and non-government sectors to facilitate and
ensure effective implementation of the agenda;
a.2 Draw-up supplementary agreements and implementing

guidelines for the efficient and effective implementation of the
commitments;
a.3 Review and resolve issues and concerns relative to the

Social Pact, results of NUC consultations and Social Reform Agenda;
a.4 Monitor and evaluate the implementation of the various

commitments;
a.5 Formulate a Master Plan to integrate the Social Pact,

results of NUC consultations and Social Reform Agenda, for
approval of the Oversight Committee;
a.6 Ensure compliance by all departments/agencies of the

commitments under the three (3) major agenda;
a.7 Submit regular integrated accomplishment reports to the

Oversight Committee; and,
a.8 Perform such other functions as may be directed by the

Oversight Committee.
b. Composition. The President shall serve as the Chairman of

the Executive Committee, with the Secretary of the Department of
Agrarian Reform as Vice-Chairman and Lead Convenor.
The membership of the committee shall include the nine (9)

Agency Flagship Champions as designated under Memorandum
Order No. 213 dated 17 June 1994 as well as the following:
b.1 Executive Secretary – Executive Liaison
1256
b.2 Presidential Adviser on the – Peace and Unification

Peace Process
b.3 Secretary of Socio-Economic – Economic Planning
Planning
Secretary of Education, Culture – Basic Services
and Sports (Education)
b.4 Secretary of Health – Basic Services (Health)
b.5 Secretary of Budget and – Public Administration
Management
b.6 Commissioner, Presidential – Poverty Alleviationw
Commission to Fight Poverty
b.7 Commissioner, Presidential – Rural Development
Council on Countryside
Development
b.8 Representatives (one each) – Basic Sectors
Labor Sector
Business Sector
Non-Government
Organizations
1.3 Secretariat Support: The Office of the Presidential Adviser

on the Peace Process. The Office of the Presidential Adviser on
the Peace Process shall provide the necessary staff support to the
Executive Committee/SRA Council.
SEC. 2. Responsible Agencies for the Implementation of the

Commitments Under the Agenda. The actual implementation of
the commitments under the three national government’s major
agenda shall still be undertaken by the concerned departments and
agencies that have sectoral or functional responsibility/jurisdiction
over the commitments, whether individually or jointly.
SEC. 3. Schedule of Meetings. The Executive Committee shall

meet at least once a month, or as often as they may deem necessary.
SEC. 4. Funding. The Executive Committee shall be

appropriated an amount as may be jointly determined and
recommended by the Secretaries of the Departments of Agrarian
1257
Reform and Budget and Management and the Office of the

Presidential Adviser on the Peace Process, and to be approved by
the President, for its operations. Said fund shall be sourced from the
President’s Contingent Fund.
SEC. 5. Repealing Clause. This Executive Order repeals or

modifies Administrative Order No. 79 dated 08 September 1993,
and all orders, issuances, rules and regulations or parts thereof
inconsistent thereto.

immediately.

the year of Our Lord, Nineteen Hundred and Ninety-Four.

By the President:

Executive Secretary
EO 203 s. 1994 repealed or modified AO 79 s. 1993.

EO 203 s. 1994 [sec. 1 (1.3)] was amended by EO 252 s. 1995.
1258
MALACAÑANG
MANILA
ESTABLISHING AN INTER-AGENCY STEERING COMMITTEE

TO ASSIST LOCAL GOVERNMENT UNITS IN THE
PREPARATION AND COMPLETION OF THEIR
COMPREHENSIVE LAND USE PLANS
WHEREAS, Executive Order No. 72, series of 1993, provides

for the preparation and implementation by local government units
(LGUs) of Comprehensive Land Use Plans (CLUPs) pursuant to the
Local Government Code of 1991;
WHEREAS, the President directed the Department of the

Interior and Local Government and the Housing and Land Use
Regulatory Board to ensure that the CLUPs of LGUs have been
finalized and approved by March 2000;
WHEREAS, some 909 cities/municipalities may not be able to

complete or update their CLUPs by March 2000;
WHEREAS, to expedite the completion of all CLUPs by 30

June 2000, there is a need to constitute an inter-agency coordinating
body to provide technical assistance to LGUs in the formulation/
updating and approval of their CLUPs.

vested in me by law and the Constitution, do hereby order:
SECTION 1. Establishment of the Inter-Agency Steering

Committee. There is hereby established an Inter-Agency Steering
Committee to assist LGUs in the preparation and completion of
their CLUPs.
1259
The Committee shall be composed of the following:
Secretary, Department of the Interior

Chairman
and Local Government
Chief Executive Officer, Housing and
Co-Chairman
Land Use Regulatory Board
Director General, National Economic and
Member
Development Authority
Secretary, Department of Agriculture Member
Secretary, Department of Agrarian
Member
Reform
Secretary, Department of Environment
Member
and Natural Resources
Secretary, Department of Tourism Member
Secretary, Department of Trade and
Member
Industry
Secretary, Department of Transportation
Member
and Communications
Secretary, Department of Budget and
Member
Management
SEC. 2. Functions. The Committee shall have the following

functions:
a. Provide technical assistance to LGUs in the preparation

and approval of their CLUPs. Technical assistance shall be in the
form of provision of planning guidelines and standards, consultation
on all phases of plan formulation, training on planning techniques/
methodologies, and institutionalization of planning at the local
level.
b. Ensure that the CLUPs of LGUs are consistent with

the Medium-Term Philippine Development Plan (1999-2004) for
Shelter and Urban Development and other national policies, plans
and programs.
1260
c. Organize Local Planning Teams to be composed of city/

municipal development staff, which shall be responsible for the
actual preparation of the CLUPs.
d. Prepare implementing guidelines as may be necessary.
SEC. 3. Technical Working Groups. The Committee may

create technical working groups (TWGs) at the national or regional
level as may be necessary in the performance of its functions.
SEC. 4. Administrative Support. The DILG and the HLURB

shall provide secretariat support to the Committee and the TWGs.
SEC. 5. Funding. The DBM is hereby directed to identify

sources of funding for the operations and activities of the Committee.
SEC. 6. Reporting Requirements. The Committee shall

prepare monthly reports to the President, through the Presidential
Management Staff, on the status of its activities.
SEC. 7. Repealing Clause. All issuances, orders, rules and

regulations or parts thereof which are inconsistent herewith are

immediately.

Year of our Lord, Two Thousand.

By the President:

Executive Secretary
1261
MALACAÑANG
MANILA
DECLARING FULL LAND OWNERSHIP TO QUALIFIED FARMER

BENEFICIARIES COVERED BY PRESIDENTIAL DECREE
NO. 27; DETERMINING THE VALUE OF REMAINING
UNVALUED RICE AND CORN LANDS SUBJECT OF
P.D. NO. 27; AND PROVIDING FOR THE MANNER OF
PAYMENT BY THE FARMER BENEFICIARY AND MODE
OF COMPENSATION TO THE LANDOWNER
WHEREAS, Presidential Decree No. 27, for purposes of

determining the cost of the land to be transferred to the tenant-
farmer, provided that valuation shall be determined by crop
productivity;
WHEREAS, there is a need to complete Operation Land

Transfer and accelerate the payment to landowners of lands
transferred to tenant-farmers; and
WHEREAS, there is also a need to maintain the financial

viability of the Land Bank of the Philippines, the financing arm of
the agrarian reform program of the government;
NOW, THEREFORE, I, CORAZON C. AQUINO, President of

the Philippines, by virtue of the powers vested by the Constitution,
hereby order that:
SECTION 1. All qualified farmer beneficiaries are now

deemed full owners as of October 21, 1972 of the land they acquired
by virtue of Presidential Decree No. 27 (hereinafter referred to as
P.D. No. 27).
1262
SEC. 2. Henceforth, the valuation of rice and corn lands

covered by P.D. No. 27 shall be based on the average gross production
determined by the Barangay Committee on Land Production in
accordance with Department Memorandum Circular No 26, series
of 1973, and related issuances and regulations of the Department
of Agrarian Reform. The average gross production per hectare shall
be multiplied by two and a half (2.5), the product of which shall be
multiplied by Thirty Five Pesos (₱35.00), the government support
price for one cavan of 50 kilos of palay on October 21, 1972, or Thirty
One Pesos (₱31.00), the government support price for one cavan of
50 kilos of corn on October 21, 1972, and the amount arrived at shall
be the value of the rice and corn land, as the case may be, for the
purpose of determining its cost to the farmer and compensation to
the landowner.
Lease rentals paid to the landowner by the farmer beneficiary

after October 21, 1972, shall be considered as advance payment
for the land. In the event of dispute with the landowner regarding
the amount of lease rental paid by the farmer beneficiary, the
Department of Agrarian Reform and the Barangay Committee on
Land Production concerned shall resolve the dispute within thirty
(30) days from its submission pursuant to Department of Agrarian
Reform Memorandum Circular No. 26, series of 1973, and other
pertinent issuances. In the event a party questions in court the
resolution of the dispute, the landowner’s compensation claim, shall
still be processed for payment and the proceeds shall he held in trust
by the Trust Department of the Land Bank in accordance with the
provisions of Section 5 hereof, pending the resolution of the dispute
before the court.
SEC. 3. Compensation shall be paid to the landowners in any

of the following modes, at the option of the landowners:
(a) Bond payment over ten (10) years, with ten percent (10%)
of the value of the land payable immediately in cash, and the
balance in the form of LBP bonds bearing market rates of interest
that are aligned with 90-day treasury bills rates, net of applicable
1263
final withholding tax. One-tenth of the face value of the bonds shall
mature every year from the date of issuance until the tenth year.
The LBP bonds issued hereunder shall be eligible for the

purchase of government assets to be privatized.
(b) Direct payment in cash or kind by the farmer-beneficiaries

with the terms to be mutually agreed upon by the beneficiaries
and landowners and subject to the approval of the Department of
Agrarian Reform; and
(c) Other modes of payment as may be prescribed or approved

by the Presidential Agrarian Reform Council.
SEC. 4. All outstanding Land Bank bonds that are retained

by the original landowners-payee or by their heirs, are deemed
matured up to one-twenty fifth (1/25) of their yearly face value
from their date of issue to the date of this Executive Order and may
be claimed by the original land owner-payee by surrendering the
bonds to the Land Bank. The original landowner-payee may claim
payment for the remaining unmatured period of the surrendered
bonds under any of the modes of compensation provided in Section
3, subsections (a), (b) or (c) hereof.
In order to meet the financial requirements mentioned in

this Section, the Central Bank shall remit to the Land Bank such
sums as may be necessary from the Sinking Fund established by
the Land Bank from the retirement of its bonds and other long-
term obligations and which Sinking Fund is administered by the
Central Bank: Provided, however, That there is no change in
maturity of other outstanding Land Bank bonds acquired and held
by transferees from original bondholders.
The landowner is exempt from capital gains tax on the

compensation paid to him under this Executive Order.
SEC. 5. In the event the landowner does not accept payment

of the compensation due him, his compensation shall be held in
1264
trust for him by the Trust Department of the Land Bank. The cash
portion of the compensation and such portions that mature yearly
shall be invested by the Trust Department only in government
securities fully guaranteed by the Republic of the Philippines. All
the net earnings of the investment shall be for the benefit of the
landowner, his heirs or successors in interest.
The rights of the landowner may be exercised by his heirs

upon his death.
SEC. 6. The total cost of the land including interest at the

rate of six percent (6%) per annum with a two percent (2%) interest
rebate for amortizations paid on time, shall be paid by the farmer-
beneficiary or his heirs to the Land Bank over a period of up to
twenty (20) years in twenty (20) equal annual amortizations.
Lands already valued and financed by Land Bank are likewise
extended a 20-year period of payment of twenty (20) equal annual
amortizations. However, the farmer-beneficiary if he so elects, may
pay in full before the twentieth year or may request the Land Bank
to structure a repayment period of less than twenty (20) years if
the amount to be financed and the corresponding annual obligations
are well within the farmer’s capacity to meet. Ownership of lands
acquired by the farmer-beneficiary may be transferred after full
payment of amortizations.
SEC. 7. As of the date of this Executive Order, a lien by way

of mortgage shall exist in favor of the Land Bank on all lands it has
financed and acquired by the farmer-beneficiary by virtue of P.D.
No. 27 for all amortizations, both principal and interest, due from
the farmer-beneficiary or a valid transferee until the amortizations
are paid in full.
SEC. 8. Henceforth, failure on the part of the farmer-

beneficiary to pay three (3) annual amortizations shall be sufficient
cause for the Land Bank to foreclose on the mortgage.
SEC. 9. Thirty (30) days after final notice for payment to the
defaulting tenant-farmer, a copy of which notice shall be furnished
1265
to the Department of Agrarian Reform, the Land Bank may

foreclose on the mortgage by registering a certification under oath
of its intent to foreclose with the Registry of Deeds of the city or
province where the land is located attaching thereto: a copy of the
final notice for payment; proof of service to the tenant-farmer and
the Department of Agrarian Reform of the final notice for payment;
and a certification that at least three (3) annual amortizations on
the land or the sum thereof remain unpaid. The mortgage is deemed
foreclosed upon registration of said documents with the Registry of
Deeds.
In the event the defaulting tenant-farmer could not be served

the final notice for payment, the Land Bank shall post the notice for
payment in the town hall, public market and barangay hall or any
other suitable place frequented by the public of the barangay where
the defaulting tenant-farmer resides. A certification by the Land
Bank to this effect will substitute for the proof of service of the final
notice of payment for purposes of foreclosure.
The Register of Deeds of all cities and provinces are directed

to have a separate registry book to enter all the requirements of
foreclosure as provided herein.
SEC. 10. The tenant-farmer, or any of his compulsory heirs

may lift the foreclosure within a period of two (2) years from its
registration by paying the Land Bank all unpaid amortizations on
the land with interest thereon of six percent (6%) per annum. In case
of failure to lift the foreclosure within the said period, ownership of
the land shall be deemed transferred to the Land Bank.
SEC. 11. The Land Bank, not later than three (3) months
after its acquisition of the land, shall sell the foreclosed land to any
interested landless farmer duly certified to as a bona fide landless
farmer by the Department of Agrarian Reform of the barangay or
the two closest barangays where the land is situated. The cost of the
land is the unpaid amortizations due on the land as of the date of
the sale with interest thereon of six percent (6%) per annum. In the
event that there is more than one interested buyer, the actual buyer
1266
shall be determined by lottery in the presence of all the buyers or

their representatives and a representative of the Department of
Agrarian Reform. The Deed of Conveyance executed by the Land
Bank in favor of the farmer transferee shall be registered with the
Register of Deeds of the city or province where the land is located.
Ownership shall transfer to the farmer transferee only upon
registration with the Registry of Deeds. The lien of the Land Bank
by way of mortgage on the remaining unpaid amortizations shall
subsist on the title of the transferee.
SEC. 12. The Land Bank, at least one (1) month prior to
the sale, shall furnish the Department of Agrarian Reform with a
notice of sale and shall post a similar notice in the town hall, public
market and barangay hall or any other suitable place frequented by
the public of the barangay where the property is located. The notice
shall state the description of the property subject of the sale, the
price, the date and place of sale.
SEC. 13. The National Land Titles and Deeds Registration

Administration is hereby authorized to issue such rules and
regulations as may be necessary relative to the registration with
the Register of Deeds of ail transactions/activities required herein
taking into consideration the need to protect the integrity of the
Torrens System, the interests of the parties and innocent third
parties.
All transactions/activities and their corresponding documents

that are registered with the Register of Deeds pursuant to the
requirements of P.D. No. 27 and this Executive Order shall be free
from all documentary stamps and registration fees.
SEC. 14. The Department of Agrarian Reform and the Land

Bank are authorized to issue the additional implementing guidelines
of this Executive Order which shall not be later than sixty (60) days
from the date hereof.
SEC. 15. To ensure the successful implementation of the

Agrarian Reform Program, an Agrarian Reform Operating Fund
1267
(Agrarian Fund) shall be set up by the National Government in the

Land Bank. The amount of this Agrarian Fund, to be determined
by the Government Corporation Monitoring and Coordinating
Committee (hereinafter referred to as GCMCC), will source
the funding requirements for Land Bank to carry out the full
implementation of this program which will include the net operating
losses directly and indirectly attributable to this program and the
credit facilities to farmers and farmers’ organizations. Within thirty
(30) days from the effectivity of this Executive Order, the Land Bank
shall submit to the GCMCC its funding requirements for 1987.
Thereafter, within sixty (60) days after the end of each calendar
year, the Land Bank shall submit to the GCMCC an accounting
of all drawings the Land Bank had made against the Fund. At the
same time, it will also submit its prospective funding requirements
for the current year for review and validation of the GCMCC. The
amount approved by the GCMCC shall be deemed appropriated
and the amount programmed for release in coordination with the
Departments of Finance, Budget and Management and the National
Economic and Development Authority. Within thirty (30) days from
GCMCCs approval, such funds shall be remitted to the Land Bank
for credit to the Agrarian Fund.
SEC. 16. If any part of this Executive Order is declared invalid

or unconstitutional, it shall not affect any other part thereof.
SEC. 17. All laws, presidential decrees, orders, letters of

instructions, rules and regulations, and other issuances or parts
thereof inconsistent with this Executive Order are hereby repealed
SEC. 18. This Executive Order shall take effect upon its
signing and publication as provided by law.
1268
DONE in the City of Manila, this 17th day of July, in the year
of Our Lord, nineteen hundred and eighty-seven.

By the President:

Executive Secretary
1269
MALACAÑANG
MANILA
PROVIDING THE MECHANISMS FOR THE IMPLEMENTATION

OF THE COMPREHENSIVE AGRARIAN REFORM
PROGRAM
WHEREAS, by virtue of Proclamation No. 131 dated July

22, 1987 the Comprehensive Agrarian Reform Program has been
instituted;
WHEREAS, there is a need to provide for the mechanisms to

start the implementation of the program;
WHEREAS, public hearings and consultations were held to

determine appropriate mechanisms capable of being established;

of the Philippines by virtue of the powers vested in me by the
CHAPTER I. COVERAGE
SECTION 1. Scope. - The Comprehensive Agrarian Reform

Program (CARP) shall cover, regardless of tenurial arrangement
and commodity produced, all public and private agricultural lands
as provided in Proclamation No. 131 dated July 22, 1987, including
whenever applicable in accordance with law, other lands of the
public domain suitable to agriculture.
SEC. 2. Implementation. - Land acquisition and distribution

shall be implemented as provided in this Order as to all kinds
of lands under the coverage of the program, subject to such
priorities and reasonable retention limits as the Congress may
1270
under the Constitution prescribe, taking into account ecological,

developmental, or equity considerations, and subject to the payment
of just compensation.
SEC. 3. Exemptions. - Lands actually used and found to be

necessary for national defense, school sites and campuses, religious
purposes, penal colonies, and government research and quarantine
centers, are exempted from the coverage of the program.
SEC. 4. Compulsory Registration. - Within one hundred

eighty (180) days from the effectivity of this Order, all natural and
juridical persons, including government entities, owning, leasing
or managing agricultural lands shall file a sworn statement in
the proper Assessor’s Office in the form to be prescribed by the
Department of Agrarian Reform (DAR). This statement shall include
among others, (a) the description and area of the property; (b) the
estimated average gross income from the property; (c) the names of
all tenants and regular farmworkers therein; (d) the crop(s) planted
in the property and the area covered by each crop as of June 1,
1987; (e) the terms of mortgages, leases, and management contracts
subsisting as of June 1, 1987; (f) the latest declared market value
of the land as determined by the City/Provincial Assessor; and (g)
a sworn declaration of the current fair market value, which the
owner wishes to receive if the property should be acquired by the
government for agrarian reform purposes.
If the landowner fails to register within the prescribed

period, the government shall base the valuation of his property for
landowner compensation purposes on the City/Provincial Assessor’s
value. Beginning with the quarter immediately following this
registration, the real property tax payable shall be based on the
abovementioned owner’s declaration of current fair market value.
CHAPTER II. - PRIVATE LAND ACQUISITION
SEC. 5. Procedure of Acquisition. - After the land, landowners,

and beneficiaries shall have been identified, the DAR shall publish
its decision to acquire the land and notify the landowners thereof,
1271
together with the offer of the DAR to pay for the land as provided in
Section 6 hereunder.
Within fifteen (15) days from publication and notice, the

landowner shall signify to the DAR his acceptance or rejection of
the offer.
If the landowner accepts the offer of the DAR, the Land Bank
of the Philippines (LBP) shall pay the landowner the purchase
price of the land within fifteen (15) days after he surrenders the
Certificate of Title and other relevant documents required by the
DAR and the LBP.
In case of rejection or if no reply is received, the DAR shall

conduct administrative summary proceedings to determine the
compensation for the land, requiring the landowner, the LBP, and
other interested parties to submit within fifteen (15) days from the
receipt of notice, evidence as to the compensation for the land. After
the expiration of the above period, the matter is deemed submitted
for decision.
Within fifteen (15) days from receipt of the decision, the

LBP shall establish a trust fund for the landowner concerned in
the amount decided and notify the landowner and the DAR of its
establishment.
Any party who disagrees with the decision may bring the
matter to the proper court for determination of just compensation.
After the establishment of the trust fund or receipt by the

DAR of the landowner’s acceptance of the offer, the DAR shall take
immediate possession of the land. Upon formal notification by the
DAR, the Register of Deeds shall issue a Transfer Certificate of Title
(TCT) in the name of the Republic of the Philippines as Trustee
for and in behalf of qualified beneficiaries. Thereupon, the DAR
shall proceed with the redistribution of the land to the qualified
beneficiaries.
1272
The rights and responsibilities of ownership by the beneficiaries

commence at the time of their designation as awardees-owners by
the DAR, as evidenced by a Certificate of Landownership Award in
their favor.
SEC. 6. Compensation to Landowners. The LBP shall

compensate the landowner an amount to be established by the
government, which shall be based on the owner’s declaration of
current fair market value as provided in Section 4 hereof, but subject
to certain controls to be defined and promulgated by the Presidential
Agrarian Reform Council (PARC) as provided in Section 18 hereof.
The compensation shall be paid in any of the following modes, at the
option of the landowner:
a. Bond payment over ten (10) years, with ten (10) percent of
the value of the land payable immediately in cash and the balance
in the form of LBP bonds bearing market rates of interest that
are aligned with 91-day treasury bills rates, net of applicable final
withholding tax. One-tenth of the face value of the bonds shall
mature every year from the date of issuance until the tenth year;
The LBP bonds issued hereunder shall be eligible at face value

for the purchase of government assets to be privatized;
b. Direct payment in cash or kind by the farmer-beneficiaries

with the terms to be mutually agreed upon by the beneficiaries and
landowners and subject to the approval of the DAR; and
c. Other modes of payment as may be prescribed or approved

by the PARC.
SEC. 7. Assistance to Landowners. - Landowners affected

by this Order shall be assisted and provided by the LBP with the
following services:
a. Investment information and counseling assistance;
1273
b. Conversion and/or exchange of LBP bonds to/from

government stocks and/or with government assets; and
c. Marketing of LBP bonds.
CHAPTER III. - LAND TRANSFER, UTILIZATION, AND

SHARING
SEC. 8. Voluntary Land Transfer. Landowners whose lands

are subject to redistribution under this Order have the option of
entering into a voluntary agreement for direct transfer of their lands
to appropriate beneficiaries, under terms and conditions acceptable
to both parties and subject to the approval of the DAR. The general
guidelines for voluntary land transfer are:
a. The beneficiaries are determined by the DAR to be the same

individuals who would be eligible to purchase the land in case the
government under this Order acquired the land for resale;
b. The area of land to be transferred is no less than the area

which the government, under this Order, would otherwise acquire
for resale;
c. The terms and conditions of the government’s standing

offer to purchase from the landowner and standing offer to resell to
the beneficiaries are fully known and understood by both parties;
d. The voluntary transfer agreement shall include sanctions

for non-compliance by either party and shall be binding and
irrevocable for both parties, shall be duly recorded at and monitored
by the DAR.
SEC. 9. Voluntary Offer to Sell. - The government shall

purchase all agricultural lands it deems productive and suitable to
farmer cultivation voluntarily offered for sale to it at a valuation
determined in accordance with Section 6. Such transactions shall
be exempt from the payment of capital gains tax and other taxes
and fees.
1274
SEC. 10. Corporate Landowners. - Corporate landowners

may give their workers and other qualified beneficiaries the right to
purchase such proportion of the capital stock of the corporation that
the land assets bear in relation to the corporation’s total assets, and
grant additional compensation which may be used for this purpose.
The approval by the PARC of a plan for such stock distribution,
and its initial implementation, shall be deemed compliance with the
land distribution requirements of the CARP.
SEC. 11. Leases, Management Contracts, Mortgages, and

Claims. - Leases and management contracts on land covered by
land distribution and registered with the Register of Deeds prior
to the approval of this Order may continue under their original
terms and conditions, but not beyond five (5) years from the
effectivity of this Order; provided that upon expiration, leases
and management contracts may only be renewed subject to the
agreement of the qualified beneficiaries, and provided further that
upon the distribution or award of the land, where the existing lease
rentals are not acceptable to the qualified beneficiaries, such rentals
shall be renegotiated with the assistance of the Barangay Agrarian
Reform Council (BARC). If the parties fail to agree, the DAR shall
determine the rental. Mortgages and other claims registered with
the Register of Deeds will be assumed by the government up to the
landowner’s compensation value as provided for in Section 6 hereof.
SEC. 12. Payment of Beneficiaries. - Land acquired and

redistributed by the government shall be paid for by the beneficiaries
in thirty (30) equal annual payments at six (6) percent per annum
interest, with the first payment due one year after resale, and a
two (2) percent interest rebate for amortizations paid on time,
provided, that in no case shall the annual amortizations exceed ten
(10) percent of the land’s annual value of gross production. Should
the amortization exceed ten (10) percent, the LBP shall reduce the
interest rate and/or reduce the principal obligation to make the
repayments affordable. Incentives shall be given for prepayments.
The LBP shall have a lien by way of mortgage on the land

acquired by the beneficiary and this mortgage may be foreclosed by
1275
the LBP when the outstanding principal balance unpaid and past
due reaches the equivalent of three (3) annual amortizations.
SEC. 13. Credit Support. - Upon land transfer, each beneficiary

who actually farms his land shall be eligible for a production loan to
finance one crop cycle under terms and conditions to be determined
by the LBP on a case to case basis, renewable upon repayment.
SEC. 14. Collective or Individual Ownership. - For lands with

multiple beneficiaries, ownership of whole parcels or estates may be
transferred to the farmer-beneficiaries collectively or individually,
at the option of the beneficiaries, provided, that in collective
ownership, each beneficiary shall have an undivided share of the
land held in common equivalent to not more than the applicable
retention limit. The beneficiaries may collectively decide on the
continued operation of the parcel/estate as a whole or to subdivide
the same into individual lots and determine the manner in which
such subdivision is to be implemented.
SEC. 15. Distribution and Utilization of Public Lands. - All

alienable and disposable lands of the public domain suitable for
agriculture and outside proclaimed settlements shall be distributed
by the Department of Environment and Natural Resources (DENR)
to qualified beneficiaries as certified to jointly by the DAR and the
DENR.
SEC. 16. Production Sharing. - Individuals or entities owning

and/or operating under lease agricultural lands with gross sales
in excess of Five Million Pesos (₱5 million) per annum are hereby
mandated to execute a production sharing plan whereby at least
two and one-half (2.5) percent of the gross sales from the production/
cultivation of such lands are distributed as compensation to the
farmworkers over and above the compensation they currently
receive, provided that such individuals or entities are not obligated to
pay more than 100 percent of the regular and annual compensation
of the farmworkers.
1276
CHAPTER IV. - IMPLEMENTING AND COORDINATING

MECHANISMS
SEC. 17. Quasi-Judicial Powers of the DAR. - The DAR

is hereby vested with quasi-judicial powers to determine and
adjudicate agrarian reform matters, and shall have exclusive
original jurisdiction over all matters involving implementation of
agrarian reform, except those falling under the exclusive original
jurisdiction of the DENR and the Department of Agriculture (DA).
The DAR shall have powers to punish for contempt and to

issue subpoena, subpoena duces tecum and writs to enforce its
orders or decisions.
The decisions of the DAR may, in proper cases, be appealed

to the Regional Trial Courts but shall be immediately executory
notwithstanding such appeal.
SEC. 18. The Presidential Agrarian Reform Council (PARC).

- To coordinate the implementation of the CARP and to ensure the
timely and effective delivery of the necessary support services,
there is hereby created the Presidential Agrarian Reform Council
composed of the President as Chairman, and the Secretaries or
Heads of the following agencies, as follows:
Department of Agrarian Reform Vice Chairman

Department of Agriculture - Vice Chairman
Department of Environment and Natural
resources - Vice Chairman
Executive Secretary Member
Department of Budget and Management - Member
Department of Finance - Member
Department of Justice - Member
Department of Labor and Employment - Member
Department of Local Government - Member
Department of Public Works and
Highways - Member
1277
Department of Trade & Industry - Member

Department of Transportation and
Communications - Member
National Economic and Development
Authority - Member
Land Bank of the Philippines - Member
Presidential Commission on Good
Government - Member
The President shall appoint representatives of agrarian

reform beneficiaries and affected landowners as members of PARC.
The DAR shall provide the Secretariat for the PARC and the
Secretary of Agrarian Reform shall be the Director-General thereof.
The PARC shall formulate and/or implement the policies,

rules and regulations necessary to implement each component of
the CARP, and may authorize any of its members to formulate rules
and regulations concerning aspects of agrarian reform falling within
their area of responsibility. These policies, rules and regulations
shall include the following:
a. Recommended small farm economy areas, which shall

be specific by crop and based on thorough technical study and
evaluation;
b. The schedule of acquisition and redistribution of specific

agrarian reform areas, provided that such acquisition shall not be
implemented until all the requirements are completed, including
the first payment to the landowners concerned.
c. Control mechanisms for evaluating the owner’s declaration

of current fair market value as provided in Section 4 hereof in order
to establish the government’s compensation offer as provided in
Section 6 hereof, taking into account current land transactions in
the locality, the landowner’s annual income from his land, and other
factors.
1278
PARC shall have an Executive Committee composed of the

Secretary of Agrarian Reform as Chairman, and Secretaries or
Heads of the following agencies as members:
Executive Secretary
Department of Agriculture
Department of Environment and Natural Resources
Department of Finance
Department of Public Works and Highways
Land Bank of the Philippines
Within ninety (90) days from the effectivity of this Order,

the Executive Committee of PARC shall complete a Program of
implementation incorporating the physical targets, implementation
schedule and support requirements of agrarian reform, and shall
submit the same to the PARC for approval. Such program of
implementation shall take into account, and be consistent with,
priorities and retention limits that Congress may in the meantime
prescribe, and the following basic policies and guidelines set forth
in the Constitution:
a. The CARP is founded on the right of farmers and regular

farmworkers, who are landless, to own directly or collectively, the
lands they till or, in the case of other farmworkers, to receive a just
share of the fruits thereof;
b. The right of small landowners shall be respected;
c. Voluntary land-sharing shall be encouraged;
d. Farmers, farmworkers, landowners, cooperatives and/or

independent farmers’ organizations have the right to participate in
the planning, organization, and management of the CARP;
e. In lands of the public domain, the CARP shall respect

prior rights, homestead rights of small settlers, and the rights of
indigenous communities to their ancestral lands;
1279
f. Support to agriculture through appropriate technology and

research, and adequate financial, production, marketing, and other
support services must be provided;
g. Landowners shall be encouraged to invest the proceeds of the

agrarian reform program to promote industrialization, employment
creation, and privatization of public sector enterprises; and
h. At the earliest possible time, idle or abandoned agricultural

lands as may be defined by law shall be expropriated for distribution
to the beneficiaries of the agrarian reform program.
SEC. 19. Barangay Agrarian Reform Council (BARC). - On

matters related to agrarian reform, the DAR shall convene at the
barangay level, a Barangay Agrarian Reform Council. The BARC
shall be operated on a self- help basis and will be composed of the
following:
a. Representative/s of farmer and farm worker beneficiaries;
b. Representative/s of farmer and farmworker non-

beneficiaries;
c. Representative/s of agricultural cooperatives;
d. Representative/s of other farmer organizations;
e. Representative/s of the Barangay Council;
f. Representative/s of non-government organizations (NGOs);
g. Representative/s of landowners;
h. DA official assigned to the barangay;
i. DENR official assigned to the area;
1280
j. DAR Agrarian Reform Technologist assigned to the area

who shall act as the Secretary; and
k. Land Bank of the Philippines representative.
The functions of the BARC shall be:
a. To participate and give support to the implementation of

programs on agrarian reform;
b. To mediate, conciliate or arbitrate agrarian conflicts and

issues that are brought to it for resolution; and
c. To perform such other functions that the PARC, its Executive

Committee, or the DAR Secretary may delegate from time to time.
CHAPTER V. - FINANCING
SEC. 20. Agrarian Reform Fund. - As provided in Proclamation

No. 131 dated July 22 , 1987, a special fund is created, known as
The Agrarian Reform Fund, an initial amount of FIFTY BILLION
PESOS (₱50 billion) to cover the estimated cost of the CARP from
1987 to 1992 which shall be sourced from the receipts of the sale of
the assets of the Asset Privatization Trust (APT) and receipts of sale
of ill-gotten wealth recovered through the Presidential Commission
on Good Government and such other sources as government may
deem appropriate. The amount collected and accruing to this special
fund shall be considered automatically appropriated for the purpose
authorized in this Order.
SEC. 21. Supplemental Appropriations. - The amount of TWO

BILLION SEVEN HUNDRED MILLION PESOS (₱2.7 billion) is
hereby appropriated to cover the supplemental requirements of
the CARP for 1987, to be sourced from the receipts of the sale of
ill-gotten wealth recovered through the Presidential Commission
on Good Government and the proceeds from the sale of assets by
the APT. The amount collected from these sources shall accrue
to The Agrarian Reform Fund and shall likewise be considered
automatically appropriated for the purpose authorized in this Order.
1281
CHAPTER VI. - SANCTIONS
SEC. 22. Permanent Disqualification. - Persons, associations,

or entities who prematurely enter the land to avail themselves of
the rights and benefits hereunder, shall be permanently disqualified
from receiving benefits and shall forfeit their rights hereunder.
SEC. 23. Contempt. - Persons, associations, or entities who

willfully prevent or obstruct the implementation of the CARP shall
be liable for contempt.
CHAPTER VII. - GENERAL PROVISIONS
SEC. 24. Ancestral Lands. - Within the framework of

national unity and development, the rights of indigenous cultural
communities to their ancestral lands are hereby protected to ensure
their economic, social, and cultural well-being.
SEC. 25. Immunity of Government Agencies from Undue

Interference. - No injunction, restraining order, prohibition
or mandamus shall be issued by the lower courts against the
DAR, the DA, the DENR and the Department of Justice in their
implementation of the CARP.
SEC. 26. Assistance of other Government Entities. - The PARC

in the exercise of its functions is hereby authorized to call upon the
assistance and support of other government agencies, bureaus, and
offices, including government-owned or controlled corporations.
SEC. 27. Applications of Existing Legislation. - Presidential

Decree No. 27, as amended, shall continue to operate with respect to
rice and corn lands, covered thereunder. The provisions of Republic
Act No. 3844 and other agrarian laws not inconsistent with this
Order shall have suppletory effect.
SEC. 28. Free Registration of Patents and Titles. - All Registers

of Deeds are hereby directed to register free from payment of all
1282
fees, patents, titles, and documents required in the implementation

of the CARP.
SEC. 29. Separability Clause. - If, for any reason, any section
or provision of this Order shall be held unconstitutional or invalid,
no other section or provision hereof shall be affected thereby.
SEC. 30. Repealing Clause. - All laws, issuances, decrees or

any part or parts thereof inconsistent with the provisions of this
Order are hereby repealed or amended accordingly.
SEC. 31. Effectivity Clause. - This Executive Order shall take

effect fifteen (15) days after publication in the Official Gazette or in
a newspaper of general circulation in the Philippines.
APPROVED, in the City of Manila, Philippines, this 22nd day

of July, 1987.

By the President:

Executive Secretary
1283
MALACAÑANG
MANILA
AMENDING EXECUTIVE ORDER NO. 203 ENTITLED: “CREATING

THE OVERSIGHT AND EXECUTIVE COMMITTEES FOR
THE NATIONAL GOVERNMENT MAJOR SOCIAL REFORM
AGENDA”
WHEREAS, the Social Agenda sets the framework and

direction for the efforts of all sectors of Philippine society in line with
the overall objective of national unity, and intends to improve access
to quality basic services; accelerate asset reform and sustainable
development of productive resources; and allow greater access to
economic opportunities; and strengthen institution-building and
participation in governance of Basic Sectors in priority geographic
areas;
WHEREAS, the successful implementation of the SRA

aimed at a rapid improvement in the levels of well-being of sectors,
most especially the disadvantaged, and communities, and to an
enhancement of the nation’s competitiveness requires an effective
mechanism for day-to-day monitoring and periodic strategic, policy
and program review in the broad context of the Administration’s
vision for an empowered democracy and development;

Philippines, by virtue of the powers vested in me by law and the
SECTION 1. Section 1 (1.3) of Executive Order No. 203 is

“1.3 Secretary-General of the Executive Committee/SRA

Council. There shall be a Secretary-General of the Executive
1284
Committee/Social Reform Agenda (SRA) Council to be appointed by

the President with the following functions:
a. Assist in the coordination of all concerns/requirements

with various Government agencies and non-government sectors to
facilitate and ensure effective implementation of the SRA;
b. Assist the Lead Convenor in day-to-day requirements

of the Council in effectively coordinating interagency initiatives,
synchronizing national and local programs and facilitating
multisectoral activities among government and NGO sectors;
c. Head the Secretariat whose staff support shall be provided

by the Office of the Presidential Adviser for the Peace Process and the
Office of the Secretary of the Department of Agrarian Reform;
d. Perform other tasks as may be assigned by the Executive

Committee/SRA Council.”
SEC. 2. All Executive Orders and other administrative

issuances inconsistent herewith are hereby repealed or modified
accordingly.
DONE in the City of Manila, this 19th day of June in the year
of Our Lord, Nineteen Hundred and Ninety Five.

By the President:
(Sgd.) RUBEN D. TORRES

Executive Secretary
EO 252 s. 1995 amended EO 203 s. 1994 [sec. 1 (1.3)].
1285
MALACAÑANG
MANILA
PROVIDING FOR THE ISSUANCE OF NATIONAL GOVERNMENT

BONDS TO BE KNOWN AS AGRARIAN REFORM (AR)
BONDS
WHEREAS, Section 18 of Republic Act No. 6657, otherwise

known as the Comprehensive Agrarian Reform Law, allows the
compensation of landowners for their agricultural landholdings
subject to the Government’s Comprehensive Agrarian Reform
Program (CARP) to be paid in government financial instruments
negotiable at any time;
WHEREAS, National Government Bonds fall within the term

“government financial instruments negotiable at any time.”

order:
1. The issuance of Agrarian Reform (AR) Bonds for CARP

payments and carrying of said AR Bonds in the books of the National
Government. The AR Bonds, which shall be used by the Land
Bank of the Philippines (LBP) for land transfer payments under
the agrarian reform program in accordance with existing law, shall
have the same features as the LBP Bonds under the CARP;
2. The segregation of the accounts of CARP-related

transactions in the books of account maintained by the Land Bank
of the Philippines, except those specifically shouldered by the Land
Bank of the Philippines; and
1286
3. The enactment in trust with the Land Bank of the

Philippines of such portions of the Agrarian Reform Fund (ARF)
and of other funds authorized by law for the CARP, as directed by
the Department of Finance/Bureau of Treasury in compliance with
the provisions of the agrarian reform law.
The Department of Finance, the Land Bank of the Philippines,

the Department of Budget and Management, the Bureau of Treasury
and all other government agencies concerned are hereby directed to
coordinate with one another on the printing, issuance, servicing and
safekeeping of AR Bonds, the segregation of the accounts of CARP-
related transactions in the books of account maintained by the Land
Bank of the Philippines and the placement of the ARF in trust with
the Land Bank of the Philippines.
In the implementation of this order
a) LBPs functions and responsibilities in the Comprehensive

Agrarian Reform Program, as defined in the law, will be fully
maintained;
b) LBP will continue to be the principal agency handling land

transfer payments to landowners; and
c) Separate financial statements and records will be maintained

for CARP-related transactions and the LBP will be responsible for
the administration of all the ARF funds entrusted to it or brought
under its control.
of Our Lord, Nineteen Hundred and Ninety-Five.

By the President:

Executive Secretary
1287
MALACAÑANG
MANILA
STREAMLINING THE STRUCTURE AND FUNCTIONS OF THE

DEPARTMENT OF AGRARIAN REFORM AND FOR OTHER
PURPOSES
WHEREAS, Presidential Proclamation No. 131 and Executive

Order No. 229 both dated July 22, 1987 instituted a Comprehensive
Agrarian Reform Program (CARP) and provided the mechanisms
for its implementation;
WHEREAS, Executive Order No. 129-A dated July 26, 1987

reorganized and strengthened the Department of Agrarian Reform
in order to carry out its mandate;
WHEREAS, Republic Act No. 6657, approved on June 10,

1988, redefined the scope of the Comprehensive Agrarian Reform
Program and re-emphasized its purpose/objective which is to ensure
that the welfare of the landless farmers and farmworkers will receive
the highest consideration to promise social justice and to move the
nation towards sound rural development and industrialization;
WHEREAS, there is a need to rationalize, re-align and

streamline the present organization structure and functions of the
Department in order to respond to the new thrusts as spelled out
under RA 6657, to meet the challenges of the global and modernizing
economy and to attune itself to emerging local and international
development imperatives and deliver its services to its clientele
with greater efficiency and effectiveness;
WHEREAS, Section 20, Chapter 7, Title I, Book III of

Executive Order No. 292 series of 1987, otherwise known as the
“Administrative Code of 1987,” empowers the President of the
1288
Philippines to exercise such powers and functions as are vested in

him under the law;
WHEREAS, Section 76 of the General Provisions of RA 8760,

otherwise known as the “General Appropriations Act of 2000,”
empowers the President to direct changes in organization and key
positions of any department, bureau or agency;
WHEREAS, Section 78 of the same Act provides, among

others, that the heads of departments, bureaus, offices and agencies
and other entities in the Executive Branch are directed to conduct
a comprehensive review of their respective mandates, functions,
programs, projects, activities and systems and procedures; identify
activities which are no longer essential in the delivery of public
services and which may be scaled down, phased down, or abolished;
and adopt measures that will result in the improved overall
performance and productivity of their respective agencies;
WHEREAS, Section 32 of Executive Order No. 129-A provides

that “No change in the reorganization herein prescribed shall be
valid except upon prior approval of the President for the purpose
of promoting efficiency and effectiveness in the delivery of public
services”;

President of the Republic of the Philippines, by virtue of the power
vested in me by law, do hereby order the following:
SECTION 1. Mandate. The Department of Agrarian Reform

shall continue to pursue its mandate and exercise its powers as
provided for under RA 6657 otherwise known as the “Comprehensive
Agrarian Reform Law” (CARL) and of Executive Order No. 129-A
dated July 26, 1987 of Agrarian Reform and for Other Purposes.
SEC. 2. Preparation of a Rationalization and Streamlining

Plan. In view of the functional and operational redirection in the
DAR and to effect efficiency and effectiveness in its activities, the
Department shall prepare a Rationalization and Streamlining Plan
1289
(RSP) which shall be the basis for the intended changes. The RSP
Plan shall contain the following:
a) the specific shift in policy directions, missions, visions,

core values, functions, programs and service delivery processes and
strategies;
b) the structural and organizational shift, stating the specific

functions and activities by organizational unit and the relationship
of each units;
c) the staffing shift if any, highlighting and itemizing the

existing filled and unfilled positions; and
d) the resource allocation shift, specifying the effects of

the streamlined set-up on the agency budgetary allocation and
indicating where possible, savings that have been generated.
The RSP shall be submitted to the Department of Budget and

Management for approval before the corresponding shifts shall be
affected by the DAR Secretary.
SEC. 3. Redeployment of Personnel. The redeployment of

officials and other personnel on the basis of the approved RSP
shall not result in diminution in rank or in compensation or both,
of existing personnel. It shall take into account all pertinent Civil
Service Laws and rules and regulations.
SEC. 4. Funding. The financial resources needed to implement

the Rationalization and Streamlining Plan shall be taken from
funds available in the DAR, provided that the local requirements for
the implementation of the revised staffing pattern shall not exceed
available funds for Personnel Services.
SEC. 5. Separation Benefits. Personnel who opt to be separated

from the service as a consequence of the implementation of this
Executive Order shall be entitled to the benefits under existing
1290
laws. Those who are not covered by existing laws shall be entitled
to separation benefits equivalent to one (1) month basic salary for
every year of service or proportionate share thereof in addition to
the terminal leave benefits which the employee is entitled to under
existing laws.
SEC. 6. Implementing Authority. Following the approved

RSP, the DAR Secretary, in addition to his authority to implement
the RSP is hereby authorized to determine the type of agencies and
facilities necessary to carry out the Department’s mandate and
powers, including the pilot testing of programs following strictly the
principles of efficiency and effectiveness.
SEC. 7. Transition Mechanism. Pending approval of the RSP,

the DAR Secretary is hereby authorized to adopt such interim
structures and mechanisms, including but not limited to, detailing,
reassigning and/or designating such number of critical officials and
personnel who will be needed to ensure a smooth transition towards
the new organization thrusts, policies and structures, provided that
such detail, reassignment and/or designation shall be guided by the
provisions of the Civil Service Law on the matter.
SEC. 8. Separability. Any portion or provision of this Executive

Order that may be declared unconstitutional shall not have the
effect of nullifying other portions or provisions hereof as long as
such remaining portions or provisions can still subsist and be given
effect in their entirety.
SEC. 9. Repealing Clause. All other orders, memorandum

circulars, rules and regulations, and other issuances inconsistent
with this Executive Order are hereby repealed or modified
accordingly.

immediately.
1291
Done in the City of Manila this 22nd day of September, in the

year of our Lord, two thousand.

By the President:

Executive Secretary
1292
MALACAÑANG
RATIONALIZING THE USE OF THE COCONUT LEVY FUNDS

BY CONSTITUTING A “FUND FOR ASSISTANCE TO
COCONUT FARMERS” AS AN IRREVOCABLE TRUST FUND
AND CREATING A COCONUT TRUST FUND COMMITTEE
FOR THE MANAGEMENT THEREOF
WHEREAS, several legislations were enacted imposing

coconut levies intended to establish funds for the support and
development of the coconut industry and for the benefit of coconut
farmers;
WHEREAS, pursuant to said legislations, the United Coconut

Planters Bank as the designated Administrator of the Coconut Levy
Funds under the statutory provisions of Presidential Decree No. 755
and Presidential Decree No. 1468, invested a portion (hereinafter
referred to as the Coconut Industry Investment Fund [“CIIF”] of the
Coconut Consumers Stabilization Fund and the Coconut Industry
Development Fund), not required to be utilized for the purposes for
which said Funds were established, in shares of stock of various
corporations, including San Miguel Corporation (“SMC”);
WHEREAS, the shares of stock in the SMC acquired

through the use of the CIIF (hereinafter referred to as the “CIIF
SMC Shares”) are registered in the names of various corporations
(hereinafter referred to as the “CIIF Holding Companies”) which
are likewise owned and controlled by the CIIF;
WHEREAS, the CIIF Holding Companies have been

sequestered by the Presidential Commission on Good Government
(“PCGG”) by virtue of Executive Order Nos. 1,2,14 and 14-A;
1293
WHEREAS, by reason of the sequestration of businesses

established and the assets and properties acquired through the use
of the coconut levy funds, including the CIIF SMC Shares, such
businesses, property and assets and the CIIF SMC Shares have not
been utilized for the benefit of their intended beneficiaries;
WHEREAS, the issue of the ownership of the coconut levy

funds, as well as the businesses and assets established therewith,
including the CIIF SMC Shares, is presently pending before the
Sandiganbayan in Civil Case No. 0033, entitled “Republic of the
Philippines vs. Eduardo Cojuangco, Jr., et al.”;
WHEREAS, the Supreme Court had declared in G.R. No.

75713 that:
“The utilization and proper management of the coconut levy

funds, raised as they were by the State’s police and taxing powers,
are certainly the concern of the Government. It cannot be denied
that it was the welfare of the entire nation that provided the prime
moving factor for the imposition of the levy. It cannot be denied that
the coconut industry is one of the major industries supporting the
national economy. It is, therefore, the State’s concern to make it a
strong and secure source not only of the livelihood of a significant
segment of the population but also of export earnings the sustained
growth of which is one of the imperatives of economic stability.
The coconut levy funds are clearly affected with public interest.”
(Philippine Coconut Producers Federation Inc. (COCOFED), et al.
vs. Presidential Commission on Good Government (PCGG), et al.,
G.R. No. 75713, October 2, 1989, 178 SCRA 236, 252-253).
WHEREAS, the Supreme Court, in a Resolution issued

on December 13, 1994 in G.R. No. 96073, entitled “Republic vs.
Sandiganbayan (First Division), et al.” resolved “to DENY the
Solicitor General’s (a) Urgent Motion to Resolve Legal Question
on the Character of the Coconut Levy F unds and to Declare as
Unconstitutional Section 5, Article III of P.D. 1468 filed in behalf
of the PCGG. Further, in its resolution of March 26, 1996 in the
same case, the Supreme Court, in considering the motion for
1294
reconsideration filed by the Solicitor General, resolved “to DENY

the Solicitor General’s prayer to (a) declare the coconut levies
collected pursuant to various issuances as public funds; (b) declare
unconstitutional Section 5, Article III of P.D. 1468.”;
WHEREAS, the delay in the resolution of the aforestated

issues relating to the nature and ownership of the CIIF Investments
has been inimical to the coconut industry and the coconut farmers;
WHEREAS, to immediately address the problems besetting

the coconut industry and alleviate the socio-economic well-being of
the coconut farmers, the rationalization of the use and disposition
of the coconut levy funds, including the CIIF SMC Shares, through
the creation and establishment of a permanent trust fund to finance
various programs of assistance to the coconut farmers and the
coconut industry would effectively prevent further deterioration of
the coconut industry and, at the same time, provide relief to the
continuing hardships experienced by the coconut farmers;

vested in me by law, hereby direct and order, as follows:
SECTION 1. Creation of the Coconut Trust Fund. There

is hereby created an irrevocable trust fund, to be known as the
Coconut Trust Fund (hereinafter referred to as the “Trust Fund”),
which shall be capitalized, managed, utilized and accounted for in
the manner hereinafter provided.
SEC. 2. Purpose of the Fund. The Fund shall be established

for the purpose of financing programs of assistance for the benefit
of the coconut farmers, the coconut industry, and other agri-related
programs intended to maximize food productivity, develop business
opportunities in the countryside, provide livelihood alternatives,
and promote anti-poverty programs.
SEC. 3. Capitalization of the Trust Fund. The CIIF SMC

Shares, consisting of approximately 27% of the outstanding capital
1295
stock of SMC, shall form the initial capital of the Trust Fund. For
this purpose, the CIIF Holding Companies, acting through the
Administrator of the coconut levy funds, shall convey the CIIF SMC
Shares to the Trustee as provided in Section 4 hereof, under such
terms and conditions not inconsistent with the Executive Order.
The CIIF Holding Companies, acting through the Administrator
of the coconut levy funds, shall sign, execute and deliver such
documents, deeds or contract, not inconsistent with this Executive
Order, as may be necessary or desirable to implement the provisions
of this Executive Order. Nothing in this Executive Order shall be
understood to prevent or prohibit any person, group or entity from
conveying to the Trustee any other additional properties and/or
assets, which shall form part of the Trust Fund.
In order to insure the enduring character of the Fund, the

principal thereof shall be maintained intact but may be augmented
from time to time by grants, donations and other lawful transfers by
public or private entity, the disposition of the income of which shall
be governed by the terms and conditions hereinafter specified, as
well as the rules and regulations promulgated by the Coconut Trust
Fund Committee created pursuant to Section 6 hereof:
(a) The Trust Fund shall be perpetually maintained and

preserved to ensure the full implementation and realization of the
objectives identified and sought to be attained under this Executive
Order;
(b) In the event that the Trust Fund (or any portion thereof,
as the case may be) is subsequently sold, alienated or disposed of,
the proceeds and revenues arising out of and realized from such
sale, alienation or disposition:
(i) shall be, to the extent established by the Coconut Trust

Fund Committee, used to settle in full any outstanding liability or
obligation of the Trust Fund due in favor of creditors; and
(ii) after the settlement of obligations specified in the

immediately preceding paragraph, the remaining balance of such
1296
proceeds and revenues shall automatically form part of the Trust

Fund which remains under the exclusive management of the
Coconut Trust Fund Committee;
(c) Only the income, interest earnings, and monetary benefits

realized by and accruing on the Trust Fund shall be used and
disposed of by the Coconut Trust Fund Committee for such purposes
and endeavors specified under the provision of this Executive Order
(such income, interest earnings and monetary benefits shall be
referred to as the “Trust Income”).
The Trust Fund shall be managed and administered so as

to maximize its earnings in a prudent manner consistent with its
character as a perpetual trust.
SEC. 4. Designation of Trustee Bank. The United Coconut

Planters Bank (UCPB), through its Trust Department, is hereby
designated as the Trustee Bank of the Trust Fund and shall: (i)
manage, utilize and account for the Trust Fund in the manner
hereinafter provided and (ii) exercise the tasks, functions and duties
determined and established by the Coconut Trust Fund Committee
created under the provisions of this Executive Order, to the extent
allowed under applicable laws.
SEC. 5. Extent of the Trust Fund. The Trust Fund shall be

composed of the following:
(a) the CIIF SMC Shares consisting of approximately 27% of

the outstanding capital stock of SMC; and
(b) such other properties and/or assets, intended for the

purposes herein stated, and conveyed or transferred to the Trustee
in accordance with this Executive Order.
SEC. 6. Creation of the Coconut Trust Fund Committee. A

Committee is hereby created to administer, manage and supervise
the operations of the Trust Fund, chaired by the President with ten
(10) members, as follows:
1297
(a) four (4) representatives from the government sector, two

of whom shall be the Secretary of Agriculture and the Secretary of
Agrarian Reform who shall act as Vice Chairmen;
(b) four (4) representatives from coconut farmers’ organizations,

one of whom shall come from a list of nominees from the Philippine
Coconut Producers Federation Inc. (“COCOFED”);
(c) a representative from the CIIF; and
(d) a representative from a non-government organization

(NGO) involved in agricultural and rural development.
All decisions of the Coconut Trust Fund Committee shall be

determined by a majority vote of all the members.
The Coconut Trust Fund Committee shall perform the

functions and duties set forth in Section 7 hereof, with the skill,
care, prudence and diligence necessary under the circumstances
then prevailing that a prudent man acting in like capacity would
exercise.
The members of the Coconut Trust Fund Committee shall be

appointed by the President and shall hold office at his pleasure.
The Coconut Trust Fund Committee is authorized to hire

administrative, technical and/or support staff as may be required
to enable it to effectively perform its functions and responsibilities.
SEC. 7. Functions and Responsibilities of the Committee. The

Coconut Trust Fund Committee shall have the following functions
and responsibilities:
(a) set the investment policy of the Trust Fund;
(b) establish priorities for assistance giving preference to

small coconut farmers and farmworkers which shall be reviewed
1298
periodically and revised as necessary in accordance with changing

conditions;
(c) receive, process and approve project proposals for financing

by the Trust Fund;
(d) decide on the use of the Trust Fund’s income or net earnings
including final action on applications for assistance, grants and/or
loans;
(e) avail of professional counsel and services by retaining an

investment and financial manager, if desired;
(f) formulate the rules and regulations governing the

allocation, utilization and disbursement of the Fund; and
(g) perform such other acts and things as may be necessary

proper or conducive to attain the purposes of the Fund.
SEC. 8. Non-impairment of Trust Fund. In order to ensure its

enduring character, it is hereby declared and ordered that the Trust
Fund shall be operated strictly as a capital fund for investment and
re-investment, and that it shall be maintained intact with only the
Trust Income, being authorized to be utilized for financing programs
of assistance as provided in Section 9 hereof.
SEC. 9. Use and Disposition of the Trust Income. The Coconut

Trust Fund Committee, on an annual basis, shall determine and
establish the amount comprising the Trust Income. After such
determination, the Committee shall earmark, allocate and disburse
the Trust Income for the following purposes, namely:
(a) Not more than three percent (3%) of the Trust Income
shall be used to defray the direct and validated costs and expenses
incurred for the maintenance, administration and preservation of
the Trust Fund, inclusive of the mandatory supervision fees and
charges, if any, imposed by the Bangko Sentral ng Pilipinas;
1299
(b) Twenty percent (20%) of the Trust Income shall be allocated

and disbursed to the Philippines Coconut Producers Federation,
Inc. (COCOFED) under the relevant provisions of existing statutes,
rules and regulations;
(c) Thirty percent (30%) of the Trust Income shall be disbursed

to other existing coconut farmers’ organizations, associations and
federations such as the Pambansang Koalisyon ng mga Samahang
Magsasaka at Manggagawa sa Niyugan (PKSMMN), Coconut
Industry Reform Movement (COIR), National Federation of
Small Coconut Farmers Organizations (NFSCFO), Nagkakaisang
Ugnayan ng Maliliit na Magsasaka at Manggagawa sa Niyugan
(NIUGAN), and those which may be determined by the Coconut
Trust Fund Committee, for the purpose of providing an immediate
source of funds to finance socio-economic programs and endeavors
for the benefit of their members consistent with the guidelines set
forth in Section 10 hereof;
(d) Thirty percent (30%) of the Trust Income shall be

used to assist and fund agriculturally-related programs for
the Government, as reasonably determined by the Trust Fund
Committee, implemented for the purpose of: (i) maximizing food
productivity in the agriculture areas of the country, (ii) enhancing
the upliftment and well-being of the living conditions of farmers and
agricultural workers, (iii) developing viable industries and business
opportunities in the countryside, (iv) providing alternative means
of livelihood to the direct dependents of agriculture businesses and
enterprises, and (v) providing financial assistance and support to
coconut farmers in times of economic hardship due to extremely low
prices of copra and other coconut products, natural calamities, world
market dislocation and similar occurrences, including financial
support to the ERAP’s Sagip Niyugan Program established under
Executive Order No. 312 dated November 3, 2000; and
(e) The remaining balance of the Trust Income shall revert to

the Trust Fund.
1300
The aforesaid releases and disbursements shall be in

accordance with the rules and regulations formulated by the
Coconut Trust Fund Committee.
SEC. 10. Guidelines for Trustee Decisions. In arriving at

decisions on project applications for financial assistance, grants,
loans or other forms of financing from the Trust Fund, the
Coconut Trust Fund Committee shall be guided by the following
considerations:
(a) the project’s relations and impact to the development and

improvement of the coconut industry in relation to the government’s
agriculturally-related programs, food productivity, livelihood and
anti-poverty programs;
(b) the amounts of funds requested for the project as consistent

with the fund assistance to as many institutions and/or associations
as possible; and
(c) an assessment of the institution’s or association’s past and

current efforts to improve the quality of life of the coconut farmers
and the development of the coconut industry and agriculture in the
Philippines.
SEC. 11. Cooperation with the Committee. The Coconut

Trust Fund Committee may call upon any department, bureau,
office, agency or instrumentality of the Government of the Republic
of the Philippines, including government-owned and controlled
corporations, for such assistance as it may desire and need in pursuit
of the purposes and objectives of the Trust Fund in the discharge of
its functions and responsibilities.
SEC. 12. Meetings and Annual Report and Compensation.

The Coconut Trust Fund Committee shall meet at such time as may
be determined by the Chairman and shall render to the President
an annual report of its activities. The members of the Coconut Trust
Fund Committee shall receive such compensation, allowances and
per diems as may be approved by the President of the Philippines.
1301
SEC. 13. Accounting. The Coconut Trust Fund Committee

shall maintain appropriate records and accounts of all investments,
receipts, disbursements and other transactions relating to the
management, administration and disposition of the Trust Fund and
Trust Income.
The Fund shall be audited annually or as often as necessary by

an external auditor designated by the Committee. The Committee
may also request the Commission on Audit to conduct an audit of
the Fund.
SEC. 14. Implementation. The Presidential Commission on

Good Government, the Office of the Solicitor General and other
appropriate government instrumentality are hereby directed to
exclude the 27% CIIF SMC shares from Civil Case No. 0033 entitled
“Republic of the Philippines vs. Eduardo Cojuangco Jr. et al.”
pending before the Sandiganbayan, lift the sequestration over such
shares, and take all the necessary steps to implement the purposes
and objectives of this Executive Order.
SEC. 15. Repealing Clause. This Order repeals Executive

Order Nos. 481 and 277 dated May 1, 1998 and September 24, 1995,
respectively.
SEC. 16. Effectivity Clause. This Order shall take effect

immediately.
DONE in the City of Manila, this 8th day of Nov. in the year
of Our Lord, Two Thousand.

By the President:

Executive Secretary
EO 313 s. 2000 repealed EO 277 s. 1995.
EO 313 s. 2000 repealed EO 481 s. 1998.
1302
MALACAÑANG
OF THE PHILIPPINES
MANILA
PROVIDING FOR THE ORGANIZATION OF THE DEPARTMENT

OF AGRARIAN REFORM
Pursuant to the powers vested in me by Section Fifteen of

Republic Act Number Six Thousand Three Hundred and Eighty-
nine, and upon the recommendation of the Special Technical
Committee created under Special Order Numbered Eleven, Series
of Nineteen Hundred and Seventy-One, of the Land Reform Project
Administration, and the Commission on Reorganization created
pursuant to Republic Act Numbered Five Thousand Four Hundred
and Thirty-five, as amended, the following are hereby promulgated
to govern the organization and functions of the Department of
Agrarian Reform:
ORGANIZATION OF THE DEPARTMENT OF AGRARIAN

REFORM
SECTION 1. The organization and function of the Department

of Agrarian Reform hereinafter referred to as the “Department,”
shall be in accordance with the provisions of Republic Act No. 6389
and this Executive Order.
SEC. 2. The organization of the Department graphically

depicted in the following organization chart, shall consist of the Office
of the Secretary (or Department proper) composed of the immediate
Office of the Secretary, the Planning Service, the Financial and
Management Service, the Administrative Service and the Agrarian
Reform Education Service; the Bureau of Agrarian Legal Assistance;
the Bureau of Land Acquisition, Distribution and Development; the
1303
Bureau of Resettlement; the Bureau of Farm Management; and

such number of Regional Offices as the exigencies of the Agrarian
Reform Program may require.
RELATIONSHIPS BETWEEN THE DEPARTMENT PROPER,

BUREAUS AND FIELD OFFICES
SEC. 3. The Department proper, through the Office of the

Secretary, shall have direct line supervision over the bureaus and
regional offices. It shall have responsibility for overseeing field
operations to insure the judicious and effective implementation of
the agrarian reform programs as initially drawn up by the bureaus
along their respective areas of expertise. It shall constantly draw
from the bureaus such advice and assistance as may be necessary to
successfully achieve the goals and objectives of the Agrarian reform
program.
SEC. 4. The bureaus of the Department shall be essentially

staff in character and as such shall exercise functional supervision
over the regional and other field offices. They shall be primarily
involved in the development of plans and programs within their
respective functional specialization and shall likewise develop
related policies, guidelines and standards necessary in guiding the
regional and field offices in the proper implementation of such plans
and programs. Where necessary and as a means of assisting the
Department proper in properly delineating the methods and plans of
operation at the field level, they shall maintain dialogue and contact
with the regional and other field offices for the purpose of updating
established plans and programs and determining problems arising
therefrom.
SEC. 5. The regional and other field offices shall constitute the
operating arms of the Department with responsibility for directly
implementing the plans and programs drawn up by the staff bureaus
and assigned by the Department Secretary in accordance with duly
adopted policies, standards and guidelines. They shall be organized
as miniature counterparts of the Department in the region and
shall be vested with sufficient authority to undertake departmental
1304
operations within their respective jurisdictions. In the exercise of

such authority they shall be directly responsible to the Secretary
and shall receive proper technical guidance from the staff bureaus.
FUNCTIONAL STATEMENTS OF THE DEPARTMENT OF

AGRARIAN REFORM
SEC. 6. In conformity with the above set of functional

relationships, the functions, powers, duties and responsibilities of
the various units of the Department shall be as follows:
OFFICE OF THE SECRETARY
SEC. 7. The Office of the Secretary shall consist of the Secretary

of Agrarian Reform, the Undersecretary of Agrarian Reform and
the personnel in their immediate office. It shall be responsible for
the adoption and promulgation of rules and regulations necessary
to carry out departmental policies and objectives, and for exercising
general supervision and control over the bureaus and offices of the
Department.
Functions of the Secretary
SEC. 7.1. The functions of the Secretary shall be as follows:
1. Advise the President in the promulgation of executive

orders, regulations and decrees relative to matters under the
jurisdiction of the Department;
2. Establish the policies and standards for the operation of the

Department pursuant to the President’s program of government;
3. Promulgate rules and regulations necessary to carry out

Department objectives, policies and functions;
4. Exercise supervision and control over all bureaus and

offices under the Department;
1305
5. Delegate authority for the performance of any function to

officers and employees under his direction; and
6. Perform such other functions as may be provided by law or

assigned by the President.
Functions of the Undersecretary
SEC. 7.2. The functions of the Undersecretary shall be as

follows:
1. Advise and assist the Secretary in the formulation and

implementation of Department objectives and policies;
2. Oversee all the operational activities of the Department for

which he shall be responsible to the Secretary;
3. Coordinate the program and projects of the Department,

and be responsible for its economical, efficient and effective
administration;
4. Serve as deputy to the Secretary in all matters relating to

the operations of the Department; and
5. Perform such other functions as may be provided by law or

assigned by the Secretary.
FUNCTIONS OF THE PLANNING SERVICE
SEC. 8. The Planning Service shall be responsible for providing

the Department with economical, efficient, and effective services
relating to planning, programming and project development. It
shall have the following functions, among others:
1. Formulate long-range and annual plans and programs for

the Department and for this purpose coordinate and provide support
to the planning and programming of the bureaus and regional
1306
offices under the Department as well as review and integrate their

proposals into a consistent set of objectives;
2. Formulate basic policies and guidelines for the preparation

of the departmental budget, including those for the detailed
allocation of funds for capital outlays, and coordinate with the
Budget Division in the preparation of the Department Budget;
3. Formulate criteria for determining priorities for proposed

projects; and accordingly select capital projects for funding and
execution including appropriate financing schemes;
4. Undertake such re-programming as necessary in accordance

with actual resources made available, including the determination
of cut-backs and/or projects to be included from unprogrammed to
programmed category;
5. Initiate and/or provide support for the development of

projects by the various bureaus of the Department in accordance
with approved priority areas, and where necessary, undertake
major project development activities in coordination with the
bureaus concerned;
6. Evaluate projects proposed by units of the Department

according to technical and economic feasibility and prescribed
standards;
7. Develop and effect in collaboration with the bureaus a system

for the effective coordination, follow-up, review and evaluation of the
progress of the implementation of approved projects and programs
against set standards, objectives and schedules;
8. Conduct economic research and studies relative to agrarian

reform for purposes of formulation of policy proposals and general
economic guidelines;
1307
9. Undertake continuing analysis of economic conditions and

trends, including the periodic review of the situation and outlook of
the agricultural economy relating to agrarian reform;
10. Compile, analyze and integrate statistical data, including

operational statistics;
11. Develop projections, forecasts, and prepare economic

reports and reviews;
12. Prepare the Annual Report and other periodic reports of

the Department;
13. Maintain liaison with the central planning agency and

other appropriate economic or planning bodies; and
14. Perform such other functions as may be assigned.
FUNCTIONS OF THE FINANCIAL AND MANAGEMENT

SERVICE
SEC. 9. The Financial and Management Service shall be

responsible for providing the Department with staff advice and
assistance on budgetary, financial and management improvement
matters. It shall have the following divisions with respective duties
and responsibilities, as follows:
Functions of the Budget Division
SEC. 9.1. The Budget Division shall have the following

functions, among others:
a. Prepare the departmental budget and assist management

in the presentation of the Department’s budgetary estimates before
administrative and legislative bodies;
b. Provide, subject to budgetary ceilings, fund estimates in

support of the Department’s operations, plans and programs;
1308
c. Allocate, in coordination with the Planning Service,

available funds to programs on the basis of approved guidelines and
priorities;
d. Issue allotment advice to the Regional Offices in support of

the fund requirement for the conduct of the operations of the regions
under each program;
e. Undertake all operations relative to budget execution and

control;
f. Develop and improve budgetary methods, procedures, and

justifications;
g. Review performance reports to determine conformance

with set standards;
h. Prepare financial reports for management guidance and as

required by higher authorities; and
i. Perform such other functions as may be assigned.
Functions of the Accounting Division
SEC. 9.2. The Accounting Division shall have the following

a. Advise management on financial matters;
b. Prepare and submit financial reports to management and

other government departments and agencies authorized to receive
such reports;
c. Maintain basic and subsidiary accounting records and

books of accounts to reflect accurately and currently financial
information required by existing auditing rules and regulations and
by management;
1309
d. Certify to the availability of funds, obligate funds and issue

Treasury Warrants to liquidate obligations;
e. Process requisitions, vouchers and reports of collections

and disbursements;
f. Prepare billings to debtors of the Department;
g. Undertake cost accounting work through the classification,

recording, allocation, summarization and reporting of current and
prospective costs, including the determination of costs of operations
by such units of work measurement as by departments, by functions,
by periods of time, by projects and similar categories;
h. Provide standards and guidelines to the regional and field

units of the Department; and
Functions of the Management Division
SEC. 9.3. The Management Division shall have the following

a. Develop, plan and program objectives relative to

management improvement in the Department;
b. Examine the administrative organizations of the

Department and make recommendations for improvement;
c. Maintain and update the Department’s organization and

functional manuals;
d. Undertake regular management surveys or organizational

structure, manpower and operations; study special problems as
assigned; review existing methods, procedures and systems; and
make recommendations for improvement;
1310
e. Develop new and improved management systems; exercise

staff supervision over the implementation of such improvements;
and provide training in the use of the system;
f. Develop staffing standards and manpower requirements for

the Department;
g. Assist in the evaluation of proposed projects for operational

feasibility and develop operating procedures and schemes for the
implementation of approved projects and programs;
h. Provide guidelines and technical assistance to the regional

offices; and
FUNCTIONS OF THE ADMINISTRATIVE SERVICE
SEC. 10. The Administrative Service shall be responsible for

providing the Department with economical, efficient and effective
services relating personnel, legal assistance, information, records,
supplies, equipment, collection, disbursements, security and
custodial work.
There shall be in the immediate office of the Chief of the

Administrative Service a Medical and Dental Clinic which shall
be responsible for providing medical and dental services to the
personnel of the Department pursuant to the provisions of Republic
Act No. 1054.
The Service shall also have the following divisions with

respective duties and responsibilities, as follows:
Functions of the Personnel Division
SEC. 10.1. The Personnel Division shall have the following

1311
a. Advise management on personnel policy and administration;
b. Develop and administer a personnel program for the

Department proper and the bureaus under it which shall include
selection and placement, promotion, classification and pay, career
and employment development, performance rating, employee
relations and welfare services;
c. Develop policy standards and guidelines on personnel

management for the implementation of the regional offices of the
Department;
d. Take charge of the preparation, conduct and administration

of civil service examinations of the Department;
e. Process and act on all matters concerning appointments,

promotions, transfers, leaves of absence, attendance and other
personnel transactions for the personnel of the central office and
the regional offices as are applicable;
f. Maintain personnel records and statistics; and
g. Perform such other functions as may be assigned.
Functions of the Information Division
SEC. 10.2. The Information Division shall have the following

a. Develop programs to have the policies, plans and activities

of the Department properly understood by the public;
b. Produce and disseminate media materials to implement

the information program of the Department;
c. Service the needs of the Department and its bureaus in the

production and publication of reports, information materials and
literature;
1312
d. Coordinate with the Public Information Office in the Office

of the President; and
e. Perform such other functions as may be assigned.
Functions of the General Services Division
SEC. 10.3. The General Services Division shall have the

following functions, among others:
a. Provide policy guidance on the maintenance and disposition

of records and on the procurement and storage of supplies in
accordance with government prescribed standards, including
standards and guidelines to the Regional Offices;
b. File and maintain necessary records and establish a records

disposition program for the department;
c. Prepare certified true copies of documents found in the

records when officially requested or ordered;
d. Take charge of receiving, sorting and recording all

incoming correspondence and recording and mailing of outgoing
correspondence;
e. Provide transportation, communications, custodial and

general utility services for the Department;
f. Procure, store and distribute supplies and equipment of the

Department, and conduct periodic inventories of the same;
g. Provide messengerial and duplicating services;
h. Receive, collect and deposit cash and pay approved payrolls

and vouchers; and
1313
FUNCTIONS OF THE AGRARIAN REFORM EDUCATION

SERVICE
SEC. 11. The Agrarian Reform Education Service shall be

responsible for the development and coordination of the training
programs for the Department. It shall have the following functions,
among others:
1. Prepare and conduct training programs in the Department

as necessary, including the evaluation thereof;
2. Provide policy guidance and develop plans and programs for

effective and continuing educational activities through personnel
training and clientele development;
3. Coordinate and evaluate the training programs and

activities undertaken by the regional offices and other units of the
Department;
4. Coordinate with educational institutions, public and

private, in matters of personnel training and farmer education;
5. Take charge of the administration of grants-in-aid and

technical assistance programs for agrarian reform education, both
foreign or local, including the coordination of training and education
projects funded from such aid or assistance; and
6. Perform such other functions as may be assigned.
FUNCTIONS OF THE BUREAU OF AGRARIAN

LEGAL ASSISTANCE
SEC. 12. The Bureau of Agrarian Legal Assistance shall

be responsible for the development of plans and programs on the
extension of legal information to farmers, including share-tenants,
agricultural lessees, owner-cultivators, agricultural farm workers
and members of their immediate farm household; the extension of
legal services to them; and the execution of leasehold contracts.
1314
The Bureau shall likewise be responsible for providing advice

and assistance to the Office of the Secretary and to the regional offices
on matters pertaining to agrarian legal assistance, for coordinating
with the Office of Agrarian Counsel and the Agricultural Tenancy
Commission in the implementation of the Bureau’s functions; and
for other functions as may be provided by law.
The Bureau shall have the following divisions with

corresponding duties and responsibilities as follows:
Functions of the Judicial Cases Division
SEC. 12.1. The Judicial Cases Division which shall have the
a. Evolve a program for servicing the judicial requirements

of farmers and beneficiaries, including expropriation proceedings,
pre-emption and redemption, and in all Civil and/or criminal cases
arising from or connected with the results or effects of an agrarian
dispute;
b. Prescribe guidelines for the effective institution of judicial

proceedings on behalf of farmers and beneficiaries;
c. Prescribe measures for the expeditious land registration

proceedings and petitions for approval of subdivisions surveys;
d. Take charge of all judicial cases affecting farmers and

beneficiaries of agrarian reform elevated to courts of appellate
jurisdiction;
e. Take charge of judicial cases in which the Department is a

party in interest;
f. Conduct a continuing evaluation of the handling and

management of judicial cases of the department; and
1315
g. Perform such other functions as may be assigned from time

to time.
Functions of the Claims and Conflicts Division
SEC. 12.2. The Claims and Conflicts Division which shall

have the following functions, among others:
a. Evolve program for extending legal assistance to farmers

and beneficiaries in quasi-judicial castes and in the effective
adjudication of conflicts involving land boundaries or preference
rights in landed estates and public land reservations of the
Department among farmers and beneficiaries themselves or with
other parties;
b. Provide guidelines for the expeditious investigation and

hearing of conflicts of claims among farmers and beneficiaries;
c. Review recommendations on the adjudication of cases

arising from conflicting claims of farmers and beneficiaries;
d. Provide and maintain a docket of cases on claims and

conflicts and issue clearances in relation thereto;
e. Conduct continuing evaluation of the claims and conflicts

adjudication program of the Department; and
f. Perform such other functions as may be assigned from time

to time.
Function of the Legal Information and

Mediation Division
SEC. 12.3. The Legal Information and Mediation Division

which shall have the following functions, among others:
a. Develop a legal information program to inform farmers and

landowners under the agrarian reform program of their rights and
1316
obligations under the Agricultural Land Reform Code, including

the holding of rallies, conferences and similar activities and the
dissemination of publications;
b. Develop standards, guidelines and procedures for field

legal officers in the extension of legal services relative to the fixing
of rentals and settlement of differences arising from tenancy
relationship, preparation of leasehold contracts and other pertinent
documents, and the exercise of the right of expropriation, pre-
emption and redemption;
c. Study and recommend the participation of local governments

in the determination of solutions to legal problems that may arise in
their respective jurisdictions;
d. Prepare legal information materials for publication and

dissemination;
e. Conduct periodic evaluation of legal information and

mediation program of the Department; and

to time.
FUNCTIONS OF THE BUREAU OF LAND ACQUISITION,

DISTRIBUTION AND DEVELOPMENT
SEC. 13. The Bureau of Land Acquisition, Distribution and

Development shall be responsible for the development of plans,
programs, and policies relative to the acquisition of both public and
private agricultural lands, their distribution and development, and
all land surveys, including land capability and classification survey.
The Bureau shall likewise provide advice and assistance to

the Office of the Secretary on matters pertaining to land acquisition,
distribution and development of lands acquired by the Department
and on land surveys, land capability and classification survey,
consultative and advisory services to the regional offices of the
1317
Department; coordinate with the Land Bank, Bureau of Forestry,

Bureau of Lands, Land Registration Commission and other agencies
with related activities in the implementation of the bureau’s
functions, and perform such other functions as may be provided by
law.

Functions of the Land Acquisition Division
SEC. 13.1. The Land Acquisition Division shall have the

a. Provide guidelines and policies in the acquisition of private

and public agricultural land, including measures to insure that all
agricultural lands, either public and private, distributed by the
government to the beneficiaries of the agrarian reform program
shall be sold only by said beneficiaries to the government;
b. Develop the program for acquiring agricultural lands for the

Department through negotiated purchase, expropriation, opening of
public lands reserved for settlements and land reclamation;
c. Design socio-economic survey plans and prescribe guidelines

and procedures in the conduct of such surveys in areas sought to be
purchased, expropriated, opened for settlement or reclaimed, and
in areas involved in petitions or applications for the exercise of the
right of pre-emption and redemption;
d. Establish a mechanism within the Department by which all

the data obtained from such surveys are submitted to the division
for analysis and formulation of policies and recommendations;
e. Make recommendations regarding the acquisition of

agricultural lands based on an order of priority; and
1318
f. Maintain records of all lands acquired and proposed to be

acquired by the Department.
Functions of the Land Distribution Division
SEC. 13.2. The Land Distribution Division which shall have

the following functions, among others:
a. Provide general policies and guidelines in the distribution

of all agricultural lands acquired by the Department;
b. Develop a land distribution program which shall set aside

areas for economic family-size farms, large-scale farm operations,
town sites, roads, parks, government centers, and other community
facilities;
c. Prescribe guidelines and procedures for preliminary

screening of farmer-applicants for economic family-size farm in
landed estates, and for the purchase of public agricultural lands
acquired by the Department;
d. Select farmer-applicants in accordance with a schedule of

priorities in the allocation of large areas for large-scale farming and
of economic family-size farms;
e. Prescribe guidelines and procedures for the preliminary

processing of applications of beneficiaries for authority to sell, lease,
transfer or mortgage lots awarded to them by the Department, and
approve or disapprove such applications;
f. Provide policies and guidelines that will facilitate the

issuance of titles to persons who have actually settled and cultivated
disposable lands of the public domain; and
g, Install and maintain a system of records keeping of all

lands allocated by the Department, including those sold or leased
by the Department for and in behalf of the Land Bank.
1319
Functions of the Land Surveys Division
SEC. 13.3. The Land Surveys Division which shall perform

a. Draw up plans and programs of land surveys and determine

which land surveys projects can be done by administration or by
contract;
b. Prepare estimates, specifications and schedules of public

biddings for survey projects; prescribe standards and guidelines in
evaluating bids and proposals; and recommend awards of contracts;
c. Develop and prescribe procedures and techniques on land

surveys in accordance with standards established by the Bureau of
Lands;
d. Evaluate and compute survey notes from survey teams and

prepare survey plans for submittal to the Bureau of Lands or Land
Registration Commission;
e. Provide technical assistance and supervision on the

implementation of all survey projects including the assignment,
when necessary, of field survey personnel to augment transit parties
in the regions; and
f. Maintain records of all land surveys made either by

administration or by contract.
Functions of the Land Capability and

Classification Survey Division
SEC. 13.4. The Land Capability and Classification Survey

Division shall perform the following functions among, others:
a. Draw up plans and programs for complete aerial

photogrammetry of the entire country, including photogrammetry
1320
research and training of personnel and provision of facilities for

photogrammetry work;
b. Supervise and inspect aerial photography, stereo-

compilation and photo-analysis;
c. Gather, compile and furnish necessary stereoscope

analysis of aerial photographs for land use capability survey and
classification, forest and mineral inventory, agricultural economics,
land tax, mapping and other purposes, and furnish government
agencies with aerial photograph dispositives;
d. Establish horizontal and vertical control and signalization

of control stations and corners; lot sketching for provisional
cadastre with the use of aerial photographs or to verify if executed
by contractors;
e. Develop the plans and programs and provide guidelines,

procedures and techniques for all soil surveys and classification;
f. Analyze and compile soil data and survey reports for the
production of soil maps and for publication;
g. Specify areas of soil research; provide technical supervision

to field personnel engaged in soil work; and classify soils according
to types and capabilities;
h. Develop land use patterns for implementation by extension

workers in agrarian reform areas; and
i. Produce and compile adequate maps necessary for proper

planning and implementation of the agrarian reform program.
FUNCTIONS OF THE BUREAU OF RESETTLEMENT
Sec. 14. The Bureau of Resettlement shall be responsible for

the development of plans, programs, and policies for the resettlement
of displaced farmers, landless families and urban workers in the
1321
settlement projects of the Department pursuant to Republic Act No.

6389; the management of settlements under the administration of
the Department; and the census of proclaimed and unproclaimed
settlements.
The Bureau shall likewise provide advice and assistance to the

Office of the Secretary on resettlement; consultative and advisory
services to the regional offices of the Department; coordinate with
the Bureau of Forestry, Bureau of Lands, Agricultural Productivity
Commission and other agencies with related activities in the
implementation of the bureau’s functions; and perform such other
functions as may be provided by law.

Functions of the Census and Statistics Division
Sec. 14.1. The Census and Statistics Division shall have the
a. Plan and prepare the program for the census of proclaimed

and unproclaimed settlements, including those voluntarily initiated
by farmers on public lands, forest lands, titled private and public
lands, and settlements administered by the Department;
b. Design census survey plans and forms to be used; specify

data to be gathered; and prescribe guidelines, procedures and
techniques in census taking;
c. Devise a system of data retrieval to facilitate gathering,

analysis and compilation of statistics obtained through census
surveys; and
d. Assist the Planning Service and other bureaus of the

Department in the collection of other data needed in the development
of programs and the evaluation of project implementation.
1322
Functions of the Settlers’ Affairs Division
SEC. 14.2. The Settlers’ Affairs Division shall have the

following functions, among Others:
a. Plan and develop the program for resettlement of displaced

farmers, landless families and urban workers in the settlement
projects of the Department pursuant to Republic Act 6389 and
provide the necessary guidelines and standards in the administration
of settlements;
b. Formulate and prescribe guidelines, procedures and other

requirements in the preliminary screening of settler-applicants;
c. Select settler-applicants for resettlement in accordance

with an established order of priority and coordinate with the
regional offices concerned with regard to the movement of settlers
to settlement areas;
d. Provide guidelines and procedures in the allocation of home

and farm lots in the settlements and recommend approval of awards;
e. Conduct a continuing study of problems in the settlements

and landed estates acquired by the Department as a means of
determining the types of assistance needed by the farmer-settlers,
especially with regard to housing problems, welfare services,
agricultural production, marketing of produce, peace and order,
conflicting land claims and protection of the rights of farmer-settlers;
f. Develop a grants-in-aid program to accelerate the socio-

economic development of settlements and landed estate communities
through self-help among the farmer-settlers;
g. Provide policies and guidelines in the administration of

the grants-in-aid program and in the provision of other forms of
assistance;
1323
h. Undertake evaluation of the assistance programs to

determine their effectiveness in terms of their socio-economic
effects on individual farmers and with the end in view of making
the necessary adjustments in the assistance programs.
Functions of the Engineering Division
SEC. 14.3. The Engineering Division shall have the following

a. Develop the program on the construction of infrastructure

facilities in the settlements and landed estates in close coordination
with the Settlers’ Affairs Division to dovetail it to the grants-in-aid
program;
b. Establish a schedule of priorities in the construction

of houses, waterworks, irrigation system and other community
facilities taking into account the immediate needs of the settlement
communities;
c. Prepare the blueprints and other plans and render technical

assistance to and supervise field personnel in the implementation of
construction projects;
d. Determine assignment of field engineering personnel to

construction projects in agrarian reform areas;
e. Provide guidelines in the maintenance of settlement

facilities and in land clearing activities; and
f. Prepare specifications, estimates and schedules for public

bidding of construction projects, and equipment; recommend awards
and enforce terms of contracts.
Functions of the Special Projects Division
SEC. 14.4. The Special Projects Division shall have the

1324
a. Conduct feasibility studies on the establishment and

operation of communal farms patterned after the moshav type of
agricultural cooperatives and assist in the implementation of these
projects;
b. Plan and develop joint special projects and coordinate

with, and provide technical assistance to the private sector in the
implementation of these projects; and
c. Develop a program of land consolidation in the settlements

to improve land structure, methods of farming and increase
productive areas.
FUNCTIONS OF THE BUREAU OF FARM MANAGEMENT
SEC. 15. The Bureau of Farm Management shall be

responsible for the development of plans, programs and policies
for the diffusion of useful and practical information, knowledge
and skills on agriculture, soil conservation, livestock, fisheries,
forest conservation, public lands and natural resources laws, home
economics and rural life to encourage their application.
It shall develop plans and programs to promote, stimulate and

encourage the formation and growth of agricultural cooperatives and
other associations, including study clubs, committees and farmers
and homemakers’ associations through which social and economic
conditions in the rural areas may be enhanced.
The plans and programs of the Bureau for agricultural

extension and related activities shall be primarily oriented towards
providing services to the farmers and beneficiaries directly affected
by the agrarian reform program.
The Bureau shall provide advice and assistance to the Office

of the Secretary and to the regional offices on matters pertaining
to agricultural extension, coordinate and establish close working
1325
relationships to avoid duplication of activities with the Department

of Agriculture and Natural Resources, the Agricultural Productivity
Commission and the Agricultural Credit Administration in the
performance of its functions and perform such other functions as
may be provided by law.

corresponding duties and responsibilities, as follows:
Functions of the Agricultural Development Division
SEC. 15.1. The Agricultural Development Division shall have

a. Develop a program for increased farm production among

the farmers and beneficiaries directly affected by the agrarian
reform program;
b. Formulate standards and guidelines for the establishment

by farm management technologists of work programs in the
implementation of supervised credit;
c. Prescribe effective measures for the improvement of crop

production through the utilization of approved farm extension
methods and practices;
d. Plan and program the establishment of nurseries and

demonstration farms;
e. Work out arrangements whereby the Department’s extension

workers may avail of the services and facilities of the personnel and
experiment stations of the Department of Agriculture and Natural
Resources and the Agricultural Productivity Commission;
f. Develop agricultural and allied information on improved

farm practices for dissemination by field workers to farmers;
1326
g. Take charge of the development of an effective farm planning

and budgeting as basis for supervised credit assistance to farmers;
h. Evolve programs on agricultural engineering for the

development of farms;
i. Conduct periodic evaluation of departmental programs on

agricultural development; and
j. Perform such other functions as may be assigned from time

to time.
Functions of the Home Management and

Rural Youth Development Division
SEC. 15.2. The Home Management and Rural Youth

Development Division shall perform the following functions, among
others:
a. Formulate and prescribe guidelines and techniques for

home management technologists in extending assistance to farm
families, particularly on family planning, food and nutrition, home
sanitation, clothing, child care, and adult education and in the
organization of rural improvement clubs;
b. Undertake research on home industries which can be

promoted in the rural homes and implemented by the women and
the youth and on other socio-economic projects that will encourage
their participation in community development work;
c. Provide the rural youth technologists with the standards,

guidelines and techniques in the organization of rural youth clubs
through which the youth people in the rural areas can be trained in
community leadership;
d. Develop programs and guidelines for the conduct of

campaign for better food and nutrition practices among the families;
1327
e. Conduct periodic evaluation of departmental programs on

home and youth development; and

to time.
Functions of the Cooperatives Organization Division
SEC. 15.3. The Cooperatives Organization Division shall have

a. Evolve programs on agricultural cooperatives organization

and development geared towards the growth of more independent,
self-reliant and responsible farm families;
b. Develop programs for a comprehensive information drive

on agricultural cooperative organization including multi-purpose
cooperatives and other farmers’ associations;
c. Conduct research on cooperative development activities in

progressive countries which can be adopted by the Department to
accelerate the development of cooperatives in the country;
d. Provide the cooperative agents with guidelines, procedures

and techniques in educating the farmers on cooperative principles
and on the economic benefits they can derive from cooperative
undertakings;
e. Conduct periodic evaluation of departmental programs on

cooperative organization and development; and

to time.
FUNCTIONS OF THE REGIONAL OFFICES
SEC. 16. The Department shall have Regional Offices in each

of the ten (10) regional areas established under Section 50-I of
1328
the Land Reform Code, as amended, which shall be located in the

regional centers specified therein. The Secretary of Agrarian Reform
shall initially organize Regional Offices in the following regions:
Region No. 3 – The Central Luzon Region
Region No. 4 – The Southern Tagalog Region
Region No. 5 – The Bicol Region
Region No. 7 – The Central and Eastern Visayas Region, and
Region No. 9 – The Central Mindanao Region.
The Secretary is authorized to organize regional offices in the

other five regions as soon as funds are available and more extensive
agrarian reform activities are activated in these regions. In the
meantime, Region No. 1 (Ilocos Region) and Region No. 2 (Cagayan
Valley Region) shall be serviced by the Regional Office of Region
No. 3 located at San Fernando, Pampanga; Region No. 6 (Western
Visayas Region) by the Regional Office of Region No. 7 located
at Cebu City; and Region No. 8 (Western Mindanao Region) and
Region No. 10 (Eastern Mindanao Region) by the Regional Office of
Region No. 9 located at Cagayan de Oro City.
SEC. 17. The Regional Office shall be responsible for the

general supervision, direction and coordination of the operations
and activities of the Department within the Region. It shall perform
the following broad functions provided for by the Land Reform Code:
(1) Implement laws, policies, plans, programs, rules, and

regulations of the Department in the regional area;
(2) Provide economical, efficient, and effective service to the

people;
(3) Coordinate with regional offices of other departments,

bureaus and agencies in the area;
1329
(4) Coordinate with local government in the area;
(5) Perform such related functions as may be provided by

other existing laws,
SEC. 18. The Regional Office shall have the following divisions
with corresponding duties and responsibilities, as follows:
Functions of the Administrative Division
Sec. 18.1 The Administrative Division which shall have the

a. Provide advice, develop and manage a personnel

management program which shall include training of personnel,
action on various personnel transactions, and dissemination of
laws, rules and regulations on personnel;
b. Prepare, submit, execute and control the budget for the

region;
c. Prepare and maintain books of accounts;
d. Pay salaries and wages and other approved vouchers;
e. Procure supplies, keep records, and provide security,

janitorial, messenger and other general services; and
f. Perform such other administrative functions as may be

directed by the Regional Director.
Functions of the Operations Division
SEC. 18.2. The Operations Division shall constitute the staff

of the Regional Director in the formulation and evaluation of the
execution of plans and programs on the substantive functions of
the Department in the region. It shall have the following functions,
among others:
1330
a. Prepare and submit plans and programs for the region

for approval and/or incorporation in a nation-wide program on the
following substantive functions:
(1) Farm Extension Services,
(2) Home Management Services,
(3) Rural Youth Development,
(4) Cooperatives Development,
(5) Legal Services
(6) Land Affairs and Special Services,
(7) Financial Assistance and Credit Services, and
(8) Other related services.
b. Provide technical assistance to the District Offices,

Agrarian Reform Teams and other field units in the implementation
of approved plans and programs on agrarian reform substantive
services;
c. Evaluate the implementation and effectiveness of plans and

programs and recommend remedial measures;
d. Perform such operational activities as may be necessary

or more economical and effective at the regional level, including
supervising the proper implementation of contractual surveys;
conducting land surveys by administration; and reviewing and
acting on all matters investigated and elevated by the District
Offices to the Regional Office; and
e. Perform other functions as may be directed by competent

authority.
1331
FUNCTIONS OF THE DISTRICT OFFICES
SEC. 19. The Secretary is authorized to organize such number

of District Offices within a regional area as the exigencies of the
Land Reform Program may require. The District Office, under the
immediate supervision and direction of the appropriate regional
office, shall be the organizational machinery of the Department
in the district responsible for the expeditious implementation of
substantive programs and projects on agrarian reforms.
The District Office shall consist of the District Office proper

and the Agrarian Reform Teams which shall service, where
appropriate, the agrarian settlements.
Functions of the District Office Proper
SEC. 19.1. The District Office proper shall be responsible for

the general supervision, direction and coordination of the operations
and activities of the Department including the agrarian reform
teams operating within the district, and shall have the following
a. Set priorities, specific targets, schedules and deadlines

for the execution of plans, programs and projects on the following
substantive agrarian reform functions:
(1) Farm Extension Services,
(2) Home Management Services,
(3) Rural Youth Development Services,
(4) Legal Services,
(5) Land Affairs and Special Services,
(6) Financial Assistance and Supervised Credit Services, and
1332
(7) Other related services,
b. Conduct planned and periodic performance audit surveys

in collaboration with the regional office, to assess the effectiveness
of agrarian reform program and projects in the district;
c. Conduct spot inspections as may be necessary to identify

specific operational problems and recommend solutions to problems
identified;
d. Perform such operational activities as may be necessary to

be undertaken at the district level, including providing legal service
to tenants, agricultural lessees, farm workers and agricultural
owner-cultivators or members of their immediate farm household
in cases arising from or are connected with agrarian disputes;
handling of expropriation proceedings; registering cooperatives
organized by Agrarian Reform Teams with the ACA district office;
elevated by Agrarian Reform Teams, to the District Office.
e. Provide administrative services to the district office and

agrarian reform team as may be practicable; and
f. Perform such other functions as may be directed by

competent authority.
Functions of the Agrarian Reform Teams
SEC. 19.2. The Agrarian Reform Team, through its extension

workers, legal officers and other specialists, shall provide direct
assistance to farmers, lessee-tillers and the public on the various
aspects of the agrarian reform program.
It shall have the following functions, among others:
a. Provide technical assistance on farm extension services,

including scientific agricultural development, out of school farmers
education; promotion, formation and growth of farmers association
1333
and other related services to improve the managerial skills of the

farmers;
b. Provide technical assistance on home management

services, including the promotion of home industries, child care and
development, food and nutrition, out of school home management
education and other related activities to improve the living
conditions of the farm families;
c. Provide assistance on rural youth training and development,

promotion and guidance of rural youth clubs and establishment of
income generating projects;
d. Prepare, execute and evaluate plans and programs for

the organization, operation and other aspects of cooperatives
development;
e. Provide assistance on various legal services, including legal

information and legal counselling, processing and documentation
of applications for free patent and applications to purchase lots,
preliminary investigations of conflicting claims on lot boundaries
and appraisal of properties, mediation of differences or problems
arising from tenancy relationship, execution and registration of
lease contracts, initial investigation of administrative cases and
other legal services;
f. Provide assistance on problems relating to land affairs

and special services, including preliminary screening of settler-
applicants and prospective allocatees; preliminary investigation
of estates voluntarily offered for government acquisition, estates
under petition for appropriation and estates under petition for
pre-emption and redemption; initial studies on land consolidation
schemes as basis for economic family-size farms; initial studies on
land capability and classification to aid in the summary fixing of
rentals; and determination of the suitability of prospective land
settlements and other related services; and
1334
g. Render assistance on the extension and repayment of loans

under a scheme of supervised credit and provide liaison services
with different lending institutions.
SEC. 19.3. The Agrarian Reform Team shall perform the

following additional functions in an area where it services an
agrarian resettlement:
a. Prepare and execute approved area development programs

to include the clearing of the settlement, building and maintenance
of roads, school buildings, artesian wells and water works;
b. Provide medical services to the settlers;
c. Advance to the settlers subsistence, work animals, farm

implements, seeds and other facilities;
d. Allocate farm and home lots to newly resettled families;
e. Maintain peace and order within the resettlement area;
f. Maintain coordinative and liaison relationships with other

agencies of the national government;
g. Secure the support and active involvement of local

governments on the programs and projects of the settlement; and
h. Pave the way for the absorption of the settlement by an

existing local government or the creation of a new municipality.
Functions of the Consultative and Coordinating

Committee
SEC. 20. A Consultative and Coordinating Committee shall

be created and attached to the Regional Office and District Office,
respectively. The Committee shall include in its membership
representatives of tiller-lessees, local governments in the area, civic
1335
and religious institutions and other segments of the community as

the Secretary may deem appropriate.
SEC. 21. The Committee shall serve as a medium in securing

the popular support and active involvement of local governments,
tiller-lessees, civic and religious organizations and other segments
of the community within a geographic region or district.
It shall have the following functions, among others:
1. Provide advisory, consultative and coordinating services in

the initial preparation of plans, programs and projects covering the
various aspects of the agrarian reform program such as the leasehold
system, the acquisition, distribution and development of private
and public agricultural lands, the development of cooperatives and
small scale industries and the like, and other corollary operations
activities that should be carried out through barrio, municipal,
provincial and city governments;
2. Provide an organized forum for seeking public opinion,

conducting public hearings and initiating studies to establish the
basis for determining feasibility and fund requirements of agrarian
reform projects; and
3. Offer individual or collective mediation facilities on agrarian

disputes and other operation problems.
CREATION OF THE AGRARIAN REFORM

COORDINATING COUNCIL
SEC. 22. There is hereby created an Agrarian Reform

Coordinating Council composed of the Secretary of Agrarian Reform
as Chairman and the Secretary of Agriculture and Natural Resources,
Secretary of Finance, Secretary of Justice, and Presidential
Assistant for Community Development as members, which shall
provide technical advice and assistance to the Department and
foster interdepartmental coordination among agencies performing
functions related to land reform.
1336
STAFFING PATTERN
SEC. 23. The personnel structure of the Department for the

period from the date of this Executive Order No. the thirtieth of
June, nineteen hundred and seventy-two, shall conform to the
following Staffing Pattern herein provided:
(1) DEPARTMENT PROPER
Salary
No. Amount
Range
A. Office of the Secretary
Secretary of Agrarian Reform 1 Exempt P24,000.00
Undersecretary of Agrarian Reform 1 Exempt 18,000.00
Head Executive Assistant 1 61 11,904.00
Private Secretary II 1 51 7,236.00
Senior Executive Assistant I
2 48 P12,480.00
(Confidential)
Private Secretary I 1 47 5,928.00
Asst. Private Secretary 1 37 3,612.00
Stenographer 2 31 5,760.00
Clerk II 1 31 2,880.00
B. Planning Service
Agrarian Reform Service Chief* 1 60 P11,328.00
Agrarian Reform Assistant Service
1 57 9,756.00
Chief*
Senior Agrarian Reform Program
4 49 26,208.00
Officer*
Statistician III 1 43 4,860.00
Economic Researcher II 1 42 4,632.00
Statistician II 1 41 4,404.00
Clerk II 2 31 5,760.00
1337
C. Financial and Management Service

Clerk II 2 31 5,760.00
1. Budget Division
Department Budget Officer I 1 55 P8,832.00
Budget Officer II 2 49 13,104.00
Budget Examiner III 1 45 5,376.00
Budget Examiner II 4 42 18,528.00
Budget Aide 1 31 2,880.00
2. Accounting Division
Dept. Chief Accountant I 1 55 P8,832.00
Supervising Accountant 2 48 12,480.00
Accountant III 1 45 5,376.00
Accountant II 3 43 14,580.00
Bookkeeper II 2 39 7,968.00
Accounting Clerk II 2 31 5,760.00
3. Management Division
Supervising Management Analyst I 1 53 P7,992.00
Senior Management Analyst 2 49 13,104.00
Management Analyst II 2 45 10,752.00
Management Analyst I 2 42 9,264.00
Clerk II 1 31 2,880.00
D. Administrative Service
Agrarian Reform Chief* 1 60 P11,328.00
Chief Legal Officer 1 56 9,288.00
Legal Officer III 1 46 5,640.00
Legal Officer I 1 39 3,984.00
1338
Senior Stenographer 1 33 2,952.00

Clerk II 1 31 2,880.00
a. Medical and Dental
Clinic
Clinic Physician 1 43 P4,860.00
Dentist I 1 38 3,792.00
Nurse 1 33 2,952.00
1. Personnel Division
Personnel Officer III 1 54 P8,400.00
Personnel Officer II 2 49 13,104.00
Senior Personnel Aide 4 36 13,728.00
Senior Personnel Aide 1 36 3,432.00
Clerk II 2 31 5,760.00
2. Information Division
Chief Information Officer I 1 53 P7,992.00
Supervising Information Officer II 2 49 13,104.00
Radio-TV Program Script Writer 1 42 4,632.00
Information Editor II 2 41 8,808.00
Senior Librarian 1 39 3,984.00
Radio Producer-Announcer II 1 39 3,984.00
Information Editor I 1 36 3,432.00
Artist-Illustrator I 1 36 3,432.00
Photographer II 1 35 3,264.00
Audio-Visual Equipment Operator 1 31 2,880.00
Clerk II 2 31 5,760.00
3. General Services Division
Administrative Officer III 1 52 P7,608.00
Supply Officer III 1 49 6,552.00
Administrative Officer I 1 46 5,640.00
1339
Records Officer IV 1 45 5,376.00

Cashier II 1 41 4,404.00
Principal Storekeeper 1 40 4,188.00
Shipping Supervisor 1 40 4,188.00
Cashier I 1 38 3,792.00
Buyer 3 37 10,836.00
Telegraph Operator 2 35 6,528.00
Radiophone Operator 2 33 5,904.00
Varitype Machine Operator 1 33 2,952.00
Storekeeper II 1 32 2,880.00
Clerk II 5 31 14,400.00
Automotive Mechanic II 1 31 2,880.00
Duplicating Equipment Operator II 2 31 5,760.00
Telephone Operator 2 30 5,760.00
Mechanic I 1 30 2,880.00
Driver 5 30 14,400.00
Mechanic Helper 1 27 2,880.00
Messenger 4 27 11,520.00
Laborer 3 26 8,640.00
Janitor 3 26 8,640.00
E. Agrarian Reform Education Service
Agrarian Reform Training Specialist* 1 49 6,552.00
Training Officer 2 42 9,264.00
* Proposed New Title
1340
(2) BUREAU OF AGRARIAN LEGAL ASSISTANCE
1. Office of the Director

Director of Agrarian Reform* 1 63 P13,152.00
Asst. Director of Agrarian Reform* 1 60 11,328.00
Secretary 1 37 3,612.00
2. Judicial Cases Division
Trial Attorney IV 1 56 P9,288.00
Trial Attorney III 2 50 13,776.00
Trial Attorney II 2 46 11,280.00
3. Claims and Conflicts Division
Chief Legal Officer 1 56 P9,288.00
Senior Legal Officer 2 50 13,776.00
Clerk II 1 31 2,880.00
4. Legal Information and Mediation Division
Chief Legal Officer 1 56 P9,288.00
Senior Legal Officer 2 50 13,776.00
Clerk II 1 31 2,880.00
1341
(3) BUREAU OF LAND ACQUISITION, DISTRIBUTION

AND DEVELOPMENT

Asst. Director of Agrarian Reform* 1 60 11,328.00
Secretary 1 37 3,612.00
Senior Stenographer 1 33 .002,952
2. Land Acquisition Division
Chief Agrarian Reform Program 1 54 P8,400.00
Officer*
Senior Agrarian Reform Program 2 49 13,104.00
Officer*
Agrarian Reform Program Officer 3 46 16,920.00
Clerk II 1 31 2,880.00
3. Land Distribution Division
Officer*
Officer*
Agrarian Reform Program Officer* 3 46 16,920.00
Clerk II 1 31 2,880.00
4. Land Surveys Division
Supervising Geodetic Engineer II 1 53 P7,992.00
Senior Geodetic Engineer 2 47 11,856.00
Geodetic Engineer 2 44 10,224.00
Senior Cartographer 1 37 3,612.00
Cartographer II 2 33 5,904.00
Computer II 4 33 11,808.00
Clerk II 1 31 2,880.00
Field Staff
1342
Junior Geodetic Engineer 1 38 P3,792.00

Surveyman 2 31 5,760.00
Computer I 2 31 5,760.00
Cartographer I 1 31 2,880.00
Survey Aide II 2 30 5,760.00
5. Land Capability and Classification Division
Supervising Geodetic Engineer II 1 53 P7,992.00
Senior Geodetic Engineer 1 47 .005,928
Senior Soil Technologist 1 46 5,640.00
Supervising Cartographer 1 45 5,376.00
Geodetic Engineer 2 44 10,224.00
Soil Technologist II 2 42 9,264.00
Photocopy Supervisor 1 40 4,188.00
Cartographer II 2 33 5,904.00
Computer II 4 33 11,808.00
Clerk II 1 31 2,880.00
Tracer 1 30 2,880.00
(4) BUREAU OF RESETTLEMENT

Assistant Director of Agrarian Reform* 1 60 11,328.00
Secretary 1 37 3,612.00
2. Census and Statistics Division
Supervising Statistician 1 51 P7,236.00
Senior Statistician 2 47 11,856.00
1343

Statistician II 3 41 13,212.00
Statistical Aide II 2 32 5,760.00
3. Settler’s Affairs Division
Officer*
Officer*
Medical Services Supervisor I 1 47 5,928.00
Clerk II 1 31 2,880.00
4. Engineering Division
Supervising Civil Engineer II 1 53 P7,992.00
Senior Civil Engineer 1 47 5,928.00
Senior Mechanical Engineer 1 47 5,928.00
Architect II 1 42 4,632.00
Civil Engineering Draftsman 1 35 3,264.00
Clerk II 1 31 2,880.00
Field Service
Civil Engineer 3 44 P15,336.00
Electrical Engineer 1 44 5,112.00
Agricultural Engineer 1 44 5,112.00
5. Special Projects Division
Officer*
Officer *
Senior Agricultural Project 1 44 5,112.00
Coordinator
Agricultural Engineer 1 44 5,112.00
1344
Economist 1 44 5,112.00
Clerk II 1 31 2,880.00
(5) BUREAU OF FARM MANAGEMENT

Assistant Director of Agrarian Reform* 1 60 11,328.00
Secretary 1 37 3,612.00.
2. Agricultural Development Division
Officer*
Officer*
Clerk II 1 31 2,880.00
3. Home Management and Rural
Youth Development Division
Officer*
Officer*
Clerk II 1 31 2,880.00
4. Cooperative Organization Division
Officer*
Officer*
1345

Clerk II 1 31 2,880.00
* Proposed New Class Title
(6) FIELD OPERATIONS
REGIONAL OFFICES
1. Office of the Regional Director

Agrarian Reform Regional Director* 10 60 P113,280.00
Secretary 5 37 18,060.00
2. Administrative Division
Administrative Officer I 5 46 P28,200.00
Personnel Officer II 5 43 24,300.00
Budget Examiner III 5 42 23,160.00
Accountant II 5 41 22,020.00
Cashier I 5 38 18,960.00
Supply Officer I 5 37 18,060.00
Records Officer I 5 36 17,160.00
Clerk II 5 31 14,400.00
Clerk I 5 30 14,400.00
Accounting Clerk I 5 30 14,400.00
Driver 10 30 28,800.00
Janitor 5 26 14,400.00
3. Operations Division
Regional Home Mgt. Technician 5 45 P26,880.00
Regional Rural Youth Officer 5 45 26,880.00
1346
Regional Farm Mgt. Technician* 5 45 26,880.00

Agricultural Cooperatives Specialist I* 5 45 26,880.00
Settlers’ Affairs Officer* 5 45 26,880.00
Senior Land Acquisition-Allocation 5 44 .0025,560
Officer
Clerk II 5 31 14,400.00
Field Survey Team
Junior Geodetic Engineer 5 38 P18,960.00
Cartographer I 5 31 14,400.00
Computer I 10 31 28,800.00
Surveyman 10 31 28,800.00
Survey Aide II 10 30 28,800.00
DISTRICT OFFICES
Agrarian Reform District Officer* 15 52 P114,120.00

Legal Officer II 15 42 69,480.00
Land Acquisition-Allocation Officer* 15 40 62,820.00
Administrative Assistant I 15 40 62,820.00
Clerk II 15 31 43,200.00
Driver 15 30 43,200.00
Janitor 15 26 43,200.00
1347
AGRARIAN REFORM TEAMS
Agrarian Reform Team Leader III 10 50 P68,000.00

Agrarian Reform Team Leader II 20 48 124,800.00
Sawmill Superintendent 2 47 11,856.00
Agrarian reform Team Leader I 64 46 360,960.00
Rural Health Physician 8 45 43,008.00
Civil Engineer 1 44 5,112.00
Legal Officer II 92 42 426,144.00
Accountant I 28 41 123,312.00
Mechanical Repair Shop Foreman 2 41 8,808.00
Agricultural Extension Supervisor 92 40 385,296.00
General Construction Foreman 1 40 4,188.00
Agricultural Cooperatives Agent 92 39 366,528.00
Cashier I 28 38 106,176.00
Dentist I 8 38 30,336.00
Junior Statistician 92 35 250,288.00
Supervising Mechanic 1 38 3,792.00
Logging-Sawmill Supervisor 2 36 6,864.00
Public Health Nurse 8 35 26,112.00
Farm Mgt. Technologist* 712 34
Home Mgt. Technologist* 176 34 547,008.00
Rural Youth Technologist* 176 34 547,008.00
Senior Clerk 2 33 5,904.00
Senior Mechanic 1 33 2,952.00
Highway Maintenance Foreman 1 33 2,952.00
Clerk II 121 31
Land Inspector 28 31 80,640.00
Heavy Equipment Operator 11 31 31,680.00
1348
Marine Engineman 1 31 2,880.00

Machinist II 1 31 2,880.00
Mechanic II 7 31 20,160.00
Bldg. Maintenance Foreman I 1 31 2,880.00
Sawyer Foreman 2 31 5,760.00
Accounting Clerk II 1 31 2,880.00
Midwife I 44 30 126,720.00
Security Guard 63 30 181,440.00
Bill Collector 28 30 80,640.00
Storekeeper I 12 30 34,560.00
Clerk I 5 30 14,400.00
Driver 49 30 141,120.00
Coxswain 1 30 2,880.00
Mechanic I 8 30 23,040.00
Logging Foreman 2 30 5,760.00
Automotive Serviceman 1 27 2,880.00
Laborer 92 26 264,960.00
SUMMARY
Central Office 277 P1,442,184

Field Operations 2,458 8,533,048
(Central Office) (13) (49,512)
(Regional Offices) (185) (786,420)
(District Offices) (135) (566,640)
(Agrarian Reform Teams) (2,125) (7,130,476)
GRAND TOTAL . . . . . . . . . . . . . 2,735 P9,975,232
SEC. 24. Except as otherwise provided by law, all appointments

to the positions authorized under this Staffing Pattern shall be in
accordance with the merit requirements of the Civil Service Law and
1349
rules and duly approved qualification standards for each position:

Provided, that in the case of new position titles, qualification
standards therefor shall be developed by the Department, subject to
approval by the President upon recommendation of the Civil Service
Commission.
SEC. 25. All personnel of the defunct National Land

Reform Council and Land Authority and all organic personnel
of the defunct Land Reform Project Administration who hold
permanent appointments and whose performance ratings are at
least satisfactory shall be given preference for appointment to these
positions. Consideration for the employment of other persons shall
be made only after these personnel shall have been considered.
SEC. 26. Should separations or demotions arise as a result of

the establishment of this personnel structure, the provisions of the
Civil Service Rule on Reduction in Force shall be strictly followed.
SEC. 27. No original appointments to positions, except

confidential positions, in the Staffing Pattern shall be made until
all present qualified employees in the abolished agencies shall have
been absorbed to appropriate positions provided in the Staffing
Pattern. The Secretary of Agrarian Reform shall furnish the Civil
Service Commission a certified list of all employees separated as a
result of the implementation of the organization of the Department
together with a justification for their separation.
SEC. 28. The position titles used in the Staffing Pattern are
tentative and shall be used only for purposes of initial appointments
to positions provided therein. The position titles shall be subject to
final determination and allocation to appropriate classes and salary
ranges by WAPCO upon conduct of the usual audit of the duties and
responsibilities assigned to the positions.
SEC. 29. All initial appointments to positions in the Staffing

Pattern shall be at the authorized or actual salaries of the incumbents
appointed to the positions, whichever is higher. In the reallocation
of appropriations authorized to be made under Section 34 of this
1350
Executive Order, an adequate lump-sum amount shall be provided

to take care of all cases where the actual salary of the appointee is
more than the rate authorized.
SEC. 30. Salary increases as may result from appointments

to positions in the Staffing Pattern shall be effective only after
final determination and allocation of said positions by the WAPCO
pursuant to Section 28 of this Executive Order.
SEC. 31. In the selection and initial appointment of personnel

for positions in the Staffing Pattern, the Secretary shall be assisted
by a Committee composed of a representative of the Department
of Agrarian Reform, a representative of the Presidential Economic
Staff, and a representative of the Civil Service Commission.
SEC. 32. The Secretary of Agrarian Reform is authorized

to make the necessary changes in the Staffing Pattern with the
approval of the Office of the President upon the recommendation of
the Commissioner of the Budget, to correct deficiencies that in his
opinion may have resulted from the preparation thereof: Provided,
That any adjustment or adjustments made pursuant hereto shall
not result in an increase in the total appropriations for personal
services authorized for the Department: Provided, Further, That
such adjustments shall not result in an increase in the number
of authorized positions herein prescribed; Provided, Finally, That
such adjustments shall not be contrary to the constraints on the
personnel structure provided for under Republic Act No. 6389.
REALLOCATION OF APPROPRIATIONS
SEC. 33. The total appropriations authorized from all funds

for the Land Authority, including the National Land Reform Council
and the Land Reform Project Administration under Republic Act
Numbered Sixty-four hundred, (B- Office of the President, (5) Land
Authority, pp. 105–133) are made available, based on the unexpended
balances thereof as of the effective date of this Executive Order, for
the operations of the Department for the fiscal year ending June 30,
1972.
1351
SEC. 34. The Commissioner of the Budget is authorized to

reallocate the appropriations made available to the Department in
accordance with the following budgetary structure herein prescribed
for the Department:
(1) OFFICE OF THE SECRETARY
PROGRAM I – GENERAL ADMINISTRATION AND STAFF

SERVICES
Project 1 – General Administration and Staff Services
PROGRAM II – FIELD OPERATIONS
Project 1 – Extension Services
Project 2 – Land Acquisition, Distribution and Development
Project 3 – Resettlement and Rehabilitation
Project 4 – Legal Services
Project 5 – General Administration
PROGRAM III – CAPITAL IMPROVEMENTS AND

ASSISTANCE
Project 1 – Land and Home Development and Improvement
Project 2 – Direct Assistance
Project 3 – Land Acquisition
Project 4 – Sawmill Operations
1352
(2) BUREAU OF FARM MANAGEMENT
PROGRAM I – EXTENSION SERVICES
Project 1 – Extension Services
(3) BUREAU OF LAND ACQUISITION, DISTRIBUTION

AND DEVELOPMENT
Project 1 – Acquisition, Distribution and Development of

Public and Private Lands.
Project 2 – Land Capability Survey and Classification
(4) BUREAU OF RESETTLEMENT
PROGRAM I – RESETTLEMENT
Project 1 – Resettlement and Rehabilitation
(5) BUREAU OF AGRARIAN LEGAL ASSISTANCE
PROGRAM I – AGRARIAN LEGAL ASSISTANCE
Project 1 – Legal Services
SEC. 35. Unless otherwise contrary to Republic Act No. 6389

and this Executive Order, the Special Provisions applicable to the
Land Authority under Republic Act 6400 shall remain in full force
and effect with reference to the Department.
SEC. 36. Unless otherwise contrary to and/or affected or

modified by Republic Act No. 6389 and this Executive Order, the
lump-sum appropriations for specific purposes including capital
outlays as well as the provisos and limiting clauses applicable to
the appropriations herein made available to the Department under
Section 14 hereof, shall remain in full force and effect with reference
to the Department.
1353
GENERAL PROVISIONS
SEC. 37. The Secretary of Agrarian Reform is hereby

authorized to organize the field operations of the Department in
accordance with the provisions of this Executive Order, including
determining the initial complement of the various regional offices
and making the necessary subsequent adjustment in the assignment
of field personnel and agrarian reform teams among the various
regional offices as the exigency of the agrarian reform program may
require.
SEC 38. The Secretary of Agrarian Reform shall delegate as

much authority as is necessary and feasible to the regional offices of
the Department: Provided, That such delegation shall be in writing;
shall indicate to which officer or class of officers or employees the
delegation is made; shall define the extent to which each delegatee
will be held responsible for results; and shall best each delegatee
with sufficient authority to enable him to discharge his assigned
responsibility; Provided, Further, That such delegation shall be
effected within the fiscal period ending June 30, 1972.
TIMING OF ADMINISTRATIVE ACTIONS
SEC. 39. The Secretary shall direct the orderly scheduling

of transfers, changes and other transitional actions required by
Republic Act 6389 otherwise known as the Code of the Agrarian
Reform of the Philippines and this Executive Order, including the
final selection of personnel to fit the positions in the Staffing Pattern;
provided that all such actions shall be completed within ninety days
following the issuance of this Executive Order. In the interim, each
entity shall continue to perform its existing functions until such
time as the appropriate authority orders change or cessation and
each officer and employee shall continue to perform his duties and
to exercise his authority until such time as the Secretary orders
otherwise but not beyond the termination of the transition period
prescribed above.
1354
SEC. 40. The Commissioner of the Budget shall effect the

orderly reallocation of funds and other transitional actions relative
thereto to enable the Department to be fully operational within
sixty days following the issuance of this Executive Order. The
Commissioner of the Budget shall likewise reflect in full all the
provisions of Republic Act No. 6389 and this Executive Order or
parts thereof in the Budget for the next succeeding fiscal year and
thereafter except as may otherwise be more specifically provided.

year of Our Lord, nineteen hundred and seventy-one.

By the President:

EO 347 s. 1971 was amended by EO 437 s. 1974
1355
MALACAÑANG
MANILA

OF THE PHILIPPINES
CREATING THE AGRICULTURAL GUARANTEE FUND BOARD
Pursuant the provisions of Section 13 of Republic Act No.

6390 (An Act to Accelerate the Implementation of the Agrarian
Reform Program by Creating an Agrarian Reform Special Account
in the General Fund, Providing the Necessary Funds Therefor, and
For Other Purposes), I, FERDINAND E. MARCOS, President of the
create the Agricultural Guarantee Fund Board composed of the
following members:
Secretary of Finance Chairman

Secretary of Agriculture and Natural Resources Member
Secretary of Agrarian Reform Member
Governor of Central Bank of the Philippines Member
President of the Rural Bankers Association of Member
the Philippines
In the event that the Chairman or any member of the Board

cannot attend any meeting thereof, he shall designate the next
ranking official of the office or agency concerned to represent him in
the deliberations of the Board.
The Board shall have the following duties and functions:
a) To administer the Agricultural Guarantee Fund established

under Section 12 of Republic Act No. 6390;
1356
b) To formulate the policies necessary for the administration of

the Agricultural Guarantee Fund in accordance with the objectives
of the law;
c) To promulgate such rules and regulations as may be

necessary to insure the effective and efficient implementation of
such policies;
d) To design and install the administrative machinery for

the Fund and approve the appointment of designation of personnel
thereto; and
e) To take such other action as may be necessary under the

provisions of the law or in furtherance of its objectives.
Within thirty days from the opening of every session of

Congress, the Board shall submit to the Joint Committee created
under Republic Act No. 6390, an annual report on the status of the
Fund, showing among others, the total amount of the Fund, the
details of investment and returns of these investments, and amounts
actually spent to pay off the guaranteed losses or uncollectible debts.
The Board is hereby authorized to request any department,

bureau, office, agency, or instrumentality of the Government for the
detail or assignment of such personnel as may be needed to assist
the Board in the discharge of its functions and responsibilities.

(SGD.) FERDINAND E. MARCOS

By the President:
(SGD.) ALEJANDRO MELCHOR

Executive Secretary
1357
MALACAÑAN PALACE
MANILA
CREATING THE LAND SETTLEMENT AND DEVELOPMENT

CORPORATION AND DISSOLVING THE NATIONAL
LAND SETTLEMENT ADMINISTRATION, AND THE RICE
AND CORN PRODUCTION ADMINISTRATION AND THE
MACHINERY AND EQUIPMENT DEPARTMENT OF THE
NATIONAL DEVELOPMENT COMPANY
Pursuant to the powers vested in me by Republic Act Numbered

Four hundred and twenty-two, I, Elpidio Quirino, President of the
Philippines, do hereby order:
CREATION, POWERS AND FUNCTIONS
SECTION 1. There is hereby created a public corporation

under the name of the Land Settlement and Development
Corporation which, in short, shall be known as the “LASEDECO.”
This Corporation shall exist for a period of twenty-five years from
the effective date of this Order. It shall have its main office in the
City of Manila, and such branches and agencies in other places,
within and outside of the Philippines, as may be necessary for the
proper conduct of its business.
SEC. 2. The LASEDECO shall have the following powers,

duties and functions:
(a) To facilitate the acquisition, settlement and cultivation of

agricultural lands;
(b) To afford opportunity to own farms to tenant farmers and

small farmers from congested areas, to graduates of agricultural
schools and colleges, to trainees who have completed the
1358
prescribed military training, to veterans and members of guerrilla

organizations, and to other persons as may be determined by the
Board of Directors with the approval of the Secretary of Economic
Coordination;
(c) To encourage migration to sparsely populated regions, and

facilitate the amalgamation of the people in different sections of the
Philippines;
(d) To acquire by grant from the Republic of the Philippines

unrestricted areas of public agricultural lands in order to carry out
its objectives; to survey, subdivide and set aside lots or areas of such
lands for farming, townsites, roads, parks, government centers,
recreational centers and other public and civic improvements; and
to dispose of farm lands and townsite lots to persons qualified and
to the extent of areas authorized under the Constitution and the
Public Land Act, subject to such other qualifications, and to prices,
terms and conditions as may be prescribed by the Board of Directors,
with the approval of the Secretary of Economic Coordination, the
proceeds from disposition of the same to accrue to the Corporation;
Provided, however, That within a period of ten years after the final
grant, the farm lands and townsite lots aforementioned shall not,
except by inheritance, be encumbered, alienated or transferred, nor
shall they become liable to the satisfaction of any debt contracted
prior to the expiration of the said period; but the improvements or
crops on such lands and lots may be mortgaged or pledged to credit
agencies duly authorized therefor by the Board of Directors;
(e) To establish and operate credit agencies, electric light and

water plants, water supplies, irrigation systems, cooperative to
engage in the buying and selling of commodities, and other services
or conveniences for the well-being of the settlers;
(f) To encourage mechanized farming; to operate tractor and

agricultural machinery pools; and to maintain training centers for
the operation and repair of agricultural machinery, tractors and the
like;
1359
(g) To assist in the establishment of agricultural and other

vocational schools within the areas under its territorial jurisdiction,
and to allocate definite portions of farm lands and townsite lots
with a view to enabling students successfully finishing courses
prescribed in said agricultural and vocational schools to eventually
acquire title thereto;
(h) To do all such other things and to transact all such

business directly or indirectly necessary, incidental or conducive to
the attainment of the purposes of the Corporation; and
(i) Generally, to exercise all the powers of a corporation under

the Corporation Law in so far as they are not inconsistent with the
provisions of this Order.
CAPITAL
SEC. 3. The LASEDECO shall have as its capital the net worth
of the National Land Settlement Administration, and the Rice and
Corn Production Administration and the Machinery and Equipment
Department of the National Development Company, as determined
in accordance with Section 13 of this Order, including the appraised
value to be determined by the Secretary of Agriculture and Natural
Resources of lands ceded to it pursuant to section 14 of this Order,
and such appropriations as may be authorized by law.
The Government of the Republic of the Philippines shall not

be liable for any debt, liability, obligation or damage that might be
contracted, incurred or caused by the corporation.
MANAGEMENT
SEC. 4. The management of the LASEDECO shall be vested

in a Board of Directors consisting of a chairman and six members,
appointed by the President of the Philippines with the consent of
the Commission in Appointments. The said members shall serve
as designated by the President in their appointments for terms of
one, two, and three years, respectively, from the date they qualify
1360
and assume office; but their successors shall be appointed for terms
of three years, except that any person chosen to fill a vacancy shall
serve only for the unexpired term of the member whom he succeeds.
For actual attendance at meetings, each director shall receive a per
diem of twenty-five pesos.
SEC. 5. The Board of Directors shall have the following powers

and duties:
(a) To prescribe, amend and repeal, with the approval of the

Secretary of Economic Coordination, by-laws, rules and regulations
governing the manner in which the general business of the
Corporation may be exercised, including provisions for the formation
of such committee or committees as the Board of Directors may deem
necessary to facilitate its business, and to expedite the disposition
of, and the issuance of titles over, farm lands and townsite lots as
contemplated in section 2 of this Order.
(b) To appoint and fix the compensation of the General

Manager, subject to the approval of the President of the Philippines,
and to appoint and fix the compensation of the other officers of
the Corporation, with the approval of the Secretary of Economic
Coordination. The Board, by a majority vote of all the members,
may, for cause, suspend and, with the approval of the President of
the Philippines, remove the General Manager.
SEC. 6. The powers and duties of the General Manager shall

be as follows:
(a) To direct and manage the affirs and business of the

Corporation, on behalf of the Board of Directors, and subject to its
control and supervision;
(b) To sit in all meetings of the Board of Directors and

participate in its deliberations, but without the right to vote;
1361
(c) To submit within sixty days after the close of each fiscal
year an annual report, through the Board of Directors, to the
Secretary of Economic Coordination;
(d) To appoint and fix the number and salaries, with the
approval of the Board of Directors, of such subordinate personnel
as may be necessary for the proper discharge of the duties and
functions of the Corporation, and, with the approval of the Board, to
remove, suspend, or otherwise discipline, for cause, any subordinate
employee of the Corporation; and
(e) To perform such other duties as may be assigned to him by

the Board of Directors from time to time.
SEC. 7. No officer or employee of the Corporation shall be

permitted to acquire, directly or indirectly, any land within the
territorial jurisdiction of the Corporation.
SEC. 8. The Auditor General shall appoint a representative

who shall be the Auditor of the LASEDECO, and the necessary
personnel to assist said representative in the performance of his
duties. The number and salaries of the Auditor and said personnel
shall be determined by the Auditor General, subject to appropriation
by the Board of Directors. In case of disagreement, the matter should
be submitted to the President of the Philippines whose decision
shall be final. Said salaries and all other expenses of maintaining
the Auditor’s office shall be paid by the LASEDECO.
SEC 9. The financial transactions of the LASEDECO shall

be audited in accordance with law, administrative regulations,
and the principles and procedures applicable to commercial
corporate transactions. A report of audit for each fiscal year shall
be submitted, within sixty days after the close of the fiscal year,
by the representative of the Auditor General, through the latter,
to the Board of Directors of the Corporation, and copies thereof
shall be furnished the President of the Philippines, the Secretary of
Economic Coordination and the Presiding Officers of the two Houses
of Congress. The report shall set forth the scope of the audit and shall
1362
include a statement of assets and liabilities, capital and surplus

or deficit; a statement of surplus or deficit analysis; a statement
of income and expenses; a statement of sources and application of
funds; and such comments and information as may be necessary,
together with such recommendations with respect thereto as may
be advisable, including a report of any impairment of capital noted
in the audit. The report shall also show specifically any program,
expenditures, or other financial transaction or undertaking observed
in the course of audit, which, in the opinion of the Auditor, has been
carried on or made without authority of law.
APPOINTMENTS AND PROMOTIONS
SEC. 10. In the appointment and promotion of officers and

employees, merit and efficiency shall serve as bases, and no political
test or qualification shall be prescribed and considered for such
appointments or promotions. Any appointee of the Board or of
the General Manager, who is found by the Secretary of Economic
Coordination to be guilty of violating this requirement shall be
removed from office.
SEC. 11. All officers and employees of the LASEDECO shall

be subject to the Civil Service Law, rules and regulations, except
those whose positions may, upon recommendation of the Board of
Directors and the Secretary of Economic Coordination, be declared
by the President of the Philippines policy-determining, primarily
confidential or technical in nature.
TRANSITORY AND SPECIAL PROVISIONS
SEC. 12. The National Land Settlement Administration, and

the Rice and Corn Production Administration and the Machinery
and Equipment Department of the National Development Company
are hereby dissolved. Any reference to the National Land Settlement
Administration, and the Rice and Corn Production Administration
and the Machinery and Equipment Department of the National
Development Company in any existing law, or in any Executive
Order, Administrative Order, or Proclamation of the President of
1363
the Philippines shall, with respect to any duty or function assumed

by the corporation created in this Order, be deemed hereafter to be
reference to the LASEDECO.
SEC. 13. The personnel, records, properties, equipment,

assets, rights, choses in action, obligations, liabilities, and contracts
of the National Land Settlement Administration, and the Rice
and Corn Production Administration and the Machinery and
Equipment Department of the National Development Company are
hereby transferred to, vested in, and assumed by the LASEDECO,
and all their businesses and affairs shall be liquidated, assumed,
and continued by the LASEDECO: Provided, That an inventory
and valuation of the properties, equipment, assets, rights, choses
in action, obligations, liabilities, and contracts of said entities shall
be made by the Auditor General, and during the inventory and
valuation, the accountable officers of said entities shall continue
to be fully accountable therefor, until actual physical transfer to,
and acceptance by, the corresponding accountable officers of the
LASEDECO: Provided, further, That the personnel of said entities
hereby transferred shall be reappointed in the LASEDECO and
those not reappointed within sixty days from the effective date of
this Order shall be considered separated from the service: And,
provided, finally, That the LASEDECO shall undertake, manage and
continue the agricultural activities of the Rice and Corn Production
Administration only within the areas now under cultivation until
the same shall have been disposed of in accordance with section
2 hereof, but in case for a period longer than five years from the
effective date of this Order.
SEC. 14. All surveyed portions of the public agricultural lands

heretofore transferred or reserved for the use and operation of the
National Land Settlement Administration and the Rice and Corn
Production Administration of the National Development Company,
and/or of those which may hereafter be transferred by the President
of the Philippines to the LASEDECO, shall be ceded to the
LASEDECO, and the President of the Philippines shall from time
to time cause the issuance of patents or other deeds transferring
title to such lands to the said Corporation in accordance with the
1364
provisions of the Public Land Act and such rules and regulations
as may be promulgated to facilitate the transfer of title to the said
Corporation.
SEC. 15. All Acts or parts of Acts and all Executive Orders,
Administrative Orders, and Proclamations or parts thereof
inconsistent with any of the provisions of this Order are hereby
SEC. 16. If any provision of this Order should be held invalid,

the other provisions shall not thereby be affected.
SEC. 17. This Executive Order shall take effect on October

twenty-third, nineteen hundred and fifty.
Done in the City of Manila, this 23rd day of October, in the year
of Our Lord, nineteen hundred and fifty, and of the Independence of
the Philippines, the fifth.
(Sgd.) ELPIDIO QUIRINO

By the President:
(Sgd.) TEODORO EVANGELISTA

Executive Secretary
EO 355 s. 1950 was repealed by RA 1160.
1365
MALACAÑANG
MANILA
ENJOINING ALL GOVERNMENT FINANCIAL INSTITUTIONS

AND GOVERNMENT OWNED OR CONTROLLED
CORPORATIONS TO GRANT THE DEPARTMENT OF
AGRARIAN REFORM THE RIGHT OF FIRST REFUSAL IN
THE SALE OR DISPOSITION OF ALL LANDS OWNED BY
THEM WHICH ARE SUITABLE TO AGRICULTURE
WHEREAS, Section 1 of Executive Order No. 229, Series of

1987 states that: “[T]he Comprehensive Agrarian Reform Program
(CARP) shall cover, regardless of tenurial arrangement and
commodity produced, all public and private agricultural lands as
provided in Proclamation No. 131 dated July 22, 1987, including
public domain suitable to agriculture;”
WHEREAS, Section 4 of Republic Act No. 6657 provides that:

“[T]he Comprehensive Agrarian Reform Law of 1988 shall cover,
regardless of tenurial arrangement and commodity produced, all
public and private agricultural lands as provided in Proclamation
No. 131 and Executive Order No. 229, including other lands of the
public domain suitable for agriculture;”
WHEREAS, the Presidential Agrarian Reform Council is

mandated by the aforesaid laws to coordinate the implementation
of the Comprehensive Agrarian Reform Program and empowered
to formulate and/or implement the policies, rules and regulations,
whether substantive or procedural, to carry out the objects and
purposes of the said laws;
NOW, THEREFORE, I, CORAZON C. AQUINO, by virtue of

the powers vested in me by law, do hereby order:
1366
SECTION 1. All government financial institutions and

government owned or controlled corporations are hereby enjoined to
grant the Department of Agrarian Reform the right of first refusal
in the sale or disposition of all lands owned by them which are
suitable to agriculture.
SEC. 2. The respective Heads of these institutions and

corporations shall report to the Office of the President their
compliance with, and their present inventory of the lands covered by,
this Executive Order within thirty (30) days from date of effectivity
hereof.
SEC. 3. This Executive Order shall take effect immediately.
DONE in the City of Manila this 9th day of June, nineteen

hundred and eighty nine.

By the President:
(Sgd.) CATALINO MACARAIG, JR.

Executive Secretary
1367
MALACAÑANG
OF THE PHILIPPINES
MANILA
DESIGNATING THE DEPARTMENT OF AGRARIAN REFORM AS

TRUSTEE OF THE SPECIAL FUND FOR ASSISTANCE TO
THE PHILIPPINE LAND REFORM EDUCATION PROGRAM
WHEREAS, in an Exchange of Notes between the Government

of the United States of America and the Republic of the Philippines,
the former has made available to the latter Funds for Assistance to
the Philippine Land Reform Education Program out of the Special
Fund for Education, United States Public Law No. 88-94, known as
the Land Reform Education Fund;
WHEREAS, it has been agreed between the two governments

that the Land Reform Education Fund shall be established as a
permanent Trust Fund, the income of which shall be used to finance
the land reform education program in the Philippines;
WHEREAS, under the Agreement, the National Land Reform

Council has been designated as the Trustee of the Fund; and
WHEREAS, the National Land Reform Council has been

abolished under Republic Act No. 6389, otherwise known as the
Code of Agrarian Reforms of the Philippines, and succeeded by the
Department of Agrarian Reform under a Cabinet Secretary;

hereby designate the Department of Agrarian Reform, through the
Secretary, as Trustee of the Land Reform Education Fund.
1368
In this capacity, it shall perform the following functions,

subject to the approval of the President;
1. Formulate the general policy for the Fund, and make

decisions on the use of the Fund’s income and capital gains, including
final action on appropriation for grants and research projects;
2. Formulate and adopt an assistance program based on

educational programs which have been set forth in the Agreement
on the use of the Fund; extending preference to projects which
are enduring or self-sustaining or which incorporate counterpart
financial agreements;
3. Approve programs and projects to be undertaken by the

Philippine Land Reform Center for Continuing Education which
shall implement such programs and projects and authorize
expenditures for such programs and projects out of the earnings of
Fund;
4. Obtain professional counsel and services for the wise

and prudent management of the Fund entrusted to it through an
Investment and Financial Manager; and
5. Employ staff personnel, advisors and consultants to assist

in the educational program planning and implementation.


By the President:

1369
MALACAÑANG
MANILA
TRANSFORMING THE DEPARTMENT OF AGRARIAN REFORM

INTO THE DEPARTMENT OF LAND REFORM
WHEREAS, one of the five reform packages of the Arroyo

administration is Social Justice and Basic needs;
WHEREAS, one of the five anti-poverty measures for social

justice is asset reform;
WHEREAS, asset reforms covers agrarian reform, urban land

reform, and ancestral domain reform;
WHEREAS, urban land reform is a concern of the Presidential

Commission on the Urban Poor (PCUP) and ancestral domain
reform is a concern of the National Commission on Indigenous
Peoples’ (NCIP);
WHEREAS, another of the five reform packages of the Arroyo

administration is Anti-Corruption and Good Government;
WHEREAS, one of the Good Government reforms of the Arroyo

administration is rationalizing the bureaucracy by consolidating
related functions into one department;
WHEREAS, under law and jurisprudence, the President of

the Philippines has broad powers to reorganize the offices under her
supervision and control;
NOW THEREFORE I, Gloria Macapagal-Arroyo, by the

powers vested in me as President of the Republic of the Philippines,
do hereby order:
1370
SECTION 1. The Department of Agrarian Reform is hereby

transformed into the Department of Land Reform. It shall be
responsible for all land reform in the country, including agrarian
reform, urban land reform, and ancestral domain reform.
SECTION 2. The PCUP is hereby placed under the supervision

and control of the Department of Land Reform. The Chairman of
the PCUP shall be ex-officio Undersecretary of the Department of
Land Reform for Urban Land Reform.
SECTION 3. The NCIP is hereby placed under the supervision

and control of the Department of Land Reform. The Chairman of
the NCIP shall be ex-officio Undersecretary of the Department of
Land Reform for Ancestral Domain Reform.
SECTION 4. The PCUP and the NCIP shall have access to the
services provided by the Department’s Finance, Management and
Administrative Office; Policy, Planning and Legal Affairs Office,
Field Operations and Support Services Office, and all other offices
of the Department of Land Reform.
SECTION 5. All previous issuances that conflict with this

Executive Order are hereby repealed or modified accordingly.
SECTION 6. This Executive Order takes effect immediately.
Manila, 27 September 2004

By the President:
(Sgd.) EDUARDO R. ERMITA

Executive Secretary
EO 364 s. 2004 (sec. 3) was amended by EO 379 s. 2004.
1371
MALACAÑAN PALACE
MANILA
AMENDING EXECUTIVE ORDER NO. 364 ENTITLED

WHEREAS, Republic Act No. 8371 created the National

Commission on Indigenous Peoples;
WHEREAS, pursuant to the Administrative Code of 1987,

the President has the continuing authority to reorganize the
administrative structure of the National Government.

vested in me by the Constitution and existing laws, do hereby order:
SECTION 1. Amending Section 3 of Executive Order No. 364.

Section 3 of Executive Order No. 364, dated September 27, 2004
shall now read as follows:
“Section 3. The National Commission on Indigenous Peoples

(NCIP) shall be an attached agency of the Department of Land
Reform.”
SEC. 2. Compensation. The Chairperson shall suffer no

diminution in rank and salary.
SEC. 3. Repealing Clause. All executive issuances, rules

and regulations or parts thereof which are inconsistent with
this Executive Order are hereby revoked, amended or modified
accordingly.

immediately.
1372
City of Manila, 26 October 2004.

By the President:

Executive Secretary
1373
MALACAÑANG
MANILA
VESTING IN THE LAND BANK OF THE PHILIPPINES THE

PRIMARY RESPONSIBILITY TO DETERMINE THE LAND
VALUATION AND COMPENSATION FOR ALL LANDS
COVERED UNDER REPUBLIC ACT NO. 6657, KNOWN AS
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1988
WHEREAS, Republic Act No. 6657, Chapter VI, provides in

part that:
“SEC. 17. Determination of Just Compensation. — In

determining just compensation, the cost of acquisition of the land,
the current value of like properties, its nature, actual use and
income, the sworn valuation by the owner, the tax declarations, and
the assessment made by government assessors shall be considered.
The social and economic benefits contributed by the farmers and
the farm-workers and by the Government to the property as well
as the nonpayment of taxes or loans secured from any government
financing institution on the said land shall be considered as
additional factors to determine its valuation.
SEC. 18. Valuation and Mode of Compensation. — The LBP

shall compensate the landowner in such amount as may be agreed
upon by the landowner and the DAR and the LBP, in accordance
with the criteria provided for in Sections 16, and 17, and other
pertinent provisions hereof, or as may be finally determined by the
court, as the just compensation for the land.”
WHEREAS, the Land Bank of the Philippines employs

commercial banking personnel whose professional expertise includes
appraisal of agricultural properties for purposes of granting loans;
WHEREAS, the implementation of the Comprehensive

Agrarian Reform Program, particularly on the matter of acquisition
1374
and distribution of private agricultural lands, may be accelerated by

streamlining certain administrative procedures in land valuation
and compensation;

the Philippines, by virtue of the powers vested in me by law, do
hereby order:
SECTION 1. The Land Bank of the Philippines shall be

primarily responsible for the determination of the land valuation
and compensation for all private lands suitable for agriculture
under either the Voluntary Offer to Sell (VOS) or Compulsory
Acquisition (CA) arrangement as governed by Republic Act No.
6657. The Department of Agrarian Reform shall make use of the
determination of the land valuation and compensation by the Land
Bank of the Philippines, in the performance of its functions.
After effecting the transfer of titles from the landowner to the

Republic of the Philippines, the Land Bank of the Philippines shall
inform the Department of Agrarian Reform of such fact in order
that the latter may proceed with the distribution of the lands to the
qualified agrarian reform beneficiaries within the time specified by
law.
SEC. 2. The Department of Agrarian Reform shall continue to

perform its functions under Republic Act No. 6657, particularly in
the identification of the priority landholdings for coverage under the
Comprehensive Agrarian Reform Program.
SEC. 3. The Land Bank of the Philippines is hereby authorized

to augment its manpower resources for the purpose of implementing
this Executive Order.
SEC. 4. This Executive Order shall not be construed to

diminish the rights and remedies of the landowners and agrarian
reform beneficiaries under Republic Act No. 6657.
1375
of Our Lord, nineteen hundred and ninety.

By the President:

Executive Secretary
1376
MALACAÑANG
MANILA
MANDATING CERTAIN DEPARTMENTS AND AGENCIES

TO ALIGN THEIR RESPECTIVE PROGRAMS AND
PROJECTS WITH THE COMPREHENSIVE AGRARIAN
REFORM PROGRAM, DIRECTING THE DEPARTMENT
OF A GR A R I A N R E F OR M T O A C C E L E R A T E T HE
AGRARIAN REFORM BENEFICIARIES DEVELOPMENT
THROUGH THE PROVISION OF ECONOMIC AND SOCIAL
INFRASTRUCTURE SUPPORT, AND PROVIDING THE
NECESSARY IMPLEMENTING MECHANISMS FOR THE
PURPOSE
WHEREAS, the Comprehensive Agrarian Reform Program

is central to the government’s efforts to hasten countryside agro-
WHEREAS, the Comprehensive Agrarian Reform Program,

apart from accelerating land acquisition and distribution, equally
mandates the beneficiaries development through the provision of
physical, technical, social and economic support services;
WHEREAS, while the main responsibility for the

implementation of the Comprehensive Agrarian Reform Program
lies with the Department of Agrarian Reform, certain departments
and agencies are expected to be equally involved and committed to
the success of the said Program;

hereby order:
SECTION 1. The Departments of Agriculture, Environment

and Natural Resources, Public Works and Highways, Transportation
and Communication, National Defense, Justice, Budget and
1377
Management, and Trade and Industry, and Land Bank of the

Philippines and Land Registration Authority are hereby mandated
to review, evaluate and align their respective programs and projects
with the end in view of integrating them into the major thrusts of
the Comprehensive Agrarian Reform Program (CARP).
SEC. 2. There shall be an inter-agency CARP Implementing

Team (Team) composed of the representatives of the aforementioned
agencies and chaired by Department of Agrarian Reform
representative at the national, regional, provincial and municipal
levels, which shall have the following functions:
a. Undertake measures to promote, integrate and harmonize

the working relationship between and among the participating
government agencies, non-government organizations (NGOs) and
the agrarian reform beneficiaries themselves;
b. Undertake measures to hasten the generation, development

and execution of CARP programs and projects;
c. Undertake measures to consolidate and maximize the

utilization of available resources of government for the program;
d. Recommend measures to improve, increase and accelerate

the delivery capacity of agencies for the implementation of CARP
program and projects;
e. Submit a monthly accomplishment report to the Secretary

of Agrarian Reform.
The Team shall convene a meeting of its members within

one (1) week from the effectivity of this Executive Order and every
month thereafter.
At the provincial level, the Team shall serve as the

implementing arm of the Provincial Agrarian Reform Coordinating
Committee (PARCCOM).
1378
SEC. 3. All the aforementioned agencies shall immediately

issue the implementing guidelines to all their regional, provincial,
municipal and barangay officials, if any, to insure program
integration and accelerate the service delivery capacity of these
field implementing units.
SEC. 4. The Department of Agrarian Reform shall adopt a

strategic and area-focused operations approach to accelerate the
Comprehensive Agrarian Reform Program implementation. It shall
concentrate its land distribution and beneficiaries development
activities in 24 identified Strategic Operation Provinces (SOPs)
which account for 70 percent of the land distribution workload,
i.e., Pangasinan, Kalinga Apayao, Ifugao, Isabela, Nueva Ecija,
Pampanga, Batangas, Quezon, Mindoro Occidental, Sorsogon,
Camarines Sur, Antique, Negros Occidental, Bohol, Negros
Oriental, Leyte, Western Samar, Zamboanga del Sur, Bukidnon,
Agusan del Sur, Lanao del Norte, South Cotabato, North Cotabato
and Maguindanao, without prejudice to the implementation in the
remaining provinces of the country.
SEC. 5. The Department of Agrarian Reform shall implement

viable agrarian reform areas development pilot projects in the 24
SOPs particularly in the low income municipalities (LIMs) identified
under the Pro-Poor Program of the government and in the aforesaid
Department settlement areas. In subsequent years, replication
of successful pilot projects may be undertaken in other provinces
and low income municipalities. To support these pilot projects, the
Bureau of Agrarian Reform Beneficiaries Development (BARBD) of
the Department of Agrarian Reform shall intensify its beneficiaries
training and social infrastructure building activities particularly in
the areas of organizing, value formation, cooperatives development,
capability building, enterprise development, social preparation and
the like.
Project preparation activities for these areas shall be

accelerated and shall supported by the Project Facilitation
Committee under the Office of the President.
1379
Fifteen (15) percent of the CARP 1990 budget (P1.3 billion

out of the P8.9 billion) and in the succeeding years CARP budget
as approved by the Presidential Agrarian Reform Council (PARC)
shall be allocated, released to and administered by Department of
Agrarian Reform for the promotion, development and organization
of agrarian reform beneficiaries associations and cooperatives and
the implementation of the agrarian reform areas development pilot
projects. The same shall be taken out of the budget allocation of CARP
agencies for extension infrastructure, research and development,
database and other support services which will likewise be part of
the essential components of the specific development projects.
To facilitate the implementation of development activities

in the identified agrarian reform pilot projects, the Department of
Agrarian Reform may call on the other Comprehensive Agrarian
Reform Program implementing agencies, government financial
institutions, government owned or controlled corporations and local
government units to assist in the implementation of these projects.
The Department of Agrarian Reform may also sub-contract various
sub-components of the pilot projects to private organizations,
private contractors, non-government organizations and the like to
facilitate implementation.
SEC. 6. Heads of all other Comprehensive Agrarian Reform

Program implementing agencies, and government financial
institutions, government owned or controlled corporations,
governors, mayors, barangay chairmen and other officials of local
government units in the 24 SOPs shall provide support to the
implementation of the agrarian reform development pilot projects
in their respective areas.
1380
DONE in the City of Manila this 14th day of June, in the year

By the President:

Executive Secretary
1381
MALACAÑANG
OF THE PHILIPPINES
MANILA
DELEGATING TO CERTAIN DISTRICT LAND OFFICERS THE

POWER TO SIGN PATENTS AND CERTIFICATES
Upon recommendation of the Secretary of Agriculture

and Natural Resources, and pursuant to the power vested in me
by Sectiob 107 of Commonwealth Act No. 141, as amended by
Republic Act No. 6516, I, FERDINAND E. MARCOS, President of
the Philippines, do hereby delegate to the incumbent District Land
Officers of Land District No. 1-4, Laoag City, Land District No. II-
1, Tuguegarao, Cagayan, Land District No. III-1, San Fernando,
Pampanga, Land District No. III-4, Olongapo City, Land District
No. IV-3, Lucena City, Land District No. V-1, Naga City, Land
District No. VI-1, Iloilo City, Land District No. VII-1, Dumaguete
City, Land District No. VIII-1, Tacloban City, Land District No. IX-
1, Zamboanga City, Land District No. IX-2, Jolo Sulu, Land District
No. X-1, Cagayan de Oro City, Land District No. X-7, Iligan City,
Land District No. XI-2, Tagum, Davao del Norte and Land District
No. XI-4, Koronadal, South Cotabato, the power to sign patents or
certificates covering lands not exceeding five (5) hectares in area.
of Our Lord, nineteen hundred and seventy-three.

By the President:

Executive Secretary
1382
MALACAÑANG
MANILA
ACCELERATING THE ACQUISITION AND DISTRIBUTION OF

AGRICULTURAL LANDS, PASTURE LANDS, FISHPONDS,
AGRO-FORESTRY LANDS AND OTHER LANDS OF THE
PUBLIC DOMAIN SUITABLE FOR AGRICULTURE
WHEREAS, Proclamation No. 131, S. of 1987, has instituted

the Comprehensive Agrarian Reform Program to develop the full
potential of Philippine agriculture that will result in increased
productivity and better income for agrarian reform beneficiaries,
and Executive Order No. 229, S. of 1987, has provided for the
mechanisms for the implementation thereof;
WHEREAS, Republic Act No. 6657 has declared it a policy of

the State to pursue the Comprehensive Agrarian Reform Program
in order that the welfare of landless farmers and farmworkers will
receive highest consideration and that the nation can move towards
sound rural development and industrialization;
WHEREAS, Section 7 of Republic Act No. 6657 mandates,

among others, that all lands foreclosed by government financial
institutions, all lands acquired by the Presidential Commission on
Good Government, and all other lands owned by the government
devoted to or suitable for agriculture, shall be acquired and
distributed immediately upon the effectivity of the said Act and
with implementation to be completed within a period of not more
than four (4) years therefrom;
WHEREAS, the government has in its inventory lands

suitable for agriculture which may be immediately placed under
the Comprehensive Agrarian Reform Program as the titles thereof
have been foreclosed and the prescriptive redemption periods have
already lapsed;
1383
WHEREAS, the Departments of Agriculture, and

Environment and Natural Resources are authorized by law to act
on the disposition of leases covering lands of the public domain,
i.e., agro-forestry lease agreements, pasture lease agreements and
fishpond lease agreements;
WHEREAS, Executive Order No. 360, S. of 1989, enjoins

all government financial institutions and government-owned or
controlled corporations to grant the Department of Agrarian Reform
the right of first refusal in the sale or disposition of all lands owned
by them which are suitable for agriculture;
WHEREAS, the implementation of the Comprehensive

Agrarian Reform Program particularly its land acquisition and
distribution to qualified farmer-beneficiaries must be accelerated so
that its fruits could be enjoyed by its beneficiaries at the soonest
possible time;

hereby order:
SECTION 1. All Government instrumentalities including

but not limited to government agencies, government owned
and controlled corporations or financial institutions such as the
Development Bank of the Philippines, Philippine National Bank,
Republic Planters Bank, Asset Privatization Trust, Presidential
Commission on Good Government, Department of Agriculture, State
Colleges and Universities, Department of National Defense, shall
immediately execute Deeds of Transfer in favor of the Republic of the
Philippines as represented by the Department of Agrarian Reform
and surrender to the latter department all landholdings suitable for
agriculture including all pertinent ownership documents in their
custody, such as the owner’s duplicate copy of the certificates of
title, tax declarations and other documents necessary to effect the
transfer of ownership. This Executive Order shall likewise apply to
ownership of the following assets, as determined by the Department
1384
of Agrarian Reform in close coordination with the concerned

government agency:
a. Improvements, e.g., irrigation systems, roads and bridges;
b. Agriculture processing machineries, e.g., post-harvest

facilities;
c. Buildings and other physical structures, warehouses,

administration buildings, employees’ housing facilities;
d. Others, such as trucks and tractors, tools and agricultural

supplies.
In the case of lands suitable to agriculture with pending

adjudication on their ownership in court, the respective government
instrumentalities shall, when legally feasible, immediately transfer
and cede the physical possession and control of the same to the
Department of Agrarian Reform for its subsequent transfer to the
qualified beneficiaries.
Pending valuation of the property, the Department of

Agrarian Reform shall immediately commence the necessary
activities for distribution to qualified beneficiaries upon receipt of
the documents aforementioned, or issue the notice of allocation to
qualified beneficiaries to give them usufructuary control over the
land in the event ownership can not as yet be transferred to them.
Thirty (30) days from the registration of the ownership

documents by the Register of Deeds in favor of the Department of
Agrarian Reform, the Land Bank of the Philippines, pursuant to the
rules approved by the Presidential Agrarian Reform Council, shall
pay the government instrumentality the value of the land. In the
case of the lands under the Asset Privatization Trust, Presidential
Commission on Good Government and other government
instrumentalities which may opt for an alternative payment scheme,
the Department of Agrarian Reform shall cause the issuance of the
Credit Memo Advise from the Bureau of Treasury for such sale.
1385
Thirty (30) days after effectivity of this Executive Order,

the Department of Finance and the Department of Budget and
Management in consultation with the Department of Agrarian
Reform shall establish guidelines for the issuance of the Credit
Memo Advice System. This System shall be applicable as a payment
scheme to government instrumentalities which are mandated to
turn over the proceeds from the sale of their agricultural lands to
the Agrarian Reform Fund pursuant to Section 63 of Republic Act
No. 6657.
Sixty (60) days after the effectivity of this Executive Order,

the Land Registration Authority shall submit to the Department of
Agrarian Reform certified copies of all the certificates of titles under
the name of the government instrumentality and the approved
survey plans including the respective technical descriptions of each
title.
SEC. 2. The Departments of Agriculture, and Environment

and Natural Resources are hereby authorized and directed to cancel
all lease agreements covering fishponds, pasture, agro-forestry lands
and other lands of the public domain suitable to agriculture which
have remained undeveloped within three (3) years from the date of
the effectivity of the lease contract and underutilized or abandoned
or in cases where the terms and conditions embodied therein have
been violated, taking into consideration the requirements of due
process.
SEC. 3. The Departments of Agriculture and Environment and

Natural Resources, in coordination with the Department of Agrarian
Reform, shall redistribute and award fishponds, pasture lands and
other lands of the public domain suitable for agriculture subject of
cancelled or amended lease agreement to qualified agrarian reform
beneficiaries identified by the Department of Agrarian Reform
pursuant to Sections 15 and 22 of Republic Act No. 6657.
SEC. 4. All concerned agencies shall issue the necessary

directives and guidelines to all their national, regional, provincial
1386
and municipal officials to ensure the implementation of this

Executive Order.
DONE in the City of Manila this 14th day of June, in the year

By the President:

Executive Secretary
EO 407 s. 1990 was amended by EO 448 s. 1991.

1387
MALACAÑANG
Manila
AMENDING THE COMPOSITION OF THE AGRARIAN REFORM

COORDINATING COUNCIL CREATED UNDER EXECUTIVE
ORDER NO. 347, SERIES OF 1971.
WHEREAS, the reorganization of the Department of

Agriculture and Natural Resources into the Department of
Agriculture and the Department of Natural Resources, has caused a
change in the composition and membership of the Agrarian Reform
Coordinating Council created under Executive Order No. 347, Series
of 1971;
WHEREAS, the integrated approach to agrarian reform for

tenurial improvement, physical, institutional and agricultural
development requires the membership of other government agencies
in the Council; and
WHEREAS, our country cannot now afford to slow down the

implementation of the Agrarian Reform Program;
NOW, THEREFORE, in view of my earnest desire to

implement fully and effectively the agrarian reform program as
set forth in Presidential Decrees Nos. 2 and 27, I, FERDINAND
E. MARCOS, President of the Philippines, by virtue of the powers
vested in me by the Constitution, do hereby amend the composition
and membership of the Agrarian Reform Coordinating Council as
created under Executive Order No. 347, Series of 1971, as follows:
Secretary Conrado F. Estrella Chairman

Secretary Juan Ponce-Enrile Member
Department of National Defense
1388
Secretary Cesar Virata Member

Secretary Vicente Abad Santos Member
Department of Justice
Secretary Arturo R. Tanco, Jr Member
Secretary Jose S. Leido, Jr Member
Department of Natural Resources
Secretary David Consjunji Member
Department of Public Works,
Transportation and Communication
Secretary Jose A. Roño Member
Department of Local Government
and Community Development
Secretary Baltazar Aquino Member
Department of Public Highways
The Council shall be convened as often as possible exercise

its function of providing technical advice and assistance to
the Department of Agrarian Reform and foster effective inter-
departmental coordination and cooperation among agencies and
institutions performing functions related to agrarian reform. The
Chairman shall organize a Secretary to provide staff and clerical
services to the Council.


By the President:

Executive Secretary
EO 437 s. 1974 amended EO 347 s. 1971.
1389
MALACAÑANG
MANILA
AMENDING EXECUTIVE ORDER NO. 407, SERIES OF 1990,

ENTITLED “ACCELERATING THE ACQUISITION AND
LANDS, FISHPONDS, AGRO-FORESTRY LANDS AND
AGRICULTURE”
WHEREAS, Executive Order No. 407, series of 1990, directs,

among others, all government agencies and instrumentalities,
including government-owned or controlled corporations to transfer
ownership of all lands suitable for agriculture to the Department
of Agrarian Reform for distribution under the Comprehensive
Agrarian Reform Program;
WHEREAS, to further accelerate the acquisition and

distribution of all lands of the public domain suitable for agriculture,
it is necessary to include within the coverage of Executive Order No.
407, Series of 1990, all government reservations or portions thereof
which are suitable for agriculture and no longer needed for the
purposes for which the reservations are established;

hereby order:
SECTION 1. Executive Order No. 407 is hereby amended by

adding a new section to read as follows:
“Sec. 1-A. All lands or portions thereof reserved by virtue of

Presidential proclamations for specific public uses by the government,
its agencies and instrumentalities, including government-owned
or controlled corporations suitable for agriculture and no longer
actually, directly and exclusively used or necessary for the purposes
1390
for which they have been reserved, as determined by the Department

of Agrarian Reform in coordination with the government agency
or instrumentality concerned in whose favor the reservation was
established, shall be segregated from the reservation and transferred
to the Department of Agrarian Reform for distribution to qualified
beneficiaries under the Comprehensive Agrarian Reform Program.”
SEC. 2. All proclamations establishing such reservations

and falling within the coverage of this Executive Order are hereby
revoked, amended or modified accordingly.
Done in the City of Manila, this 14th day of February, 1991 in

the year of Our Lord, nineteen hundred and ninety-one.

By the President:
(Sgd.) OSCAR M. ORBOS

Executive Secretary
EO 448 s. 1991 amended EO 407 s. 1990.

1391
MALACAÑANG
MANILA
RENAMING THE DEPARTMENT OF LAND REFORM BACK TO

WHEREAS, Executive Order No. 364 dated 27 September

2004 transformed the Department of Agrarian Reform into the
Department of Land Reform;
WHEREAS, Republic Act No. 6657 otherwise known as the

Comprehensive Agrarian Reform Law defines agrarian reform as
the redistribution of lands, regardless of crops or fruits produced, to
farmers and regular farm workers who are landless, irrespective of
tenurial arrangement, to include the totality of factors and support
services designed to lift the economic status of the beneficiaries
and all other arrangements alternative to physical redistribution
of lands, such as production or profit sharing, labor administration,
and the distribution of shares of stocks, which will allow beneficiaries
to receive a just share of the fruits of the lands they work;
WHEREAS, the Comprehensive Agrarian Reform Law goes

beyond just land reform but includes the totality of all factors
and support services designed to lift the economic status of the
beneficiaries;
NOW, THEREFORE, I, GLORIA MACAPAGAL ARROYO,

SECTION 1. The Department of Land Reform is hereby

renamed as the Department of Agrarian Reform.
1392
SEC. 2. All orders, rules, regulations and issuances or parts

thereof, which are inconsistent with this Executive Order are hereby
Done in the City of Manila, this 23rd day of August, in the

Year of Our Lord, Two Thousand and Five.

By the President:

Executive Secretary
1393
MALACAÑANG
MANILA
DEVOLVING TO THE AUTONOMOUS REGIONAL GOVERNMENT

OF THE AUTONOMOUS REGION FOR MUSLIM MINDANAO
THE POWERS AND FUNCTIONS OF THE DEPARTMENT
OF AGRARIAN REFORM AND THE CONTROL AND
SUPERVISION OVER ITS OFFICES WITHIN THE REGION
WHEREAS, Executive Order No. 229, series of 1987 and

Proclamation No. 131 dated July 1987 provides for the institution
of a comprehensive agrarian reform program which would be in
pursuance of what was envisioned in Presidential Decree No. 27
that entailed the emancipation of tenants from the bondage with
the soil;
WHEREAS, the Department of Agrarian Reform is mandated

by law to be the principal agency responsible for implementing the
Comprehensive Agrarian Reform Program (CARP), as provided for
in Articles XII, XIII and XVIII of the 1987 Constitution;
WHEREAS, the Oversight Committee created under Republic

Act No. 6734 (RA 6734) otherwise known as the Organic Act for
the Autonomous Region in Muslim Mindanao recommends that the
control and supervision of the offices of the Department of Agrarian
Reform be placed under the Autonomous Regional Government;

hereby order:
SECTION 1. Transfer of Powers and Functions. All powers

and functions of the Department of Agrarian Reform under Section
5 of Executive Order No. 129-A and as enumerated hereunder are
hereby transferred to the Autonomous Regional Government (ARG)
1394
in the implementation of the CARP in the four (4) provinces covered

by the ARMM:
a. Advise the President and the Presidential Agrarian

Reform Council (PARC) on the promulgation of executive and
administrative orders, other regulative issuances and legislative
proposals designed to strengthen agrarian reform and protect the
interest of the beneficiaries thereof;
b. Establish and promulgate operational policies, rules and

c. Coordinate program implementation with the Land Bank

of the Philippines (LBP) and other relevant civilian and military
government agencies mandated to support the agrarian reform
program;
d. Acquire, administer, distribute, and develop agricultural

lands for agrarian reform purposes;
e. Undertake surveys of lands covered by agrarian reform;
f. Issue emancipation patents to farmers and farmworkers

covered by agrarian reform for both private and public lands and
when necessary, make administrative corrections of the same;
g. Provide free legal service to agrarian reform beneficiaries

and resolve agrarian conflicts and land tenure related problems as
h. Promote the organization and development of cooperatives

i. Conduct continuing education and promotion programs

on agrarian reform for beneficiaries, landowners, government
1395
j. Institutionalize the participation of farmers, farmworkers,

other beneficiaries, and agrarian reform advocates in agrarian
k. Have exclusive authority to approve or disapprove conversion

of agricultural lands for residential, commercial, industrial, and
other land uses as may be provided for by law;
l. Call upon any government agency, including the Armed

Forces of the Philippines (AFP), and non-government organizations
to extend full support and cooperation to program implementation;
and
m. Exercise such other powers and functions as may be

provided for by law or directed by the President, to promote efficiency
and effectiveness in the delivery of public services.
SEC. 2. Functions Retained. The adjudicatory functions of

the Department of Agrarian Reform (DAR) shall be retained by the
Department until a Regional Agrarian Reform Law (RARL) has
been enacted by the Regional Assembly.
SEC. 3. Programs and Projects. All programs and projects

of the Department of Agrarian Reform (DAR) being implemented
within the Autonomous Region in Muslim Mindanao (ARMM)
are hereby transferred to the Autonomous Regional Government
(ARG) and these shall include Land Tenure Improvement; Program
Beneficiaries Development; and delivery of support services.
The management of the Special Projects Areas and the

projects administered by the Special Projects Office shall be turned
over to the Autonomous Regional Government (ARG).
SEC. 4. Personnel. (1) All plantilla positions, filled or unfilled,

assigned to the affected provincial DAR offices shall be transferred
to the Autonomous Regional Government (ARG).
1396
(2) All personnel holding these plantilla positions who are

absorbed by the Autonomous Regional Government (ARG) shall
retain their seniority rights, compensation and other benefits.
(3) For those affected provincial and municipal personnel

who may opt for retention with the DAR, the Department may
accommodate them depending on available plantilla positions in
other DAR offices. Personnel who cannot be accommodated and
those who refuse to transfer or be absorbed by the Autonomous
Regional Government (ARG) have three (3) options outlined by the
Civil Service Commission:
a. Retirement, if eligible;
b. Seek transfer to other offices; or
c. Stay with the Autonomous Regional Government.
SEC. 5. Assets, Properties and Equipment. All assets,

properties and equipment of the Department in the Autonomous
Region shall be turned over to the Autonomous Regional Government
(ARG). The turnover and complete inventory of such properties
shall be done by the Provincial Agrarian Reform Offices, subject,
however, to government accounting and auditing regulations.
SEC. 6. Budget. The budgetary allocation or the balance

thereof for the four (4) provinces within the ARMM for CY 1991
as of the date of transfer shall be turned over to the Autonomous
Regional Government (ARG).
Furthermore, the budget and funding of the Special Project

Areas and the Special Projects Office shall be transferred to the
Autonomous Regional Government (ARG).
SEC. 7. Date of Transfer. The Department of Agrarian Reform

shall effect full transfer of all its functions and assets after six (6)
months from the effectivity of this Executive Order or immediately
upon the enactment of the Regional Agrarian Reform Law (RARL),
whichever comes earlier.
1397
During the six (6) months wherein the transfer shall be

effected, there shall be the creation of a DAR-ARG Transition
Committee which shall oversee the transfer and define the areas of
cooperation and collaboration and the inventory and documentation
of assets and manpower resources to the Autonomous Regional
Government (ARG), subject to the Commission on Audit (COA) and
the Civil Service Commission (CSC) regulations.
The DAR-ARG Transition Committee shall oversee the

implementation of the Comprehensive Agrarian Reform Program
(CARP). The Department shall, however, retain the final authority
and responsibility over its offices during the transition period.
The personnel who may be assigned by the Autonomous Regional
Government (ARG) shall essentially take understudy roles, to be
eventually, involved in the administration and operations of the
DAR offices. The Autonomous Regional Government (ARG) shall
assume full responsibility for the CARP implementation after the
transition period.
SEC. 8. Separability Clause. If, for any reason, any part or

provision of this Executive Order shall be held unconstitutional or
invalid, any part or provision hereof which are not affected thereby
shall continue to be in full force and effect.

fifteen (15) days following its publication in a national newspaper of
general circulation and one (1) local newspaper of general circulation
in the ARMM.

the year of our Lord, nineteen hundred and ninety-one.

By the President:
(Sgd.) FRANKLIN M. DRILON

Executive Secretary
1398
MALACAÑANG
MANILA
FURTHER AMENDING EXECUTIVE ORDER NO. 407, SERIES OF

1990, AMENDED BY EXECUTIVE ORDER NO. 448, SERIES
OF 1991, “ACCELERATING THE ACQUISITION AND
LANDS, FISHPONDS, AGROFORESTRY LANDS AND
AGRICULTURE”
WHEREAS, Executive Order No. 407, Series of 1990, directed,

among others, all government-owned or controlled corporations
to transfer ownership of all lands suitable for agriculture to the
Department of Agrarian Reform Program;
WHEREAS, Executive Order No. 448, Series of 1991,

amended Executive Order No. 407, Series of 1990, including within
its coverage all government reservations or portions thereof, which
are suitable for agriculture and no longer needed for the purpose for
which they are established, to further accelerate the acquisition and
distribution of all lands of the public domain suitable for agriculture;
WHEREAS, there is, at the same time, the need to conserve

the biodiversity features and the life support system of the country,
which are represented by areas of public domain inside protected
areas;
WHEREAS, the preservation of these protected area is a

must, considering that these sites contain examples of diverse,
unique and important Philippine flora and fauna, which, if properly
and effectively managed, will ensure the conservation of biological
resources of the country;
1399

Resources has an existing Integrated Protected Areas System
Project concerned with determining what existing protected areas
and those not yet established are qualified to be retained as a
protected reserve under the National Integrated Protected Areas
System;

of the Philippines, by virtue of the power vested in me by law, do
hereby order:
SECTION 1. Section 1.A. of Executive Order No. 407, Series

of 1990, as amended by Executive Order No. 448, Series of 1991, is
“SECTION 1.A. Except national parks and other protected

areas, all lands or portions of the public domain reserved by virtue
of proclamation or law for specific purposes or uses by departments,
bureaus, offices and agencies of the Government, which are suitable
for agricultural and no longer actually, directly and exclusively used
or necessary for the purpose for which they have been reserved as
determined by the Department of Agrarian Reform in coordination
with the government agency or instrumentality concerned in whose
favor the reservation was established, shall be segregated from the
reservations and transferred to the Department of Agrarian Reform
for distribution to qualified beneficiaries under the Comprehensive
Agrarian Reform Program.”
SEC. 2. A new section is hereby added to Executive Order No.

407, as amended, to read as follows:
“SECTION 1.B. All existing and proposed National Parks,

Game Refuge and Bird Sanctuaries, Wildlife Reserves, Wilderness
Areas and Other Protected Areas, including old growth or virgen
forests, and all forests above 1,000 meters elevation or above 50
percent slope, are hereby excluded from the present segregation,
acquisition and distribution procedures being conducted by the
Department of Agrarian Reform until such time as these areas shall
1400
have been identified, studied and determined to be either retained

and reclassified under the National Integrated Protected Areas
System of DENR or to be segregated for agricultural purposes.”
SEC. 3. All proclamations establishing such reservations

and falling within the coverage of this Executive Order are hereby
revoked, amended or modified accordingly.

year of Our Lord, nineteen hundred and ninety-two.
By the President:

Executive Secretary
EO 506 s. 1992 amended EO 407 s. 1990.

EO 506 s. 1992 amended EO 448 s. 1991.
1401
MALACAÑANG
MANILA
CREATING AN INTERIM INTER-AGENCY TASK FORCE TO

PROVIDE FOR PRIVATE SECTOR PARTICIPATION
IN THE ESTABLISHMENT OF AGRO-INDUSTRIAL
DEVELOPMENT AREAS
WHEREAS, there is an urgent need to integrate and

replicate countryside development efforts in key Agro-Industrial
Development Areas (AIDA) in order to implement the Countryside
Agro-Industrial Development Strategy (CAIDS) as adopted by the
government through Cabinet Resolution No. 39, series of 1989;
WHEREAS, it is the declared policy of the State to recognize

the indispensable role of the private sector in national growth and
development;

hereby order:
SECTION 1. There shall be an interim Inter-Agency AIDA

Task Force, hereinafter referred to as the Task Force, which is
hereby authorized to provide for private sector participation in the
establishment of Agro-Industrial Development Areas.
For this purpose, the Task Force shall be composed of:
Chairman Chairman of the Coordinating Council on

the Philippine Assistance Program
Co-Chairman Secretary of Agriculture
Members Secretary of Agrarian Reform
1402
Secretary of Socio-Economic Planning

Secretary of Trade and Industry
Chairman of Development Bank of
the Philippines
President of the Land Bank of the Philippines
SEC. 2. The Task Force shall:
a) Identify and allot foreign and local sources of funding for

the establishment of family farm schools, rural development centers
or other capability building centers, which will continuously provide
the necessary values formation, managerial and technical training,
cooperative development, savings promotion and other capability
building programs;
b) Contract with non-government organizations (NGOs) and

other private entities that will establish and operate the family farm
schools and rural development centers. Funds for the operating
expenses of these institutions are to be generated by these NGOs
from their agro-industrial enterprises and other income generating
projects in the AIDA; and
c) Monitor, coordinate and facilitate the development efforts

of all AIDA participants to ensure full and proper implementation
of the objectives of the AIDA program.
SEC. 3. The Task Force may provide direct and indirect grants
to NGOs for the establishment and operation of family farm schools
and rural development centers from whichever funds that it can
generate from local and foreign sources. It may also enter into such
agreements or contracts, which it may deem appropriate to effect
the herein given mandate as may be warranted by circumstances
relating to the source and use of funds, land ownership, corporate
character of the contracting parties and other relevant matters.
SEC. 4. The Secretary of Agriculture is hereby authorized to

sign and execute, for and in behalf of the Task Force, agreements or
1403
contracts extending grants or other forms of assistance entered into

by the Task Force.
SEC. 5. A Task Force Secretariat to be jointly formed by the

CCPAP and Department of Agriculture shall assist the Task Force
in the performance of its duties and functions.
SEC. 6. The Task Force shall facilitate and coordinate with

the private sector for the establishment of agro-industrial facilities.
SEC. 7. The Task Force shall be authorized to call upon

any department, bureau, office, agency or any instrumentality
of government for material and manpower assistance as may be
necessary in implementing the AIDA program.
SEC. 8. All rights, duties, obligations, powers and functions of

the Task Force shall be transferred to the Department of Agriculture,
effective June 30, 1992, or soon thereafter at the discretion of the
President.
SEC. 9. If any provision of this Order is declared

unconstitutional or illegal, the other provisions hereof shall remain
effective.
SEC. 10. All administrative issuances, orders, circulars,

and memoranda inconsistent with this Order are hereby modified,
amended or repealed accordingly.
DONE in the City of Manila, this 16th day of March, in the

year of Our Lord, nineteen hundred and ninety-two.

By the President

Executive Secretary
1404
MALACAÑANG
MANILA
REINSTATING THE DEPARTMENT OF AGRARIAN REFORM,

DEPARTMENT OF THE INTERIOR AND LOCAL
GOVERNMENT AND DEPARTMENT OF HEALTH AS
MEMBERS OF THE REGIONAL DEVELOPMENT COUNCIL
WHEREAS, Executive Order No. 325, s. 1996, Reorganization

of the Regional Development Councils (RDC), provides that Regional
Directors of agencies represented in the NEDA Board shall be
regular members of the RDC;
WHEREAS, Administrative Order 148, s. 2006, provides

for the reconstitution of the NEDA Board which excluded the
Department of Agrarian Reform (DAR), Department of the Interior
and Local Government (DILG) and Department of Health (DOH);
WHEREAS, the membership of DAR, DILG and DOH are

critical in the pursuit of socio-economic development across the
regions and hence, they should remain members of the RDC;

SECTION 1. The Regional Directors of DAR, DOH and DILG

shall remain members of the RDC.
SEC. 2. All previous issuances inconsistent with the provisions

of this Executive Order are hereby repealed or modified accordingly.
1405
DONE in the City of Manila, this 28th of August, in the year

of Our Lord, Two Thousand and Six.
By the President:

Executive Secretary
1406
MALACAÑANG
MANILA
IMPROVING THE NEGOTIABILITY AND ACCEPTABILITY OF

AGRARIAN REFORM BONDS
WHEREAS, Section 2, Chapter I of Republic Act No. 6657,

otherwise known as the Comprehensive Agrarian Reform Law
(CARL), as amended, provides, among others, that “The State
shall provide incentives to landowners to invest the proceeds of the
agrarian reform program to promote industrialization, employment
and privatization of public sector enterprises. Financial instruments
used as payment for lands shall contain features that shall enhance
negotiability and acceptability in the marketplace”.
WHEREAS, Section 18 (4), Chapter VI, of the same law, allows

the Land Bank of the Philippines (LBP) Bonds and/or Agrarian
Reform (AR) Bonds as the financial instruments to be used for
paying lands under the CARP up to the amount of their value and/
or acquiring shares of stock of government financial institutions,
and in paying for various taxes and fees to government;
WHEREAS, Executive Order No. 267, s. 1995, provides for

the issuance of national government bonds known as Agrarian
Reform Bonds which are negotiable at anytime and which AR
Bonds replaced the LBP Bonds or land transfer payments under the
agrarian reform program with the same features of the LBP Bonds;
WHEREAS, although a major feature of the AR Bonds is

alignment of the market interest rate with the 91-day treasury bill,
these bonds are not competitive with similar government securities
like Small Denominated Treasury (SDT) Bonds, ERAP Bonds, and
the Bankers Association of the Philippines (BAP)-sponsored issue of
Pag-IBIG Bonds;
1407
WHEREAS, complaints have been lodged by the affected

landowners on the lack of acceptability of their bonds compared to
other government bonds, and in the refusal of government entities
to accept directly from landowners, AR Bonds at face value, but at
a discounted price lessening the credibility of government bonds
as instruments of indebtedness and further strengthening the
resistance of landowners whose lands are sought to be taken and
paid for with these government bonds.
WHEREAS, the aforementioned conditions also diminish the

just compensation due the landowners when their landholdings
are covered under the Comprehensive Agrarian Reform Program
(CARP);

SECTION 1. National Government Guaranty. — AR Bonds

are deemed and considered as issued by the National Government.
These bonds are the direct, unconditional and general obligation of
the Republic of the Philippines.
SEC. 2. Features of AR Bonds. — AR Bonds shall have the

following features:
a. Market interest rates aligned with 91-day treasury bill

rates. Ten percent (10%) of the face value of the bonds shall mature
every year thereafter from the date of issuance of the bond; Provided,
that should a landowner choose to forego the cash portion, whether
in full or in part, he shall be paid correspondingly in AR Bonds.
b. Transferability and negotiability. The AR Bonds may be

used by the landowner, his successors-in-interest or his assigns.
SEC. 3. Usage of AR Bonds. — AR Bonds may be used by

the landowner, his successor-in-interest or his assignees, up to the
amount of their face value, for any of the following:
1408
a. Acquisition of land or other real properties of the government,

including assets under the Asset Privatization Program and other
assets foreclosed by government financial institutions in the same
province or region where the lands for which the bonds were paid
are situated;
b. Acquisition of shares of stock of government-owned or

c. Substitution for surety or bail bonds for the provisional

release of accused persons, or for performance bonds;
d. Security for loans with any government financial institution,

provided the proceeds of the loans shall be invested in an economic
enterprise, preferably in a small and medium scale industry, in the
same province or region as the land for which the bonds are paid;
e. Payment for various taxes and fees to the government,

provided that the use of these bonds for these purposes shall be
limited to a certain percentage of the outstanding balance of the
financial instruments, and provided further, that the Presidential
Agrarian Reform Council (PARC) shall determine the percentage
mentioned above.
f. Payment for tuition fees of the immediate members of

the family of the original bondholder in government universities,
colleges, trade schools, and other institutions;
g. Payment of fees of the immediate members of the family of

the original bondholder in government hospitals; and
h. Such other uses as the PARC may, from time to time, allow.
SEC. 4. Acceptance of AR Bonds as Payment
a. The portion of the 10-year AR Bond that has matured or

will mature within the given year in which the tax liability shall
1409
be paid or for such percentage of the outstanding balance of the

bond as determined by the PARC under Sec. 18, (4) (v) of RA 6657
of the AR Bonds held by the landowner/taxpayer and/or successors-
in-interest or assignees shall be accepted as payment for tariff
and duties and the following internal revenue tax liabilities, but
not limited to, except withholding tax for non-withholding or non-
remittance of taxes withheld;
a.1 Income taxes;
a.2 Capital gains tax due from individual taxpayers;
a.3 Estate tax;
a.4 Donor’s tax;
a.5 Value added tax (VAT);
a.6 Excise tax;
a.7 Other percentage taxes;
a.8 Deficiency tax assessment arising from tax investigations;
a.9 Surcharge, interest and penalties arising from late filling

of returns and/or payment of taxes; and
a.10 Tax arrearages and penalties.
b. The 10-year AR Bonds can be used up to the amount of

their face value by the landowner, in whose name the bonds were
issued, as well as by his successors-in-interest or assignees, for the
following:
b.1 Payment of real estate taxes, interest charges and

penalties;
1410
b.2 Payment of various fees, interest charges and penalties

that may be assessed against private or government banks and
other financial institutions by the Bangko Sentral ng Pilipinas and
other government agencies in the course of their operation;
b.3 Acquiring shares of stock of government-owned and/or

b.4 Security deposit of foreign corporations with the Securities

and Exchange Commission (SEC); and
b.5 Performance bond of housing contractors with the Housing

and Land Use Regulatory Board (HLURB).
c. AR Bonds shall be accepted as collateral for securing loans

from government financial institutions but at a discounted value,
subject to the condition that the proceeds of the loan are to be
invested in an economic enterprise.
SEC. 5. Eligibilities. AR Bonds shall enjoy the same form of

eligibilities granted to SDT Bonds, ERAP Bonds, BAP-sponsored
Pag-IBIG Bonds and other government bonds that may be issued
in the future. Such eligibilities include, among others, the following:
a. Capital reserve instruments for insurance companies and

investment for Reserve funds for pre-need companies;
b. Performance and judicial bonds;
c. Reserve for trust duties;
d. Liquidity floor requirements for government funds or

deposits;
e. Investments for small and medium enterprises (SME)

funds; and
1411
f. Compliance with Agri-Agra Law.
SEC. 6. Assistance of Other Government Entities. The

assistance of the Department of Finance (DoF) and the Department
of the Interior and Local Government (DILG) and other concerned
government agencies is hereby enjoined to extend full support to the
AR Bonds as mandated by law.
SEC. 7. Implementing Guidelines. The LBP shall issue the

guidelines to implement the provisions of this Executive Order in
coordination with concerned government agencies.
SEC. 8. Administrative Sanctions. Failure to follow the

directives of this Executive Order within 30 days from effectivity
thereof shall subject concerned officials to administrative sanctions
pursuant to existing laws, rules and regulations.
SEC. 9. Repealing Clause. All Executive Orders, issuances,

rules and regulations, or parts thereof, inconsistent with the
provisions of this Executive Order are hereby repealed and/or

immediately upon publication in a national newspaper of general
circulation.
DONE in the City of Manila, this 11th day of September, in

the year of Our Lord, Two Thousand and Seven.
By the President:

Executive Secretary
1412
MALACAÑANG
MANILA
NATIONWIDE ADOPTION OF THE CORN-BASED

FARMER-SCIENTISTS RESEARCH, DEVELOPMENT
AND EXTENSION (RDE) TRAINING PROGRAM FOR
SUSTAINABLE AGRICULTURAL DEVELOPMENT TO
LIBERATE POOR FARMERS FROM THE BONDAGE OF
POVERTY AND HUNGER
WHEREAS, pursuant to the Philippine development objectives

of enhancing the economy’s global competitiveness and alleviating
poverty and hunger, and consistent with the Administration’s focus
on agriculture as the engine of growth, the Medium Term Philippine
Development Plan (MTPDP) 2004-2010 targets, among others, the
development of at least two million hectares of new agribusiness
lands for the creation of at least two million jobs;
WHEREAS the new agribusiness lands for development

include the 280,250 hectares of new areas for corn production
also covering those in the uplands where more than 20 million
poor farmers are dependent on corn grits for food but do not have
adequate supply of the grain even for their own consumption;
WHEREAS, there is a successful program known as the Corn-

Based Farmer-Scientist Research, Development and Extension
(RDE) Training Program (FSTP), an extension program that
integrates agricultural research and development, which is designed
to enable the poor farmers particularly those in the upland, to
liberate themselves from poverty by growing multiple crops and
livestock in then corn farms for increased incomes; and
WHEREAS, the FSTP program, which was first piloted in

Argao, Cebu in 1994 and has expanded province-wide in Cebu, in
1413
all six towns of Siquijor, some towns Negros Oriental and Leyte
in the Visayas, San Jose, Occidental Mindoro in Luzon and Laak
in Compostela Valley Province in Mindanao, has successfully
demonstrated that small marginalized farmers can be empowered
with scientific knowledge of farming to produce more than enough
corn for food with a surplus for sale, along with their production
of vegetables, fruits and livestock, resulting in farmers’ increased
income by more than 100 percent, and thereby benefiting not only
their families but also their communities and local governments.
NOW, THEREFORE I, GLORIA MACAPAGAL-ARROYO,

President of the Republic of the Philippines, by virtue of the
powers vested in me by law, do hereby order that the Corn-Based
Farmer-Scientists RDE Training Program be adopted throughout
the country as a National Program jointly implemented by
Department of Agriculture (DA), Department of Agrarian Reform
(DAR), Department of Environment and Natural Resources
(DENR), Department of Science and Technology (DOST),
Department of Interior and Local Government (DILG), University
of the Philippines at Los Baños (UPLB), state universities and
colleges (SUCs) and other concerned agencies; and funded by the
Department of Agriculture (DA), Department of Agrarian Reform
(DAR), Department of Environment and Natural Resource (DENR),
and the University of the Philippines at Los Baños (UPLB) through
funding assistance in kind.
SECTION 1. Scope and Coverage. The FSTP shall cover all

upland areas where most farmers, who grow corn and other crops
for food, are still living in poverty and hunger. Priority are those
farmers living in 6th, 5th and 4th class municipalities particularly
the municipalities in the ten priority provinces under the Hunger
Mitigation Program.
SEC. 2. Institutional Arrangements. For the operation and

implementation of FSTP, following shall be the arrangements
between and among concerned national government agencies, the
University of the Philippines at Los Baños (UPLB), concerned State
Universities and Colleges (SUCs), and the Heads of various LGU
1414
leagues such as the League of Province, League of Cities, League of

Municipalities and Liga ng mga Barangay:
2.1 National Government Agencies (NGA). The DA shall take

the lead in the implementation of the program in partnership with
DAR, DENR, DOST, DILG, SUCs, LGUs, and NGOs. The DA’s
Agriculture and Training Institute shall take charge of the training
of the Municipal Agricultural Officers and extension workers of
the Local Government Units including the farmers. There shall be
coordinators at DA-RFUs level to serve as Regional Secretariat.
Following are the detailed duties and responsibilities of the NGAs:
2.1.1 DA
a. Institutionalize, through the Agricultural Training

Institute (ATI), the FSTP as one of its extension approaches
and ensure its successful Implementation down to its intended
beneficiaries;
b. Include in its annual budget proposal, separate funding for

the FSTP implementation through the ATI;
c. Call on all national and local agencies for technical, policy,

information, resource assistance and support;
d. Initiate and conduct national and regional discussions and

consultations relative to the objectives, policies and program
of action for the implementation of FSTP throughout the
country;
e. Initiate and enhance partnerships with private sectors,

donor agencies and other external bodies;
f. Ensure that FSTP implementation at the grassroots will

be a joint undertaking between the national government
through ATI and the local government units (LGUs) through
a cost sharing scheme;
1415
g. Facilitate the transfer of farming technologies developed by

DA-BAR and other R&D agencies to the FSTP beneficiaries;
h. Provide marketing and packaging assistance for farm

products developed by trained farmers.
i. Designate regional staff to serve as coordinators and

Regional Secretariat.
2.1.2 DOST
a. Provide technical and financial support for R&D and

technology transfer through the development of appropriate
production technologies and extension modalities to be used
by LGUs and their farmer-clientele;
b. Accept R&D proposals which will go through a specific

evaluation and approval process on a competitive basis.
c. Provide technical assistance in the conduct of capability

building and enhancement of FSTP implementation in the
program areas;
d. Link the Techno Gabay Program through the Farmers

Information and Technology Services (FITS) Centers with the
FSTP; and
e. Through its regional offices, appoint R&D Coordinators for

FSTP at the local level.
2.1.3 DAR
a. Assist in the identification of corn areas;
b. Provide technical and financial assistance in the conduct

of capability building and enhancement programs for the
beneficiaries;
1416
c. Assist the program beneficiaries in the commercialization

and marketing of corn products; and
d. Assist in the organizational strengthening of cooperatives.
2.1.4 DENR
a. Call upon all national and local agencies for technical,

policy, information and resource assistance and support;
b. Initiate and conduct national and regional discussions and

consultations relating to policies, objectives and programs of
actions for sustainable upland development;
c. Review and translate specific recommendations into

operational guidelines of national concern, programs and
initiatives, key areas and themes in coordination with national
and local agencies for sustainable upland development;
d. Initiate and enhance partnership and coordination with

private sector groups, donor agencies and other relevant
external bodies;
e. Provide assistance to the program beneficiaries in the

packaging and marketing of products derived from the project
areas including resource mobilization; and
f. Submit regular reports and updates to the Office of the

President arid other relevant agencies
2.1.5 DILG
a. Issue Memorandum Circular on the nationwide promotion

of the Farmers-Scientist Training Program (FSTP) at the
local level;
b. Ensure proper coordination with the concerned local

government units (LGUs) in the implementation of FSTP; and
1417
c. Provide technical assistance to the FSTP model LGUs in the

documentation of their success stories for social marketing
and replication using the GO-FAR documentation template.
d. Capacitate the model LGUs on the mechanics of the conduct

of the Replication Inception Workshop
2.1.6 CHED-SUCs
a. Assist in the coordination and implementation of the

program in their areas of responsibility as defined in the
FSTP Manual of Operation and Management;
b. Provide resource persons/experts to deliver lectures/

demonstrations on topics related to the program;
c. Provide support funds from their R & D and Extension

units/programs; and
d. Direct SUCs to adopt FSTP in their agricultural extension

program.
2.2 University of the Philippines Los Baños (UPLB). The

UPLB, through the College of Forestry and Natural Resources shall
facilitate the enhancement of science and extension curricula of
FSTP in upland development while the UPLB, through the College
of Agriculture shall:
a. Act as the FSTP National Center for Operation and

Management, which shall be based at the Agricultural Systems
Cluster’s office;
b. Assist in the training of FSTP Coordinators from the

national down to regional and provincial levels;
c. Provide technical expertise, and determine and exercise

quality control of technologies adopted and applied by the program
and support staff to enhance the operation of FSTP nationwide;
1418
d. Assist in the transfer of farming technologies developed by

UPLB through R & D projects like newly developed com (OPVs/
hybrids), high yielding seeds of fruits and vegetables, new organic
fertilizers and other technologies;
e. Assist in the monitoring and evaluation of the

accomplishments of the program; and
f. Tap the support of other colleges/institutes/centers at the

local level with technologies/expertise needed by FSTP.
SEC. 3. Participation of the Local Government Units. The

Local Government Units (LGUs) identified as program target
areas, are encouraged to: 1) pass a resolution adopting the FSTP
as a support strategy for agricultural and economic development
through their Local Sangunian; 2) conduct massive information
campaign on the program at the barangay level through their
respective Provincial, City and Municipal Agriculturists; 3) provide
support in the packaging and marketing of the products of their
trained farmers through agro-trade fairs and similar activities
for which the needed resources may be taken from their annual
allocation for agriculture development; 4) as participating LGUs at
the provincial and municipal levels, designate FSTP coordinators
who shall comprise the FSTP Management Team of the province;
and, 5) As model LGUs, organize the FSTP Management Team to
be responsible in the conduct of Replication Inception Workshop.
SEC. 4. Funding. Funds needed to carry out the provisions

of this Executive Order shall be sourced from and made part of
the regular budget of the key agencies involved like DA, DAR, and
DENR. They shall provide not less than 2 percent of their annual
budget allocated for RDE Programs for FSTP Operation. The said
amount shall be remitted to the FSTP National Center for the
operation and management at the UPLB College of Agriculture,
through an appropriate legal instrument such as a Memorandum
of Agreement, and shall be deposited in a government bank at
Los Baños, Laguna (MOA). UPLB shall also provide at least P1M
1419
funding assistance in kind (manpower, facilities, etc.) annually for

FSTP operation.
DA as the lead agency shall provide a supplemental budget

of at least P200.000.00 annually to each participating province and
municipality involved in the program as counterpart fund to start
and sustain the operation of FSTP.
Fund utilization/disbursements by any and all concerned

agencies shall be subject to the usual accounting and auditing rules
and regulations.
SEC. 5. Separability Clause. Any portion or provision of

this Executive Order that may be declared by competent courts
as unconstitutional shall not have the effect of nullifying other
provisions hereof, as long as such remaining provisions can still
subsist and be given effect in their entirety.
SEC. 6. Repealing Clause. All rules and regulations, other

issuance or parts thereof, which are inconsistent with this Executive
Order, are hereby repealed or modified accordingly.
SEC. 7. Effectivity Clause. The Executive Order shall take

effect fifteen (15) days after its publication in a national newspaper
DONE in the city of Manila, this 27th day of February in the

year of our Lord, Two Thousand and Eight.

President
By the President:

Executive Secretary
1420

OF THE PHILIPPINES
MALACAÑANG

INDIGENOUS PEOPLES FROM THE DEPARTMENT
OF AGRARIAN REFORM TO THE DEPARTMENT OF
ENVIRONMENT AND NATURAL RESOURCES
WHEREAS, it is the duty of the State to protect the rights of

indigenous cultural communities and indigenous peoples to their
ancestral domains to ensure their economic, social and cultural
well being and to recognize the applicability of customary laws
governing property rights of relations in determining the ownership
and extent of ancestral domain;
WHEREAS, the State recognizes, respects and protects the

rights of indigenous cultural communities and indigenous peoples
to preserve and develop their cultures, traditions and institutions;
WHEREAS, National Commission On Indigenous Peoples

was created by Republic Act No. 8371 entitled AN ACT TO
RECOGNIZE, PROTECT AND PROMOTE THE RIGHTS OF
INDIGENOUS CULTURAL COMMUNITIES/ INDIGENOUS
PEOPLES, CREATING THE NATIONAL COMMISSION ON
INDIGENOUS PEOPLES, ESTABLISHING IMPLEMENTING
MECHANISMS, APPROPRIATING FUNDS THEREFOR, AND
FOR OTHER PURPOSES;
WHEREAS, the National Commission on Indigenous Peoples

was placed under the Department of Agrarian Reform by Executive
Order No. 364 entitled TRANSFORMING THE DEPARTMENT
OF AGRARIAN REFORM INTO THE DEPARTMENT OF LAND
REFORM on September 27, 2004;
1421
WHEREAS, there is a continuing need to remain vigilant in

protecting the rights and guaranteeing the respect for the cultural
integrity of indigenous cultural communities and indigenous peoples,
and ensuring that all members of indigenous cultural communities
and indigenous peoples benefit on an equal footing from the rights
and opportunities which national laws and regulations grant to
other members of the population;

Resources is mandated to be the primary agency responsible for
the conservation, management, development, and proper use of the
country’s environment and natural resources and one of its objectives
is to conserve specific terrestrial and marine areas representative of
the Philippine natural and cultural heritage for present and future
generations and one of its powers is the preservation of cultural and
natural heritage through wildlife conservation and segregation of
national parks and other protected areas;

departments, bureaus and offices and shall ensure that all laws be
faithfully executed;
WHEREAS, paragraph 2, Section 31, Chapter 10, Title III,

Book III of Executive Order No. 292 grants the President the
continuing authority to reorganize the administrative structure of
the Office of the President and the power to transfer any function
under the Office of the President to any other Department;
NOW, THEREFORE, I, GLORIA-MACAPAGAL-ARROYO,

SECTION 1. Placement under the Department of Environment

and Natural Resources. The National Commission on Indigenous
Peoples is hereby placed under the Department of Environment and
Natural Resources
1422

immediately.
DONE in the City of Manila, this 23rd day of May, in the year
of Our Lord, Two Thousand and Eight.
By the President:

Executive Secretary
1423
MALACAÑANG
MANILA
AMENDING EXECUTIVE ORDERS NO. 183 CREATING THE

NATIONAL FOOD AND AGRICULTURE COUNCIL (NFAC),
AS AMENDED BY EXECUTIVE ORDER NO. 596
WHEREAS, the National Food and Agriculture Council

(NFAC) was created by virtue of Executive Order No. 183, dated
May 6, 1969, vested with the sole authority and responsibility to
coordinate, supervise and integrate all programs of all agencies of
the national government concerning the production, stabilization,
distribution, and marketing of rice, corn, and other prime food
commodities;
WHEREAS, NFAC has proven to be an effective machinery

for mobilizing the resources of the government and private sector
towards achieving rice self-sufficiency and establishing coordination
in food and agricultural development;
WHEREAS, in the light of the tight world food situation and

increased oil prices, there is an urgent need for NFAC to intensify
and expand and pursue other food and agricultural thrusts and
strategies;
WHEREAS, there is a need to expand the scope, jurisdiction

and authority of NFAC to further empower it to administer the
expanded functions and activities and strengthen its coordinating
capabilities;

of the Republic of the Philippines, by virtue of the powers vested
in me by law, and pursuant to Executive Order No. 183, which is
hereby amended, do hereby strengthen the NFAC.
1424
SECTION 1 – The NFAC which shall be charged with

coordinating, supervising, and integrating programs in food
production shall have the following functions and powers:
a. Define the goals and scope of the country’s food policies,

programs and plans on a continuing basis;
b. Develop long and short range food development programs

based on a multi-disciplinary, inter-agency, and systems
approach for the various food commodities;
c. Establish system of priorities for food production having

linkages with the research, nutrition, marketing, processing,
and financing sectors;
d. Provide for a systematic program for the transfer of

technology and the development of agricultural extension
workers as charge agents;
e. Provide a mechanism for assessment of progress and

adjustments in the implementation of food programs;
f. Provide for the appropriate incentives/grants to encourage

its highly qualified employees to continue serving their
respective areas of responsibilities;
g. Draw from and negotiate for funds, not otherwise specifically

allocated in the National Budget, and all other possible fund
sources, for the establishment of sufficient fund resources to
support the food self-sufficiency programs;
h. Supervise, coordinate and evaluate the activities and

accomplishments of all agencies of the government charged
with the prosecution of the different aspects of the food self-
sufficiency program. Accordingly, it shall coordinate the
release of public funds in accordance with approved programs
and projects in food;
1425
i. It shall have the power and authority to call on any ministry,

bureau, office, agency and other instrumentalities of the
government for assistance in the form of personnel, facilities
and other resources as the need arises, during the discharge
of its functions;
j. It shall perform other functions as may be necessary to attain

the objectives of the national food self-sufficiency program and
shall discharge such other duties as the President may direct;
k. It shall have the authority to create National Management

Committees that shall supervise, coordinate and manage
national food programs.
SEC. 2 – The Council shall be composed of the following

officials or duly-accredited representatives:
1. The Minister, Ministry of Agriculture-Chairman-

Coordinator
2. The Minister, Ministry of Agrarian Reform
3. The Ministry, Ministry of Local Government and Community

Development
4. The Administrator, National Food Authority
5. The Minister, Ministry of the Budget
6. The Minister, Office of Media Affairs
7. The Minister, Ministry of Natural Resources
8. The Governor, Central Bank of the Philippines
9. The Chancellor, University of the Philippines at Los Baños
1426
10. The Director-General, Philippine Council for Agriculture

and Resources Research
11. The President, Philippine National Bank
12. The President, Land Bank of the Philippines
13. The Chairman, Development Bank of the Philippines
14. The Administrator, National Irrigation Administration
15. The Administrator, Agricultural Credit Administration
16. The Administrator, Farm Systems Development

Corporation
17. The Administrator, Fertilizer and Pesticide Authority
18. The Executive Director, National Nutrition Council
19. The President, Philippine Crop Insurance Corporation
20. The President, Agrarian Reform Beneficiaries Association
21. The President, Federation of Agrarian and Industrial

Toiling Hands, Inc./HUKBALAHAP Veterans Association
22. The President, Federation of Farmers Associations of the

Philippines
23. The President, Federation of Free Farmers
24. The President, Federation of Land Reform Farmers
25. The President, Katipunan ng mga Magsasaka sa Pilipinas
26. The President, Pambansang Katipunan ng mga Samahang

Nayon ng Pilipinas
1427
SEC. 3 – Officers of the Council. —
The Chairman-Coordinator shall have the power and

responsibility of administering, directing and managing the
implementation of the policies and programs of the Council.
An Executive Director and Deputy Executive Director shall

be appointed by the Council. They shall implement the policies,
programs, projects and decisions of the Council as well as prepare
an organizational plan and plantilla of personnel subject to the
approval of the Council.
One or more Assistant Executive Directors may be appointed

by the Council and shall assist the Executive Director/Deputy
Executive Director in the performance of his duties or take charge
of special projects assigned to them.
The Council shall hire such other personnel as may be

necessary for the performance of its basic functions. The salaries
and other prerequisites of technical and professional staff and such
other positions as the Council may declare to be highly technical,
policy determining or primarily confidential shall be determined
and fixed by the Council. All other positions shall be subject to
Civil Service rules and regulations and the Wages and Position
Classifications Office: Provided, That all personnel shall be entitled
to the benefits and privileges normally accorded to government
employees, such as retirement, GSIS insurance, leave and similar
privileges; PROVIDED further, That in appointment and promotion
of employees, merit and efficiency shall serve as basis, and no
political test or qualification shall be prescribed and considered for
such appointments and promotions.
All laws, decrees, orders, rules and regulations inconsistent

herewith are hereby repealed and/or modified accordingly.
1428

year of Our Lord, Nineteen Hundred and Eighty-One.

By the President:

EO 754 s. 1981 amended EO 183 s. 1969.

EO 754 s. 1981 amended EO 596 s. 1980.
1429
MALACAÑANG
MANILA
PROVIDING THE PROCEDURES AND GUIDELINES FOR THE

EXPEDITIOUS ACQUISITION BY THE GOVERNMENT
OF PRIVATE REAL PROPERTIES OR RIGHTS THEREON
FOR INFRASTRUCTURE AND OTHER GOVERNMENT
DEVELOPMENT PROJECTS
WHEREAS, one of the major causes of delays in the

implementation of development projects, particularly national
infrastructure projects, has been the processing of acquisitions of
private properties or rights-of-way (ROW) thereon which are needed
for said projects, and the settlement of claims for payment thereof;
WHEREAS, such property or ROW acquisitions are being

hampered by several problems such as refusal of land owners/
tenants to allow government personnel to enter the property during
parcellary surveys, refusal of owners to sell because of cultural/
personal value attached to the property, difficulties encountered
by land owners in complying with existing rigid governmental
requirements for payment of claims, and delays in issuance of court
orders in expropriation cases;
WHEREAS, the delays in the implementation of development

projects due to the aforementioned problems on property/ROW
acquisitions have been causing a big drain on the government’s
financial resources in view of increased project costs specifically in
terms of commitment fees on undrawn balance of foreign loans and
price escalation;
WHEREAS, there is an urgent need to amend existing rules

and regulations, as well as to adopt new procedures and guidelines
in order to expedite the acquisition of private property or rights
1430
thereon needed for infrastructure and other development projects

of the government;

me by the Constitution, do hereby order and direct as follows:
SECTION 1. Scope and Applicability.—The provisions of

this Executive Order shall govern all acquisitions of private real
properties or rights-of-way (ROW) thereon needed for infrastructure
projects and other development projects of the government which
are undertaken by any ministry, agency, office or instrumentality
of the government, including government-owned or controlled
corporations and state colleges and universities.
TITLE A
Activities Preparatory to Acquisition of Property
SEC. 2. Feasibility Studies.—Feasibility studies shall be

undertaken for all major projects, and such studies shall, in addition
to the usual technical, economic and operational aspects, include the
social, political, cultural and environmental impact of the project.
SEC. 3. Information Campaign.—Every agency, office and

instrumentality of the government proposing to implement a
development project which requires the acquisition of private
real property or rights thereon shall first make consultations
with the local government officials, including the regional
development councils having jurisdiction over the area where the
project will be undertaken to elicit their support and assistance
for the smooth implementation of the project. The implementing
agency/instrumentality concerned with the assistance of the local
government officials and representatives of the Office of Media
Affairs shall conduct an extensive public information campaign
among the local inhabitants that will be affected by the project to
acquaint them with the objectives and benefits to be derived from
the project and thus avoid any resistance to or objection against the
acquisition of the property for the project.
1431
SEC. 4. Detailed Engineering/Surveys.—The implementing

government agency/instrumentality concerned shall, well in
advance of the scheduled construction of the project, undertake
detailed engineering, including parcellary surveys to indicate the
location and size of the sites and to determine ownership of the land
to be acquired, including the status of such land ownership.
SEC. 5. Project Cost/Funding.—The estimated cost of a

project shall have the following distinct components:
a. Pre-investment cost which shall include the cost of

undertaking the feasibility study and public information campaign;
b. Investment cost which shall include the cost of detailed

engineering, cost of the property to be acquired and cost of
construction and construction supervision.
The programming and budgeting of funds for the pre-

investment and pre-construction phases, carried out in that order,
shall be undertaken well in advance of the scheduled commencement
of construction. The implementing agency/instrumentality
concerned shall include in their respective proposals for annual
budgetary outlays provisions to finance these preparatory activities
and the Office of Budget and Management (OBM) shall consider
such proposals in the light of the foregoing. In the case of the
infrastructure ministries, the necessary outlays for each phase of the
pre-implementation activities shall be made a distinct component of
the annual infrastructure program which shall be released by the
OMB as scheduled.
TITLE B
Procedure for Acquisition of Property
SEC. 6. Acquisition Through Negotiated Sale.—As an initial

step, the government implementing agency/instrumentality
concerned shall negotiate with the owner of the land that is needed
for the project for the purchase of said land, including improvements
thereon. In the determination of the purchase price to be paid, the
1432
Ministry of Finance and the Provincial/City/Municipal Assessors

shall extend full assistance and coordinate with the personnel of
the government implementing agency concerned in the valuation
of lands and improvements thereon taking into consideration the
current and fair market value declared by the owner or administrator
of the land, or such current market value as determined by the
assessor, whichever is lower, prior to the negotiation.
SEC. 7. Expropriation.—If the parties fail to agree in negotiation

of the sale of the land as provided in the preceding section, the
government implementing agency/instrumentality concerned shall
have authority to immediately institute expropriation proceedings
through the Office of the Solicitor General or the Government
Corporate Counsel, as the case may be. The just compensation to
be paid for the property acquired through expropriation shall be
in accordance with the provisions of P.D. No. 1533. Courts shall
give priority to the adjudication of cases on expropriation and shall
immediately issue the necessary writ of possession upon deposit by
the government implementing agency/instrumentality concerned of
an amount equivalent to ten per cent (10%) of the amount of just
compensation provided under P.D. No. 1533; Provided, That the
period within which said writ of possession shall be issued shall in
no case extend beyond five (5) days from the date such deposit was
made.
SEC. 8. Conditions Precedent to Foreign Loan Negotiation.—

As a general rule, negotiations for foreign loans to finance specific
construction projects and other projects requiring acquisition of
private real property or rights thereon shall be undertaken only after
the negotiation for such acquisition with the property owner/s have
been completed or the expropriation proceedings have been initiated:
Provided, That before the filing of expropriation proceedings, the
financing institution must have already favorably appraised the
project: Provided, further, That exceptions to the above rule may
be allowed by the Investment Coordination Committee (ICC) on a
case-to-case basis depending on the type, size and technology of the
project involved. In such case, the ICC shall determine the extent/
stage of property acquisition that may be required as a pre-condition
1433
for project approval or for negotiation of a foreign loan to finance the

project.
TITLE C
Procedure for Payment and Registration of Property Row
Acquisitions
SEC. 9. Assessment of Taxes Due.—The Bureau of Internal

Revenue and the respective Provincial/City/Municipal Treasurers
shall assess the following taxes, where applicable, on the property
being acquired:
a) Capital gains tax due on the gains derived from the sale of
the real property to the government;
b) Estate tax due on the portion of the estate of a deceased

owner to be acquired by the government; and
c) Unpaid real estate taxes on the property up to the time the

government took possession thereof.
Such assessment shall be made and transmitted to the

government implementing agency/instrumentality concerned
within one (1) week from the submission of complete requirements.
SEC. 10. Withholding Tax/Tax Clearance.—Upon receipt

of the assessment of the aforementioned taxes, the government
implementing agency/instrumentality concerned shall issue a
certification that upon payment to the landowner, it shall deduct
the corresponding capital gains tax and any unpaid estate tax and
real estate tax.
On the basis of such certification, the BIR and the respective

Provincial/City/Municipal Treasurers shall issue the tax clearances
for the registration of the property in favor of the government
implementing agency/instrumentality concerned.
1434
All taxes deducted shall be immediately remitted by the

government implementing agency/instrumentality concerned to the
BIR or the Provincial/City/Municipal Treasurer, as the case may be.
SEC. 11. Payment for Improvements on the Property

Acquired.—Payments for the improvements on property acquired
which are not included in the respective tax declaration of the
owner, shall be based on the physical inventory report prepared and
certified to by the representatives of the agency, the Commission
on Audit, and the claimant. In addition thereto, claims for payment
of improvements must be supported by an affidavit of the claimant
and affidavit of two (2) adjoining land owners or barangay officials
attesting to or substantiating the ownership of said improvements.
SEC. 12. Indemnity Bond for Untitled Lands.—In case where

the property acquired is untitled, the government implementing
agency/instrumentality concerned shall require the land owner
to post an indemnity or property bond, the amount of which shall
be fixed by the Provincial/City/Municipal Treasurer concerned on
the basis of the market value as determined by the assessor and
as appearing on the current tax declaration of the property. This
requirement shall be dispensed with where the claim for payment
does not exceed P50,000.
SEC. 13. Period for Payment.—The payment of property

acquired shall be effected by the implementing government
agency/instrumentality concerned within ninety (90) days upon
approval by appropriate higher authorities of the negotiated sale
and submission by the land owner of all required documents. In
the case of property acquired through expropriation, payment shall
be effected within ninety (90) days from the finality of the decision
rendered by the court: Provided, That if at the time of finality of the
decision the funds originally allotted to cover the cost of the property
are no longer available due to expiration of the pertinent release
instruments, payment shall be made upon the release of funds by
the OBM which is hereby directed to effect the immediate release
thereof, chargeable against available and applicable appropriations
thereof.
1435
SEC. 14. Properties Covered by Operation Land Transfer.—In

case the land acquired is covered by the Operation Land Transfer
of the Ministry of Agrarian Reform under P.D. No. 27, payment
of the purchase price shall be made by the implementing agency/
instrumentality concerned to the farmer-beneficiary owning such
land by virtue of an emancipation patent issued by the Ministry
of Agrarian Reform, free from all liens and encumbrances. If the
land is not covered by an emancipation patent, or even if covered
by an emancipation patent but the farmer-beneficiary is still
amortizing the same with the Land Bank, payment shall be made
by the government implementing agency/instrumentality to the
land owner, or the Land Bank, as the case may be: Provided, That
any amortization payments made by the farmer-beneficiary to
the land owner, or the Land Bank, as the case may be, shall be
deducted by the government implementing agency/instrumentality
from the purchase price and shall be paid to the farmer-beneficiary:
Provided, further, That the farmer-beneficiary shall be entitled to
the financial assistance provided for under Section 18 hereof.
SEC. 15. Approval of Survey Plans.—The National Land Titles

and Deeds Registration Administration and the Bureau of Lands
shall give priority to the approval of all survey plans of parcels of
land affected by government projects which have been filed under
their respective jurisdiction.
SEC. 16. Registration of Deed of Conveyance.—The Register

of Deeds shall register the deed of conveyance and issue the
corresponding title in favor of the government within seven (7)
days from the date of presentation of such deed together with the
certification provided in Section 10 hereof.
The Register of Deeds shall also register the ROW agreement

executed by the land owner in favor of the government for the ROW
easement acquired by the latter over his property.
1436
TITLE D
Assistance to Displaced Tenants/Occupants
SEC. 17. Relocation/Resettlement of Tenants/Occupants

Affected by Property/ROW Acquisitions.—In case where the land to
be acquired for the project would involve displacement of tenants,
farmers and other occupants, the Ministry of Human Settlements,
Ministry of Agrarian Reform and other concerned agencies shall
extend full cooperation and assistance to the implementing agency/
instrumentality concerned in the relocation and resettlement of
such displaced tenants and occupants.
SEC. 18. Financial Assistance to Displaced Tenants/

Occupants.—The government implementing agencies/
instrumentalities concerned shall extend financial assistance to
the displaced tenants of agricultural lands, cultural minorities and
settlers who are duly accredited by the Ministry of Agrarian Reform/
Bureau of Forest Development/Office of Muslim Affairs and Cultural
Communities. In the case of cultural minorities, payment of such
financial assistance shall be based on land occupancy certificates
pursuant to the provisions of P.D. 410. The amount of financial
assistance to be given to tenants/farmers of agricultural lands
which is to be determined by the implementing agency concerned
in consultation with appropriate agencies, shall be equivalent to
the value of the gross harvest for one year on the principal and
secondary crops of the area acquired, based on the average annual
gross harvest for the last three preceding crop years: Provided, That
in no case shall the financial assistance be less than P15,000.00 per
hectare.
Financial assistance may also be given to owners of lands

acquired under CA 141, as amended, for the area of portion subject
to the reservation under Section 112 thereof in such amounts as
may be determined by the implementing agency/instrumentality
concerned, in consultation with the Commission on Audit and the
assessor’s office concerned.
1437
Payment of the abovementioned financial assistance shall be

made at the time of relocation of the tenants/farmers.
SEC. 19. Repealing Clause.—All executive orders, instructions,

rules and regulations or parts thereof inconsistent with this
Executive Order are hereby repealed or modified accordingly.
SEC. 20. Effectivity.—This Order shall take effect immediately.
of Our Lord Nineteen Hundred and Eighty-Five.

By the President:

1438
MALACAÑANG
MANILA
FURTHER IMPLEMENTING PRESIDENTIAL DECREE NO. 1726

IN THE MINISTRY OF JUSTICE, MINISTRY OF AGRARIAN
REFORM AND MINISTRY OF LABOR AND EMPLOYMENT
AND ALL OTHER MINISTRIES OF THE NATIONAL
GOVERNMENT
WHEREAS, Presidential Decree No. 1726 provides for a

new schedule of salary rates for lawyer positions in the Ministry of
Justice and its bureaus, commissions and agencies;
WHEREAS, under Executive Order No. 670, partial

implementation of the new rates were authorized, further
implementation to be subject to the OBM review of the designations,
titles and salary rates of positions covered by Presidential Decree No.
1726 to ensure uniformity in the use of titles and designations and
in cases involving relationships between superior and subordinate
positions;
WHEREAS, it is necessary in the MOJ, MAR and MOLE

to fully implement PD 1726 to attain equity in compensation for
premier positions in these ministries;

hereby order and direct:
SECTION 1. The lawyer positions in the Ministry of Justice,

Ministry of Agrarian Reform and Ministry of Labor and Employment
allocated to the following classes are hereby adjusted in accordance
with the provisions of PD No. 1726 as follows:
1439
Upgraded Salary Rate

HEARING OFFICIATING GROUP
Hearing Officer III P52,452
Hearing Officer IV 57,912
Chief Hearing Officer 57,912
IMMIGRATION AND ALIEN REGULATION
GROUP
Immigration Executive Officer P60,876
LAND REGISTRATION GROUP
Deeds Registry Inspector P26,388
Supervising Deeds Registry Inspector 45,204
Deputy Register of Deeds I 45,204
Register of Deeds I 49,896
Deputy Register of Deeds II 49,896
Deputy Register of Deeds III 52,452
Assistant Chief Deeds Registry Inspector 52,452
Land Registration Special Assistant 52,452
Land Registration Deputy Clerk of Court 52,452
Register of Deeds II 52,452
Deputy Register of Deeds IV 57,912
Land Registration Clerk of Court 57,912
Chief Deeds Registry Inspector 57,912
Senior Land Registration Special Assistant
(Special Asst. to the LRC Commissioner) 57,912
Register of Deeds III 57,912
LRC Administrative Officer 57,912
Land Registration Legal Affairs Chief 60,876
Register of Deeds IV 60,876
1440
LABOR RELATIONS PROMOTION AND

CONCILIATION GROUP
Labor Relations and Promotion Officer P45,204
Labor Arbitration Specialist 49,896
Sr. Labor Relations and Promotion Officer 49,896
Sr. Labor Arbitration Specialist 52,452
Supervising Labor Relations and Promotion
52,452
Officer
Chief Labor Relations and Promotion Officer 57,912
Chief Labor arbitration Specialist 60,876
LEGAL COUNSELING GROUP
Legal Officer I (Including Legal Officer I for
New Bilibid Prison and Leyte Regional Prison) P25,116
Legal Officer II 25,116

Legal Officer III 38,964
Legal Officer I (Bureau of Prisons except Legal
Officer I of New Bilibid Prison and Leyte 45,204
Regional Prison)
Legal Officer IV 45,204
Senior Legal Officer 49,896
Assistant Chief Legal Officer 52,452
Chief Legal Officer 57,912
Overseas Employment Legal Counsel 57,912
LEGAL RESEARCH GROUP
Research Attorney I P25,116
Research Attorney II 38,964
Senior Research Attorney 45,204
Chief Research Attorney 52,452
TRIAL ATTORNEYS GROUP
CLAO Trial Attorney P38,964
1441
Citizens Attorney 45,204

District Citizens Attorney 52,452
Senior Citizens Attorney 57,912
Supervising Citizens Attorney 57,912
SEC. 2. Lawyer positions in other ministries following the

National Compensation and Classification Plans allocated to the
following classes are adjusted by two salary steps from authorized
salary under E.O. No. 1000 as follows:
ELECTION ADMINISTRATION GROUP

Comelec Field Supervisor P32,196
Provincial Election Supervisor I 32,196
Provincial Election Supervisor II 35,568
Provincial Election Supervisor III 39,288
Provincial Election Supervisor IV 43,392
Chief Elections Officer 43,392
HEARING OFFICIATING GROUP
Hearing Officer I P19,584
Hearing Officer II 21,624
Hearing Officer III 25,116
NAPOLCOM, Hearing Officer 27,732
Hearing Officer IV 30,636
NAPOLCOM Supervising Hearing Officer 30,636
Chief Hearing Officer 39,288
LEGAL COUNSELLING GROUP
Legal Officer I P17,724
Legal Officer II 19,584
MIA Legal Officer 20,580
Legal Officer III 21,624
Election Attorney 23,892
1442
Legal Officer IV 23,892

PRC Attorney 23,892
COA Attorney 23,892
Civil Service Attorney 23,892
MIA Senior Legal Officer 25,116
Senior Legal Officer 26,388
MIA Supervising Legal Officer 27,732
PRC Senior Attorney 29,148
COA Senior Attorney 29,148
Senior Civil Service Attorney 29,148
Senior Elections Attorney 29,148
Assistant Chief Legal Officer 32,196
MIA Chief Legal Officer 32,196
Supervising Elections Attorney 35,568
PRC Supervising Attorney 35,568
COA Supervising Attorney 35,568
Supervising Civil Service Attorney 35,568
Supervising Civil Service Legal Counsel 35,568
Chief Legal Officer 37,380
Assistant Ministry Legal Counsel 39,288
NAPOLCOM Legal Affairs Asst. Branch Head 39,288
Ministry Legal Counsel 41,292
NAPOLCOM Legal Affairs Branch Head 41,292
PRC Chief Attorney 43,392
Chief Civil Service Attorney 43,392
Chief Civil Service Counsel 43,392
Chief Elections Attorney 43,392
COA Chief Attorney 43,392
LEGAL RESEARCH GROUP
1443
Court Decision Reporter P17,724

Research Attorney I 17,724
Research Attorney II 21,624
Senior Research Attorney 23,892
Labor Appeals Research Attorney 29,148
Chief Research Attorney 33,840
TRIAL ATTORNEYS GROUP
Trial Attorney I P19,584
Trial Attorney II 23,892
Trial Attorney III 26,388
Trial Attorney IV 37,380
SEC. 3. Notwithstanding the salary adjustments in Section

1 and 2 herein positions in the Career Executive Service and their
equivalent shall continue to be paid in accordance with the rules
and regulations of the Career Executive Service and are not be
exceeded or equalled by subordinates.
SEC. 4. Adjustments of salary shall be subject to the condition

that no subordinate shall be paid higher than the immediate
supervisor.
SEC. 5. The salary of positions covered by Presidential Decree

No. 1726 and Letter of Implementation No. 127 as implemented
by Executive Order No. 670 for lawyer positions which are not
mentioned in Section 1 herein shall continue to be paid in accordance
with the provisions of said executive order.
SEC. 6. The procedure rules and regulations needed to carry

out this order shall be formulated and issued by the Office of Budget
and Management.
SEC. 7. The amounts necessary to cover the salary increases

as herein provided shall be charged against salary lapses and other
personal services, maintenance and other operating expenses,
1444
savings in the respective appropriations of commissions, bureaus

and offices concerned and the Salary Adjustment Fund.
SEC. 8. The salary increases shall be effective January 1,

1985 subject to availability of funds.
Done in the City of Manila, this 22nd day of October in the

year of Our Lord, Nineteen Hundred and Eighty-Five.

By the President:

1445
MALACAÑANG
MANILA
CONDONATION OF ACCRUED INTERESTS ON OVERDUE

LAND AMORTIZATION PAYMENTS AND/OR RENTALS BY
AGRARIAN REFORM BENEFICIARIES IN ALL LANDED
ESTATES ADMINISTERED BY THE MINISTRY OF
AGRARIAN REFORM
WHEREAS, due to force majeure and other economic

difficulties, the farmer-beneficiaries in government-acquired landed
estates have generally failed to pay their land amortization and/or
rentals in these estates;
WHEREAS, accrued rentals and interest in these estates

have accumulated to a considerable amount whereby the farmer-
beneficiaries concerned can not afford to pay;
WHEREAS, it is the policy of the government to extend

all possible assistance to farmers especially during this period of
national economic recovery;
NOW THEREFORE, I, FERDINAND E. MARCOS, President

hereby condone all accrued interest on the overdue land amortization
of all agrarian interest on the overdue land amortization of all
agrarian reform beneficiaries and/or the rental payments in these
estates as of December 31, 1985.
1446

year of Our Lord, nineteen hundred and eighty-six.

By the President:

1447
1448
EXECUTIVE ISSUANCES – ADMINISTRATIVE ORDERS
Administrative Orders
1449
1450
MALACAÑANG
MANILA

OF THE PHILIPPINES
ADMINISTRATIVE ORDER NO. 72, s. 1963
CREATING A SPECIAL COMMITTEE ON REORGANIZATION OF

AGENCIES FOR LAND REFORM
WHEREAS, there is need to implement the Land Reform

Program and thus attain its objectives;
WHEREAS, the machinery that will be established to carry

out the Program will determine, to a large extent, its success;
WHEREAS, it is imperative that the agencies involved be

reorganized as one integrated unit to avoid the proliferation of
efforts and conflicting directions resulting from each individual
agency undertaking its own reorganization; and
WHEREAS, because of the complex nature of the land reform

machinery established, the reorganization of agencies should be
made with the assistance and guidance of people who know the
requirements of the Land Reform Program, the process involved in
agricultural development, and the needs of farmers.
NOW, THEREFORE, I, DIOSDADO MACAPAGAL, President

hereby create a Special Committee on Reorganization of Agencies
for Land Reform.
Hon. Sixto K. Roxas, Chairman, National Chairman

Economic Council
Hon. Benjamin Gozon, Secretary of
Agriculture and Natural Resources Member
1451
Hon. Bernardino Abes, Secretary of

Labor Member
Hon. Salvador L. Marino, Secretary
of Justice Member
Hon. Rodrigo Perez, Jr., Secretary
of Finance Member
Hon. Brigido Valencia, Secretary of
Public Works and Communications Member
Hon. Macario Peralta, Jr., Secretary of
National Defense Member
Mr. Teodoro Locsin, representing
the public Member
Hon. Faustino Sy-Changco, Member
Budget Commissioner
The Committee shall have the following functions:
1. To facilitate the transfer of powers, duties, responsibilities,

assets, liabilities, supplies, equipment, personnel, files, records, and
unexpended balances of agencies abolished to the new agencies.
2. To set up the organizational structure of the following

agencies:
a. Land Authority
b. Land Bank
c. Agricultural Productivity Commission
d. Agricultural Credit Administration
e. Office of the Agrarian Council
3. To conduct the training and placement of personnel.
4. To establish policies and guidelines for land reform.
5. To standardize procedures for implementation and

evaluation.
6. To reassess and revise land tax schedules according to the

objectives of land reform.
1452
7. To facilitate an aerial photography survey of the country

according to the needs of various agencies.
The Committee shall organize itself into the following teams

to undertake; the specific areas of work required:
1. Accounting Team
2. Legal Team
3. Management Team
4. Agriculture Team
The Committee shall meet at the call of the Chairman and, for
the purpose of discharging its functions, is hereby authorized to call
upon any department, bureau, office, agency, or instrumentality
of the Government for such information and assistance as it may
require in the performance of its work.
The Committee shall submit to the President its report and

recommendations as soon as possible.
Done in the City of Manila, this 2nd day of August, in the year
of Our Lord, nineteen hundred and sixty-three.

By the President:
(Sgd.) RUFINO G. HECHANOVA

Executive Secretary
1453
MALACAÑANG
MANILA
REQUIRING ALL EXECUTIVE DEPARTMENTS, BUREAUS, AND

OFFICES TO RENDER FULL ASSISTANCE TO THE LAND
REFORM AGENCIES UNDERTAKING IMPLEMENTATION
OF THE AGRICULTURAL LAND REFORM CODE
WHEREAS, the reforms contemplated by the Agricultural

Land Reform Code are important and extensive;
WHEREAS, the organization established by the Code to

undertake these reforms may be hampered by a lack of complement
and resources sufficiently oriented to agriculture and the
requirements of such reforms;
WHEREAS, such complement and resources may be made

available from other executive agencies of the Government without
unduly impairing the public service; and
WHEREAS, it is also essential to achieve economy and avoid

duplication of efforts in the implementation of the intended reforms;
NOW, THEREFORE, I, DIOSDADO MACAPAGAL, President

hereby require and authorize all Executive Departments, Bureaus,
and Offices to:
1. Render full and adequate assistance to the National Land

Reform Council in the implementation and execution of any land
reform project instituted by the Council;
2. Provide the aforementioned assistance upon request of the

Land Reform Council, in the form of personnel and other resources
available from the Department, Bureau, or Office concerned, and in
1454
the terms of the manpower, resource, and other requirements of the

project;
3. Give full priority and immediate attention to any such

request of the Land Reform Council made in proper form and by its
authority; and
4. Charge such assistance to the account of the Department,

Bureau, or Office providing the same, or to the benefiting land
reform agency, or to both, in accordance with special arrangements
made under existing laws or rules and regulations.
Done in the City of Manila, this 15th day of October, in the

year of Our Lord, nineteen hundred and sixty-three.

By the President:
(Sgd.) RUFINO G. HECHANOVA

Executive Secretary
1455
MALACAÑANG
MANILA
CREATING A FACT-FINDING COMMITTEE WITH PLENARY

POWERS TO INVESTIGATE AND DETERMINE ALL
THE FACTS AND CIRCUMSTANCES REGARDING THE
VOLUNTARY OFFER TO SELL THE GARCHITORENA
LAND IN CAMARINES SUR AND THE PROCEEDINGS
RELATIVE THERETO UNDER THE AGRARIAN REFORM
PROGRAM
There is hereby created a FACT-FINDING COMMITTEE

(hereinafter referred to as the Committee) for the purpose of
investigating and determining all the facts and circumstances
regarding the voluntary offer to sell the Garchitorena land in
Camarines Sur and the proceedings relative thereto under the
Agrarian Reform Program. The Committee shall be composed of:
JOSE Y. FERIA Chairman

Retired Justice of the Supreme Court
NESTOR B. ALAMPAY Member
Retired Justice of the Supreme Court
LEON M. GARCIA, JR. Member
President of the Integrated Bar of the Philippines
For the purpose of investigation, the Committee is hereby

granted all the powers of an investigating body under Sections 71
and 580 of the Revised Administrative Code, including the power to
summon witnesses, administer oaths, take testimony or evidence
relevant to the investigation, and to obtain compulsory powers to
produce documents, books, records and such other matters in the
The Deputy Executive Secretary shall establish a Secretariat

for the technical and staff support of the Committee. For this
purpose, he is hereby authorized to detail any personnel from any
government office to assist the Committee.
1456
All the departments, bureaus, offices, agencies or

instrumentalities including government owned or controlled
corporations are hereby directed to extend such assistance and
cooperation as the Committee may need in the discharge of its
functions.
The Committee shall submit its findings and recommendations

to the President of the Philippines.
DONE in the City of Manila this 26th day of May in the year
of Our Lord, nineteen hundred and eighty-nine

By the President:

Executive Secretary
1457
MALACAÑANG
MANILA
CREATION OF AN INTER-AGENCY TASK FORCE FOR

THE CONDONATION OF AGRARIAN REFORM LAND
AMORTIZATION LIABILITIES AND FOR OTHER PURPOSES
WHEREAS, Article XIII, Section 4 of the 1987 Constitution

mandates the State to undertake, by law, an agrarian reform
program founded on the right of farmers and regular farmworkers
who are landless to own directly or collectively the lands they till or,
in the case of other farmworkers, to receive a just share of the fruits
thereof;
WHEREAS, Republic Act. No. (RA) 6557 otherwise known

as the Comprehensive Land Reform Law of 1988, was enacted to
institute the Comprehensive Agrarian Reform Program (CARP)
to promote social justice and move the nation toward sound rural
development and industrialization;
WHEREAS, Section 26 of RA 6557 provides that lands

awarded through CARP shall be paid for by the beneficiaries of the
Land Bank of the Philippines in thirty (30) annual amortizations at
six percent (6%) per annum;
WHEREAS, there is a need to review the possibility of

condoning outstanding land amortization liabilities of agrarian
reform beneficiaries (ARBs);
NOW THEREFORE I, GLORIA MACAPAGAL-ARROYO,

SECTION 1. Creation of the Inter-Agency Task Force. – An

Inter-Agency Task Force is hereby created to review the possibility
of condoning outstanding land amortization liabilities of ARBs:
1458
Chairman : Secretary of Agrarian Reform

Members : Secretary of Justice Secretary of Finance
Representative from the Land Bank of the
Philippines
Representative from the Agrarian Reform

Beneficiaries Association
The Department of Agrarian Reform shall serve as Secretariat

for the Inter-Agency Task Force.
SEC. 2. Functions of the Inter-Agency Task Force. – The

Inter-Agency Task Force shall perform the following functions:
a. Evaluate and recommend reforms in the existing agrarian

reform models; and
b. Evaluate the proposed condonation of outstanding

amortization liabilities of ARBs to effect genuine land redistribution.
The Inter-Agency Task Force shall submit to the President a

report on the foregoing concerns within One Hundred Twenty (120)
days from the effectivity of this order.
SEC. 3. Inter-Agency Coordination. – All national government

agencies concerned and attached agencies, local government
units, government-owned and controlled corporations and other
instrumentalities of the government are hereby directed to cooperate
and give their full support to the Inter-Agency Task Force.
SEC. 4. Repealing Clause. – All issuances, rules and regulations

or parts thereof which are inconsistent with this Administrative
Order are hereby repealed or modified accordingly.
SEC. 5. Effectivity. – This Administrative Order shall take

effect immediately.
1459
DONE in the City of Manila, this 11th day of May, in the year
of Our Lord, Two Thousand and Seven.

By the President:

Executive Secretary
1460
MALACAÑANG
OF THE PHILIPPINES
MANILA
CREATING THE PRESIDENTIAL COORDINATING COMMITTEE

FOR SOCIAL JUSTICE AND AGRARIAN REFORMS
WHEREAS, there is a pressing need to attend to the problems

and demand of small farmers belonging to the Federated Movement
for Social Justice and Reforms (FMSJR) from all over the country and
provide solutions therefor in the most expeditious and economical
manner;
WHEREAS, to the various problems and demands of the said

small farmers there are existing Government agencies that can
attend and provide adequate solutions;
AND, WHEREAS, these Government agencies should now be

coordinated in order that their respective functions can be made
to better serve the needs and solve the problems of the said small
farmers without delay;
NOW, THEREFORE, by virtue of the powers vested in me

by law, I, FERDINAND MARCOS, President of the Philippines, do
hereby create a body to be known as the Presidential Coordinating
Committee for Social Justice and Agrarian Reforms composed of
the following: the Chairman of the National Land Reform Council
as Chairman; the Undersecretaries of Justice, Agriculture and
Natural Resources, Public Works and Communications, and of
the Presidential Agency for Reforms on Government Operations,
the Dean of the U.P. College of Agriculture, the Commissioner of
the Small Farmers’ Commission, the President of the Philippine
Press Institute, or their duly authorized representatives, and three
1461
representatives of the Federated Movement for Social Justice and

Reforms, as members.
The Committee shall meet at least twice a month at the Marble

Hall, Department of Agriculture and Natural Resources Building,
Agrifina Circle, Rizal Park, Manila, or in such other places as may
be designated by the Committee,
The Committee shall receive all complaints of the farmers,

tenants, lessees, small owners-cultivators and agricultural workers
belonging to and/or affiliated with the FMSJR group, and it shall
forward and follow-up such complaints and cases with the proper
government offices for immediate appropriate action.
The Committee is authorized to call upon any department,

bureau, office, agency or instrumentality of the government as it
may need to carry out the purposes of this order, and may request
the temporary assignment of such personnel therefrom to the
Committee which shall exercise operational control over them for
the duration of their assignments.
The Committee shall submit to the President periodic reports

regarding the said complaints, grievances and cases received by
them and the corresponding actions taken thereon.
Done in the City of Manila, this 31st day of October, nineteen

hundred and sixty-nine.

By the President:
(Sgd.) ERNESTO M. MACEDA

Executive Secretary
AO 182 s. 1969 was amended by AO 200 s. 1970.
1462
MALACAÑANG
MANILA
REVISING ADMINISTRATIVE ORDER NO. 182 DATED OCTOBER

31, 1969, ENTITLED “CREATING THE PRESIDENTIAL
COORDINATING COMMITTEE FOR SOCIAL JUSTICE AND
AGRARIAN REFORMS.”
Administrative Order No. 182 dated October 31, 1969, is

hereby revised –
(a) by amending the fourth paragraph to read as follows:
“NOW, THEREFORE, by virtue of the powers vested in me by

law, I, FERDINAND E. MARCOS, President of the Philippines, do
hereby create a body to be known as the Presidential Coordinating
Committee for Social Justice and Agrarian Reforms composed of
the following: the Chairman of the National Land Reform Council,
as Chairman, and the Undersecretaries of Justice, Agriculture and
Natural Resources, Public Works and Communications, and the
Presidential Agency on Reforms and Government Operations; the
Dean of the U.P. College of Agriculture; the Commissioner of the
Small Farmers’ Commission; the Chairman of the Philippine Press
Institute; and three representatives of the Federated Movement for
Social Justice and Reforms, as members. In the absence of any of
the aforementioned public officials and citizens, a duly authorized
representative may attend the meeting on his behalf. The Committee
shall choose a Vice-Chairman and such other officers as may be
needed. It may also adopt its internal rules of procedure.”
(b) by modifying the sixth paragraph to read as follows:
“The Committee shall receive all complaints of the farmers,

tenants, lessees, small owner-cultivators and agricultural workers
belonging to and/or affiliated with the FMSJR group, and it shall
1463
forward and follow up such complaints and cases with the proper
government offices for immediate appropriate action. Whenever
necessary, the Committee may conduct a fact-finding investigation,
including the taking of testimony, and may administer oaths and
summon witnesses or require the production of documents under
a subpoena duces tecum under Sections 71 and 580 of the Revised
Administrative Code. For this purpose the PARGO may be utilized by
the Committee in order to expedite the proceedings. The Committee
may recommend the adoption of solutions to the problem brought
out by such complaints.”
Done in the City of Manila, this 13th day of January, nineteen

hundred and seventy.
By the President:
(Sgd.) ERNESTO M. MACEDA

Executive Secretary
AO 200 s. 1970 amended AO 182 s. 1969.
1464
MALACAÑANG
MANILA
CREATING A NATIONAL COMMITTEE ON THE INTERNATIONAL

DECADE FOR THE WORLD’S INDIGENOUS PEOPLES,
AND DECLARING 1995-2005 AS NATIONAL DECADE FOR
FILIPINO INDIGENOUS PEOPLES
WHEREAS, recalling that the UN General Assembly on

18 December 1990 declared 1993 as “International Year for the
World’s Indigenous Peoples: A New Partnership” with the view to
strengthening international cooperation towards the solution of
problems faced by indigenous communities in such areas as human
rights, the environment, education, health, cultural identity,
employment and ancestral domain;
WHEREAS, the Philippines is a signatory to the International

Labour Organization (ILO) Convention 169 Concerning Indigenous
and Tribal Peoples in Independent Countries which is currently
the main international legal instrument protecting the rights of
indigenous peoples, and other international agreements concerning
the environment such as the 1992 UN Convention on Biodiversity
and the Principles on Tropical Forests, which directly concerns the
2 million year old biocultural diversity of indigenous peoples in
their forests;
WHEREAS, the Philippines, through the initiative of

DIALECT-PCCEDIU-International Theatre Institute, FACE/
Earthsavers Movement and the Indigenous Organization, Tribal
Communities Association of the Philippines (TRICAP), all non-
government organizations, initiated the Philippine hosting of the
1988 International Conference and Festival for Indigenous and
Traditional Cultures as a UNESCO launching activity of the UN
Decade of Culture, and which initiative led to a successful Philippine
involvement in the UN General Assembly Declaration of 1993 as
1465
the International Year of the World’s Indigenous Peoples and the

special participation of the Philippines at the inaugural ceremonies
of the UN Year during Human Rights Day on 11 December 1992 at
the UN Headquarters;
WHEREAS, the National Organizing Committee for the

Global Youth Earthsaving Summit (Global YES) created by
Administrative Order No. 28 held in Quezon City on 10-19 April
1993 was the first UN-endorsed international event for the year
on the theme “Indigenous and Youth Partnership for Sustainable
Development” attended by Nobel Laureate and UN Ambassador
for Indigenous Peoples Rigoberta Menchu Tum and Human Rights
Awardee, Prince Alfred von Liechtenstein and 1,500 delegates from
28 countries, preceded by a National Conference on Indigenous
Peoples with its central theme on Indigenous People’s Traditional
Cultures, Ancestral Domain and Self-Governing Communities:
A Philippine Strategy for Sustainable Development” initiated by
Earthsavers, TRICAP and ITI-FACE;
WHEREAS, the Philippines participated in the World

Conference on Human Rights held in Vienna on 14-25 June 1993
which finalized and approved a Draft Universal Declaration on
the Rights of Indigenous Peoples that will chart the UN Human
Rights Program into the next century, and the Secretary General of
the Vienna Conference, Mr. Ibrahima Fall, had expressed interest
in support for the Philippine proposal of an Indigenous Cultural
Olympics;
WHEREAS, the UN General Assembly 48/163 on 3 December

1993, “noted with satisfaction the holding in Manila of a Global
Indigenous Cultural Olympics, reaffirms the role of traditional
cultures in the preservation of the environment underscoring the
right to cultural survival; and
“Welcomes the proposal for a follow-up gathering of indigenous

peoples in 1995, an “Indigenous Peoples Cultural Olympics and
Summit”, to be held in conjunction with the International Decade
of the World’s Indigenous Peoples and the 50th Anniversary of the
United Nations, to reaffirm the value of traditional cultures, folk arts
1466
and rituals as effective expressions of respective national identities,

and as presentation for the shared vision for peace, freedom and
equality”;
WHEREAS, the UNESCO has also designated the “Global

Indigenous Cultural Olympics and Summit for Peace and
Sustainable Development” (GICOS) as an official activity of the
UN Decade of Culture and the observance of UNESCO’s 50th
Anniversary of Culture;
WHEREAS, the International Theatre Institute (ITI) has

unanimously approved and endorsed participation in the GICOS
event at its 26th Congress in Caracas, Venezuela on 24-30 June,
1995, and pledged cooperation of its Theatre Education and Cultural
Identity and Development Program;
WHEREAS, it is now incumbent on the Philippine Government

to undertake such preparations for the Decade beginning with the
Global Indigenous Cultural Olympics and Summit for Peace and
Sustainable Development with the full participation on indigenous
peoples in the planning, implementation, and evaluation of such
program, and other projects and activities that will affect their
living condition now and in the future;

create a National Committee for the International Decade of the
World’s Indigenous Peoples and declare 1995-2005 as the National
Decade of Philippine Indigenous Peoples.
SECTION 1. Composition of the National Committee. – I hereby

designate the following or their duly authorized representatives to
compose the National Committee:
1. Secretary, Department of Foreign Affairs - Member

2. Secretary, Department of Education, Culture and Sports - Member
3. Secretary, Department of Environment and Natural Member
-
Resources
4. Secretary, Department of Health - Member
1467
5. Secretary, Department of Labor and Employment - Member

6. Secretary, Department of Agrarian Reform - Member
7. Secretary, Department of Tourism - Member
8. Secretary, Department of the Interior and Local Member
-
Government
9. Secretary, Department of Public Works and Highways - Member
10. Secretary, Department of Trade and Industry - Member
11. Secretary, Department of Science and Technology - Member
12. Secretary, Department of National Defense - Member
13. Secretary, Department of Agriculture - Member
14. Secretary, Department of Transportation and Member
-
Communications
15. The Press Secretary - Member
16. Presidential Adviser/National Commission on Youth - Member
17. Commission on Human Rights - Member
18. Executive Directors of the
a) Office of Northern Cultural Communities
-
b) Office of Southern Cultural Communities
c) Office of Muslim Affairs
SEC. 2. Functions of the National Committee. – The National

Committee shall prepare the appropriate national program for the
World’s Indigenous Peoples and the National Decade for Filipino
Indigenous Peoples which shall be implemented throughout the
Philippines. The National Committee shall also undertake the
necessary preparations for the participation of concerned agencies
in national and international conferences concerning indigenous
peoples, the development of educational and communications
materials beginning with the holding in the Philippines of the
Global Indigenous Cultural Olympics and Summit on December
1-10, 1995.
The National Committee may secure the cooperation of all

government and private instrumentalities to ensure the success of
its programs. It shall be in liaison with the Senate Committee on
Environment and Education and the House Committee on Cultural
Communities and Youth. The National Committee shall organize a
Secretariat which will implement the programs and projects of the
National Committee and which will include staff members from the
organizing hosts of GICOS which are the TRICAP, coordinating for
the indigenous peoples; the Earthsavers Movement, coordinating for
1468
the environmental NGOs and eco-communications; International

Theatre Institute and FACE center coordinating for cultural
groups, KBP coordinating with media groups, UP System and
CHED for liaison with educational institutions in the tertiary level,
the Philippine Business for Social Progress (PBSP), coordinating
for the business sector, the University of the Philippines; Hotel
and Restaurant Association of the Philippines to assist hospitality
needs; and the MMA for Metro Manila Mayors and PICC/CCP for
venue needs.
The National Committee may create such subcommittees as

it may deem necessary.
SEC. 3. Funding. w– The funds necessary to carry out the

provisions of this Administrative Order shall be taken from funds
available in the Departments and government agencies represented
in the National Committee, the National Commission on Culture
and the Arts, and in the absence or insufficiency thereof, from
any available lump sum appropriation and/or special fund, upon
approval by the President.
SEC. 4. Repealing Clause. – All provisions of Administrative

Order No. 28, Series of 1993 which are inconsistent with the
provisions of this Administrative Order are hereby repealed or
amended accordingly.
SEC. 5. Effectivity. – This Administrative Order shall take

effect immediately.
of Our Lord, Nineteen Hundred and Ninety-Five.
By the President:

Executive Secretary
AO 206 s. 1995 amended AO 28 s. 1993.
1469
MALACAÑANG
MANILA
SUSPENDING THE PROCESSING AND APPROVAL OF ALL

LAND CONVERSION APPLICATIONS OF ALL RICE LANDS
WHEREAS, it is the policy of the state as declared under

Republic Act No. 8435 to assure the availability, adequacy,
accessibility of food supplies to every Filipino at all times;
WHEREAS, the State shall ensure that the poorer sectors of

society have equitable access to resources, income opportunities,
basic and support services especially in areas where productivity
is low;
WHEREAS, the State shall promote food security, including

sufficiency in our staple food, particularly the rice supply;
WHEREAS, to meet the needs of the increasing number of

Filipinos, there is a need for the production of rice to be optimized to
meet our local needs and consumption;
WHEREAS, to ensure sufficient rice supply there is a need for

all lands utilized and intended for rice production to be protected
from any other land use or conversion;

vested in me by the Constitution and the law, do hereby order the
following:
SECTION 1. That the processing and approval of all land

conversions applications affecting rice lands and lands mentioned
under Republic Act No. 8435 considered as Network of Protected
Areas for Agricultural and Agro-industrial Development (NPAAD)
which includes and covers all irrigated areas, all irrigable lands
already covered by irrigation projects; all alluvial plain land highly
1470
suitable for agriculture whether irrigated or not; Agro-industrial

crop lands or lands presently planted to industrial crops that
support the viability of existing agricultural infrastructure and
agro-based enterprises, highlands, areas located at an elevation
of five hundred (500) meters or above and have the potential for
growing semi temperate and high-value crops; all agricultural lands
that are ecological fragile and mangrove areas and fish sanctuaries
shall be temporarily suspended for two (2) years.
SEC. 2. The Department of Agrarian Reform is hereby tasked

for the implementation of this order.
SEC. 3. All orders, rules and regulations and issuances or

parts thereof inconsistent with this Administrative Order are
SEC. 4. This Administrative Order shall take effect

immediately after publication in a newspaper of general circulation.
DONE in the City of Manila, Philippines, this 16th day of

May 2008.
By the President:

Executive Secretary
AO 226 s. 2008 was amended by AO 226-A s. 2008.
1471
MALACAÑANG
MANILA
ADMINISTRATIVE ORDER NO. 226-A, s. 2008
AMENDING ADMINISTRATIVE ORDER NO. 226, SERIES OF

2008, ENTITLED: “SUSPENDING THE PROCESSING AND
APPROVAL OF ALL LAND CONVERSION APPLICATIONS
OF ALL RICE LANDS”
WHEREAS, it is the policy of the state as declared under

Republic Act No. 8435 to assure the availability, adequacy,
accessibility of food supplies to every Filipino at all times;
WHEREAS, the State shall ensure that the poorer sectors of

society have equitable access to resources, income opportunities,
basic and support services especially in areas where productivity
is low;
WHEREAS, the State shall promote food security, including

sufficiency in our staple food, particularly rice supply;
WHEREAS, to meet the needs of the increasing number of

Filipinos, there is a need for the production of rice to be optimized to
meet our local needs and consumption;
WHEREAS, to ensure sufficient rice supply there is a need for

all lands utilized and intended for rice production to be protected
from any other land use or conversion;

vested in me by the Constitution and the law, do hereby order the
following:
SECTION 1. That the processing and approval of all land

conversions applications affecting rice lands mentioned under
Republic Act No. 8435 considered as Network of Protected Areas
for Agricultural and Agro-industrial Development (NPAAD) which
1472
includes and covers all irrigated areas, all irrigable lands already
covered by irrigation projects shall be temporarily suspended for
two (2) years.
SEC. 2. The Department of Agrarian Reform is hereby tasked

for the implementation of this order.
SEC. 3. All orders, rules and regulations and issuances or

parts thereof inconsistent with this Administrative Order are
SEC. 4. This Administrative Order shall take effect

immediately after publication in a newspaper of general circulation.
DONE in the City of Manila, this 14th day of July 2008
By the President:

Executive Secretary
AO 226-A s. 2008 amended AO 226 s. 2008.
1473
MALACAÑANG
MANILA
PRESCRIBING GUIDELINES FOR THE PROTECTION OF

AREAS NON-NEGOTIABLE FOR CONVERSION AND
MONITORING COMPLIANCE WITH SECTION 20 OF THE
LOCAL GOVERNMENT CODE
WHEREAS, Section 21, Article II of the 1987 Constitution

provides that “the State shall promote comprehensive rural
development and agrarian reform”;
WHEREAS, Section 1, Article XII of the Constitution provides

that “the State shall promote industrialization and full employment
based on sound agricultural development and agrarian reform,
through industries that make full and efficient use of human and
natural resources”;
WHEREAS, Section 9, Article XIII of the Constitution provides

that “the State shall, by law, and for the common good, undertake, in
cooperation with the private sector, a continuing program of urban
land reform and housing which will make available at affordable
cost decent housing and basic services to underprivileged and
homeless citizens in urban centers and resettlement areas”;
WHEREAS, it is necessary to rationalize the policy of

government in protecting prime agricultural lands and in providing
areas for industry, housing and commerce;
WHEREAS, the President is empowered to issue guidelines to

Executive Agencies to further define the roles they are to undertake
in pursuing the mandate of their respective agencies and in
accordance with the priorities of government.
1474

direct the observance of the following guidelines:
SECTION 1. Declaration of Principles and Governing Policies
A. General Principles
1. The State shall give priority to the provision for a

rational and sustainable allocation, utilization, management and
development of the country’s land resources.
2. The State shall protect prime agricultural lands for food

production activities, and give highest priority to the completion of
the Comprehensive Agrarian Reform Program (CARP).
3. The State shall ensure food self-sufficiency and food security

through efficient and sustainable use of land resources, consistent
with the principles of sound agricultural development, natural
resources development and agrarian reform.
4. The State shall promote the dispersal of industries

nationwide to catalyze countryside development through the
Regional Growth Centers (RGCs), economic zones, and growth
networks/corridors.
5. The State shall promote and encourage the development of

economic and socialized housing projects in order to make available
adequate economic and socialized housing units for average and
low-income earners in urban and rural areas.
6. The State shall institutionalize the participation of

people’s organizations, non-government organizations, and local
communities in the formulation of a national land use plan.
B. Governing Policies
1. The following areas shall not be subject to or non-negotiable

for conversion:
1475
a. Protected areas designated under the National Integrated

Protected Areas (NIPAS), including watershed and recharge areas
of aquifers, as determined by the Department of Environment and
Natural Resources (DENR), pursuant to RA 7586 (1992);
b. All irrigated lands, as delineated by the Department of

Agriculture (DA) and/or the National Irrigation Administration
(NIA) and approved by the President, where water is available
to support rice and other crop production, and all irrigated lands
where water is not available for rice and other crop production but
are within areas programmed for irrigation facility rehabilitation
by the DA and the NIA, pursuant to Presidential Administrative
Order 20 (1992); and
c. All irrigable lands already covered by irrigation projects

with firm funding commitments, as delineated by the DA and/or
NIA and approved by the President.
For this purpose, the Network of Protected Areas for

Agriculture (as of 1991), as determined by the DA and/or NIA
shall serve as guide in determining non-negotiable areas. The
Network may only be revised upon the approval of the President,
upon favorable recommendation by the Cabinet Cluster on Agro-
Industrial Development.
In all cases, applications for conversion involving lands

protected from and non-negotiable for conversion shall not be given
due course by the DAR.
2. The following areas shall be highly restricted from

conversion:
a. Lands classified as ‘Highly Restricted from Conversion’ in

the Network of Protected Areas for Agriculture as delineated by the
DA, as follows:
a.1 Irrigable lands not covered by irrigation projects with firm

funding commitments;
1476
a.2 Agro-industrial croplands, or lands presently planted

to industrial crops that support the economic viability of existing
agricultural infrastructure and agro-based enterprises; and
a.3 Highlands, or areas located in elevations of 500 meters

or above and have the potential for growing semi-temperate and
usually high value crops.
b. Lands issued a Notice of Acquisition/Valuation under

the agrarian reform program or subject of a perfected agreement
between the landowner and the beneficiaries under Voluntary Land
Transfer (VLT) or Direct Payment Scheme (DPS) under CARP, as
determined by the DAR; and
c. Areas identified as environmentally critical as determined

by the DENR, pursuant to PD 1586 (1978) and its implementing
rules and regulations;
Lands classified as highly restricted from conversion may

be converted only upon compliance with existing laws, rules and
regulations. An additional requirement of the social benefit cost
analysis approved by the DA shall also be required before these
lands may be approved for conversion.
Applications for conversion covering areas under 2 (c) above

shall be subject to the Environmental Impact Assessment (EIA)
and/or Environmental Compliance Certificate (ECC) of the DENR.
3. Conversion of priority areas under Executive Order 124

(1993), as identified below, falling within the areas highly restricted
from conversion may be allowed and the social benefit cost analysis
for these areas may be waived; PROVIDED that the requirement of
an EIC or ECC shall always be required; PROVIDED FURTHER
that in no case shall conversion be allowed if these sites fall under
those classified as non-negotiable areas:
a. specific sites in regional agri-industrial centers/regional

industrial centers (RAICs/RICs) identified by the Department of
1477
Trade and Industry (DTI) and the Department of Agriculture (DA),

attached as Annex A;
b. tourism development areas (TDAs) identified by the

Department of Tourism (DOT), attached as Annex B; and
c. sites identified by the local government units (LGUs) for

socialized housing.
4. In all cases, farmers or prospective beneficiaries of the

agrarian reform program affected by the conversion shall be paid
sufficient disturbance compensation. In addition, the owners and or
developers of the land shall be encouraged to provide capital which
will enable the affected farmers and other legitimate stakeholders
to shift to another livelihood, skills training, relocation sites, and
priority in employment for them and their children. Investment
arrangements which give affected farmers and other legitimate
stakeholders a stake in the development of the land, such as,
but not limited to, joint ventures and partnerships, shall also be
encouraged.
5. No application for reclassification by LGUs shall be given

due course by HLURB without the approved Comprehensive Land
Use Plan approved by the HLURB for provinces, highly urbanized
cities, independent component cities and the cities and municipalities
of Metropolitan Manila, or the Sangguniang Panlalawigan for
component cities and municipalities, after 1 January 1989. The
following requirements or certifications from various agencies shall
also be required:
a. Certification from the local HLURB specifying the total

area of zoned agricultural lands in the local government concerned
based on the approved Comprehensive Land Use Plan or Zoning
Ordinance prior to the application for conversion;
b. Certification from the NIA that the area to be reclassified is

not covered under Presidential A.O. 20, s. 1992;
1478
c. Certification from the DAR indicating that such lands are

not distributed or covered by a Notice of Valuation under CARP;
and
d. Certification from DENR that the area applied for

reclassification has been classified as alienable and disposable, and
is not needed for forestry purposes in case the area applied for falls
within public lands.
6. No application for conversion shall be given due course by

DAR without the following certifications from various agencies:
a. Certification of the Viability or Non Viability of Agricultural

Land from the DA and that the land is not part of the area identified
as non-negotiable for conversion or a certification as to whether the
land is classified as highly restricted from conversion or not;
b. Certification that the land does not fall under the NIPAS
area or is not classified as environmentally critical from the DENR.
For applications for conversion involving environmentally critical
areas, the DAR may issue an Order of Conversion, subject to the
issuance of an ECC by the DENR.
The DENR, in coordination with the DAR, shall institute an

Environmental Guarantee Fund to ensure environment protection
and to provide government the financial capability to handle
negative impacts of the conversion;
c. Certification from the NIA stating that the area is not

covered under Presidential A.O. 20, S. 1992; and
d. Certification from the HLURB that the land has been

reclassified and that said reclassification is within or outside the
maximum allowable limits set by law.
7. In all cases, the decision of the DAR Secretary shall be

appealable to the Office of the President. The President may allow
the conversion of areas considered non-negotiable for conversion
only upon the favorable recommendation of the Cabinet Cluster on
1479
Agro-Industrial Development; PROVIDED that where lands affected

are irrigated, the owner/developer shall be required to replace the
areas affected by an equal area of irrigated lands, whether within
or outside the area/locality being applied for conversion; and
PROVIDED FURTHER that such conversion shall not adversely
affect the irrigation system.
SEC. 2. Definition of Terms. As used in and for purposes of

this Administrative Order, the following terms shall mean:
Agricultural Lands refer to lands devoted to agricultural

activity and not classified as mineral, forest, residential, commercial
or industrial land (Sec. 3 (c), RA 6657).
Aquifer Recharge Areas refer to sources of water replenishment

where rainwater or seepage actually enters the aquifers. Aquifers
are sources of water from the ground.
Environmentally Critical Areas refer to areas declared by law

as: a) areas for natural parks, watershed reserves, wildlife preserves,
and sanctuaries; b) areas set aside as aesthetic potential tourist
spots; c) areas which constitute the habitat for any endangered or
threatened species of indigenous Philippine wildlife (flora and fauna);
d) areas of unique historic, archeologic, or scientific interests; e)
areas which are traditionally occupied by cultural communities and
tribes; f) areas with critical slopes; g) areas frequently visited and/
or hard hit by natural calamities (geologic hazards, floods, typhoons
and volcanic activities); h) areas classified as prime agricultural
lands; i) recharge areas of aquifers; j) water bodies; k) mangrove
areas; l) coral reefs; m) mossy and virgin forests; n) river banks; and
o) swamp forests and marshlands.
Highly Restricted Areas Within Network of Protected Areas for

Agricultural Development refers to the most efficient agricultural
land that can be grown to a wide range of crops with minimum to
moderate level of farm management requirement.
Land Use refers to the manner of utilization of land, including

its allocation, development and management.
1480
Land Use Conversion refers to the act or process of changing

the current use of a piece of agricultural land into some other use.
Land Use Plan refers to a document embodying a set of policies

accompanied by maps and similar illustrations which represent
the community-desired pattern of population distribution and a
proposal for the future allocation of land to the various land-using
activities. It identifies the allocation, character and extent of the
area’s land resources to be used for different purposes and includes
the process and the criteria employed in the determination of the
land use.
Network of Protected Areas for Agriculture (NPAA) refers to

land reserved for agricultural activities. The specific types of land
reserved for agricultural activities covered by the NPAA are:
a. All irrigated and potentially irrigable land;
b. All alluvial, plain land that are highly suitable for

agricultural production and/or can be devoted to food production;
c. All sustainable land that are traditional sources of food;
d. All crop land that support the existing economic scale of

production required to sustain the economic viability of existing
agricultural infrastructure and agro-based enterprises in the
province or region;
e. All productive land in the low-calamity risk areas that are

suitable for the production of economic trees and other cash crops;
and
f. All agricultural land that are ecologically fragile and whose

conversion will result in serious environmental problems.
National Integrated Protected Areas System is the classification

and administration of all designated protected areas to maintain
essential ecological processes and life-support systems, to preserve
genetic diversity, to ensure sustainable use of resources found
1481
therein, and to maintain their natural conditions to the extent

possible.
Premature Conversion of Agricultural Land means the

undertaking of any development activities whose results will
modify or alter the physical characteristics of the agricultural lands
to render them sustainable for non-agricultural purposes without
an approved order of conversion from the DAR.
Prime Agricultural Lands refer to lands that can be used for

various or specific agricultural activities and can provide optimum
and sustainable yield with a minimum of inputs and development
cost as determined by the DA.
Protected Areas refer to identified portions of land and

water set aside by reason of their unique physical and biological
significance, managed to enhance biological diversity, and protected
against destructive human exploitation.
Reclassification of Agricultural Lands refers to the act

of specifying how agricultural lands shall be utilized for non-
agricultural uses such as residential, industrial, commercial, as
embodied in the land use plan, subject to the requirements and
procedure for conversion. It also includes the reversion of non-
agricultural lands to agricultural use (Joint HLURB, DAR, DA,
DILG Memorandum Circular, s. 1995).
Regional Agri-Industrial Growth Centers are specific

locations in each of the country’s regions outside the National
Capital Region (NCR) identified for development by providing it
with the full range of infrastructure/utilities needed by industries
to establish operations in the countryside. The RGCs are growth
centers envisioned to strengthen complementary linkages between
agriculture and industry; between urban centers and rural areas;
and their integration into a mutually reinforcing national system
of production, distribution and exchange, and into the highly
competitive international market.
1482
Regional Growth Networks/Corridors are neighboring

provinces/regions which are linked together and are identified
through the collaboration and cooperation of various local
government units. The linking of these areas permits the
comparative advantages/strengths of each area to be shared with
one another, thereby ensuring the optimum utilization of resources
and the development of networks/corridors and its radiation areas.
Socialized Housing refers to housing programs and projects

covering houses and lots or homelots only undertaken by the
government or the private sector for the underprivileged and
homeless citizens which shall include sites and services development,
long-term financing, liberalized terms on interest payments, and
such other benefits in accordance with RA 7279.
Special Economic Zones refer to selected areas with highly

developed or which have the potential to be developed into agro-
industrial, industrial, tourist/recreational, commercial, banking,
investment and financial centers. An ecozone may contain any or
all of the following: industrial estates, export processing zones, free
trade zones, and tourist/recreational centers.
Tourism Development Areas refer to specific sites for

tourism development located in areas identified as priorities in
the national and regional tourism master plans as well as those
designated through legislative and executive issuances as tourist
spots and tourist zones which can be developed into tourism estates
or integrated resort, leisure and recreation complexes, and other
tourism related facilities.
Watershed refers to a catchment area or drainage basin from

which the waters of a stream or stream system are drawn.
Zoning refers to the delineation/division of a city/municipality

into functional zones where only specific land uses are allowed.
It directs and regulates the use of all lands in the community in
accordance with an approved or adopted land use plan for the city/
municipality. It prescribes setback provisions, minimum lot sizes,
building heights and bulk.
1483
Zoning Ordinance refers to a local legislation approving the

development control/zoning plan and providing for the regulations
and other conditions, on the uses of land including the limitation on
the infrastructures that may be places thereon within the territorial
jurisdiction of a city or municipality.
SEC. 3. Monitoring Compliance with Sec. 20 of RA 7160. The

implementation of Sec. 20 of R.A. No. 7160 authorizing cities and
municipalities to reclassify agricultural lands into non-agricultural
uses shall observe the guidelines set by the Joint HLURB, DAR, DA
and DILG Memorandum Circular, s. 1995, pursuant to M.C. 54, s.
1993 from the Office of the President.
SEC. 4. Penalties and Sanctions. The following prohibited

acts, defined and penalized in related laws and administrative
issuances, specifically: RA 6657 (Comprehensive Agrarian Reform
Law), RA 7586 (National Integrated Protected Areas System
Law), Executive Order 184 (Creation of Socialized Housing One-
Stop Processing Centers), Executive Order 648 (Reorganizing the
Human Settlements Regulatory Commission, now the Housing
and Land Use Regulatory Board), DAR Administrative Order 12
(1994), DAR-DOJ Administrative Order 4 (1993) and 5 (1994), DA
Administrative Order 2 (1992), and DENR Administrative Order
96-37 (1996) shall apply to this Administrative Order:
1. The conversion by any landowner of his agricultural land

into non-agricultural use with the intent to avoid the application of
RA 6657 to his landholdings and to dispossess the tenant farmers of
the land tilled by them;
2. The sale, transfer, conveyance or change of the nature of

lands outside of urban centers and city limits either in whole or in
part after the effectivity of RA 6657;
3. Squatting, mineral exploration, or otherwise illegally

occupying any land inside protected areas;
1484
4. Constructing or maintaining any kind of structure, fence, or

enclosures and conducting any business enterprise without permit
inside protected areas;
5. Failure of the developer/proponent to comply with his

undertaking or socialized housing project;
6. Misrepresentation or concealment of material facts in the

application for land use conversion, and any other violations of
the rules and regulations which are material to the grant of the
conversion;
7. Failure to implement and complete the land development of

the area approved for conversion within the specified time;
8. Knowingly or wilfully converting any agricultural land

without the approval of the DAR;
9. Misrepresentation or concealment of material facts for the

issuance of the Certificate of Eligibility for Conversion (CEC) by the
DA, or any attempt to misrepresent or conceal any material fact for
the issuance of a CEC;
10. Any project or activity which has been classified as

environmentally critical and/or located in an environmentally critical
area established and/or operating without a valid Environmental
Compliance Certificate (ECC) from the DENR;
11. Projects violating ECC conditions, environmental

management plans (EMP) or rules and regulations pertaining to
the environmental impact statement (EIS) system; and
12. Misrepresentations in EIS/IEE (Initial Environment

Examination) or any other documents submitted by the proponent
pursuant to DENR A.O. 96-37.
SEC. 5. Transitory Provisions. The pertinent government

agencies are hereby directed to harmonize and amend their
procedures and guidelines on land use and land use conversion
1485
based on the principles enunciated herein within sixty (60) days

from the effectivity of this Order.
The following agencies are also mandated to perform the

following functions towards the full implementation of this Order
within six (6) months from the effectivity hereof:
1. The Department of Agriculture shall:
a. Update and revise the Network of Protected Areas for

Agriculture, including the maps, taking into account the provisions
of this Order;
b. Identify criteria for certifying that the land has ceased to be

economically sound and suitable for agriculture;
c. Design, in consultation with DAR, DENR, NEDA, HLURB,

DTI and DOT, the social benefit cost analysis which will be used in
evaluating lands prior to the issuance of the CEC; and
d. The National Irrigation Administration of the DA shall

prepare and update maps of irrigated and irrigable lands that shall
be protected from and non-negotiable for conversion.
2. The Department of Environment and Natural Resources

shall:
a. Prepare and/or validate maps of the initial components of

the NIPAS, including watershed and aquifer areas, in consultation
with and active support from local government units; and
b. Identify and map environmentally critical areas subject of

an EIA or ECC, in consultation with and active support from local
government units.
3. The Department of Agrarian Reform shall identify lands

already issued a: 1) Notice of Valuation under the Compulsory
Acquisition (CA), or 2) Voluntary Offer to Sell (VOS) process, or 3)
lands subject of a perfected agreement between the landowner and
1486
the beneficiaries under Voluntary Land Transfer (VLT) or Direct

Payment Scheme (DPS) under CARP.
4. The Housing and Land Use Regulatory Board shall,

pursuant to M.C. 54 (1993) from the Office of the President and
in coordination with DA, DAR, DILG, NEDA, League of Provinces,
League of Cities and League of Municipalities, in consultation with
People’s Organizations and NGOs, design and install a monitoring
and evaluation system for the reclassification of agricultural lands
into non-agricultural uses.
5. The Department of Interior and Local Government

shall, in coordination with HLURB, cause the LGUs’ immediate
compliance with the provisions for the formulation and updating
of their respective comprehensive land use plans, to be reviewed
and approved by the HLURB or the Sangguniang Panlalawigan,
pursuant to EO 72 (1993).
In the absence of a Presidential Approval of the delineation

of irrigated and irrigable lands non-negotiable for conversion, the
DA’s Network of Protected Areas for Agriculture shall govern.
SEC. 6. Repealing Clause. All other issuances inconsistent

herewith are hereby repealed or modified accordingly.
SEC. 7. Effectivity Clause. This Administrative Order shall

take effect ten (10) days after its publication in two (2) national
DONE in the City of Manila, this 9th day of October in the

year of Our Lord, Nineteen Hundred and Ninety-Seven.

By the President:

Executive Secretary
1487
1488
EXECUTIVE ISSUANCES – LETTER OF INSTRUCTIONS
Letter of Instructions
1489
1490
LETTER OF INSTRUCTION NO. 46
TO: Secretary Conrado Estrella

In the implementation of the Government’s Land Reform

Program pursuant to Presidential Decree No. 27, you are required
to --
1. Immediately set up pilot projects in the most strategic areas,

if possible in all the regions where tenancy has been generating
social unrest.
If possible, set up one pilot projects in each of the provinces in

Central Luzon — Nueva Ecija, Pampanga, Tarlac, Bulacan.
Prepare the program for these pilot projects, especially the

funding requirements for the administrative units, and the credit
needs of the farmers and other support services such as roads and
other infrastructures.
2. In the implementation of the program, the needs of the

farmers for home lots should not be overlooked, and appropriate
measures should be taken along this line.
It is necessary also for the Government at this time to

pinpoint the areas needed for the expansion of urban communities,
for housing and for industrial establishments.
Hence, in the implementation of the land reform program the

requirements of these equally important program of the government
should be taken into consideration.
3. If your experience after operating within the limited

spheres of the pilot projects points to the necessity of implementing
Presidential Decree No. 27 by phases, you shall be guided in the
implementation of the program in each region or province by the
following priorities:
1491
First Priority : -- In landed estates or landholdings larger

than 24 hectares.
Second Priority : -- In landholding of 24 hectares and less but

not below 12 hectares.
Third Priority : -- In landholding of 12 hectares and less.
These priorities will provide the small landowners, who

constitute part of the social middle class, with time to adjust their
economic life plans.
These instructions are issued to ensure the efficient and

orderly administration and implementation of the Land Reform
Program.


1492
LETTER OF INSTRUCTIONS NO. 143
TO: Secretary Alejandro Melchor

Executive Secretary
Secretary Conrado Estrella

Secretary Arturo S. Tanco, Jr.

Department of Agriculture & Natural Resources
(The Director, Bureau of Agricultural Extension)
Governor Gregorio Licaros

Central Bank of the Philippines
Mr. Basilio Estanislao

President, Land Bank
Secretary Jose Roño

Department of Local Governments & Community Development
(Undersecretary Orlando Sakay

Undersecretary for Cooperatives
Undersecretary Rosendo Marquez

Undersecretary for Community Development)
WHEREAS, I have repeatedly given instructions for the

speedy implementation of Presidential Decree No. 27, otherwise
known as the Tenant’s Emancipation Act, which extended land
reform program to the small landholdings devoted principally to
rice and corn and tilled by tenant-farmers;
WHEREAS, surveys undertaken by the government show

that 95.4% of our landowners are among those holding less than 12
hectares and that 69.9% of our tenant-farmers are tillers in these
small landholdings of less than 12 hectares;
1493
WHEREAS, the government, although eager to implement

a program of land reform by extending its operations to
these small landholdings has been conscious as well of the fact that
these landowners holding small parcels of land constitute part of the
economic middle class, which we are trying to build and therefore
deserve as much consideration as the tenants themselves;
WHEREAS, for this reason studies have been continuing in

order not to create an economic dislocation whereby while we are
helping the tenants we are impoverishing this particular group of
landowners;
WHEREAS, under Presidential Decree No. 27, the mode of

payment specified calls for payment by the tenant-farmers to the
landowners the total cost of the land, including interest at the rate
of six (6) per centum per annum in fifteen (15 ) years in fifteen (15)
equal annual amortizations;
WHEREAS, under Presidential Decree No. 251, other modes

of payment have been provided, namely:
“1. Cash payment of 10% and balance in 25-year tax-

free 6% Land Bank bonds;
“2. Payment of 30% in preferred shares of stock issued

by the bank and balance in 25-year tax-free 6% Land
Banks bonds;
“3. Full guarantee on the payment of the fifteen (15)

equal annual amortizations to be made by the tenant/
farmers;
“4. Payment through the establishment of annuities or

pensions with insurance;
“5. Exchange arrangement for government stocks in

government-owned or controlled corporations or private
corporations where the government has holdings;
1494
“6. Such other modes of settlement as may be further

adopted by the Board of Directors and approved by the
President of the Philippines.”
WHEREAS, it is my earnest desire that the actual tillers of

the land, the tenant-farmers, shall be the actual owners of the land
tilled by them soonest, but at the same time the small landowners
shall not be impoverished by depriving them of their land which
may be their only source of income, and if deprived should receive
the assistance of the government;
NOW, THEREFORE, and in view of my earnest desire

to implement fully the Land Reform Program as set forth in
Presidential Decree No. 27, I, FERDINAND E. MARCOS,
22, 1972, as amended, hereby prescribe the following policies or
guidelines in the implementation of land reform program, especially
with respect to the small landholdings:
(1) That as a basic policy, the actual tillers of the land, the
tenant-farmers, in agricultural land principally devoted to rice and
corn production, shall be the actual owners of the land tilled by
them; subject to the following guidelines:
(a) That in pursuance of this policy the absentee landowners

shall transfer to their tenants their landholdings regardless
of area, no matter how small; and
(b) That the absentee landowners shall be compelled to do so

if they (the absentee landowners) are found to have a source of
income other than their landholdings or landholdings.
(2) In determining who is an absentee landlord, the Department

of Agrarian Reform shall ascertain if the absence of such landlord is
on account of circumstances beyond his control such as having been
driven from the land by fortuitous circumstances or forces beyond
1495
his control, services in the Armed Forces of the Philippines or other

branches of the government.
(a) If the absentee landowner falling under this category has

been actually tilling the land before being compelled to abandon
the tilling of the land as provided in the immediately preceding
paragraph, then he shall not be considered an absentee landlord as
referred to in this Letter of Instructions;
(b) If in the apportionment of the land according to Presidential

Decree No. 27, which reserves 7 hectares for the landowner if he tills
part of his landholdings or intends to till part thereof, and allocates
an area not exceeding 5 hectares for the tenant-farmer, if the land
is not irrigated, and 3 hectares if irrigated, there will not be enough
land to be allocated to the tenant or tenants in the same landholding,
the Government shall encourage the organization or establishment
of a cooperative composed of both the landowner himself and his
tenant or tenants with the income from said land apportioned
by them in accordance with their respective participation in its
cooperative effort.
In order to ensure immediate implementation of these policies

and guidelines, I direct the Executive Secretary, the Secretary of the
Department of Agrarian Reform, the Secretary of the Department
of Finance, the Secretary of Agriculture and Natural Resources, the
Governor of the Central Bank, the President of the Land Bank, the
Secretary of the Department of Local Governments and Community
Development, the Undersecretary for Cooperatives and the
Undersecretary for Community Development and all other agencies
of the government whose cooperation is considered necessary by
the Secretary of Agrarian Reform and the Agrarian Reform Fund
Council to conduct an immediate survey which shall, among others,
determine:
(1) The absentee landowners as envisioned in this Letter of

Instructions;
(2) The absentee landowners with no other source of income

and those with the other source of income;
1496
(3) The absentee landowners who have a history of tilling

their own landholdings but were compelled to abandon their
farming activities in view of circumstances beyond their
control and as specified in this Letter of Instructions;
(4) Those landholdings where the organization of a cooperative

composed of the landowner and his tenant or tenants is
the most feasible measure to resolve conflicting interests
of landowner and tenant-farmer;
(5) Those landholdings or portions thereof in which the

landowner may have a strong emotional attachments for
having been the site of his home or ancestral home of the
landowner;
(6) How many of these absentee landowners are in the

government service;
(7) How many of these landowners are retirees from the

government service or from employment in private firms.
You will likewise ascertain:
(1) Whether or not the 6% per annum income from

agricultural rice and corn land as earlier reported is in fact
the actual earning from these lands;
(2) Whether or not there has been an increase in production in

areas where the land reform program has been implemented,
in general, and specifically in the small landholdings.
The term “small landholdings” as used in this Letter of

Instructions shall mean landholdings of 24 hectares and less than
24 hectares.
Pilot areas shall be established, preferably in one town in

Nueva Ecija, one town in Pangasinan, one town in the Ilocos Region
and in other municipalities in other provinces where the group may
deem it necessary.
1497
The Executive Secretary shall convene a meeting of the officials

specified herein immediately to implement these instructions and a
report will be submitted to me with the recommendations before the
end of November, 1973.

year of Our Lord, Nineteen Hundred and Seventy-Three.

1498
TO: The Secretary of National Defense
The Secretary of Agrarian Reform
WHEREAS, some tenant-farmers, through some clever acts,

schemes or strategies of landowners by themselves or with the aid
of others, including government officials, are still being ousted or
ejected from, or dispossessed of, the lands being tilled by them in
contravention of decrees, laws, and orders pertaining to the land
reform program of the Government;
WHEREAS, these acts against the tenant-farmers cannot be

tolerated or sanctioned by the Government.

of the Philippines, do hereby order:
1. The Secretary of National Defense and the Secretary of

Agrarian Reform to strictly enforce the decrees, laws and orders
prohibiting the ouster, expulsion and ejectment of tenants and any
other acts of dispossessing the tenant-farmers of the land tilled by
them;
2. The Secretary of National Defense and the Secretary

of Agrarian Reform to take measures to ensure the prompt and
speedy prosecution of whoever violates the decrees, laws and
orders prohibiting the expulsion, ouster or ejectment of tenants or
dispossessing them of the land tilled by them.


1499
TO: The Secretary of Agrarian Reform
In order to accelerate the implementation of the agrarian

reform program, you are hereby directed:
1. To immediately extend the present operations implementing

the land reform program pursuant to Presidential Decree No. 27
down to landholdings of over seven (7) hectares.
2. To make an inventory of all abandoned private agricultural

lands devoted primarily to the production of rice and corn (which
are hereby declared covered by Presidential Decree No. 27).
In implementing this Letter of Instructions, you are empowered

to call on any government agency for assistance to insure the orderly
administration and implementation of this instruction.


1500
TO: Secretary of Agrarian Reform
Chairman, Board of Trustees, Land Bank of the Philippines
WHEREAS, Nueva Ecija, has been designated since 1972 as a

pilot province for land reform integrated development program with
emphasis on land tenure improvement, institutional development,
physical development, and agricultural development;
WHEREAS, as a part of this integrated approach to land

reform, barrio General Ricarte of Llanera, Nueva Ecija, has also been
c hosen as the site for a pilot agricultural cooperative settlement;
WHEREAS, the implementation of the agricultural

cooperative settlement will not only translate into reality the
integrated approach to agrarian reform but will also substantially
increase the farm family’s income;

1. The Secretary of Agrarian Reform to carry out a land

consolidation scheme within the project area and allocate the
farmlots as well as the homelots in accordance with the integrated
development plan for this pilot projects;
2. The Chairman of the Board of Trustees of the Land Bank

and the President of the Land Bank to finance under any of the
reorganized modes of settlement mentioned in P.D. No. 251 the
acquisition of all landholdings within the project area; Provided,
that the repayment to the Land Bank of the total cost thereof shall
be amortized by General Ricarte Agricultural Cooperative and the
tenant-farmers pursuant to P.D. No. 27 and other related decrees
or orders; Provided, further, that in the retitling of the lands thus
acquired such arrangement to be effected shall always give due
1501
regard to the rights conferred upon the tenant-farmers as owners of

the land they till pursuant to P. D. No. 27.
Done in the City of Manila, this 19th day of February, in the

year of Our Lord, nineteen hundred and seventy five.

1502
TO : Secretary Conrado F. Estrella

Secretary Cesar Virata

Secretary Jose A. Roño

Development
Mr. Basilio Estanislao

WHEREAS, on November 16, 1974, I ordered the Department

of Agrarian Reform to extend its operations implementing
Presidential Decree No. 27 down to landholdings of over seven (7)
hectares from the previous limit of 24 hectares;
WHEREAS, it is the policy of the Government to extend all

possible assistance to landowners who may be dispossessed of their
landholdings as a consequence of the land reform program of the
Government in order to help them make adjustments in their own
economic planning, and to prevent possible economic difficulties or
dislocation;
WHEREAS, a Committee formed to consider measures

geared towards these ends has recommended, among others, that
the Government provide bigger cash payments for the landholdings
of small landowners;

of the Philippines, do hereby order the following:
1. Landowners, whose total tenanted rice and/or corn

landholdings exceed seven (7) hectares but are less than 24 hectares,
shall be paid by the Land Bank of the Philippines in cash equivalent
1503
to twenty percent (20%) of the cost of the land and the balance in
25-year-tax-free Land Bank bonds.
In addition, the landowners shall be entitled to any one of the

following:
a. Reduction of the present interest rate of twelve percent

(12%) to ten percent (10%) on loans, if he borrows or obtain loans
from the Land Bank for investment purposes, using his bonds as
collateral for the loans;
b. A larger cash payment for any of the following purposes:
1) If the landowner desires a larger cash payment for the

education of his children, he shall be entitled to an
additional cash payment of not more than ten percent
(10%) but in no case shall the total cash payment be more
than thirty percent (30%) of the total cost of his land,
and this additional cash payment shall be deposited in
a bank to be withdrawn only upon presentation of the
necessary statements and documents attesting to the
enrolment of his children in a duly recognized school
here or abroad;
2) If the landowner desires a larger cash payment for the

security of the future of his children, not education,
such as insurance, he shall be entitled to an additional
cash payment of not more than ten percent (10%) but
in no case shall the total cash payment be more than
thirty percent (30%) of the total cost of his land; but
in such a case, the insurance payments shall be made
directly by the Land Bank to the insurer, preferably
an insurance company which is a member of the
Cooperative Insurance System of the Philippines
created under Presidential Decree No. 317. It is
hereby understood that the maximum payment of the
insurance shall not exceed ten percent (10%) of the
value of the land.
1504
3) If the landowner desires larger cash payment for

housing purposes for his family, he shall likewise be
entitled to an additional cash payment of not more
than ten percent (10%), but in no case shall the total
cash payments exceed thirty percent (30%) of the total
cost of his land, and in such a case, the Land Bank
shall work out a plan for the construction of the house
for his family. The additional ten percent (10%) of the
cash payment due to the landowner shall be placed
in the Land Bank for the account of the landowner
and may, in the meantime, be used by the Bank or be
invested by the Bank in a viable investment project of
the landowner.
2. Payments to landowners covered by this Letter of

Instructions shall be exempt from the capital gains tax and the
interest that shall accrue therefrom shall be exempt from income
tax.
3. No fee, premium or tax of any kind shall be charged

or imposed in connection with the issuance and registration of
instruments or documents under this Letter of Instructions, nor
shall postage dues and mailing charges be required on all matters
connected herewith.
Done in the City of Manila, this 7th day of May, in the year of
Our Lord, nineteen hundred and seventy-five.

1505
Chairman, Board of Trustees

Secretary of National Defense
WHEREAS, as already stated in LOI 253, Nueva Ecija has

been designated since 1972 as a pilot province for land reform
integrated development program with emphasis on land tenure
improvement, institutional development, physical development,
and agricultural development;
WHEREAS, as part of this integrated approach to land reform

in the said province, the Jacinto Estate situated in the municipality
of Talavera, Province of Nueva Ecija, and embraced in TCT Nos. NT-
78030, NT-78031 and NT-78032 of the Registry of Deeds for Nueva
Ecija, has been chosen by the Department of Agrarian Reform since
1973 as a Pilot Land Consolidation Project of the Agrarian Reform
Program of the Government, the principal features of which are:
the promotion of joint farming and multiple croppings with sets
of standards on rice culture, and the development of institutions
such as compact farms and cooperatives designed to substantially
increase the farm family’s income;
WHEREAS, the acquisition of the entire area of the aforesaid

Jacinto Estate is necessary for the successful implementation of the
land consolidation project;
WHEREAS, one of the co-owners of the Jacinto Estate is Mr.

Fernando Jacinto who together with his sons, as stated in LOI No.
39 dated November 9, 1972, “xx have refused to come back to the
Philippines notwithstanding xx repeated requests to settle their
obligations to the Government which may amount to about ₱400
million xx”, and in order to protect the interest of the Government, the
1506
Secretary of National Defense has been “xx directed to immediately

take over custody and possession of all assets of the Jacinto Family
xx”, which includes, among others, the pro-indiviso share of said
Mr. Fernando Jacinto in the Jacinto Estate;


consolidation scheme within the project area and allocate the
farmlots as well as the homelots in accordance with the integrated
development plan for this project;
2. The Chairman of the Board of Directors of the Land Bank

recognized modes of settlement mentioned in P. D. No. 251, the
acquisition of the entire area of the aforementioned Jacinto Estate:
Provided, that the tenant-farmers and the farmer’s cooperative
in which they are members shall amortize the repayment to the
Land Bank of the total cost of the Estate pursuant to P. D. No.
27 and other related decrees or orders: Provided, further, that in
the retitling of the lands thus acquired such arrangement to be
effected shall always give due regard to the rights conferred upon
the tenant-farmers as owners of the land they till pursuant to P. D.
No. 27, the area of the farmlot and the homelot, however, shall be
in accordance with the land consolidation scheme and integrated
development plan for this pilot project.
3. The Secretary of National Defense to sign for the Government

any deed or Instrument that may be required by the Land Bank in
the acquisition of the pro-indiviso share of Mr. Fernando Jacinto in
the aforesaid Jacinto Estate.
Done in the City of Manila, this 3rd day of February, in the


1507
WHEREAS, last year, I ordered that small landowners of

tenanted rice/corn lands with areas of less than twenty-four hectares
but above seven hectares shall retain not more than seven hectares
of such lands except when they own other agricultural lands
containing more than seven hectares or lands used for residential,
commercial, industrial or other urban purposes from which they
derive adequate income to support themselves and their families;
WHEREAS, the Department of Agrarian Reform found

that in the course of implementing my directive there are many
landowners of tenanted rice/corn lands with areas of seven hectares
or less who also own other agricultural lands containing more than
seven hectares or lands used for residential, commercial, industrial
or other urban purposes where they derive adequate income to
support themselves and their families;
WHEREAS, it is therefore necessary to cover said lands under

the Land Transfer Program of the government to emancipate the
tenant-farmers therein.

of the Philippines, do hereby order the following:
1. You shall undertake to place under the Land Transfer

Program of the government pursuant to Presidential Decree No.
27, all tenanted rice/corn lands with areas of seven hectares or less
belonging to landowners who own other agricultural lands of more
than seven hectares in aggregate areas or lands used for residential,
commercial, industrial or other urban purposes from which they
derive adequate income to support themselves and their families.
2. Landowners who may choose to be paid the cost of their

lands by the Land Bank of the Philippines shall be paid in accordance
with the mode of payment provided in Letter of Instructions No. 273
dated May 7, 1973.
1508
Done in the City of Manila, this 21st day of October in the


1509
The Secretary of Agriculture
The Secretary of Local Government and Community

Development
The Secretary of Public Highways
The Secretary of Public Works, Transportation and

Communications
The Secretary of Health
The Secretary of Economic Planning
The Commissioner of Budget
The President, Land Bank of the Philippines
The Administrator, National Irrigation Administration
The President, Food Terminal Incorporated
In line with the government policy of fully developing the

quality of life in rural communities, several Land Settlement
projects have been planned, and three projects are ready for
implementation in Agusan del Sur, Bukidnon, and Capiz. A loan to
finance these three projects has been granted by the International
Bank for Reconstruction and Development.
The successful implementation of these three projects depends

upon very close coordination of efforts of the different agencies
that are involved. In order to ensure their success, there is hereby
established the following machinery for implementation:
1510
1. An inter-agency Project Coordinating Committee (IPCC) is

hereby created to be composed of representatives from the following
agencies:

Development
Department of Public Highways
Department of Public Works, Transportation and

Communications
Department of Health
National Economic and Development Authority
Budget Commission
National Irrigation Administration
Food Terminal Incorporated
The representatives to the Committee shall have the rank

of at least Bureau Directors or equivalent. The representative of
the Department of Agrarian Reform shall act as Chairman of the
Committee.
The IPCC shall have the following functions:
a) to review and approve the annual work plan of the projects;
b) to review and recommend budgetary appropriations

required to implement the project;
1511
c) to decide particular responsibilities of participating agencies

and to resolve inter-agency differences and difficulties arising
from the implementation of the project; and
d) such other functions as may be required for the successful

implementation of the project.
2. Direct management of the project shall be undertaken by a

Central Project Management Unit (CPMU), which the Secretary of
Agrarian Reform shall organize with personnel of the participating
agencies, and such additional personnel as may be required. In
addition, participating agencies shall make available and assign to
the three settlement areas in Agusan del Sur, Bukidnon, and Capiz,
such trained personnel as may be required by the project, who
shall, during the period of assignment, be under the administrative
control and supervision of the Department of Agrarian Reform, but
with technical supervision provided by their parent agencies. The
CPMU shall have the following functions:
a) to supervise the implementation of the project in the three

settlement areas;
b) to prepare an annual work and financial for the project;
c) to evaluate the budgetary appropriations required in the

implementation of participating agency portions of the project;
d) to submit from time to time, to the IPCC, reports on the

progress of implementation of the project; and
e) such other functions as the Secretary of Agrarian Reform

may assign.
3. The participating agencies shall incorporate in their

annual budgets the programs or projects needed to support the
Land Settlement project, as agreed in the deliberations of the Inter-
agency Project Coordinating Committee.
1512
4. The payment of allowances/honoraria to various committee

members and agency personnel assigned to the project out of project
funds is hereby authorized, subject to government accounting and
auditing regulations.
Done in the City of Manila this 2nd day of June in the year of
Our Lord, nineteen hundred and seventy-seven.

1513
ON THE COST OF AGRICULTURAL CREDIT
The Secretary of Agriculture
The Secretary of Local Government

and Community Development
The Governor of the Central Bank of the Philippines
The President of the Land Bank of the Philippines
1. You are hereby constituted into a Committee, headed by the

Secretary of Agrarian Reform, to evaluate the payments made by
former-borrowers in connection with Masagana 99 and other special
financing programs, with the end in view of recommending measures
to (a) reduce effective cost to farmer-borrowers and (b) reduce the
number and amount of compulsory payments and deductions tied to
special financing programs administered by rural banks.
2. The following payments shall be taken into consideration

for purposes of this study: (a) Central Bank charges in special
time deposits and rediscounting, (b) rural bank interest spread on
loans, (c) barrio savings fund deduction, (d) barrio guaranty fund
payment, (d) Land Bank agricultural guaranty fund premium, and
(e) all other payments made by farmer-borrowers that are linked to
Masagana 99 or other special financing programs.
3. A report with recommendations shall be submitted within

a month of date hereof.
DONE in the City of Manila, this 8th day of July, nineteen

hundred and seventy-seven.

1514
Chairman, Board of Directors, Land Bank of the Philippines
WHEREAS, the establishment of pilot land consolidation

projects under the Agrarian Reform Program in the provinces of
Nueva Ecija, Pampanga, Camarines Sur and Pangasinan, has
transformed self-reliant and economically and socially stable
farmers, and has brought about maximum land utilization and
development, and increased farm production, through multiple
cropping and crop sequencing, and farm income through cooperative
endeavors;
WHEREAS, the setting up of such land consolidation projects

needs the attention and encouragement of the government; and
WHEREAS, the acquisition of the 638-hectare property of

landowner Emerito M. Ramos in Arayat and Candaba, Pampanga,
is necessary in order to put up a modern land consolidation project
in the province similar to that of the General Ricarte cooperative
settlement in Llanera, Nueva Ecija;


consolidation scheme in the property of Emerito M. Ramos and
allocate the farmlots and homelots therein in accordance with the
integrated development plan prepared for the project; and
2. The Chairman of the Board of directors of the Land Bank

recognized modes of settlement provided in Presidential Decree No.
251, the acquisition of the entire area of the aforementioned Ramos
property. Provided, That, the tenant-farmers therein and landless
1515
farmer-members of the HUK VETS Association, Inc., as well as the

farmer’s cooperative of which they are members shall amortize to
the Land Bank the total cost of the property in accordance with
Presidential Decree No. 27, and other related decrees or orders:
Provided, further, That in the retitling of the lands thus acquired
such arrangement to be effected shall always give due regard to the
rights conferred upon the tenant-farmers and HUK VETS farmer-
members as owners of the land they till, the area of the farmlots
and the homelots to conform to the land consolidation scheme and
integrated development plan prepared for the said project.

year of Our Lord, nineteen hundred and seventy-eight.

1516
TO: The Minister of Labor and Employment
The Minister of Agrarian Reform
The Chairman, Philippine Coconut Authority
WHEREAS, agricultural laborers, farmworkers and tenants

in the coconut industry are affected by the current depressed prices
of coconut products in the international market;
WHEREAS, it is imperative that the said workers and

laborers be extended full assistance by the government during this
period of depressed prices.

of the Republic of the Philippines, do hereby order the following:
1. The Minister of Labor and Employment to ensure that all

applicable provisions of the Labor Code of the Philippines and other
labor and social legislations enacted for the benefit of agricultural
laborers in the coconut industry, including but not limited to, the
laws and provisions on wages, hours and days of work, medical
and dental services, occupational safety and health, employee’s
compensation, medical, manpower development and training, social
security and retirement benefits;
2. The Minister of Agrarian Reform to see to it that full

protection is afforded to all the agricultural tenants in the coconut
industry and that the provisions of tenancy and other agrarian laws,
particularly, but not limited to those that govern security of tenure,
crop sharing, and possibly leasehold, are strictly and thoroughly
implemented;
3. The Chairman of the Board of the Philippine Coconut

Authority to draw up with the Philippine Coconut Producers
Federation, Inc. (COCOFED) programs for the extension of more
1517
social benefits to agricultural workers, laborers and tenants in the

coconut industry, such as scholarships and training programs.
Done in the City of Manila, this 3rd day of June, in the year of
Our Lord, nineteen hundred and eighty.

1518
TO: The Minister of Agrarian Reform
The Chairman of the Board of Directors

WHEREAS, the farmer-occupants of the 11,448.64-hectare

Tabacalera Estates (Haciendas San Antonio and Sta. Isabel) in
Isabela have been persistently petitioning the Government to
acquire the said Estates;
WHEREAS, there is a growing agrarian unrest in said Estates

and as an effective way to give the farmer-occupants peace of mind
and better quality of life is to have the Government acquire the
property for distribution and resale of cost to them; and
WHEREAS, majority of the petitioners are not beneficiaries

of the Land Transfer Program of the Government under PD 27, but
are equally deserving of government’s attention and assistance in
giving them the opportunity to own the land they till.

of the Philippines, do hereby order the following in line with my
policy of expanding the Agrarian Reform Program:
1. The Minister of Agrarian Reform to set the mechanism

to determine the cost of the property and to cause the boundary
and subdivision survey of the same for the proper allocation of
the farmlots and homelots to the farmer-occupants therein and
other landless farmers.
2. The Land Bank of the Philippines to finance the acquisition

of the Estates to be paid by the farmer-beneficiaries in fifteen years
of fifteen equal annual amortization at 6% interest per annum.
1519
3. The mode of payment by the Land Bank to the landowner

shall be in accordance with the provisions of PD 251, preferably 10%
in cash and 90% in Land Bank bonds.


1520
LETTER OF INSTRUCTIONS NO. 1180-A
WHEREAS, the farmer-occupants of the hectare Tabacalera

Estates (Haciendas San Antonio and Sta. Isabel) in Isabela have
been persistently petitioning the Government to acquire the said
Estates:
WHEREAS, there is a growing agrarian unrest in said Estates

and as an effective way to give the farmer-occupants peace of mind
and better quality of life is to have the Government acquire the
property for distribution and resale of cost to them; and
WHEREAS, majority of the petitioners are not beneficiaries

of the Land Transfer Program of the Government under PD 27, but
are equally deserving of government’s attention and assistance in
giving them the opportunity to own the land they till.

of the Philippines, do hereby order the following in line with my
policy of expanding the Agrarian Reform Program.
1. The Minister of Agrarian Reform to set the mechanism

to determine the cost of the property and to cause the boundary
and subdivision survey of the same for the proper allocation of the
farmlots and homelots to the farmer-occupants therein and other
landless farmers.

of the Estates to be paid by the farmer-beneficiaries in fifteen years
of fifteen equal annual amortizations at 6% interest per annum.
1521
3. The mode of payment by the Land Bank to the landowner

shall be in accordance with the provisions of PD 251, preferably 10%
in cash and 90% in Land Bank bonds.
DONE in the City of Manila, this 16th day of December, in the


1522

All others concerned
WHEREAS, the establishment of agrarian reform projects

in various provinces has transformed self-reliant and economically
and socially stable farmers, and has brought about maximum
land utilization and development, and increased farm production,
through cooperative endeavors;
WHEREAS, the setting up of such agrarian reform projects

WHEREAS, the acquisition of the 267.0462 hectare property

of Mrs. Rosa Cuenco, et al. located in Gingoog City, is necessary in
order to establish another agrarian reform project.

of the Philippines, do hereby order and direct:
1. The Minister of Agrarian Reform to prepare an integrated

development plan for the above-mentioned property of Rosa
Cuenco, et al., and to allocate the farmlots and homelots therein in
accordance with said integrated development plan.
2. The Minister of Agrarian Reform and the Land Bank of the

Philippines to organize and appraisal committee to be composed of
representatives from each of two government financial institutions
and a private appraisal firm in order to determine the reasonable
valuation of the subject property in accordance with law.
1523

of the property by the Misamis Oriental Free Farmers Cooperative,
Inc. and its farmer-beneficiaries therein at the value determined as
provided in the preceding paragraph and that said financing shall
be effected only after a parcellary mapping or identification of lots
occupied by the farmer-beneficiaries shall have been made by the
Ministry of Agrarian Reform and after said farmer-beneficiaries
jointly and severally with the said farmers’ cooperative shall have
acknowledged in a document their obligation to amortize to the
Land Bank the value of the lots allocated to them in fifteen (15)
years at 6% interest per annum.
4. The mode of financing by the Land Bank of the Philippines

shall be in accordance with the provisions of Presidential Decree
No. 251, preferably 10% in cash and 90% in Land Bank bonds.

year of Our Lord, nineteen hundred and eighty-two.

1524

All others concerned
WHEREAS, the establishment of agrarian reform projects

in various provinces has transformed self-reliant and economically
and socially viable farmers, and has brought about maximum
land utilization and development, and increased farm production,
through cooperative endeavors;
WHEREAS, the setting up of such agrarian reform projects

WHEREAS, the acquisition of the 574-hectare property of the

Sagana Plantation, Inc. located at South Bienvenida, Kapalong,
Davao del Norte, is necessary in order to establish another agrarian
reform project.

of the Philippines, do hereby order and direct:
1. The Minister of Agrarian Reform to carry out a land transfer

operation scheme in the property of the Sagana Plantation, Inc. and
allocate the farmlots and homelots therein in accordance with the
integrated development plan prepared for the project;
2. The Minister of Agrarian Reform and the Land Bank of the

Philippines to organize an appraisal committee to be composed of
representatives from each of two government financial institution
and a private appraisal firm in order to determine the reasonable
valuation of the subject property in accordance with law.
1525

of the property by the Davao del Norte Free Farmers Cooperative,
Inc. and its farmer-beneficiaries therein at the value determined as
provided in the preceding paragraph and that said financing shall
be effected only after a parcellary mapping or identification of lots
occupied by the farmer-beneficiaries shall have been made by the
Ministry of Agrarian Reform and after the farmer-beneficiaries
jointly and severally with the said farmers’ cooperative shall have
acknowledged in a document their obligation to amortize to the
Land Bank the value of the lots allocated to them in fifteen (15)
years at 6% interest per annum.
4. The mode of financing by the Land Bank of the Philippines

shall be in accordance with the provisions of the Presidential Decree
No. 251, preferably 10% in cash and 90% in the Land Bank bonds.


1526
TO: The President

Mountain State Agricultural College
La Trinidad, Benguet Province
The Minister of Agrarian Reform
WHEREAS, the land reform program of the government is

one of the steps taken in attaining economic emancipation of the
masses, giving to the agricultural tenants the control of their
farmholdings as their units of productions;
WHEREAS, it has come to my attention that the Mountain

State Agricultural College has acquired from the Province of Benguet
a tract of land (TCT Nos. 16374 and 163756), a portion of which
containing seven (7) hectares, more or less, has been occupied from
time immemorial by more or less sixty (60) Igorot families devoting
the same to the cultivation of vegetables and other food crops;
WHEREAS, these occupants-tillers deserve to be extended the

benefits of the land reform program of the government by making
them owner-cultivators of their respective farmholdings;
NOW, THEREFORE, and in view of my earnest desire

to liberate each and every Filipino not only politically but also
economically by implementing fully the land reform program, I,
of the powers vested in me by the Constitution, do hereby order and
direct;
1. The President of the Mountain State Agricultural College

to separate from the land covered by TCT No. 16374 and TCT No.
163756 a portion thereof containing seven (7) hectares, more or
less, presently occupied and cultivated by some sixty (60) Igorot
families and transfer the same by way of sale at cost to the actual
occupant-tillers thereof in accordance with their areas of occupancy
and cultivation.
1527
2. The Minister of Agrarian Reform to undertake the census,

identification and screening of the occupant-tillers and conduct the
necessary boundary and subdivision survey thereof based on their
actual occupancy and cultivation.
3. The Ministry of Agrarian Reform and the Mountain State

Agricultural College to extend to the occupant-tillers technical
assistance in the development of the areas in line with the KKK
program of the government.
4. The Register of Deeds of Benguet to register the deeds

of conveyance executed in favor of each occupant-tiller and issue
corresponding transfer certificates of title to them free from any fee
or tax whatsoever.

year of Our Lord nineteen hundred and eighty-two.

1528
TO: THE MINISTER OF AGRARIAN REFORM

THE MINISTER OF FINANCE
THE ADMINISTRATOR, NATIONAL LAND TITLES AND
DEEDS ADMINISTRATION
THE DIRECTOR OF LANDS
THE GOVERNOR, CENTRAL BANK OF THE PHILIPPINES
THE PRESIDENT, LAND BANK OF THE PHILIPPINES
ALL CONCERNED
WHEREAS, the implementation of land transfer under

Presidential Decree No. 27 has now reached the stage of land
valuation and landowner’s compensation;
WHEREAS, as a pre-condition to land compensation,

landowners are required to comply with several documentary
requirements which entail expenses;
WHEREAS, most of these requirements need action from

various government agencies;
WHEREAS, the objectives of Presidential Decree No. 27 may

be negated if compliance with these requirements is not facilitated;
WHEREAS, the Government is cognizant of the need to

accelerate payment of landholdings covered by Presidential Decree
No. 27;

Constitution, do hereby order and direct all government offices
concerned to render technical services to all landowners who file
their respective compensation claims for their lands transferred
to agrarian reform beneficiaries, and to assist in the preparation,
documentation and completion of all land transfer requirements,
free of charge.
1529
DONE in the City of Manila, Philippines, this 21st day of May

in the year of Our Lord nineteen hundred and eighty-three.

1530
TO: The Minister of Finance
WHEREAS, it is the aim of government to accelerate the

generation and issuance of Emancipation Patents to agrarian
reform beneficiaries covered by Presidential Decree No. 27;
WHEREAS, it is also the policy of the government to assist

agrarian reform beneficiaries in meeting their financial obligations
specially if such obligations are pre-requisite to the registration and
issuance of the Emancipation Patent;
WHEREAS, to accelerate the registration of Emancipation

Patents generated for agrarian reform beneficiaries, there is a
need to lighten the requirements for registration one of which is
the payment of surcharges and penalties on real estate taxes which
may have accrued at no fault of the agrarian reform beneficiaries.

of the Republic of the Philippines, do hereby order and direct the
Minister of Finance to condone all surcharges/penalties on arrearages
or past dues on real estate taxes of agrarian reform beneficiaries
effective from tax year 1973 or when the land was actually placed
under Operation Land Transfer by the Ministry of Agrarian Reform
pursuant to P.D. 27 until the date their Emancipation Patents shall
have been registered by the Register of Deeds.

1531
1532
EXECUTIVE ISSUANCES – PROCLAMATIONS
PROCLAMATIONS
1533
1534
MALACAÑAN PALACE
MANILA
PROCLAMATION NO. 29, s. 1936
RESERVING FOR COLONIZATION PURPOSES A PARCEL OF

LAND IN THE MUNICIPALITIES OF KAPALONG AND
TAGUM, PROVINCE OF DAVAO, ISLAND OF MINDANAO
Pursuant to the provisions of Act Numbered Forty-one

hundred and ninety-seven and upon the recommendation of
the Director of Lands, concurred in by the Directors of Forestry,
Plant Industry, Health, and Public Works, I hereby reserve for
colonization purposes under the administration of the Secretary of
Labor, subject to private rights if any there be, and to future survey
and delimitation that may be made, the following-described parcel
of the public domain situated in the Municipalities of Kapalong and
Tagum, Province of Davao, Island of Mindanao, to wit:
Kapalong, Davao project No. 18-A.—South 79ْ W., 2,295. to

point 2; due North 405 m. to point 3; due West 4,185 m. to point 4;
N. 24 ْW. 6,840 m. to point 5; N. 30 ْ30’ E., 3,240 m. to point 6; S.
22 ْE., 420 m. to point 7; S. 53 ْW., 520 m. to point 8; S. 33 ْE., 420
m. to point 9; S. 34 ْW., 420 m. to point 10; following Sambao River
upstream about 2,000 m. to point 11; S. 35 ْE., 560 m. to point 12; S.
64 ْE., 490 m. to point 13; N. 79 ْE., 520 m. to point 14; N. 69 ْE., 360
m. to point 15; N. 86 ْE., 440 m. to point 16; N. 75 ْE., 440 m. to point
17; N. 6 ْW., 340 m. to point 18; N. 17 ْW., 400 m. to point 19; N. 12
ْW., 380 m. to point 20; N. 27 ْW., 380 m. to point 21; N. 81 ْE., 500
m. to point 22; N. 85 ْE., 360 m. to point 23; S. 65 ْE., 320 m. to point
24; S. 85 ْE., 340 m. to point 25; S. 11 ْE., 340 m. to point 26; S. 34 ْ
W., 360 m. to point 27; S. 73 ْW., 360 m. to point 28; S. 2 ْW., 160 m.
to point 29; S. 46ْ E., 460 m. to point 30; following creek upstream
about 480 m. to point 31; N. 57 ْE., 400 m. to point 32; S. 17 ْE., 400
m. to point 33; S. 61 ْE., 240 m. to point 34; following creek upstream
about 640 m. to point 35; following creek upstream about 280 m. to
1535
point 36; S. 72 ْW., 240 m. to point 37; S. 6 ْE., 400 m. to point 38; S.
7 ْE., 560 m. to point 39; S. 49 ْE., 560 m. to point 40; S. 1 ْW., 880
m. to point 41; S. 20 ْW., 460 m. to point 42; S. 17 ْE., 200 m. to point
43; S. 35 ْW., 300 m. to point 44; S. 16 ْW., 280 m. to point 45; S. 85
ْE., 360 m. to point 46; S. 80 ْE., 360 m. to point 47; S. 82 ْE., 360
m. to point 48; S. 41 ْE., 360 m. to point 49; following Tibalog and
Pantadon Creeks downstream about 440 m. to point 50; following
Tibalog Creek downstream about 400 m. to point 51; N. 54 ْE., 400
m. to point 52; N. 88 ْ E., 420 m. to point 53; N. 58 ْE., 280 m. to point
54; N. 55 ْE., 260 m. to point 55; S. 37 ْE., 320 m. to point 56; S. 63
ْE., 440 m. to point 57; S. 66 ْE., 440 m. to point 58; S. 19 ْE., 560 m.
to point 59; N. 86 ْE., 440 m. to point 60; S. 62 ْE., 440 m. to point 61;
S. 41 ْE., 240 m. to point 1, point of beginning.
Containing an area of two thousand nine hundred ninety-six

(2,996) hectares, more or less.
Point 1, balobo 20 cm.; point 2, a point; point 5, batitinan

30 cm.; point 6, Eugenia sp. 20 cm.; point 7, alem 20 cm.; point 8,
unknown 30 cm.; point 9, taluto 20 cm.; point 10, binuang 30 cm.;
point 11, a point 11, a point; point 12, dao 70 cm.; point 13, w. lauan
70 cm.; point 14, malaikmo 32 cm.; point 15, dao 80 cm.; point 16,
dao cm.; point 17, amugis 60 cm.; point 18, unknown 50 cm.; point
19, aglia sp. 42 cm.; point 20, balobo 30 cm.; point 21, unknown 60
cm.; point 22, balobo 30 cm.; point 23, malacatmon 100 cm.; point 24,
balobo 20 cm.; point 25, Eugenia sp. 60 cm.; point 26, malasapsap 20
cm.; point 27, unknown 40 cm.; point 28, duguan 35 cm.; point 29,
calamansanai 20 cm.; point 30, camagon 30 cm.; point 31, unknown
30 cm.; point 32, Diospyrus sp. 20 cm.; point 33, malasapsap 30
cm.; point 34, putian 20 cm.; point 35, a point; point 36, unknown
30 cm.; point 37, ilangilang 35 cm.; point 38, malugai 30 cm.; point
39, Eugenia sp. 20 cm.; point 40, unknown 40 cm.; point 41, kusin
20 cm.; point 42, lactob 25 cm.; point 43, malaikmo 30 cm.; point 44,
unknown 35 cm.; point 45, ilangilang 40 cm.; point 46, amugis 40
cm.; point 47, unknown 30 cm.; point 48, bulakanag 25 cm.; point
49, unknown 30 cm.; point 50, balobo 20 cm.; point 51, unknown 30
cm.; point 53, taluto 60 cm.; point 53, uao 30 cm.; point 54, tipaco
30 cm.; point 55, unknown 30 cm.; point 56, narra 20 cm.; point 57,
1536
lumbayao 50 cm.; point 58, uao 55 cm.; point 59, balobo 25 cm.; point
60, camputian 25 cm.; point 61, balobo 20 cm.
Tagum Davao project No. 23-B.—Due South 540 m. to point 2;

S. 47ْ E., 315 m. to point 3; S. 60 ْE. 315 m. to point 4; S. 25 ْE., 360
m. to point 5; S. 51 ْE., 405 m. to point 6; S. 77 ْE., 450 m. to point
7; S. 49 ْE., 630 m. to point 8; S. 40 ْW., 945 m. to point 9; S. 27 ْ E.,
405 m. to point 10; S. 10 ْW., 450 m. to point 11; S. 42ْ W., 315 m. to
point 14; S. 35 ْE., 450 m. to point 15; S. 57 ْE., 360 m. to point 16;
S. 20 ْW., 630 m. to point 17; S. 19 ْE., 360 m. to point 18; S. 32 ْE.,
585 m. to point 19; S. 10 ْE., 450 m. to point 20; S. 29ْ E., 450m. to
point 21; S. 52ْ E., 495 m. to point 22; S. 21ْ W., 540 m. to point 23;
S. 27 ْW., 315 m. to point 24; S. 38 ْW., 540 m. to point 25; S. 46 ْW.,
450 m. to point 26; S. 71 ْW., 315 m. to point 27; S. 17 ْW., 540 m. to
point 28; S. 4 ْW., 405 m. to point 29; S. 46 ْE., 315 m. to point 30;
S. 30 ْW., 630 m. to point 31; S. 55 ْW., 945 m. to point 32; S. 77 ْW.,
900 m. to point 33; N. 73 ْW., 450 m. to point 34; N. 83 ْW., 495 m. to
point 35; following Tuganay River downstream South about 7,380
m. to point 36; due West 3,380 m. to point 37; due North 4,720 m. to
point 38; due North 4,095 m. to point 39; due East 2,520 m. to point
40; due North 3,615 m. to point 41; due North 2,415 m. to point 42;
N. 79 ْE., 2,295 m. to point 1, point of beginning.
Containing an area of four thousand six hundred fifty-two

(4,652) hectares, more or less.
Point 1, malakatmon 30 cm.; point 2, tipoko 25 cm.; point 3

amugis 50 cm.; point 4, lumbayao 20 cm.; point 5, tambalan 40 cm.;
point 6, taluto 40 cm.; point 7, unknown 68 cm.; point 8, concrete
monument 15 by 15 by 60 cm.; point 9, concrete monument 15
by 15 by 60 cm.; point 10, balobo 20 cm.; point 11, malabunga 50
cm.; point 12, malasantol 30 cm.; point 13, balobo 20 cm.; point 14
balobo 20 cm.; point 15, pagsahingin 25 cm.; point 16, balobo 20 cm.;
point 17, balobo 20 cm.; point 18, marang 20 cm.; point 19, balobo
20 cm.; point 21, unknown 30 cm.; point 22, gubas 20 cm.; point
23, Palaquin sp. 50 cm.; point 24, malabayabas 80 cm.; point 25,
unknown 20 cm.; point 26; malabayabas 20 cm.; point 27, tuai 30
cm.; point 28, ilangilang 40 cm.; point 29, malaruhat 50 cm.; point
1537
30, balobo 20 cm.; point 31, B. L. concrete monument; point 32, not
described; point 33, talisai gubat 50 cm.; point 34, magabad 30 cm.;
point 35, pagsahingin 30 cm.; points 36 and 37, not described; point
38, concrete monument; point 39, 40, and 41, not described; point
42, a point.
In witness whereof, I have hereunto set my hand and caused

the seal of the Commonwealth of the Philippines to be affixed.
Done at the City of Manila, this twenty-ninth day of January,

in the year of Our Lord, nineteen hundred and thirty-six, and of the
Commonwealth of the Philippines, the first.
[SEAL]
(Sgd.) MANUEL L. QUEZON
By the President:
(Sgd.) TEOFILO SISON

Secretary of the Interior
1538
MALACAÑANG
Manila
DIRECTING THAT ALL PROCEEDS OF THE SALE OF NON-

PERFORMING ASSETS OF THE ASSETS PRIVATIZATION
TRUST BE USED EXCLUSIVELY FOR LAND REFORM
WHEREAS, the elimination of poverty, the equitable

distribution of wealth, and the generation of productive self-
employment is of the highest priority of this Administration;
WHEREAS, this centuries-old problem can be remedied thru

a meaningful agrarian land reform program;
WHEREAS, the past regime ordered government financial

institutions to extend “behest” loans to its favorites and cronies who
obtained amounts unconscionably far in excess of their loan values
and knowing fully well that they would never be repaid;
WHEREAS, the enterprises borne out of these behest loans

have been or will be turned over by the government financial
institutions to the Assets Privatization Trust for sale;
WHEREAS, initial reports indicate that the transfer value of

the non-performing assets from the Philippine National Bank and
the Development Bank of the Philippines to the Assets Privatization
Trust is P108 billion but that their market value would only be
roughly P23.8 billion;
WHEREAS, the foregoing figure does not include the non-

performing assets of the National Development Co., the Philippine
Loan Guarantee Corp. and other government institutions whose
assets shall likewise be transferred to the Assets Privatization
Trust for eventual sale;
1539
WHEREAS, attempts for land reform in the past have failed

because of lack of adequate funds to finance it;
WHEREAS, land reform has been a long-overdue measure of

social justice which must be met head-on with massive funding and
would provide the opportunity to put this bad money coming from
the “behest loans” to good use;

Constitution, do hereby direct that all proceeds from the sale of
all non-performing assets by the Assets Privatization Trust be
devoted entirely and exclusively to the land reform program of
the government. I direct the Departments of Agrarian Reform,
Agriculture and Food, Natural Resources and Finance, the National
Economic and Development Authority, and the Assets Privatization
Trust to prepare a comprehensive land reform program, anchored
on the utilization of the proceeds from the sale of the non-performing
assets.
IN WITNESS WHEREOF, I have hereunto set my hand and

caused the seal of the Republic of the Philippines to be affixed.
DONE in the City of Manila, this 3rd day of March, in the

year of Our Lord, nineteen hundred and eighty-seven.

By the President:

Executive Secretary
1540
MALACAÑANG
Manila
INSTITUTING A COMPREHENSIVE AGRARIAN REFORM

PROGRAM
WHEREAS, we have proclaimed the revival and development

of the full potential of Philippine agriculture to be an economic
priority of our new democracy so as to provide a firm foundation
for the industrialization of our economy, and thereby assure the
genuine independence of our country;
WHEREAS, it is necessary to make our new democracy

meaningful by increasing the productivity of the farming sector and
increasing the incomes of farmers, regular farmworkers, and other
farmworkers;
WHEREAS, the essential element in any policy of agricultural

revival and development is a comprehensive and realistic agrarian
reform program;
WHEREAS, such an agrarian reform program will encourage

the shift of capital from land to industry;
WHEREAS, realizing these imperatives, the President

declared in the 1986 Presidential campaign that she would
undertake an agrarian reform program;
WHEREAS, there is need for all to address agrarian reform

in the spirit of cooperation, harmony, and understanding, a spirit
which must pervade the process as a whole, in its voluntary as
well as non-voluntary aspects, for the country faces problems and
challenges that require national unity;
1541
WHEREAS, agrarian reform indispensably entails the

participation of all concerned in the planning, organization, and
management of the program;
WHEREAS, the entire Filipino people, together with all

government agencies and private organizations, must extend
priority support and full cooperation to implement this program
effectively;
WHEREAS, there is a need for the program to be realistic

and flexible in order to succeed, to take account of differences from
place to place, from community to community, so that no single and
rigid prescription would be unfairly and unwisely applied to all
regardless of special features and circumstances, and to be within
the present and foreseeable capabilities of the nation;
WHEREAS, the program further requires available funding

that is definite as to source and timing;
WHEREAS, the education, re-orientation, and motivation

of farmers, regular farmworkers, and other farmworkers in their
new role and responsibilities, along with steps to ensure that the
program will result in increased productivity and better income for
the beneficiaries, are also called for;
WHEREAS, all these and other infrastructure requirements

must further be provided for by other legislation and measures;
WHEREAS, the President recognizes as a partner to this

continuing undertaking the co-equal Branch of the Congress of the
Philippines, whose Senate is elected at large and therefore speaks
for the nation, and whose House of Representatives articulates the
needs and problems of the constituencies and sectors in the land;
WHEREAS, in the last analysis, the times undeniably a call

for change, and the need to undertake the agrarian reform program
can no longer wait so that no alternative lies but to adopt a program
1542
that is workable, sufficiently funded and above all, aimed to succeed,

for the nation can no more afford its failure than its lack;
WHEREAS, the forces of history and the Constitution, the

pressing needs of the times, the capabilities of the present, and the
age-old aspirations of the Filipino people demand such agrarian
reform program.
WHEREFORE, the Constitution of the Philippines provides

the following:
“ART. II
‘DECLARATION OF PRINCIPLES AND STATE POLICIES
xxx
“Sec. 21. The State shall promote comprehensive rural

development and agrarian reform.”
“ART. XXII
“NATIONAL ECONOMY AND PATRIMONY”
xxx
“Sec. 1, par. 2: The State shall promote industrialization and

full employment based on sound agricultural development and
agrarian reform, x x x”
“ART. XIII
“SOCIAL JUSTICE AND HUMAN RIGHTS”
xxx
1543
“AGRARIAN AND NATURAL RESOURCES REFORM”
xxx
“Sec. 4. The State shall, by law, undertake an agrarian

reform founded on the right of farmers and regular farmworkers,
who are landless, to own directly or collectively the lands they
till or, in the case of other farmworkers, to receive a just share
of the fruits thereof. To this end, the State shall encourage and
undertake the just distribution of all agricultural lands, subject to
such priorities and reasonable retention limits as the Congress may
prescribe, taking into account ecological, developmental, or equity
considerations, and subject to the payment of just compensation. In
determining the retention limits, the State shall respect the right
of small landowners. The State shall further provide incentives for
voluntary land-sharing.”
“Sec. 5. The State shall recognize the right of the farmers,

farmworkers, and landowners, as well as cooperatives, and other
independent farmers’ organizations to participate in the planning,
organization, and management of the program, and shall provide
support to agriculture through appropriate technology and research,
and adequate financial production, marketing, and other support
services.”
“Sec. 6. The State shall apply the principles of agrarian reform

or stewardship, whenever applicable in accordance with law, in the
disposition or utilization of other natural resources, including lands
of the public domain under lease or concession suitable to agriculture,
subject to prior rights, homestead rights of small settlers, and the
rights of indigenous communities to their ancestral lands.
“The State may resettle landless farmers and farmworkers in

its own agricultural estates which shall be distributed to them in
the manner provided by law.”
xxx
1544
“Sec. 8. The State shall provide incentives to landowners

to invest the proceeds of the agrarian reform program to promote
industrialization, employment creation, and privatization of public
sector enterprises. Financial instruments used as payments for
their lands shall be honored as equity in enterprises of their choice.”
ART. XVIII
TRANSITORY PROVISIONS
xxx
“Sec. 22. At the earliest possible time, the Government shall

expropriate idle or abandoned agricultural lands as may be defined
by law, for distribution to the beneficiaries of the agrarian reform
program.”
NOW, THEREFORE, I, CORAZON COJUANGCO AQUINO,

vested in me by the Constitution, do hereby order:
SECTION 1. Scope. — Comprehensive Agrarian Reform

Program (CARP) is hereby instituted which shall cover, regardless
of tenurial arrangement and commodity produced all public and
private agricultural lands as provided in the Constitution, including
public domain suitable to agriculture.
SEC. 2. Agrarian Reform Fund. — There is hereby created a

special fund, to be known as The Agrarian Reform Fund, an initial
amount of FIFTY BILLION PESOS (50,000,000,000.00) to cover
the estimated cost of the Comprehensive Agrarian Reform Program
from 1987 to 1992 which shall be sourced from the receipts of the sale
of the assets of the Asset Privatization Trust and receipts of sale of
ill-gotten wealth received through the Presidential Commission on
Good Government and such other sources as government may deem
appropriate. The amounts collected and accruing to this special
fund shall be considered automatically appropriated for the purpose
authorized in this Proclamation.
1545
SEC. 3. Implementation. — The provisions for the mechanisms

needed initially to implement the Comprehensive Agrarian Reform
Program are set forth in Executive Order No. 229, dated 22 July,
1987, which is a companion measure to this Proclamation.
SEC. 4. Effectivity and Repealing Clause. — This Proclamation

shall take effect immediately upon its approval and repeals or
amends accordingly all laws, issuances, decrees or any part thereof
inconsistent with its provisions.
APPROVED, in the City of Manila, Philippines, this 22nd day

of July, 1987.

By the President:

Executive Secretary
1546
MALACAÑANG
Manila
FURTHER AMENDING PROCLAMATION NO. 1530, DATED

FEBRUARY 2, 1976, BY PROVIDING FOR A SYSTEM OF
VALUATION IN ACCORDANCE WITH REPUBLIC ACT NO.
3844 AS AMENDED OR IN ACCORDANCE WITH SUCH
SYSTEM OF VALUATION, MODE OR TERMS OF PAYMENT
AS MAY BE AGREED UPON BY THE LAND BANK OF THE
PHILIPPINES AND THE DEPARTMENT OF AGRARIAN
REFORM
WHEREAS, Proclamation No. 1530, dated February 2, 1976,

reserved for settlement purposes certain parcels of land situated in
Panamao, Talipao and Tiptipon, Province of Sulu;
WHEREAS, the said Proclamation, as amended by

Proclamation No. 835 dated 14 November 1991, expressly provides
that: “With respect to those lots for which certificates of title were
already issued, the Department of Agrarian Reform and the Land
Bank of the Philippines are hereby authorized to expropriate
the said areas and/or negotiate for their acquisition pursuant
to Republic Act No. 3844, as amended by Republic Act No. 6389.
Whatever amounts are necessary for the purpose shall be taken
out of the Agrarian Reform Fund to be drawn by the Land Bank of
the Philippines to finance the acquisition of the private properties
covered by this Proclamation”;
WHEREAS, there is a need to hasten payment to the

landowners affected by the Proclamation and to rationalize the
payment scheme for the landowners;

Republic of the Philippines, upon recommendation of the Secretary
of Agrarian Reform and by virtue of the powers vested in me by law,
1547
do hereby amend the following paragraph of Proclamation No. 1530,

s. 1976, as amended by Proclamation No. 835, s. 1991, to wit:
“With respect to those lots for which certificate of titles were

already issued, the Department of Agrarian Reform and
the Land Bank of the Philippines are hereby authorized
to expropriate the said areas and/or negotiate for their
acquisition pursuant to Republic Act no. 3844, as amended
by Republic Act No. 6389. Whatever amounts are necessary
for the purpose shall be taken out of the Agrarian Reform
Fund to be drawn by the Land Bank of the Philippines to
finance the acquisition of the private properties covered by
this proclamation”,
which shall now read as follows:
“With respect to those lots, for which certificates of titles

were already issued, the Department of Agrarian Reform
and the Land Bank of the Philippines are hereby authorized
to expropriate the said areas and/or negotiate for their
acquisition pursuant to Republic Act No. 3844, as amended by
Republic Act No. 6389 or in accordance with such valuation,
mode or terms of payment as the Department of Agrarian
Reform and the Land Bank of the Philippines may, consistent
with existing laws, agree upon. Whatever amounts are
necessary for the purpose shall be taken out of the Agrarian
Reform Fund to be drawn by the Land Bank of the Philippines
to finance the acquisition of the private properties covered by
this Proclamation.”

1548
DONE in the City of Manila, this 5th day of February in the

year of Our Lord, Nineteen Hundred and Ninety-Three.
By the President:
(Sgd.) ANTONIO T. CARPIO

Chief Presidential Legal Counsel
Proc. 136 s. 1993 amended Proc. 1530 s. 1976.
1549
MALACAÑAN G
Manila
DECLARING THE PERIOD JUNE 9–15 OF EVERY YEAR AS

“AGRARIAN REFORM WEEK” AND RECOGNIZING THE
AGRARIAN REFORM COMMUNITY DEVELOPMENT
PROGRAM AS A KEY PROGRAM FOR NATIONAL
DEVELOPMENT
WHEREAS, it is important that the beneficiaries of the

agrarian reform program of the government be able to build
prosperous communities in their barangays or municipalities for
agrarian reform to succeed; and
WHEREAS, the Department of Agrarian Reform looks at

the development of viable agrarian reform communities as the end
product of the agrarian reform process.
NOW, THEREFORE, I, FIDEL V. RAMOS, President of

the Republic of the Philippines, by virtue of the powers vested in
me by law, do hereby declare the period June 9-15 of every year
as “Agrarian Reform Week”. The Agrarian Reform Community
Development Program is hereby recognized as a key program for
national development.
DONE in the City of Manila, this 21st day of May in the year
of Our Lord, Nineteen Hundred and Ninety-Three.
By the President:
(Sgd.) ANTONIO T. CARPIO

Chief Presidential Legal Counsel
Proc. 180 s. 1993 was amended by Proc. 263 s. 2000.
1550
MALACAÑANG
OF THE PHILIPPINES
Manila
RESERVING FOR STOCK FARM PURPOSES A CERTAIN PARCEL

OF THE PUBLIC DOMAIN SITUATED IN THE BARRIO OF
DAING, MUNICIPALITY OF CERVANTES, PROVINCE OF
ILOCOS SUR, ISLAND OF LUZON
Upon the recommendation of the Secretary of Agriculture and

Natural Resources and pursuant to the provisions of section 83 of
Commonwealth Act No. 141, as amended, I, Ramon Magsaysay,
President of the Philippines, do hereby withdraw from sale and
settlement and reserve for stock farm site purposes under the
administration of the Bureau of Animal Industry, subject to private
rights, if any there be, and to the following conditions, to wit:
1. The utilization of timber and other forest products therein

shall be subject to forestry laws and regulations; and
2. At any time the area is abandoned for the purposes it is

intended, the same shall revert to the category of timber land under
the jurisdiction of the Bureau of Forestry;
a certain parcel of the public domain situated in the barrio of

Daing, municipality of Cervantes, province of Ilocos Sur, island of
Luzon, and more particularly described as follows:
ILOCOS SUR STOCK FARM

(Bureau of Animal Industry)
A parcel of land (the proposed Ilocos Sur Stock Farm of the

Bureau of Animal Industry), situated in the sitios of Cayos and
Tabayag, barrio of Daing, municipality of Cervantes, province of
Ilocos Sur. Bounded on the N. by public forest; on the E., by parcel of
1551
I Amd.—Cn F.-674-I) and the Ilocos Sur Project No. 9, block I (Alien,
and Dis.) and Abia Eiver; on the S., by the Ilocos Sur Project No. 9,
block I (Alien, and Dis.) and public land; and on the W., by public
forest and the Ilocos Sur Project No. 9, block II (Alien, and Dis.).
Beginning at a point marked 1 on the attached plan, thence due
west, 360.00 meters to point 2; thence N. 57° W., 990.00 meters to
point 3; thence N. 77° W., 100.00 meters to point 4; thence S. 50° W.,
380.00 meters to point 5; thence S. 39° W., 450.00 meters to point 6;
thence N. 31° W., 240.00 meters to point 7; thence N. 14° W., 330.00
meters to point 8; thence N. 16° W., 560.00 to point 9; thence N.
58° W., 860.00 meters to point 10; thence N. 8° E., 510.00 meters
to point 11; thence N. 78° W., 190.00 meters to point 12; thence N.
46° W., 640.00 meters to point 13; thence N. 1° E., 180.00 meters
to point 14; thence N. 19° E., 500.00 meters to point 15; thence Ni.
46° E., 610.00 meters to point 16; thence S. 37° E., 280.00 meters
to point 17; thence N. 49° E., 440.00 meters to point 18; thence
following the Cayos and Mili Creek in a northeasterly direction
about 1,100.00 meters to point 19; thence N. 31° E., 210.00 meters
55° W., 500.00 meters to point 22; thence N.. 25° E., 280.00 meters
to point 23; thence N. 22° E., 200.00 meters to point 24; thence N.
55° W., 320.00 meters to point 25;. thence N. 3° E., 340.00 meters
to point 26; thence S. 82° E., 660.00 meters to point 27; thence S.
51° E., 830.00 meters to point 28; thence S. 76° E., 380.00 meters to
point 29; thence N. 76° E., 460.00 meters to point 30; thence N. 63°
E., 740.00 meters to point 31; thence S. 4° W., 430.00 meters to point
32; thence S. 14° W., 450.00 meters to point 33; thence S, 30° W.,
410.00 meters to point 34; thence S. 5° W., 260.00 meters to point
35; thence S. 51° E., 300.00 meters to point 36; thence S. 22:° E.,
360.00 meters to point 37; thence S. 25° E., 530.00 meters to point
38; thence S. 12° E., 300.00 meters to point 39; thence due south,
450.00 meters to point 40; thence S. 5° E., 620.00 meters to point 41;
thence S. 12° E., 420.00 meters to point 42; thence S. 53° E., 300.00
meters to point 43; thence S. 81° E., 220.00 meters to point 44;
thence following the Abra River upstream in a southerly direction
about 1,350.00 meters to point 45; thence N. 58° W., 480.00 meters
18° W., 300.00 meters to point 48: thence due west, 260.00 meters
1552
to point 49; thence S. 9° W., 300.00 meters to point 50; thence S. 77°
W., 240.00 meters to point 51; thence S. 75° W., 240.00 meters to
point 52; thence S. 68° W., 340.00 meters to the point of beginning;
containing an approximate area of 1,756 hectares, more or less. All
points referred to are indicated on the plan and are marked on the
ground as follows: points 11, 13, 36, 37 and 51, by big rocks; point
12, by pile of rocks; point 15, by rock; point 45, by pile of stones; and
the rest, by trees; bearings true.

Done in the City of Manila, this 23rd day of September, in

the year of Our Lord, nineteen hundred and fifty-five, and of the
Independence of the Philippines, the tenth.
RAMON MAGSAYSAY
By the President:
FRED RUIZ CASTRO

Executive Secretary
1553
MALACAÑANG
Manila
AMENDING PROCLAMATION NO. 582, DATED JULY 8, 1940,

WHICH ESTABLISHED THE FAMY-INFANTA FOREST
RESERVE IN LAGUNA AND QUEZON, AND PROCLAMATION
NO. 1636, DATED APRIL 18, 1979, WHICH ESTABLISHED
A NATIONAL PARK, WILDLIFE SANCTUARY AND
GAME PRESERVE IN REAL, QUEZON, AND RESERVING
CERTAIN PORTIONS OF THE LAND EMBRACED THEREIN
FOR AGRICULTURAL SETTLEMENT PURPOSES OF THE
Upon recommendation of the Secretary of Environment

and Natural Resources on representation of the Secretary of
Agrarian Reform and pursuant to the authority vested in me by
law, I, CORAZON C. AQUINO, President of the Philippines, do
hereby exclude from the operation of Proclamation No. 582, dated
July 8, 1940, which established the Famy-Infanta Forest Reserve
in Laguna and Quezon, and Proclamation No. 1636, dated April
18, 1979, which established a National Park, Wildlife Sanctuary
and Game Preserve in Real, Quezon, certain portion of the land
embraced therein situated in Barangays Kiloloran, Capalong,
Tignoan and Tanauan, Municipality of Real, Province of Quezon,
and in the Municipality of Famy, Province of Laguna, and declare
said portion which is below 18% in slope as alienable and disposable
for the resettlement program of the Department of Agrarian Reform
and which is more particularly described as follows:
“A PARCEL OF LAND, within the National Park, Wildlife

Sanctuary and Game Reserve under Presidential Proclamation
No. 1636 and Famy-Infanta Forest Reserve (FR-99), situated in
the municipality of Real, formerly a portion of Infanta, province of
Quezon, bounded on the North by Marcos Highway; on the East by
1554
A & D Project 19-C, Block I of Quezon; on the West by Municipality

of Famy; and on the South by A & D tract of land. Beginning at a
point marked “I” on plan, being the junction of Tignoan River; 450
m. to pt. 2; SW following Tignoan River 400 m. to pt. 6; SW following
Makaraykaray River 450 m. to pt. 7; SW following Makaraykaray
River 450 m. to point 8; SW following Makaraykaray River 400 m. to
pt. 9; SW-SE following Makaraykaray River 400 m. to pt. 10; SW-SE
following Makaraykaray River 500 m. to pt. 11; SW, NW, SW, following
Makaraykaray River 600 m. to pt. 12; SW following Makaraykaray
River 250 m. to pt. 13; SW, NW, SW, following Makaraykaray River
500 m. to pt. 14; SW following Makaraykaray River 500 m. to pt. 14;
SW following Makaraykaray River 300 m. to pt. 15;
S 21’W 1,200 m. to pt. 16; S 04’E 560 m. to pt. 17;

S 37’W 720 m. to pt. 18; S 39’W 180 m. to pt. 19;
following River (Llavac River) 2,500 m. to pt. 20;
S 61’W 1,150 m. to pt. 21; S 60’W 650 m. to pt. 22;
S 65’W 440 m. to pt. 23; S 89’W 480 m. to pt. 24;
N 51’W 560 m. to pt. 25; N 43’W 700 m. to pt. 26;
N 35’W 1,500 m. to pt. 27; NW-NE following Marcos
Highway 300 m. to pt. 28; NW-NE following Marcos
Highway 350 m. to pt. 29; NE-NW following Marcos
Highway 300 m. to pt. 30; NW, following Marcos
Highway 350 m. to pt. 31; NE, following Marcos
Highway 380 m. to pt. 38; NW-NE following Marcos
Highway 300 m. to pt. 44;
NE, following Marcos Highway 350 m. to pt. 45;
1555

NW, following Marcos Highway 300 m. to pt. 50;
SE, following Marcos Highway 310 m. to pt. 53;
NW-NE, following Marcos Highway 350 m. to pt. 55;
SE-NE, following Marcos Highway 450 m. to pt. 60;
NE-NW, following Marcos Highway 570 m. to pt. 65;
S 66’E 780 m. to pt. 68; N 79’E 880 m. to pt. 69;
S 85’E 960 m. to pt. 70; N 85’E 880 m. to pt. 71;
N 88’E 1500 m. to pt. 72; N 29’W 900 m. to pt. 73;
N 25’W 860 m. to pt. 74;
N 81’E 180 m. to pt. 75; N 31’E 280 m. to pt. 76;
N 09’E 270 m. to pt. 77; N 26’E 300 m. to pt. 78;
N 20’W 300 m. to pt. 79; N 46’E 430 m. to pt. 80;
N 41’E 410 m. to pt. 81; N 27’W 250 m. to pt. 82;
NE, following Kinanliman River 250 m. to pt. 83;
SE, following Kinanliman River 310 m. to pt. 84;
SE, following Kinanliman River 330 m. to pt. 85;
NW, following Kinanliman River 320 m. to pt. 87;
1556
S, 69′ 280 m. to pt. 91; S 25’W 430 m. to pt. 92;

S 06’W 380 m. to pt. 93; S 268’E 130 m. to pt. 94;
S 32’E 210 m. to pt. 95; S 36’E 320 m. to pt. 96;
S 17’E 150 m. to pt. 97; S 61’E 200 m. to pt. 98;
S 13’W 270 m. to pt. 99; S 15’W 390 m. to pt. 100;
S 42’W 320 m. to pt. 101; S 63’E 220 m. to pt. 102;
S 72’W 220 m. to pt. 103; S 71’W 200 m. to pt. 104;
S 73’W 590 m. to pt. 105; S 01’W 330 m. to pt. 106;
NE, Following Kiloloron River 670 m. to pt. 107;
S 73’E 190 m. to pt. 108; S 30’E 160 m. to pt. 109;
S 12’E 160 m. to pt. 110; S 10’E 200 m. to pt. 111;
S 19’W 250 m. to pt. 112; S 66’E 290 m. to pt. 113;
S 48’W 340 m. to pt. 114; S 07’W 130 m. to pt. 115;
S 02’W 190 m. to pt. 116; S 80’W 220 m. to pt. 11 117;
S 06’E 310 m. to pt. 118; S 63’E 320 m. to pt. 119;
S 49’E 160 m. to pt. 120; S 50’E 240 m. to pt. 121;
S 01’W 320 m. to pt. 122; S 17’E 200 m. to pt. 123;
S 35’E 240 m. to pt. 124; S 12’E 200 m. to pt. 125;
S 32’W 290 m. to pt. 126; S 35’E 130 m. to pt. 127;
S 45’E 200 m. to pt. 128; S 29’W 300 m. to pt. 129;
SE, following Talisay River 240 m. to pt. 130;
SW, following Kaybatang River 840 m. to pt. 131;
S 48’E 360 m. to pt. 132; S 12’E 160 m. to pt. 133;
Due East 210 m. to pt. 134; SE, following Kayparang
River 390 m. to pt. 135; SE, following Kayparang
River 250 m. to pt. 136; N 85’E 150 m. to pt. 137;
S 15’W 210 m. to pt. 138; N 82’E 230 m. to pt. 139;
S 05’W 130 m. to pt. 140; S 06’W 400 m. to pt. 141;
S 26’W 160 m. to pt. 142; S 14’E 230 m. to pt. 143;
S 02’W 240 m. to pt. 144; S 15’E 210 to pt. 145;
S 31’E 370 m. to pt. 146; S 21’E 350 m. to pt. 147;
S 12’E 230 m. to pt. 148; S 77’W 420 m. to pt. 149;
S 37’W 100 m. to pt. 150; NW following Tignoan River
370 m. to pt. 151; N 78’W 200 m. to pt. 152;
S 40’W 190 m. to pt. 153; S 85’W 350 m. to pt. 154;
S 01’E 130 m. to pt. 155; NW following Tignoan River
490 m. to pt. 156; N 49’W 400 m. to pt. 157;
S 08’W 350 m. to pt. 158; SW following Tignoan River
530 m. to pt. 159; SE-SW following Tignoan River
240 m. to pt. 160; NW following Tignoan River
1557
400 m. to the point of beginning containing an area of ELEVEN

THOUSAND SIX HUNDRED TWENTY-NINE (11,629) HECTARES.
All points referred to are indicated on the plan and are marked on
the ground by old monuments, boulders and coconut trees.
“NOTE: All data are approximate and subject to change

based on future survey.”
In order to maintain a balanced ecosystem, timberland areas

within the reservation established herein and all slopes within
a 300 meter radius from the boundary of the reservation shall
serve as watershed which could be the source of surface water for
agricultural purposes.
All subsisting forestry permits, licenses and lease agreements

within the proclaimed area shall be cancelled by the Department of
Environment and Natural Resources. Alienable and disposable land
within the area previously released by the Bureau of Lands, if any
there be, as well as records of public land applications filed in the
area shall be turned over to the Department of Agrarian Reform,
who shall thereafter have the administration and management
thereof.


year of Our Lord, nineteen hundred and eighty-seven.

By the President:

Executive Secretary
1558
MALACAÑANG
MANILA

PARCELS OF LAND SITUATED IN BORONGAN AND SAN
JULIAN, PROVINCE OF EASTERN SAMAR
WHEREAS, Section 85, Chapter XII, Title 5 of Commonwealth

Act No. 141, approved 7 November 1936, otherwise known as
the “Public Land Act”, authorizes the President to designate, by
proclamation, any tract or tracts of land of the public domain for the
establishment of agricultural communities;
WHEREAS, Section 14, Chapter 4, Title I, Book III of the

Administrative Code of 1987 provides that “[t]he President shall
have the power to reserve for settlement or public use, and for
specific public purposes, any of the lands of the public domain, the
use of which is not otherwise directed by law. The reserved land shall
thereafter remain subject to the specific public purpose indicated
until otherwise provided by law or proclamation”;
WHEREAS, Section 3 (5), Chapter 1, Title XI, Book IV of

the Administrative Code of 1987 provides that the Department
of Agrarian Reform shall “[a]dminister and dispose of, under a
settlement scheme, all portions of the public domain declared as
alienable and disposable lands for speedy distribution to and
development by deserving and qualified persons who do not own
any land and under such terms and conditions as the Department
may prescribe, giving priority to qualified and deserving farmers in
the province where such lands are located;”
1559
WHEREAS, it is the declared policy of the State to provide a

vigorous land resettlement program in order to create a truly viable
social and economic structure in the country;
WHEREAS, it is the responsibility of the government to

provide the people with lands as well as technical guidance and
assistance to make them independent, self-reliant and responsible
citizens; and
WHEREAS, there is a big tract of agricultural land in Borongan

and San Julian, Eastern Samar found to be suitable for cultivation
and conversion into a well-organized and develop resettlement area
for rebel-returnees evacuees and other deserving Filipinos;

law, and upon recommendation of the Secretary of Agrarian Reform
and the Secretary of Environment and Natural Resources, and
pursuant to Section 85, Chapter XII, Title 5 of Commonwealth Act
No. 141, otherwise known as the “Public Land Act” and Section 14,
Chapter 4, Title I, Book III of the Administrative Code of 1987, do
hereby reserve for the purpose of establishing a settlement and an
agricultural community under the administration and disposition of
the Department of Agrarian Reform, subject to private rights, if any
there be, and to future classification, certain parcels of land, more
particularly described as follows:
TECHNICAL DESCRIPTION
Beginning at point marked BLLM No. 1, N 34 deg. -49′ W,

5,742.08 m. thence
thence N. 88 deg. 52’W., 1,579.22 m. to point 2;

N. 88 deg. 45’W., 699.22 m. to point 3;
N. 88 deg. 45’W., 107.14 m. to point 4;
N. 75 deg. 58’W., 118.43 m. to point 5;
1560
N. 75 deg. 57’W., 202.42 m. to point 6;

N. 82 deg. 01’W., 277.77 m. to point 7;
N. 58 deg. 59’W., 232.59 m. to point 8;
N. 43 deg. 57’W., 243.08 m. to point 9;
N. 48 deg. 44’W., 398.81 m. to point 10;
N. 57 deg. 04’W., 259.40 m. to point 11;
N. 42 deg. 47’W., 2,069.08 m. to point 12;
N. 53 deg. 55’W., 796.69 m. to point 13;
S. 68 deg. 00’W., 3,000.00 m. to point 14;
N. 19 deg. 30’W., 5,897.00 m. to point 15;
N. 65 deg. 20’E., 9,600.00 m. to poi2nt 16;
S. 40 deg. 48’E., 8,852.71 m. to point 17;
S. 46 deg. 20’W., 4,200.00 m. to point 18;
S. 46 deg. 15’W., 1,313.00 m. to point 19;
S. 49 deg. 31’W., 1,685.60 m. to point of
beginning containing an area of nine thousand six hundred thirty

eight (9,638.00) hectares, more or less.
The technical description is subject to adjustment based on

the result of a final survey.
All areas within the reservation which fall under the

classification of timberland, forest land or unclassified public land,
if any, shall be deemed excluded from the scope of this Proclamation.

retain jurisdiction over portions covered by public land applications
as of the date hereof and shall continue to process such applications.
All vested rights inside the reservation shall be respected.
1561

Year of Our Lord Nineteen Hundred and Ninety-Three.
By the President:

Executive Secretary
1562
MALACAÑANG
Manila
REVOKING PROCLAMATION NO. 106 DATED MAY 11, 1987 AND

RESERVING FOR SETTLEMENT PURPOSES THE LAND
COVERED THEREBY UNDER THE ADMINISTRATION
AND DISPOSITION OF THE DEPARTMENT OF AGRARIAN
REFORM
WHEREAS, a large tract of fertile agricultural public land,

located in the municipalities of Hinunangan, San Juan and St.
Bernard, province of Southern Leyte, consisting of THIRTEEN
THOUSAND (13,000) HECTARES more or less, was found to be
available and suitable for settlement purposes;
WHEREAS, said tract of public land has been previously

reserved for settlement purposes, under Proclamation No. 1497,
dated September 11, 1975 but was reverted to the status of forest
land pursuant to Proclamation No. 106 dated May 11, 1987;
WHEREAS, Proclamation No. 106 was issued to prevent

illegal logging in the area under the guise of clearing lands for
settlement purposes;
WHEREAS, subsequent investigations conducted by the

Department of Environment and Natural Resources confirmed that
such activities have already been curtailed and that the Department
of Agrarian Reform has made extensive developments in the area;
WHEREAS, the reversion of the area to the status of a forest

land will not only affect the rights of individual settlers who have
introduced improvements and developed portions of the said tract
of land, but will also negate the developments and improvements
1563
introduced by the Department of Agrarian Reform on said tract of

land;
WHEREAS, as a corrective measure, there is a need of

reinstating the classification of the land as a reservation for
settlement purposes;
NOW, THEREFORE, upon the recommendation of the

Secretary of Environment and Natural Resources, I, CORAZON
C. AQUINO, President of the Philippines, by virtue of the powers
vested in me by law, do hereby revoke Proclamation No. 106, dated
May 11, 1987, and reserve for settlement purposes the land covered
thereby under the administration and disposition of the Department
of Agrarian Reform more particularly described as follows:
“A parcel of land situated in the municipalities of Hinunangan,

San Juan and St. Bernard, province of Southern Leyte, beginning
at a point marked “1” on plan being latitude 10 degree 18’36” and
longitude 125 degree 12’27”
thence S. 28 deg. 27′ W., 1,851.98 m. to point 2;

thence N. 74 deg. 26′ W., 4,580.06 m. to point 3;
thence N. 13 deg. 41′ E., 3,731.20 m. to point 6;
thence N. 45 deg. 28′ E., 4,863.43 m. to point 8;
thence S. 51 deg. 16′ E., 7,563.33 m. to point 9;
thence S. 7 deg. 34′ W., 4,153.05 m. to point 10;
thence S. 59 deg. 06′ E., 957.15 m. to point 11;
thence S. 26 deg. 01′ E., 11,452.70 m. to point of
1564
beginning containing an approximate area of TWELVE THOUSAND

SIX HUNDRED SEVENTY THREE (12,673) HECTARES, more or
less.
In order to facilitate the development of the area subject of

this proclamation, the Department of Agrarian Reform is hereby
allowed to cut the available timber in the area for its use in the
development of the settlement, subject to forestry laws, rules and
regulations.

Done in the City of Manila, this 13th day of April in the year
of Our Lord, nineteen hundred and eighty-eight.
By the President:

Executive Secretary
Proc. 246 s. 1988 repealed Proc. 106 s. 1987.
1565
MALACAÑANG
MANILA

IN THE MUNICIPALITIES OF BUNAWAN AND VERUELA
(LOCALLY NAMED NUEVA ERA), PROVINCE OF AGUSAN
DEL SUR

Act No. 141, approved 7 November 1936, otherwise known as
the “Public Land Act”, authorizes the President to designate, by
proclamation, any tract or tracts of land of the public domain for the
establishment of agricultural communities;
WHEREAS, Section 14, Chapter 4, Title I, Book III of the

Administrative Code of 1987 provides that “[t]he President shall
have the power to reserve for settlement or public use, and for
specific public purposes, any of the lands of the public domain, the
use of which is not otherwise directed by law. The reserved land shall
until otherwise provided by law or proclamation”;
WHEREAS, Section 3(5), Chapter 1, Title XI, Book IV of

of Agrarian Reform shall “[a]dminister and dispose of, under a
settlement scheme all portions of the public domain declared as
the province where such lands are located”;
1566
WHEREAS, it is declared policy of the State to provide a


provide the people with lands as well as technical guidance and
citizens; and
WHEREAS, there is a big tract of agricultural land in Bunawan

and Veruela, Agusan del Sur found to be suitable for cultivation and
conversion into a well-organized and developed resettlement area
for landless farmers, rebel-returnees, evacuees and other deserving
Filipinos.

law, and upon the recommendation by the Secretary of Agrarian
Reform and the Secretary of the Environment and Natural Resources,
and pursuant to Section 85, Chapter XII, Title 6 of Commonwealth
Act No. 141, otherwise known as the “Public Land Act” and Section
14, Chapter IV, Title 1, Book III of the Administrative Code of 1987,
do hereby reserve for the purpose of establishing a settlement and an
the Department of Agrarian Reform subject to private rights, if any
there be, and to future classification, certain parcels of land, more
PARCEL I
Beginning at a point marked “1” on the map is a point identical

to point “1” of Lot No. 1668, Pls-67; thence;
N. 24 deg. 59’E., 354.83 m. to pt. 2;

N. 30 deg. 02’E., 358.58 m. to pt. 3;
1567
N. 28 deg. 57’E., 300.38 m. to pt. 4;

N. 83 deg. 24’E., 217.94 m. to pt. 5;
S. 20 deg. 09’E., 287.28 m. to pt. 6;
intersection
S. 15 deg. 46’E., 159.87 m. to pt. 7;
S. 10 deg. 17’E., 185.55 m. to pt. 8;
S. 22 deg. 47’E., 384.65 m. to pt. 9;
S. 04 deg. 57’E., 227.93 m. to pt. 10;
S. 04 deg. 35’E., 189.74 m. to pt. 11;
S. 12 deg. 56’E., 335.38 m. to pt. 12;
S. 08 deg. 06’W., 447.44 m. to pt. 13;
S. 22 deg. 46’W., 339.45 m. to pt. 14;
S. 65 deg. 00’E., 280.00 m. to pt. 15;
N. 24 deg. 11’E., 147.23 m. to pt. 16;
N. 24 deg. 21’E., 193.52 m. to pt. 17;
N. 45 deg. 18’E., 351.43 m. to pt. 18;
N. 47 deg. 41’E., 235.85 m. to pt. 19;
N. 71 deg. 18’E., 308.91 m. to pt. 20;
S. 70 deg. 44’E., 500.72 m. to pt. 21;
S. 07 deg. 41’E., 488.06 m. to pt. 22;
S. 57 deg. 08’E., 302.35 m. to pt. 23;
S. 74 deg. 09’E., 445.84 m. to pt. 24;
S. 69 deg. 14’E., 164.28 m. to pt. 25;
N. 54 deg. 36’E., 183.30 m. to pt. 26;
N. 75 deg. 13’E., 434.71 m. to pt. 27;
N. 50 deg. 29’E., 283.15 m. to pt. 28;
N. 73 deg. 45’E., 699.94 m. to pt. 29;
S. 60 deg. 16’E., 368.90 m. to pt. 30;
1568
S. 74 deg. 03’E., 253.23 m. to pt. 31;

S. 01 deg. 16’E., 209.09 m. to pt. 32;
S. 03 deg. 40’E., 401.84 m. to pt. 33;
S. 02 deg. 28’E., 458.53 m. to pt. 34;
S. 86 deg. 06’W., 124.56 m. to pt. 35;
S. 86 deg. 26’W., 124.21 m. to pt. 36;
S. 87 deg. 18’W., 249.64 m. to pt. 37;
S. 85 deg. 21’W., 251.86 m. to pt. 38;
S. 86 deg. 49’W., 247.46 m. to pt. 39;
S. 03 deg. 13’W., 399.70 m. to pt. 40;
S. 50 deg. 26’E., 31.70 m. to pt. 41;
S. 25 deg. 51’E., 18.90 m. to pt. 42;
S. 03 deg. 39’W., 347.11 m. to pt. 43;
N. 28 deg. 00’W., 340.00 m. to pt. 44;
N. 05 deg. 00’W., 360.00 m. to pt. 45;
S. 87 deg. 00’W., 240.00 m. to pt. 46;
S. 48 deg. 00’W., 340.00 m. to pt. 47;
S. 67 deg. 00’W., 150.00 m. to pt. 48;
S. 87 deg. 00’W., 370.00 m. to pt. 49;
N. 78 deg. 00’W., 350.00 m. to pt. 50;
N. 73 deg. 00’W., 410.00 m. to pt. 51;
N. 29 deg. 00’W., 300.00 m. to pt. 52;
N. 75 deg. 00’W., 350.00 m. to pt. 53;
N. 28 deg. 00’W., 110.00 m. to pt. 54;
N. 24 deg. 00’W., 480.00 m. to pt. 55;
N. 59 deg. 00’W., 390.00 m. to pt. 56;
N. 40 deg. 00’W., 550.00 m. to pt. 57;
N. 54 deg. 00’W., 210.00 m. to pt. 58;
1569
N. 60 deg. 00’W., 800.00 m. to pt. 59;

N. 50 deg. 00’W., 350.00 m. to pt. 60;
N. 35 deg. 00’W., 240.00 m. to pt. 61;
N. 24 deg. 00’W., 300.00 m. to pt. 62;
N. 75 deg. 00’W., 350.00 m. to pt. 63;
N. 28 deg. 00’W., 110.00 m. to pt. 64;
N. 24 deg. 00’W., 480.00 m. to pt. 65;
N. 59 deg. 00’W., 390.00 m. to pt. 66;
N. 40 deg. 00’W., 550.00 m. to pt. 67;
N. 54 deg. 00’W., 210.00 m. to pt. 68;
N. 60 deg. 00’W., 800.00 m. to pt. 69;
intersection
N. 50 deg. 00’W., 350.00 m. to pt. 70;
N. 35 deg. 00’W., 240.00 m. to pt. 71;
N. 08 deg. 00’W., 330.00 m. to pt. 72;
N. 45 deg. 00’E., 390.00 m. to pt. 73;
N. 53 deg. 00’E., 200.00 m. to pt. 74;
N. 36 deg. 00’E., 250.00 m. to pt. 75;
N. 29 deg. 00’W., 500.00 m. to pt. 76;
S. 85 deg. 00’W., 500.00 m. to pt. of
beginning, containing an area of SEVEN HUNDRED NINETY-

TWO (792) hectares.
PARCEL II
Beginning at point “1” on the map is a point identical to MBM

No. 3 Cad. 945-D, Bunawan Cadastre; thence;
1570
S. 50 deg. 00’W., 270.00 m. to pt. 2;

N. 80 deg. 00’W., 130.00 m. to pt. 3;
S. 20 deg. 00’W., 290.00 m. to pt. 4;
S. 60 deg. 00’W., 300.00 m. to pt. 5;
S. 85 deg. 00’W., 200.00 m. to pt. 6;
S. 18 deg. 00’W., 1900.00 m. to pt. 7;
S. 32 deg. 00’W., 2200.00 m. to pt. 8;
N. 70 deg. 00’W., 200.00 m. to pt. 9;
S. 40 deg. 00’W., 300.00 m. to pt. 10;
N. 62 deg. 00’W., 500.00 m. to pt. 11;
S. 35 deg. 00’W., 700.00 m. to pt. 12;
S. 13 deg. 00’W., 400.00 m. to pt. 13;
N. 80 deg. 00’W., 300.00 m. to pt. 14;
N. 38 deg. 00’W., 1500.00 m. to pt. 15;
N. 62 deg. 00’W., 1200.00 m. to pt. 16;
N. 12 deg. 00’W., 1700.00 m. to pt. 17;
N. 53 deg. 00’W., 1000.00 m. to pt. 18;
N. 54 deg. 00’W., 2000.00 m. to pt. 19;
N. 35 deg. 00’E., 1000.00 m. to pt. 20;
N. 87 deg. 00’E., 500.00 m. to pt. 21;
Due North, 500.00 m. to pt. 22;
S. 82 deg. 00’E., 280.00 m. to pt. 23;
S. 23 deg. 00’E., 240.00 m. to pt. 24;
S. 36 deg. 00’E., 380.00 m. to pt. 25;
S. 75 deg. 00’E., 270.00 m. to pt. 26;
S. 46 deg. 00’W., 370.00 m. to pt. 27;
S. 75 deg. 00’E., 310.00 m. to pt. 28;
S. 42 deg. 00’E., 250.00 m. to pt. 29;
1571
S. 52 deg. 00’E., 590.00 m. to pt. 30;

S. 76 deg. 00’E., 570.00 m. to pt. 31;
N. 57 deg. 00’E., 250.00 m. to pt. 32;
N. 81 deg. 00’E., 250.00 m. to pt. 33;
N. 85 deg. 00’E., 380.00 m. to pt. 34;
N. 85 deg. 00’E., 150.00 m. to pt. 35;
N. 62 deg. 00’E., 720.00 m. to pt. 36;
N. 58 deg. 00’E., 503.00 m. to pt. 37;
S. 28 deg. 00’E., 1200.00 m. to pt. 38;
S. 06 deg. 00’E., 1400.00 m. to pt. 39;
S. 73 deg. 00’E., 1800.00 m. to pt. 40;
S. 81 deg. 00’E., 1200.00 m. to pt. of
beginning, containing an area of FOUR THOUSAND FOUR

HUNDRED NINETY NINE (4,499) hectares.
The technical description is subject to adjustment based on

the result of a final survey.


1572
DONE in the City of Manila, this 15th day of September in the

year of Our Lord, Nineteen Hundred and Ninety-Three.
By the President:
(Sgd.) TEOFISTO T. GUINGONA
1573
MALACAÑANG
Manila
AMENDING PROCLAMATION NO. 180 DATED MAY 21, 1993 BY

DECLARING THE ENTIRE MONTH OF JUNE EACH YEAR
AS “AGRARIAN REFORM MONTH”
WHEREAS, Proclamation No. 180 dated May 21, 1993

declared the period June 9-15 of every years as “Agrarian Reform
Week”, June 15 being the date when the Comprehensive Agrarian
Reform Law (CARL) came into effect in 1988;
WHEREAS, the setting aside of a period each year to

commemorate an important national event, such as the effectivity
of the CARL, is intended to give the various stakeholders in such an
event adequate opportunity to mark it with appropriate activities;
WHEREAS, agrarian reform, being a very important key

results area of the Government and is, in fact, a critical factor in
national development, it is felt that the commemoration of the
anniversary of the law that made it a nationwide program needs at
least a full month to underscore the importance that the Government
places upon it;
NOW, THEREFORE, I, JOSEPH EJERCITO

ESTRADA, President of the Philippines, by virtue of the powers
vested in me by law, do hereby declare the entire month of June
each year as “AGRARIAN REFORM MONTH”, and do hereby
instruct the Department of Agrarian Reform (DAR) as the lead
agency in the implementation of agrarian reform to undertake
appropriate activities nationwide within this month, in order to
emphasize the importance that the Government, particularly the
current Administration, places upon it.
1574
Done in the City of Manila, this 7th day of April in the year of
our Lord, two thousand.
By the President:
RONALDO B. ZAMORA
Executive Secretary
1575
MALACAÑANG
Manila

TRACTS OF LAND OF THE PUBLIC DOMAIN SITUATED
IN THE MUNICIPALITY OF SAN REMIGIO, PROVINCE OF
ANTIQUE, ISLAND OF PANAY
WHEREAS, it is the declared policy of the State to provide

a more vigorous agricultural land resettlement program and a
systematic public land distribution and development in order to
create a truly viable social and economic agricultural structure;
WHEREAS, it is the concern of the government to uplift the

economic well-being of the tillers of the soil, particularly farmers
who do not own the land that they cultivate, by providing them
with cultivable lands and supporting them with technical expertise
and assistance to make them more independent, self-reliant, and
responsible citizens of the government;
WHEREAS, the development of the public agricultural lands

in the depressed and isolated parts of the country is a priority
program of the administration in order to improve the economic
well-being and the welfare of the people and to attain lasting peace
and order in the locality;
WHEREAS, large tracts of fertile and potentially productive

agricultural land of the public domain with an aggregate area
of EIGHT THOUSAND NINE HUNDRED EIGHTY FOUR (8,984)
hectares situated in the Municipality of San Remigio, Province of
Antique, have been identified and verified by the Department of
1576
Agrarian Reform and the Department of Environment and Natural

Resources to be suitable and available for settlement purposes;

Philippines, by virtue of the powers vested in me by law, and upon
recommendations of the Secretary of Agrarian Reform and the
Secretary of Environment and Natural Resources, do hereby reserve
for settlement purposes certain tracts of land of the public domain
situated in Municipality of San Remigio, Province of Antique, Island
of Panay, under the administration of the Department of Agrarian
Reform and for disposition under the Comprehensive Agrarian
Reform Program, subject to private rights, if any there be, which
tracts of public land are more particularly described as follows:
(PARCEL I)
A PARCEL OF LAND situated in the Municipality of San

Remigio, Province of Antique, Island of Panay, Bounded on the North
along lines 1-57 by Public Forest (Unclassified) and along lines 185-
1 by Municipality of Patnongon; on the East along lines 57-103 by
Public Forest (Unclassified); on the South along lines 103-107 by
Public Land (Municipality of Sibalom versus Municipality of San
Remigio) and along lines 107-109 by Municipality of Sibalom; and
on the West along lines 109-195 by Bongbongon River. Beginning at
a point marked “1” on the plan, thence N. 55 deg. 21’W., 2,980.07 m.
from BLLM No. 1, Cad. 247, San Remigio Cadastre.
S. 07 deg. 31′ E., 221.90 m. to point “2”;

S. 01 deg. 33′ W., 370.14 m. to point “3”;
S. 45 deg. 56′ E., 431.39 m. to point “4”;
S. 39 deg. 28′ E., 440.45 m. to point “5”;
S. 84 deg. 00′ E., 320.00 m. to point “6”;
S. 15 deg. 00′ W., 360.00 m. to point “7”;
1577
S. 06 deg. 00′ E., 370.00 m. to point “8”;

N. 73 deg. 00′ E., 320.00 m. to point “9”;
N. 54 deg. 00′ E., 240.00 m. to point “10”;
N. 11 deg. 00′ E., 240.00 m. to point “11”;
N. 70 deg. 00′ E., 300.00 m. to point “12”;
S. 83 deg. 38′ E., 75.52 m. to point “13”;
S. 53 deg. 08′ E., 100.00 m. to point “14”;
N. 54 deg. 18′ E., 141.91 m. to point “15”;
N. 43 deg. 30′ E., 80.00 m. to point “16”;
N. 62 deg. 00′ E., 192.00 m. to point “17”;
Due North 160.00 m. to point “18”;
N. 29 deg. 00′ E., 480.00 m. to point “19”;
N. 55 deg. 00′ W., 280.00 m. to point “20”;
N. 03 deg. 00′ E., 320.00 m. to point “21”;
S. 82 deg. 00′ E., 280.00 m. to point “22”;
N. 52 deg. 30′ E., 320.00 m. to point “23”;
N. 02 deg. 30′ E., 315.00 m. to point “24”;
N. 71 deg. 00′ E., 200.00 m. to point “25”;
N. 42 deg. 00′ E., 250.00 m. to point “26”;
N. 38 deg. 00′ E., 330.00 m. to point “27”;
S. 77 deg. 30′ E., 500.00 m. to point “28”;
N. 23 deg. 00′ E., 600.00 m. to point “29”;
N. 51 deg. 00′ E., 533.00 m. to point “30”;
N. 52 deg. 00′ E., 300.00 m. to point “31”;
N. 36 deg. 00′ E., 300.01 m. to point “32”;
N. 90 deg. 00′ E., 541.00 m. to point “33”;
Due North 196.00 m. to point “34”;
S. 85 deg. 00′ W., 211.00 m. to point “35”;
1578
N. 72 deg. 30′ W., 158.00 m. to point “36”;

N. 39 deg. 30′ E., 258.00 m. to point “37”;
N. 70 deg. 30′ E., 197.00 m. to point “38”;
N. 46 deg. 00′ E., 187.00 m. to point “39”;
N. 50 deg. 30′ E., 378.00 m. to point “40”;
S. 79 deg. 00′ E., 201.00 m. to point “41”;
N. 87 deg. 30′ E., 320.00 m. to point “42”;
N. 04 deg. 00′ W., 253.00 m. to point “43”;
N. 41 deg. 00′ E., 837.00 m. to point “44”;
S. 71 deg. 00′ E., 302.00 m. to point “45”;
N. 59 deg. 30′ E., 274.01 m. to point “46”;
N. 56 deg. 30′ E., 417.00 m. to point “47”;
N. 12 deg. 30′ E., 259.00 m. to point “48”;
S. 80 deg. 00′ E., 314.00 m. to point “49”;
N. 48 deg. 00′ E., 730.00 m. to point “50”;
N. 43 deg. 00′ E., 601.00 m. to point “51”;
N. 58 deg. 00′ E., 804.00 m. to point “52”;
N. 69 deg. 30′ E., 544.00 m. to point “53”;
N. 70 deg. 00′ E., 440.00 m. to point “54”;
S. 88 deg. 26′ E., 211.38 m. to point “55”;
N. 76 deg. 20′ E., 572.15 m. to point “56”;
S. 88 deg. 21′ E., 554.91 m. to point “57”;
S. 42 deg. 26′ W., 237.12 m. to point “58”;
S. 51 deg. 42′ W., 303.30 m. to point “59”;
S. 21 deg. 30′ W., 141.87 m. to point “60”;
S. 52 deg. 02′ W., 494.82 m. to point “61”;
S. 55 deg. 30′ W., 315.99 m. to point “62”;
S. 44 deg. 00′ E., 530.00 m. to point “63”;
1579
S. 08 deg. 30′ E., 242.00 m. to point “64”;

S. 08 deg. 31′ E., 171.01 m. to point “65”;
S. 61 deg. 30′ W., 416.00 m. to point “66”;
S. 43 deg. 30′ W., 495.00 m. to point “67”;
S. 79 deg. 00′ W., 642.00 m. to point “68”;
S. 55 deg. 30′ W., 571.00 m. to point “69”;
S. 08 deg. 00′ W., 292.00 m. to point “70”;
S. 39 deg. 00′ W., 508.00 m. to point “71”;
S. 44 deg. 30′ W., 286.00 m. to point “72”;
S. 30 deg. 00′ E., 219.00 m. to point “73”;
S. 04 deg. 30′ E., 521.00 m. to point “74”;
S. 29 deg. 30′ E., 326.00 m. to point “75”;
S. 27 deg. 48′ E., 452.93 m. to point “76”;
N. 69 deg. 17′ E., 679.98 m. to point “77”;
N. 49 deg. 42′ E., 646.78 m. to point “78”;
N. 29 deg. 00′ E., 300.00 m. to point “79”;
N. 11 deg. 00′ E., 396.00 m. to point “80”;
N. 23 deg. 30′ E., 457.00 m. to point “81”;
N. 81 deg. 30′ E., 117.23 m. to point “82”;
S. 40 deg. 30′ E., 185.01 m. to point “83”;
S. 36 deg. 30′ E., 350.00 m. to point “84”;
S. 11 deg. 00′ W., 256.00 m. to point “85”;
S. 29 deg. 00′ W., 360.00 m. to point “86”;
S. 17 deg. 37′ E., 371.51 m. to point “87”;
S. 38 deg. 00′ E., 349.01 m. to point “88”;
S. 40 deg. 30′ E., 520.00 m. to point “89”;
S. 14 deg. 30′ E., 350.00 m. to point “90”;
S. 28 deg. 00′ E., 200.00 m. to point “91”;
1580
S. 05 deg. 00′ E., 645.00 m. to point “92”;

S. 22 deg. 00′ E., 300.00 m. to point “93”;
S. 01 deg. 30′ E., 342.00 m. to point “94”;
S. 10 deg. 00′ E., 320.00 m. to point “95”;
S. 54 deg. 30′ W., 555.00 m. to point “96”;
N. 83 deg. 00′ W., 360.00 m. to point “97”;
S. 21 deg. 30′ W., 319.00 m. to point “98”;
S. 30 deg. 00′ W., 320.00 m. to point “99”;
S. 06 deg. 00′ W., 380.00 m. to point “100”;
S. 46 deg. 00′ W., 440.00 m. to point “101”;
S. 15 deg. 00′ E., 360.00 m. to point “102”;
S. 21 deg. 00′ E., 252.79 m. to point “103”;
N. 78 deg. 26′ W., 644.67 m. to point “104”;
S. 73 deg. 21′ W., 5228.54 m. to point “105”;
S. 73 deg. 23′ W., 1691.29 m. to point “106”;
N. 80 deg. 06′ W., 4426.53 m. to point “107”;
N. 80 deg. 27′ W., 1318.92 m. to point “108”;
S. 49 deg. 44′ W., 158.17 m. to point “109”;
N. 40 deg. 52′ W., 68.77 m. to point “110”;
N. 38 deg. 17′ E., 58.92 m. to point “111”;
N. 32 deg. 59′ E., 181.71 m. to point “112”;
N. 32 deg. 05′ E., 206.53 m. to point “113”;
N. 22 deg. 58′ E., 134.44 m. to point “114”;
N. 33 deg. 13′ E., 9.42 m. to point “115”;
N. 40 deg. 12′ W., 64.03 m. to point “116”;
N. 54 deg. 27′ W., 87.44 m. to point “117”;
N. 69 deg. 21′ W., 46.74 m. to point “118”;
S. 63 deg. 39′ W., 38.31 m. to point “119”;
1581
N. 29 deg. 03′ W., 42.61 m. to point “120”;

N. 11 deg. 41′ E., 83.31 m. to point “121”;
N. 09 deg. 52′ E., 18.69 m. to point “122”;
N. 14 deg. 10′ E., 40.80 m. to point “123”;
N. 49 deg. 22′ E., 36.28 m. to point “124”;
N. 03 deg. 12′ W., 72.23 m. to point “125”;
N. 14 deg. 33′ E., 62.26 m. to point “126”;
N. 24 deg. 08′ E., 62.06 m. to point “127”;
N. 38 deg. 26′ W., 117.84 m. to point “128”;
N. 84 deg. 38′ W., 134.02 m. to point “129”;
S. 85 deg. 10′ W., 120.02 m. to point “130”;
N. 73 deg. 57′ W., 19.32 m. to point “131”;
N. 53 deg. 37′ W., 64.43 m. to point “132”;
N. 82 deg. 50′ W., 3.37 m. to point “133”;
N. 17 deg. 05′ E., 64.67 m. to point “134”;
N. 39 deg. 38′ W., 128.00 m. to point “135”;
N. 67 deg. 38′ W., 98.84 m. to point “136”;
N. 49 deg. 08′ W., 31.14 m. to point “137”;
N. 07 deg. 52′ W., 324.89 m. to point “138”;
N. 26 deg. 00′ W., 273.71 m. to point “139”;
N. 49 deg. 38′ W., 131.24 m. to point “140”;
N. 68 deg. 45′ W., 96.57 m. to point “141”;
N. 22 deg. 29′ W., 156.92 m. to point “142”;
N. 10 deg. 18′ W., 223.61 m. to point “143”;
N. 40 deg. 14′ W., 255.44 m. to point “144”;
N. 20 deg. 33′ W., 42.72 m. to point “145”;
N. 41 deg. 59′ E., 67.27 m. to point “146”;
S. 46 deg. 10′ E., 173.28 m. to point “147”;
1582
S. 67 deg. 23′ E., 65.00 m. to point “148”;

N. 45 deg. 00′ E., 42.43 m. to point “149”;
N. 16 deg. 42′ W., 104.40 m. to point “150”;
N. 26 deg. 34′ E., 33.54 m. to point “151”;
N. 74 deg. 03′ E., 36.40 m. to point “152”;
S. 72 deg. 54′ E., 136.01 m. to point “153”;
N. 78 deg. 41′ E., 50.99 m. to point “154”;
S. 26 deg. 10′ W., 41.39 m. to point “155”;
N. 73 deg. 09′ E., 66.09 m. to point “156”;
N. 01 deg. 58′ W., 87.05 m. to point “157”;
N. 48 deg. 23′ W., 227.38 m. to point “158”;
N. 03 deg. 06′ E., 37.05 m. to point “159”;
N. 59 deg. 31′ E., 287.78 m. to point “160”;
N. 19 deg. 31′ W., 116.71 m. to point “161”;
N. 48 deg. 22′ W., 168.58 m. to point “162”;
N. 16 deg. 17′ W., 92.72 m. to point “163”;
N. 32 deg. 09′ E., 82.68 m. to point “164”;
N. 63 deg. 26′ E., 58.14 m. to point “165”;
N. 37 deg. 04′ W., 72.68 m. to point “166”;
N. 68 deg. 27′ W., 103.43 m. to point “167”;
N. 31 deg. 51′ W., 121.26 m. to point “168”;
N. 41 deg. 24′ E., 101.32 m. to point “169”;
N. 07 deg. 43′ W., 59.54 m. to point “170”;
N. 36 deg. 52′ E., 200.00 m. to point “171”;
N. 63 deg. 49′ W., 45.45 m. to point “172”;
N. 63 deg. 18′ W., 126.73 m. to point “173”;
N. 32 deg. 16′ W., 189.21 m. to point “174”;
N. 39 deg. 33′ E., 171.19 m. to point “175”;
1583
N. 66 deg. 48′ E., 60.93 m. to point “176”;

N. 24 deg. 56′ E., 78.29 m. to point “177”;
N. 02 deg. 46′ E., 62.07 m. to point “178”;
N. 28 deg. 53′ E., 155.31 m. to point “179”;
N. 42 deg. 28′ E., 143.68 m. to point “180”;
N. 55 deg. 00′ E., 85.45 m. to point “181”;
S. 48 deg. 46′ E., 107.71 m. to point “182”;
S. 60 deg. 15′ E., 56.44 m. to point “183”;
N. 22 deg. 53′ E., 48.85 m. to point “184”;
N. 83 deg. 50′ E., 148.88 m. to point “185”;
N. 08 deg. 18′ W., 48.51 m. to point “186”;
N. 56 deg. 19′ E., 43.27 m. to point “187”;
N. 24 deg. 30′ W., 74.73 m. to point “188”;
N. 22 deg. 47′ E., 129.08 m. to point “189”;
S. 76 deg. 18′ E., 84.40 m. to point “190”;
N. 12 deg. 47′ E., 221.49 m. to point “191”;
N. 59 deg. 28′ E., 45.28 m. to point “192”;
N. 23 deg. 48′ E., 213.12 m. to point “193”;
N. 39 deg. 33′ E., 111.52 m. to point “194”;
N. 03 deg. 52′ W., 245.34 m. to point “195”;
S. 53 deg. 22′ E., 1844.37 m. to point “196”;
N. 74 deg. 53′ E., 627.07 m. to point of
beginning; containing an area of EIGHT THOUSAND NINE

HUNDRED EIGHTY FOUR (8,984) hectares more or less.
All areas within the reservation, which may fall under the
classification of timberland, forest land, or unclassified public land,
if any, shall be deemed excluded from the scope of this proclamation.
1584

as the date hereof and shall continue to process such applications.
Rejection or cancellation of a public land application by the DENR
shall automatically transfer jurisdiction of the area covered thereby
to the DAR.
All previous proclamations or orders which are inconsistent

herewith are hereby revoked or modified accordingly.

Done in the City of Manila, this 6th day of November in the

year of Our Lord, nineteen hundred and ninety three.
(Sgd.)FIDEL V. RAMOS
By the President:
(Sgd.) TEOFISTO T. GUINGONA, JR

Executive Secretary
1585
MALACAÑANG
Manila
EXCLUDING FROM THE OPERATION OF EXECUTIVE ORDER

NO. 63, DATED 25 JUNE 1914, AND PROCLAMATION
OF SURIGAO, ISLAND OF MINDANAO CERTAIN
AGRARIAN REFORM PROGRAM OF THE DEPARTMENT
OF AGRARIAN REFORM AND OTHER PERTINENT LAWS
RELATIVE TO TITLING OF LANDS NOT SUITABLE FOR
AGRICULTURE
WHEREAS, Executive Order No. 63, dated 25 June 1914 and

Proclamation No. 391, dated 13 1939 established certain parcels of
land in the Province of Surigao, Island of Mindanao, as Mineral
Land Reservation;
WHEREAS, the residents of the parcels of lands covered by

this Proclamation have, since 1988, petitioned the Government for
the coverage of said parcels under the agrarian reform program;
WHEREAS, the Secretaries of the Departments of

Environment and Natural Resources and of Agrarian Reform have
entered into a Memorandum of Agreement to conduct geological
surveys for the determination of lands classified as Alienable and
Disposable and those suitable for residential purposes;
WHEREAS, portions of the said alienable and disposable lands

described herein have been utilized for agricultural, community
development (barangay/municipal) or residential purposes by the
long-term settlers in the said lands;
1586
WHEREAS, the aforementioned portions of the Mineral Land

Reservation have been classified as alienable and disposable under
various Land Classification Maps;
WHEREAS, the findings of the Director of Mines and

Geosciences show that portions of the areas covered by the said
Minerals Land Reservation have been explored to have low
geological potential for minerals and therefore remain undeveloped
for mining purposes;
WHEREAS, under the provisions of Section 6 of Presidential

Decree No. 463, as amended, otherwise known as the Mineral
Resources Development Decree of 1974, the President may alter or
modify the boundaries of an area established as mineral reservation
or revert any mineral reservation to the public domain without
prejudice to any prior subsisting rights, upon the recommendation of
the Minister (now the Secretary of the Department of Environment
and Natural Resources) based on the report submitted by the
Director of the Mines and Geosciences Bureau;
WHEREAS, Executive Order No. 448 as amended by Executive

Order No. 506 of 1992 provides that “Except national parks and
other protected areas, all lands or portions of the public domain
reserved by virtue of proclamation or law for specific purposes or
uses by Departments, bureaus and agencies of the Government,
which are suitable for agriculture and no longer actually, directly
and exclusively used or necessary for the purpose for which they
have been reserved . . . shall be segregated from the reservations and
transferred to the Department of Agrarian Reform for distribution to
qualified beneficiaries under the Comprehensive Agrarian Reform
Program.”

Secretary of the Department of Environment and Natural Resources,
and the Secretary of the Department of Agrarian Reform, based on
the report submitted by the Director of the Mines and Geosciences
Bureau, and pursuant to the provisions of Section 6 of Presidential
Decree No. 463, otherwise known as the Mineral Resources
1587
Development Decree of 1974, and Executive Order No. 506 of 1992,

I, FIDEL V. RAMOS, President of the Republic of the Philippines,
do hereby exclude certain tracts of alienable and disposable lands
from the Mineral Land Reservation established under Executive
Order No. 63, dated 25 June 1914 and Proclamation No. 391, dated
13 March 1939 and declare the same open to disposition under the
Comprehensive Agrarian Reform Program of the Department of
Agrarian Reform.
PARCEL I-A
A parcel of land (Parcel-1-A) situated in the municipality of

Loreto, Dinagat, Island, Province of Surigao del Norte;
Bounded on the North along line 14-1 by Looc Bay; on the East
by Surigao Mineral Reservation; on the South by Surigao Mineral
Reservation and on the West by Surigao Mineral Reservation.
Beginning at a point marked “1” on plan with geographic

position 10 deg. 22’00” North latitude, 125 deg. 35’22” East longitude
and bearing N. 66 deg. 40’E., 1,497.19 meters from NAMRIA STA.
SRN-4, Dinagat Island.
Thence, S. 0 deg. 06’E., 1100.00 m. to point 2;

N. 89 deg. 54’E., 922.00 ” ” ” 3;
“ S. 0 deg. 06’E., 2304.00 ” ” ” 4;
“ N. 36 deg. 58’W., 2304.00 ” ” ” 5;
“ S. 89 deg. 54’W., 1382.00 ” ” ” 6;
“ S. 56 deg. 13’E., 831.00 ” ” ” 7;
“ N. 0 deg. 06’W., 461.00 ” ” ” 8;
“ S. 89 deg. 54’W., 461.00 ” ” ” 9;
“ N. 0 deg. 06’W., 691.00 ” ” ” 10;
“ N. 89 deg. 54’E., 230.00 ” ” ” 11;
“ N. 0 deg. 06’W., 922.00 ” ” ” 12;
“ N. 45 deg. 06’E., 978.00 ” ” ” 13;
1588
“ N. 89 deg. 54’E., 750.00 ” ” ” 14;

from point 14 following the shoreline along Looc
Bay in a southeasterly direction to corner “1”
which is the point of beginning.
Containing an approximate area of 466 hectares, more or less.
PARCEL 1-B
A parcel of land (Parcel 1-B) situated at the Municipality of

Tubajon, Dinagat Island, Province of Surigao del Norte.
Bounded on the North by Surigao Mineral Reservation; on the

South by Surigao Mineral Reservation and on the West by Surigao
Mineral Reservation and Tubajon Bay.
Beginning at a point marked “1” on plan with a geographic

position of 10 deg. 20’31” North Latitude and 125 deg. 33’17”
East longitude and bearing S84 deg. 27’W., 3,238.22 meters from
NAMRIA STA. SRN 4, Dinagat Island
Thence S. 66 deg. 42’E., 696.17 m. to point 2;

“ 15 deg. 19’E., 1623.73 ” ” ” 3;
“ S. 00 deg. 06’E., 1167.48 ” ” ” 4;
“ S. 89 deg. 54’W., 1399.58 ” ” ” 5;
“ N. 00 deg. 06’W., 829.52 ” ” ” 6;
from point 6 following the shoreline along Tubajon
Bay in north and northeasterly directions to point
“1” which is the point of beginning.
Containing an area of 330 hectares, more or less.
1589
PARCEL 2
A parcel of land (Parcel-2) situated in the municipality of

Libjo, Dinagat Island. Province of Surigao del Norte.
Bounded on the North from line 16 to Cor. 1 by Libjo Bay; 1-22

by Surigao Mineral Reservation; on the East by Surigao Mineral
Reservation and on the West along line 8-9 by Dayhangan Bay
along line 9-16 by Surigao Mineral Reservation.

position of 10 deg. 12’00” North latitude and 125 deg. 32’00” East
longitude bearing N. 41 deg. 43’E., 5,935.50 meters from corner 1 of
Lot- No. A.
Thence N. 89 deg. 54’E., 1582.71 m. to point 2;

“ S. 00 deg. 06’E., 491.57 ” ” ” 3;
“ S. 89 deg. 54’E., 913.12 ” ” ” 4;
“ S. 00 deg. 06’E., 245.78 ” ” ” 5;
“ S. 89 deg. 54’W., 882.68 ” ” ” 6;
“ S. 00 deg. 06’E., 1566.58 ” ” ” 7;
“ S. 89 deg. 54’W., 1613.25 ” ” ” 8;
“ from point 8 following the shoreline along
Dayhangan Bay on a northeasterly and
northwesterly directions to point 9;
“ N. 26 deg. 16’E., 479.99 ” ” ” 10;

“ N. 89 deg. 55’E., 700.04 ” ” ” 11;
“ N. 00 deg. 05’W., 460.84 ” ” ” 12;
“ N. 89 deg. 54’W., 273.93 ” ” ” 13;
“ N. 00 deg. 05’W., 215.06 ” ” ” 14;
“ S. 89 deg. 55’W., 213.05 ” ” ” 15;
“ N. 00 deg. 05’W., 460.84 ” ” ” 16;
1590
“ from the point 16 following the shoreline

along Libjo Bay on a southeasterly and north-
easterly direction to point “1” which is the
point of beginning.
Containing an area of 747.00 hectares, more or less.
PARCEL 3-A
A parcel of land (parcel-3-A) situated at the municipality of

Arellano, Dinagat Island, Province of Surigao del Norte.
Bounded on the north, east and south by Surigao Mineral

Reservation and on the West by Surigao Strait.

longitude and hearing N. 03 deg. 23’W., 2,645.51 meters from Cor.
1 of Lot-3b.

“ S. 0 deg. 05’E., 614.45 ” ” ” 3;
“ S. 89 deg. 55’W., 152.20 ” ” ” 4;
“ S. 47 deg. 40’W., 411.24 ” ” ” 5;
“ S. 89 deg. 55’W., 152.21 ” ” ” 6;
“ from point 6 following the shoreline along Surigao
Strait in a northeasterly direction to point “1”
PARCEL 3-B
A parcel of land (Parcel-3-B) situated at the municipality of

Arellano, Dinagat Island, Province of Surigao del Norte.
1591
Bounded on the north, east, south, north and west by Surigao

Mineral Reservation.
Beginning at the point marked “1” on plan with a geographic

longitude and being N. 15 deg. 40’W., 8,388.21 meters from cor. 1 of
Lot-3-C.

“ S. 0 deg. 05’E., 768.06 ” ” ” 3;
“ S. 89 deg. 55’E., 273.99 ” ” ” 4;
“ N. 0 deg. 05’W., 215.06 ” ” ” 5;
“ N. 89 deg. 55’W., 243.54 ” ” “ 6;
“ S. 49 deg. 51’W., 477.33 ” ” ” 7;
“ N. 42 deg. 06’W., 454.85 ” ” ” 8;
“ N. 0 deg. 05’W., 276.50 ” ” ” 9;
“ N. 51 deg. 00’W., 391.26 ” ” ” 1
PARCEL 3-C
A parcel of land (Parcel-3-C) situated in the municipality of

Melgar, Dinagat Island, Province of Surigao del Norte
Bounded on the north and east by Surigao Mineral Reservation;

on the north and southeast by Melgar Bay; on the West by Surigao

longitude and bearing N. 65 deg. N 22′ W., 8,079.49 meters from
corner No. 1 of lot 5.
Thence Thence N. 0 deg. 05’W., 829.51 m. to point 2;

1592
“ N. 89 deg. 55’E., 426.29 ” ” ” 3;

“ N. 0 deg. 05’W., 952.40 ” ” ” 4;
“ N. 89 deg. 54’W., 182.69 ” ” ” 5;
“ N. 0 deg. 06’W., 460.84 ” ” ” 6;
“ N. 89 deg. 54’W., 243.58 ” ” ” 7;
“ N. 0 deg. 05’W., 2089.12 ” ” ” 8;
“ N. 89 deg. 55’W., 487.14 ” ” ” 9;
“ N. 0 deg. 05’W., 1382.51 ” ” ” 10;
“ N. 89 deg. 55’E., 1217.79 ” ” ” 11;
“ N. 49 deg. 25’E., 1083.98 ” ” ” 12;
“ N. 0 deg. 06’E., 921.68 ” ” ” 13;
“ N. 33 deg. 22’W., 773.26 ” ” ” 14;
“ N. 0 deg. 06’E., 983.12 ” ” ” 15;
“ N. 89 deg. 54’E., 1126.56 ” ” ” 16;
“ N. 0 deg. 06’E., 215.05 ” ” ” 17;
“ N. 45 deg. 02’W., 3179.12 ” ” ” 1;
PARCEL-5
A parcel of land (Parcel-5) situated at municipalities of San

Jose and Dinagat, Dinagat Island, Province of Surigao del Norte.
Bounded on the north by Melgar Bay; on the east by Surigao

Mineral Reservation; on the south and west by Awasan Bay and
Melgar Bay.

coordinates of 10 deg. 01′ 57″ North latitude and 125 deg. 35’10”
East longitude and bearing N. 2 deg. 16’W., 6,807.59 from NAMRIA
STA. SRN No. 3 Dinagat Island.
1593
Thence S. 35 deg. 45’E., 5330.56 ” ” ” 2;

“ N. 0 deg. 06’E., 1106.02 ” ” ” 3;
“ N. 89 deg. 54’E., 700.52 ” ” ” 4;
“ S. 0 deg. 06’E., 1136.74 ” ” ” 5;
“ S. 89 deg. 54’W., 700.55 ” ” ” 6;
“ S. 0 deg. 06’E., 706.62 ” ” ” 7;
“ S. 39 deg. 29’E., 1152.48 ” ” ” 8;
“ S. 0 deg. 06’E., 1136.74 ” ” ” 9;
“ from corner 9 following the shoreline along Awasan
Bay and Melgar Bay to the point of beginning.
Containing an area of 2,683 hectares, more or less.
PARCEL-8
A parcel of land (Parcel-8) situated at municipalities of Claver

and Gigaquit, Surigao del Norte.
Bounded on the north, east, south and west by Surigao


coordinates of 9 deg. 36′ 00″ North latitude and 125 deg. 41′ 43″ East
longitude and bearing N. 9 deg. 00’28.556″ W., 355.49 meters from
BLLM No. 1, Pls-754 of the municipality of Gigaquit.

“ S. 56 deg. 14’E., 3306.05 ” ” ” 3;
“ N. 0 deg. 07’W., 921.68 ” ” ” 4;
“ N. 89 deg. 53’E., 914.82 ” ” ” 5;
“ S. 0 deg. 07’E., 2765.05 ” ” ” 6;
“ N. 89 deg. 52’E., 2744.68 ” ” ” 7;
“ S. 0 deg. 08’E., 921.68 ” ” ” 8;
1594
“ N. 89 deg. 52’E., 1372.37 ” ” ” 9;

“ S. 0 deg. 08’E., 6451.81 ” ” ” 10;
“ S. 89 deg. 52’W., 457.53 ” ” ” 11;
“ N. 44 deg. 55’W., 298.79 ” ” ” 12;
“ S. 89 deg. 52’W., 915.04 ” ” ” 13;
“ S. 26 deg. 17’W., 1029.00 ” ” ” 14;
“ S. 89 deg. 53’W., 915.07 ” ” ” 15;
“ S. 36 deg. 33’W., 2298.28 ” ” ” 16;
“ S. 0 deg. 07’E., 921.67 ” ” ” 17;
“ S. 44 deg. 41’W., 1298.83 ” ” ” 18;
“ S. 89 deg. 53’W., 457.58 ” ” ” 19;
S. 0 deg. 07’E., 921.67 ” ” ” 20;
S. 89 deg. 53’W., 457.59 ” ” ” 21;
S. 0 deg. 07’E., 921.67 ” ” ” 22;
S. 89 deg. 53’W., 1830.38 ” ” ” 23;
N. 37 deg. 24’W., 1158.34 ” ” ” 24;
N. 14 deg. 07’E., 2852.63 ” ” ” 25;
N. 33 deg. 23’E., 3315.83 ” ” ” 26;
S. 89 deg. 53’W., 915.04 ” ” ” 27;
“ N. 0 deg. 07’W., 921.67 ” ” ” 28;
“ N. 89 deg. 53’E., 915.01 ” ” ” 29;
“ N. 0 deg. 07’W., 3686.70 ” ” ” 30;
“ S. 89 deg. 53’W., 2348.30 ” ” ” 31;
“ N. 0 deg. 07’W., 5530.04 ” ” ” 1; which is
the point of beginning.
Containing an area of 8,702 hectares, more or less.
1595
SUMMARY
PARCEL-1-A – 466 HAS.

PARCEL-1-B – 330 HAS.
PARCEL-2 – 747 HAS.
PARCEL-3-A – 32 HAS.
PARCEL-3-B – 77 HAS.
PARCEL-3-C – 737 HAS.
PARCEL-5 – 2,683 HAS.
PARCEL-8 – 8,702 HAS.
The exclusion of the aforementioned parcels of land, however,

shall not in any way, prejudice their possible future use for mineral
resources development, if when, further exploration finds it
meritorious subject to existing mining laws, rules and regulations.

The Department of Environment shall retain jurisdiction over

portions covered by public land applications as of the date hereof
and shall continue to process such applications. All vested rights
inside the reservation shall be respected.

Done in the City of Manila, this 9th day of November in the

year of Our Lord, nineteen hundred and ninety three.

By the President:

Executive Secretary (Parcel-8)
1596
MALACAÑAN PALACE
MANILA
RESERVING FOR CITRUS EXPERIMENT STATION PURPOSES

TWO PARCELS OF THE PUBLIC DOMAIN SITUATED
IN THE BARRIO OF KISOLON, MUNICIPALITY OF
IMPASUGONG, PROVINCE OF BUKIDNON, ISLAND OF
MINDANAO

Commerce and pursuant to the provisions of section eighty-three of
Commonwealth Act Numbered One hundred and forty-one. I hereby
withdraw from sale or settlement and reserve for citrus experiment
station purposes, under the administration of the Director of Plant
Industry, subject to private rights, if any there be, the following-
described parcel of the public domain, situated in the barrio of
Kisolon, municipality of Impasugong, Province of Bukidnon, Island
of Mindanao, and particularly described in Bureau of Lands plan
Ir-397, to wit:
Lot No. 1.—Beginning at a point marked 1 on Bureau of Lands

plan Ir-397, N. 46° 54′ W. 3,634.08 m., more or less, from B. L. L.
M. No. 1, municipality of Impasugong, thence N. 3° 01′ W. 41.96 m.
to point 2; N. 13° 16′ W. 73.14 m. to point 3; N. 32° 20′ W. 91.12 m.
to point 8; N. 7° 02′ W. 19.99 m. to point 9; N. 5° 51′ E. 57.21 m. to
point 10; N. 4° 45′ E. 182.76 m. to point 11; N. 4° 58′ E. 246.80 m. to
point 14; N. 4° 47′ E. 224.35 m. to point 15; N. 5° 00’ E. 232.05 m. to
1597
point 22; N. 86° 02′ E. 206.09 m. to point 23; S. 0° 20′ E. 114.16 m. to

point 24; S. 0° 26′ E. 237.28 m. to point 25; S. 0° 29′ W. 232.06 m. to
point 26; S. 1° 35′ E. 248.48 m. to point 27; S. 2° 22′ E. 239.80 m. to
point 32; S. 0° 36′ W. 189.86 m. to point 33; S. 1° 25′ E. 245.52 m. to
point 34; S. 0° 22′ W. 177.68 m. to point 35; S. 1° 47′ E. 242.33 m. to
point 36; S. 0° 02′ E. 182.62 m. to point 37; S. 4° 47′ W. 193.83 m. to
point 38; S. 4° 22′ W. 126.32 m. to point 39; S. 4° 21′ W. 126.31 m. to
point 40; S. 53° 39′ W. 200.53 m. to point 41; S. 59° 00′ W. 167.44 m.
to point 42; S. 15° 16′ W. 162.58 m. to point 43; S. 17° 05′ W. 124.08
m. to point 44; N. 87° 15′ W. 56.26 m. to point 45; N. 6° 22′ E. 133.38
m. to point 46; N. 3° 08′ E. 30.91 m. to point 47; N. 49° 53′ W. 20.45
m. to point 48; N. 5° 21′ W. 15.67 m. to point 49; N. 27° 27′ E. 13.43
m. to point 50; N. 30° 09′ E. 29.27 m. to point 51; N. 11° 51′ E. 95.10
m. to point 52; N. 6° 31′ E. 183.36 m. to point 1, point of beginning.
Containing an area of 197.8680 hectares.
Points 1, 2, 3, 4, 5, 6, 7, 8, 9, and 11 to 22, inclusive, old P. L. S.

on stones; points 10, 23, 26, 27, 31, 33, 35, 37, and 40, B. L. concrete
monuments; points 24, 25, 28, 29, 32, 34 and 36, crosses on trees;
points 30, 39, 42, 43, and 44 to 52, inclusive, B. L. on stones; point
38, B. L. on fixed stone; point 41, stake.
Bounded on the north, by property of Consolacion Angeles; on

the east, by public land; on the southeast, by Alalum Canyon; on the
south, by lot No. 2; and on the west, by provincial road.
Lot No. 2.—Beginning at a point marked 1 on Bureau of Lands

plan Ir-397, N. 53° 54′ W. 3,359.00 m., more or less, from B. L. L. M.
No. 1, municipality of Impasugong, thence S. 87° 15′ E. 56.26 m. to
point 2; S. 0° 13′ f 172.66 m. to point 3; S. 48° 03′ E. 78.87 m. to point
4;N. 85° 20′ E. 65.37 m. to point 5; S. 69° 10′ W. 63.44 m’ to point 6;
N. 68° 27′ W. 117.87 m. to point 7; N. 46° 01′ W. 27.34 m. to point 8;
N. 14° 07′ W. 25.24 m. to point 9; N. 9° 31′ W. 40.30 m. to point 10;
N. 18° 06′ W. 36.30 m. to point 11; N. 0° 56′ E. 34.64 m. to point 12;
N. 32° 20′ E. 58.86 m. to point 1, point of beginning.
1598
Points 1, 2, 6, 9, 10, 11, and 12, B. L. on stones; point 3, stake;

point 4, B. L. concrete monument; point 5, B. L. on fixed stone;
points 7 and 8, old P. L. S. on stones.
Bounded on the north, by lot No. 1; on the northeast and east,

by Alalum Canyon; and on the southeast, southwest, and west, by
provincial road.
Bearings true. Declination, 2° 00′ E.
Points referred to are marked on Bureau of Lands plan Ir-397.
Surveyed: June 5-7, 1935. Approved: December 4, 1935.

Done at the City of Manila, this second day of August, in the

year of Our Lord, nineteen hundred and thirty-eight, and of the
Commonwealth of the Philippines, the third.
MANUEL L. QUEZON
By the President:
JORGE B. VARGAS
Secretary to the President
1599
MALACAÑAN PALACE
MANILA
EXCLUDING FROM THE OPERATION OF PROCLAMATION NO.

230, DATED APRIL 22, 1929, CERTAIN LOTS SITUATED IN
THE MUNICIPAL DISTRICT OF LIBONA, PROVINCE OF
BUKIDNON, ISLAND OF MINDANAO, AND DECLARING
THE SAME OPEN TO DISPOSITION

Commerce, I hereby exclude from the operation of Proclamation
Numbered Two hundred and thirty, dated April twenty-second,
nineteen hundred and twenty-nine, and declare open to disposition,
lots numbered seventy-four, seventy-five, seventy-six, seventy-
seven, seventy-eight, seventy-nine, eighty, five hundred and fifty,
five hundred and fifty-one, five hundred and fifty-two, five hundred
and fifty-three, five hundred and fifty-four, five hundred and fifty-
five, and five hundred and fifty-six, described in Bureau of Lands
plan Pls-12.

Done at the City of Manila, this third day of December, in

the year of Our Lord, nineteen hundred and thirty-eight, and of the
Commonwealth of the Philippines, the fourth.
MANUEL L. QUEZON
By the President:
JORGE B. VARGAS
1600
MALACAÑANG

OF THE PHILIPPINES
MANILA
RESERVING FOR STOCKFARM SITE PURPOSES OF THE

BUREAU OF ANIMAL INDUSTRY CERTAIN PARCELS
MUNICIPALITY OF MILAGROS, PROVINCE OF MASBATE
Upon the recommendation of the Secretary of Agriculture

and Natural Resources and pursuant to the authority vested in
me by law, I, Diosdado Macapagal, President of the Philippines, do
hereby withdraw from sale or settlement and reserve for stockfarm
site purposes, under the administration of the Director of Animal
Industry, subject to private rights, if any there be, and to future
classification and to the condition that the utilization of forest
products shall remain to be subject to the Forest and Internal
Revenue Laws and Regulations, certain parcels of land of the
public domain situated in the municipality of Milagros, province of
Masbate, and more particularly described as follows, to wit:
Lot 1, Nr-153
A parcel of land (Lot 1 of plan Nr-153, L.E.C. Record No.

———), situated in the municipality of Milagros, Province of
Masbate. Bounded on the W., along lines 1-2-3; by Lot 2 of plan
Nr-153; on the NE., and E., along lines 4-5-6-7-8-9-10-11-12-13-14,
by National Road; on the S., along lines 14-15-16-17-18-19-20, by
Monangi Creek; and on the W., along lines 20-21-22-1, by Lot 2, of
plan Nr-153. Beginning at a point marked 1 on plan being S. 1 deg.
54 min. E., 20,716.19 meters from B.L.L.M., Aroroy Public Land
Subdivision, Pls-77, thence N. 11 deg. 108 min. W., 368.00 meters
1601
to point 2; thence N. 11 deg. 36 min. W., 198.66 meters to point

3; thence N. 9 deg. .32 min. W., 114.00 meters to point 4; thence
S. 69 deg. 20 min. E., 241.22 meters to point 5; thence S. 68 deg.
03 min. E., 335.13 meters to point 6; thence S. 48 deg. 41 min. E.,
167.19 meters to point 7; thence S. 18 deg. 28 min. E., 201.72 meters
to point 8; thence S. 12 deg. 37 min. E., 236.30 meters to point 9;
thence S.. 60 deg. 38 min. E., 90.84 meters to point 10; thence S. 13
deg. 02 min. E., 104.61. meters to point 11; thence S. 43 deg. 40 min.
E., 187.38 meters to point 12; thence -S. 2 deg. 23 min. W., 250.18
meters to point 13; thence S. 12 deg. 58 min. E., 119,43 meters to
point 14.; thence S. 60 deg. 57 min. W., 133.31 meters to point 15;
thence N. 44 deg. 19 min. W., 188.15 meters to point 16; thence N. 2
deg. 52 min. E., 121.99 meters to point 17; thence N. 65 deg. 21 min.
W., 185.55 meters to point 18; thence S. 54 deg. 28 min. W., 365.92
meters to point 19; thence S. 2 deg. 21 min. E., 77.79 meters to point
20; thence N. 25 deg. 40 min. W., 156.93 meters to point 21; thence
N. 10 deg. 18 min. W., 349.79 meters to point 22; thence N. 13 deg.
08 min. W., 265.73 meters to the point of beginning; containing an
area of 774,336 square meters. All points referred to are indicated
on the plan and marked on the ground as follows: point 19, by
Three; point 22, by Cross on Tree; and the rest by B.L. Cyl. Conc.
Mons; bearings true; date of survey, March 13, 1961-April 19, 1961.
Approved; Nov. 7, 1962.
Lot 2, Nr-153
A parcel of land (Lot 2 of plan Nr-153, L.R.C. Record No.

———-), situated in the Municipality of Milagros, Province of
Masbate. Bounded on the E., along lines 1-2-3-4, by Lot 1, plan Nr-
153; on the SE., E., S., and SW., along lines from corner 4 thence
following the meandering boundary to corner 30, by Manangi Creek;
on the SW., and SE., along lines 30-31-32-33-34-35-36-37-38-39-40,
by Batongan River; on the W., along lines 40-41-42, by Public Land;
along lines 42-43-44, by property of Heracleo Logal; along lines 44-
45-46, by property of Rodolfo Azanza; on the NW., along lines 46-47,
by Lot 1748 of plan Pls-77; along lines 47-48-49, by Lot 1749 of plan
Pls-77; on the NW., N. and NW., along lines from corner 49 thence
1602
following the meandering boundary to corner 71, by Mabatobato

Creek; on the NE., along lines 71-72-73-74-75-76, by the National
Highway; and on the E. and along lines 76-77-78-1, by Lot 1 of plan
Nr-153. Beginning at a point marked “1” on plan being S. 1 deg.
54 min. E., 20,716.19 meters from B.L.L.M. 1, Aroroy Public Land
Subdivision, Pls-77, thence S. 13 deg. 08 min. E., 265.73 meters
to point 2; thence S. 10 deg. 18 min. E., 349.79 meters to point 3;
thence S. 25 deg. 40 min. E., 156.93 meters to point 4; thence S. 29
deg. 14 min. W., 139.26 meters to point 5; thence N. 87 deg. 03 min.
meters to point 7; thence N. 78 deg. 22 min. W., 137.32 meters to
point 8; thence S. 16 deg. 17 min. W., 137.28 meters to point 9;
thence S. 16 deg. 44 min. E., 128.20 min. to point 10; thence S. 42
deg. 42 min. E., 60.97 meters to point 11; thence S. 56 deg. 53 min.
W., 209.24 min. to point 12; thence S. 18 deg. 47 min. W., 114.84
meters to point 13; thence S. 36 deg. 20 min. E., 88.06 meters to
point 14; thence N. 69 deg. 04 min. E., 152.88 meters to point 15;
thence S. 6 deg. 32 min. W., 236.95 meters to point 16; thence S. 16
deg. 50 min. W., 169.94. meters to point 17; thence S. 51 deg. 23 min.
E., 107.92 meters to point 18; thence N. 75 deg. 26 min. E., 296.52
meters to point 19; thence S. 21 deg. 50 min. E., 147. 92 meters to
thence N. 85 deg. 44 min. W.,’ 151.78 meters to point 22; thence
S. 47 deg. 10 min. W., 142.08 meters to point 23; thence S. 65 deg.
00 min. W., 84.10 meters to point 24; thence S. 46 deg. 49 min. W.,
78.42 meters to point 25; thence’ N. 52 deg. 57 min. W., 84.78 meters
to point 26; thence N. 38 deg. 09 min. W., 114.34 meters to point
27; thence N. 85 deg. 52 min. W., 172.80 meters to point 28; thence
N. 62 deg. 40 min. W., 125.14 meters to point 29; thence N. 41 deg.
53 min. W., 206.67 meters to point 30; thence N. 12 deg. 41 min.
W., 105.05 meters to point 31; thence N. 21 deg. 42 min. E., 140.35
meters to point 32; thence N 14 deg. 16 min. W., 203.63 meters to
point 33; thence N. 46 deg. 34 min. W., 231.55 meters to point 34;
thence N. 72 deg. 19 min. W., 162.59 meters to point 35; thence S. 4
deg. 32 min. W., 138.32 meters to point 36; thence S. 48 deg. 54 min.
meters to point 38; thence S. 87 deg. 38 min. W., 131.54 meters to
point 39; thence S. 45 deg. 55 min W., 181.41 meters to point 40;
thence N. 5 deg. 39 min. E., 317.54 meters to point 41; thence N. 9
1603
W., 333.92 meters to point 43; thence N. 15 deg. 03 min. W., 114.51
thence N. 37 deg. 23 min. E., 421.59 meters to point 47; thence. N.
19 deg. 30 min. E., 142.64 meters to point 48; thence N. 21 deg. 57
min. W. 97.11 meters to point 49; thence N. 27 deg. 13 min. E., 75.44
meters to point 50; thence N. 42 deg. 12 min. E., 258.98 meters, to
thence S. 89 deg. 05 min. E., 105.75 meters to point 53; thence S.
60 deg. 42 min. E., 122.82 meters to point 54; thence N. 25 deg.
53 min. E., 101.20 meters to point 55; thence S. 53 deg. 52 min.
E.. 115.52 meters to point 56; thence N. 63 deg. 48 min. E., 145.74
thence N. 23 deg. 13 min. E., 41.26 meters to point 60; thence N.
4 deg. 13 min. W., 109.28 meters to point 61; thence N. 17 deg. 35
min. E., 89.41 meters to point 62; thence N. 1 deg. 34 min. W., 91.84
thence N. 74 deg. 14 min. E., 165.39 meters to point 66; thence N.
53 deg. 46 min. W., 60.37 meters to point 67; thence N. 74 deg. 44
min. E., 98.64 meters to point 68; thence N. 23 deg. 58 min. E., 65.98
meters to point 69; thence N. 83 deg. 40 min. E., 155.52 meters to
W, 184.01 meters to point 74; thence S.,55 deg. 34 min. E., 146.23
meters to point 75; thence S. 77 deg. 24 . E., 281.10 meters to point
76; thence S. 9 deg. 32 min. E., 114.00 meters to point 77; thence
S. 11 deg. 36 min. E., 198.66 meters to point 78; thence S. 11 deg.
10 min. E., 368.00 meters to the point of beginning; containing an
area of 4,631,735 square meters. All points referred to are indicated
on the plan and marked on the ground as follows: points 2, 5, 7, 23,
51, 52, 53, 54, 55 to 70 (enclusive) and 74, by “X” on. Trees; point
31, by “XW” on Rock; point 41, by “X” on Boulder; points 46, 47, 48
and 49, by Old PLS. Conc. Mons.; and the rest by BL. Cyl. Conc.
1604
Mons.; bearings true; date of survey, March 13, 1961-April 19, 1961.
Approved; November 7, 1962.
Lot 3, Nr-153
A parcel of land (lot 3, of plan Nr-153, L.R.C. Record No.

——), situated in the Municipality of Milagros, Province of Masbate.
Bounded on the NW., along lines 1-2-3-4-5-6-7-8-9, by Lot 7 of plan
Nr-153; on the NW., and N., along lines 9-10-11-12-13-14-15-16-17-
18-19-20, by Public Land (Timber Land); on the E., along lines 20-
21-22, by Tanang River; on the SE., along line 22-23, by Manamoc
Creek; along lines 23-24-25-26, by Public Land; on the SE., and S.,
along lines from corner 26 thence following the meandering boundary
to corner 46, by Feeder Road; on the SW., and W., along lines 46-
47-48-49-50-51-52-53-54, by National Road; on the NW., along lines
54-55-56, by property of Virginia Carillo; and along lines 56-57-58-
59-1, by Lot 5 of plan Nr—153. Beginning at a point marked “1”
on plan being S. 4 deg. 07 min. E., 19152.08 meters from BLIM
1, Municipality of Aroroy, Masbate, thence N. 51 deg. 59 min. E.,
201.66 meters to point 2; thence N. 8 deg. 25 min. W., 158.14 meters
to point 3; thence N. 59 deg. 30 min. E., 339.24 meters to point 4;
meters to point 8; thence. N. 35 deg. 16 min. E., 353.04 meters to
deg. 41 min W., 357.03 meters to point 24; thence N. 68 deg. 38 min.
1605
W., 113.92 meters to point 33; thence S. deg. 21 min. W., 232.59
meters \o point 26; thence S. 72 deg. 55 min. W., 359.97 meters to
meters to point 32; thence S. 69 deg. 31 min. W., 11392 meters to
point 33; thence S 52 deg. 21 min. W., 232.59 meters to point 34;
deg. 55 min. E., 142.40 meters to point’ 54; thence S. 52 deg. 17 min.
“W., 156.93 meters to point 55; thence N. 31 deg. 30 min. E., 282.62
deg. 46 min. E., 348.72 meters to point of beginning; containing an
area of 6,224,525 square meters. All points referred to are indicated
on the plan and marked on the ground as follows; points 7, 9, and 58
by “X” on Rocks; points 8 and 25, by “X” on Trees; point 10, by “Z” on
Boulder; point 55, by Old “X” on Tree; and the rest by BL. Cyl. Conc.
Mons.; bearings true; date of survey, March 13, 1961-April 19, 1961.
Approved; November 7, 1962.
1606
Lot 4, Nr-153
A parcel of land (Lot 4 of plan Nr-153, L.R.C. Record No. ——–

), situated in the Municipality of Milagros, Province of Masbate.
Bounded on the SW., along lines 1-2-3, by National Road; on the N.
and NW., along lines from corner 3 thence following the meandering
boundary to corner 23, by Feeder Road; on the E., along line 23-24, by
Public Land; along lines 24-25-26-27-28, by Manamoc Creek; along
lines 28-29-30-31-32, by Public Land; on the S., SE., and S., along
lines from corner 32 thence following the meandering boundary to
corner 46, by property of Enrique Legaspi; on the S., and SW., along
lines from corner 46 thence following the meandering boundary to
corner 63, by Monangi Creek; and on the W., along lines 63-64-65-
66-67-68-1, by National Road. Beginning at a point marked “1” on
plan being S. 4 deg. 03 min. E., 20,847.15 meters from B.L.L.M.
1, Municipality of Aroroy, Masbate, thence N. 57 deg. 57 min. W.,
112.81 meters to point 2; thence N. 6 deg. 51 min. W., 57.05 meters
to point 3; thence N. 81 deg. 28 min. E., 73.43 meters to point 4;
thence S. 79 deg. 10 min. E., 98.55 meters to point 5; thence N. 89
thence N. 32 deg. 52 mm. E., 388.27 meters to point 11; thence N. 32
deg: 10 min. E., 231.71 meters to point 18; thence N. 45 deg. 06 min.
thence N. 72 deg. 50 min. E., 354.60 meters to point 23; thence S.
22 deg. 38 min. E., 347.16 meters to point 24; thence N. 84 deg. 17
min. E., 97.17 meter to point 25; thence S. 4 deg. 46 min. E., 128.19
point 27; thence S. 18 deg. 09 min. E, 321.37 meters to point 28;
1607
thence S. 54 deg. 43 min. W., 291.40 meters to point 29; thence S.

22. deg. 11 min. W., 184.96 meters to point 30; thence S. 15 deg.
18 min. E., 247.81 meters to point 31; thence S. 15 deg. 33 min.
E., 395.04 meters to point 32; thence S. 79 deg. 33 min. W., 235.32
meters to point 33; thence N. 82 deg. 48 min. W.. 100.54 meters to
meters, to point 39; thence S. 23 deg. 52 min. W., 189.21 meters to
thence N. 68 deg. 58 min. W.. 185.12 meters to point 48; thence S. 61
thence N. 5 deg. 10 min. W., 52.51 meters to point 54; thence S. 74
W., 68.48 meters to point 56; thence N. 78 deg. 46 min W., 97.07
meters to point 57; thence N. 30 deg. 58 min W. 91.57 meters to
point 58; thence S. 79 deg. 14 W., 49.71 meters to point 59; thence
N. 44 deg. 58, W., 166.97 meters to point 60; thence N. 77 deg. 31
min. W., 81.77 meters to point 61; thence N. 77 deg. 23 min. W.,
66.10 meters to point 62; thence S. 54 deg. 12 min. W., 29.28 meters
to point 63; thence S. 28 deg. 54 min. W., 68.94 meters to point 64;
meters to point 68; thence N. 13 deg. 02 min. W., 97.72 meters to the
point of beginning, containing an area of 5,818,466 square meters.
All points referred to are indicated on the plan and marked on the
ground as follows; points 29, 35, 37, 40, 43, 46, 48, 53, 54, 55 and
64, by “X” on Trees; point 42, by “X” on Stone point 45, by Old B.F.
1608
Conc. Mon.; and the rest by B.I. Cyl. Conc. Mons.; bearings true;
date of survey, March 13, 1961-April 19, 1961. Approved: November
7, 1962.
Lot 5, Nr-153
(Claimed by Nicolas Carillo)
A parcel of land (Lot 5 of plan Nr-153, L. R. C. Record No. ——–

Bounded on the SE., along lines 1-2-3-4-5, by Lot 3, of plan Nr-153;
on the SW., along lines 5-6-7-8, by property of Virginia Carillo; on the
SW., and SE., along lines 8-9-10-11-12, property of Nicolas Carillo; on
the SW., along lines 12-13-14-15-16-17-18, by National Road; on the
NW., along lines 18-19-20-21-22-23, by Calubian Creek; along lines
23-24-25-26, by property of Patricio Ponferada; on the N., and NW.,
along lines 26-27-28-29 ,by Lot 6 of plan Nr-153; on the NE., and N.,
along lines 29-30-31-32, by property of Idrolfo Laurio; and on the
NE., along lines 32-33-34-35-1, by Lot 7 of plan Nr-153. Beginning
at a point marked 1 on plan being S. 4 deg. 07 min. E., 19,152.08
meters from B.L.L.M. 1, Municipality of Aroroy, Masbate, thence S.
70 deg. 46′ W., 348.72 meters to point 2; thence S. 74 deg. 39′ W.,
180.22 meters to point 3; thence S. 66 deg. 21′ W., 179.77 meters to
point 4; thence S. 77 deg. 46′ W., 194.54 meters to point 5; thence N.
63 deg. 31′ W., 129.01 meters to point 6; thence N. 61 deg. 55′ W.,
309.84 meters to point 7; thence N. 79 deg. 51′ W., 284.38 meters to
point 8; thence N. 81 deg. 00′ W., 283.49 meters to point 9; thence S.
115.63 meters to point 11; thence S. 35 deg 23′ W., 79.28 meters to
point 12; thence N. 40 deg. 56′ W., 133.67 meters to point 13; thence
N. 28 deg. 45′ E., 76.31 meters to point 14; thence N. 35 deg. 17′ W.,
115.77 meters to point 15; thence N. 15 deg. 01′ E., 127.87 meters to
point 16; thence N. 66 deg. 3,6′ W., 185.85 meters to point 17; thence
N. 67 deg. 44′ W., 117.81 meters to point 18; thence N. 57 deg. 16′ E.,
245.11 meters to point 19; thence S. 87 deg. 15′ E., 78.55 meters to
point 20; thence N. 60 deg. 19′ E., 143.82 meters to point 21; thence
N. 53 deg. 26′ E., 130.20 meters to point 22; thence N. 36 deg. 39′ E.,
N. 65 deg. 10′ E., 283.17 meters to point 26; thence N. 77 deg. 10′ E.,
1609
S. 49 deg. 00′ E., 204.79 meters to point 30; thence S. 49 deg. 41′ E.,
point 32; thence S. 14 deg. 30′ W., 288.12 meters to point 33; thence
S. 34 deg. 19′ W., 158.92 meters to point 34; thence S. 39 deg. 05′ E.,
356.97 meters to point 35; thence S. 70 deg. 08′ E., 174.64 meters to
point of beginning; containing an area of 1,479,966 square meters.
ground as follows: points 3 and 33, by “X” on Rocks; points 5, 6, 7,
8, 9, 11 and 12, by Old P.S.; points 21, 23 and 29 by “X” on Trees;
and the rest by B.L. Cyl. Conc. Mons.; bearings true; date of survey,
March 13, 1961-April 19, 1961. Approved; November 7, 1962.
Lot 6, Nr-153
A parcel of land (Lot 6 of plan Nr-153, L. R. C. Record No.

———), situated in the Municipality of Milagros, Province of
Masbate. Bounded on the S., along line 1-2, by Lot 5 of plan Nr-
153;. on the W., along line 2-3, by property of Patricio Ponferada;
along lines 3-4-5-6-7, by Calubian Creek; on the N. and E., along
lines 7-8-9, by property of Idrolfo Laurio; and on the SE., along
lines 9-10-1, by Lot 5 of plan Nr-153. Beginning at a point marked
1 on plan being S. 0′ deg. 25′ E., 18,417.50 meters from B.L.L.M. 1,
Municipality of Aroroy, Masbate, thence S. 77 deg. 10′ W., 112.81
meters to point 2; thence N. 19 deg. 06′ E., 106.52 meters to point
3; thence N. 53 deg. 01′ W., 73.35 meters to point 4; thence N. 17
deg. 59′ W., 106.91 meters to point 5; thence N. 4 deg. 04′ W., 172.64
meters to point 6; thence N. 25 deg. 13′ E., 73.21 meters to point 7;
thence N. 80 deg. 22′ E., 335.60 meters to point 8; thence S. 11 deg.
25′ E., 197.45 meters to point 9; thence S. 65 deg. 52′ W., 113.99
meters to point 10; thence S. 23 deg. 11′ W., 300.07 meters to point
of beginning; containing an area of 1,479,966 square meters. All
referred to are indicated on the plan and marked on the ground as
follows: points 5 and 9; by “X” on Trees; and the rest by B.L. Cyl.
Conc. Mons.; bearings true; date of survey, March 13, 1961-April 19,
1961. Approved: November 7, 1962.
1610
Lot 7, Nr-153
(Claimed by Idrolfo Laurio)
A parcel of land (Lot 7 of plan Nr-153, L. R. C. Record No. ——-

Bounded on the SW., along lines 1-2-3-4-5, by Lot 5 of plan Nr-
153; on the N. and NW., along lines 5-6-7-8-9-10-11, by property of
Idrolfo Laurio; and on the SE., along lines 11-12-13-14-15-16-17-
18-1, by Lot 3, all of plan Nr-153. Beginning at a point marked 1
on plan being S. 4 deg. 07′ E., 19,152.08 meters from B.L.L.M. 1,
Municipality of Aroroy, Masbate, thence N. 70 deg. 09′ W., 174.64
meters to point 2; thence N. 39 deg. 05′ W., 356.97 meters to point
3; thence N. 34 deg. 13′ W., 158.31 meters to point 4; thence N. 14
deg. 30′ W., 283.12 meters to point 5; thence N. 82 deg. 25′ E., 341.96
7; thence N. 56 deg. 45′ E., 389.84 meters to point 8; thence N. 60
deg. 23′ E., 326.58 meters to point 9; thence N. 70 deg. 57′ E., 163.72
11; thence S. 35 deg. 16′ W., 353.04 meters to point 12; thence S.
point 15; thence S. 65 deg. 18′ W., 207.59 meters to point 16; thence
S. 59 deg. 30′ W., 339.24 meters to point 17; thence S. 8 deg. 25′ E.,
the point of beginning; containing an area of 878,609 square meters.
ground as follows: points 4, 11 and 13, by “X” on Rocks; points 8
and 12, by “X” on Trees; point 9, by “X” on Boulder; and the rest
by B.L. Cyl. Conc. Mons.; bearings true; date of survey, March 13,
1961-April 19, 1961. Approved: November 7, 1962.

1611
Done in the City of Manila, this 7th day of February, in the

year of Our Lord, nineteen hundred and sixty-five.
DIOSDADO MACAPAGAL
By the President:
RAMON A. DIAZ
Executive Secretary
1612
MALACAÑANG
Manila
RESERVING CERTAIN PARCELS OF LAND SITUATED IN THE

MUNICIPALITIES OF CALBIGA AND PINABACDAO,
PROVINCE OF SAMAR FOR THE PURPOSE OF
AGRARIAN REFORM
WHEREAS, it is the policy of the State to provide a vigorous

land resettlement program in order to create a truly viable social
and economic structure in the country;
WHEREAS, it is the government’s responsibility to provide

with lands as well as technical guidance and assistance to make
them independent, self-reliant and responsible citizens;
WHEREAS, a tract of public agricultural land in the

Municipalities of Javier, Abuyog, Mahaplag, Baybay, Inopacan
and Hilongos, all of the province of Leyte is found to be suitable for
cultivation and can be developed as resettlement area;

Act No. 141, otherwise known as the “Public Land Act”, authorizes
the President to designate, by proclamation, any tract or tracts
of land of the public domain for establishment of agricultural
communities; and Section 14, Chapter 4, Title I, Book III of the
Administrative Code of 1987 grants the President the power to
reserve for settlement or public use, and for specific public purposes,
any of the lands of the public domain, the use of which is not
otherwise directed by law; and
1613
WHEREAS, Section 3(5), Chapter I, Title XI, Book IV of the

Administrative Code of 1987 empowers the Department of Agrarian
Reform to administer and dispose, under a settlement scheme, all
portions of the public domain declared as alienable and disposable
lands for speedy distribution to and development by deserving and
qualified persons who do not own any land.

law and upon recommendation of the Secretary of Agrarian Reform
and the Secretary of the Environment and Natural Resources, do
agricultural community under the administration and disposition
of the Department of Agrarian Reform, subject to private rights, if
any, certain parcels of land, particularly described as follows:
Technical Description
Certain parcels of land, bounded on the north by barangays

Macaalam and Paligan of the Municipality of Calbiga, on the east
by DENR Bauxite Reserve area, Presidential Proclamation No.
1615, on the south by the Municipality of Sta. Rita, Samar, and on
the west by barangays Parasanon and Pahug of the Municipality
of Pinabacdao and a national highway, and more particularly
Beginning at a joint marked “1” on the plan located at 11º 32′

03″ latitude and 125º 1′ 43″ longitude,
thence: N. 27 deg. 52′ W., 6,036.74 m. to point 2;

thence: N. 01 deg. 11′ E., 1,570.28 m. to point 3;
thence: N. 61 deg. 52′ E., 7,136.17 m. to point 4;
thence: S. 89 deg. 28′ E., 4,329.99 m. to point 5;
thence: S. 01 deg. 00′ W., 7,585.00 m. to point 6;
1614
thence: S. 89 deg. 30′ W., 2,560.00 m. to point of beginning; containing

an area of EIGHT THOUSAND ONE HUNDRED SIXTY (8,160.00)
hectares, (more or less).
The above technical descriptions are subject to adjustment

based on the result of the final survey.

classification of timberland, forest land or mineral public land, if
any, shall be deemed excluded from the scope of this Proclamation.

DONE in the City of Manila, this 27th day of May in the Year
of Our Lord Nineteen Hundred and Ninety Four.
By the President:

Executive Secretary
1615
MALACAÑANG
MANILA
RESERVING CERTAIN PARCELS OF LAND SITUATED

IN THE MUNICIPALITIES OF JAVIER, ABUYOG,
MAHAPLAG, INOPACAN, BAYBAY AND HILONGOS, ALL
OF THE PROVINCE OF LEYTE FOR THE PURPOSE OF
AGRARIAN REFORM
WHEREAS, it is the policy of the State to provide a vigorous

land resettlement program in order to create a truly viable social
and economic structure in the country;
WHEREAS, it is the government’s responsibility to provide

the people with lands as well as technical guidance and assistance
to make them independent, self-reliant and responsible citizens;
WHEREAS, a tract of public agriculture land in the

Municipalities of Javier, Abuyog, Mahaplag, Baybay, Inopacan
and Hilongos, all of the province of Leyte is found to be suitable for
cultivation and can be developed as resettlement area;

Act No. 141, otherwise known as the “Public Land Act”, authorizes
the President to designate, by proclamation, any tract or tracts
of land of the public domain for establishment of agricultural
communities; and Section 14, Chapter 4, Title I, Book III of the
Administrative Code of 1987 grants the President the power to
reserve for settlement or public use, and for specific public purposes,
any of the lands of the public domain, the use of which is not
otherwise directed by law; and
1616
WHEREAS, Section 3(5), Chapter I, Title XI, Book IV of the

Administrative Code of 1987 empowers the Department of Agrarian
Reform to administer and dispose, under a settlement scheme, all
portions of the public domain declared as alienable and disposable
lands for speedy distribution to and development by deserving and
qualified persons who do not own any land.

law and upon recommendation of the Secretary of Agrarian Reform
and the Secretary of the Environment and Natural Resources, do
agricultural community under the administration and disposition
of the Department of Agrarian Reform, subject to private rights, if
any, certain parcels of land, more particularly described as follows:
Technical Description
Parcel I
A parcel of land, Parcel I, situated in Mahaplag, Abuyog,

Javier, Baybay, Inopacan, all of the province of Leyte, beginning at
a joint marked “I” on the plan being, S. 20 deg. 48’E., 7,426.93 m.
from B.L.L.M. No. 2 Cad 897-D, Mahaplad, Leyte
thence; S. 00 deg. 04’E., 1,001.74 m. to point 2;

thence; S. 70 deg. 02’W., 1,168.84 m. to point 3;
thence; S. 29 deg. 03’W., 541.26 m. to point 4;
thence; Due West., 808.05 m. to point 6;
thence; N. 00 deg. 10’W., 2,552.17 m. to point 7;
thence; N. 47 deg. 14’E., 1,501.56 m. to point 9;
1617

thence; N. 31 deg. 19’W., 739.59 m. to point 16;
thence; N. 34 deg. 16’E., 532.48 m. to point 17;
thence; S. 21 deg. 11’E., 359.21 m. to point 36;
1618

thence; Due West., 7,216.48 m. to point 41;
1619

1620

thence; S. 35 deg. 21’E., 1,079.20 m. to point of
beginning; containing an area of TWENTY-ONE THOUSAND

EIGHT HUNDRED EIGHTY-EIGHT (21,888.00) hectares, (more
or less).
Parcel II
A parcel of land, Parcel II, situated in Hilongos, Leyte.

Beginning at a point marked “1” on the plan, being S. 40 deg. 35’W.,
15,150.69 m. from corner of parcel I of this proclamation.

1621

thence; N. 29 deg. 29’W., 12,269.33 m. to point of
beginning; containing an area of FOUR THOUSAND SIX

HUNDRED FORTY ONE (4,641.00) Hectares more or less.


classification of timberland, forest land or mineral public land, if

1622

DONE in the City of Manila, this 1st day of July, in the Year
of Our Lord Nineteen Hundred and Ninety-Four.
By the President:

Executive Secretary
1623
MALACAÑANG
Manila

DEPARTMENT OF AGRARIAN REFORM (DAR) A CERTAIN
TRACT OF LAND OF THE PUBLIC DOMAIN SITUATED IN
GENERAL SANTOS CITY, ISLAND OF MINDANAO
Upon recommendation of the Secretary of Environment and

Natural Resources, and the Secretary of Agrarian Reform, and
pursuant to the provisions of Section 83 of Commonwealth Act 141,
otherwise known as the Public Land Act, as amended; Section 14,
Chapter 4, Title I, Book III, of the Administrative Code of 1987;
and Section 51 (3) of Republic Act No. 3844, as amended, I, FIDEL
V. RAMOS, President of the Philippines, do hereby reserve for
resettlement purposes a certain tract of land of the public domain
and declare the same open to disposition under the Comprehensive
Agrarian Reform Program of the Department of Agrarian Reform,
which is more particularly described as follows:
A parcel of land situated in the Municipality of General Santos

City, Province of South Cotabato, Island of Mindanao;
Bounded on the North by FLGA 504; on the South East by

Human Settlement and Civil Registration (Lot 1); and on the South
West by the General Santos City International Airport Reservation;
Beginning at a point marked “1” on sketch plan, being S 79

deg. 39′ W, 6694.81 m. from BLLM, MAKAR; thence;
N 79 deg. 13’E, 185.50 m. to point 2;

N 81 deg. 00’E, 412.00 m. to point 3;
1624
N 83 deg. 00’E, 475.00 m. to point 4;

S 70 deg. 00’E, 575.00 m. to point 5;
S 70 deg. 00’E, 350.00 m. to point 6;
S 70 deg. 00’E, 150.00 m. to point 7;
S 70 deg. 00’E, 210.00 m. to point 8;
S 70 deg. 00’E, 140.00 m. to point 9;
N 88 deg. 15’W, 450.00 m. to point 10;
N 88 deg. 15’W, 400.00 m. to point 11;
S 01 deg. 11’W, 348.67 m. to point 12;
S 01 deg. 14’W, 400.00 m. to point 13;
S 01 deg. 14’W, 399.99 m. to point 14;
S 01 deg. 14’W, 400.01 m. to point 15;
S 01 deg. 14’W, 399.97 m. to point 16;
S 71 deg. 42’W, 60.72 m. to point 17;
N 71 deg. 21’W, 517.82 m. to point 18;
N 31 deg. 06’W, 98.13 m. to point 19;
N 06 deg. 57’W, 1,254.99 m. to point 20;
N 68 deg. 17’W, 1,196.00 m. to point of
beginning; containing an area of ONE MILLION TWO HUNDRED

THOUSAND EIGHT HUNDRED SIXTY TWO (1,200,862) SQUARE
METERS, more or less.
The utilization of the aforementioned parcel of land shall not,

in any way, prejudice the ecological balance in the area, and removal
of timber land and other forest products therein shall be subject to
forest and internal revenue laws and regulations.

as of the date hereof and shall continue to process such application.
All vested rights inside the reservation, if there be any, shall be
respected.

1625
Done in the City of Manila, this 15th day of August, in the year
of Our Lord, nineteen hundred and ninety four.
By the President:

Executive Secretary
1626
MALACAÑANG
Manila
EXCLUDING FROM THE OPERATION OF EXECUTIVE ORDER

NO. 63, DATED 25 JUNE 1914, AND PROCLAMATION NO.
391, DATED 13 MARCH 1939, WHICH ESTABLISHED THE
MINERAL LAND RESERVATION IN THE PROVINCE OF
SURIGAO, ISLAND OF MINDANAO, CERTAIN ALIENABLE
AND DISPOSABLE PARCELS OF LAND EMBRACED
THEREIN, AND DECLARING THE SAME OPEN TO
DISPOSITION UNDER THE COMPREHENSIVE AGRARIAN
REFORM OF THE DEPARTMENT OF AGRARIAN REFORM
AND OTHER PERTINENT LAWS RELATIVE TO TITLING
OF LANDS THAT ARE SUITABLE FOR AGRICULTURE
Upon recommendations of the Secretary of Environment and

Natural Resources and the Secretary of Agrarian Reform pursuant
to the provisions of Section 6 of Presidential Decree No. 463,
otherwise known as the Mineral Resources Development Decree of
1974, and Executive Order No. 506 of 1992, I, FIDEL V. RAMOS,
President of the Philippines, do hereby exclude certain tracts of
alienable and disposable lands from the Mineral Land Reservation
established under Executive Order No. 63, dated 25 June 1914, and
Proclamation No. 391, dated 13 March 1939, and declare the same
open to disposition under the Comprehensive Agrarian Reform
Program of the Department of Agrarian Reform.
PARCEL 1-Lot 9
A parcel of land (Parcel-1; Lot 9) situated in the Municipalities

of Carrascal and Cantilan, Province of Surigao del Sur;
1627
Bounded on the North along Carrascal Bay; on the East by

Lanuza Bay; on the South by the Municipality of Cantillan and on
the West by Surigao Mineral Reservation.

position 9 deg. 200’00” North latitude, and 125 deg. 58’57” East
longitude; and bearing S 61 deg. 30’E., 831.78 meters from BLLM
No. 1 CAD. 345-D of Cantilan, Surigao del Sur.
Thence; S 89 deg. 51’W, 5,700 m. to point 2;

Thence; N 00 deg. 09’W, 1,820 m. to point 3;
Thence; S 89 deg. 51’W, 400 m. to point 4;
Thence; N 00 deg. 09’W, 3,610 m. to point 5;
Thence; N 89 deg. 51’E, 600 m. to point 6;
From Point 6 following the shoreline of Carrascal Bay and

Lanuza Bay in general NE-SW direction to the point of beginning.
This area encompasses the townsites/poblacions of Carrascal

and Cantilan, including Barangays Caglayag, Consuelo, Gamoton,
Magasang, Nokat, Tigabong, Bacolod, and Panikian, containing an
approximate area of 2,774.787 hectares.
PARCEL 1-Lot 9a
A parcel of land (Parcel 1, Lot 9a) situated at the Municipality

of Carrascal, Province of Surigao del Sur.
Bounded on the north, east and south by Surigao Mineral

Reservation and on the east by Carrascal Bay.

longitude, and bearing N 46 deg. 01’W., 10,546.91 meters from
BLLM No. 1 Cad. 345-D of Cantilan, Surigao del Sur.
1628
Thence; S 89 deg. 51’W., 1610 m. to point 2;

Thence; N 0 deg. 09’W., 5030 m. to point 5;
Thence; N 89 deg. 51’W., 1860 m. to point 6;
Thence; N 89 deg. 51’E., 1600 m. to point 8;
Thence; S 0 deg. 09’E., 420 m. to point 9;
Thence, from Point 6 following the shoreline along Carrascal

Bay in general SSW-SE direction to point of beginning.
This area is within Barangay Adlay, containing an approximate

area of 990.656 hectares.
SUMMARY
PARCEL 1, LOT 9 – 2,774.787 has.

PARCEL 1, LOT 9a – 990.656 has.
——————
Total Area – 3,765.443 has.
The exclusion of the aforementioned parcels of land, however,

shall not in any way prejudice their possible future use for mineral
resources development, if and when further exploration finds it
meritorious, subject to existing mining laws rules and regulations.
All areas within the reservation, which fall under the

classification of timberland, forest land, or unclassified public land,
The Department of Environment shall retain jurisdiction over

portions covered by public land applications as of the date hereof
1629
and shall continue to process such applications. All vested rights

inside the reservation shall be respected.

By the President:

Executive Secretary
Proc. 454 s. 1994 amended EO 63 s. 1914.

1630
MALACAÑANG
Manila
Upon recommendation of the Secretary of Environment

and Natural Resources and the Secretary of Agrarian Reform, I,
FIDEL V. RAMOS, President of the Philippines, by virtue of the
powers vested in me by law, do hereby reserve for the purpose of
establishing a settlement and an agricultural community under
Reform, subject to private rights, if any there be, a certain tract of
land, more particularly described as follows:
A parcel of land, situated in the municipalities of Mabini,

Dasol, and Infanta, Province of Pangasinan, Island of Luzon.
Bounded on the NE, along lines 1-2, and succeeding lines up to line
32-33, by Timber Land; on the SE, along line 33-34, by lot 7736,
Infanta CAD 779D; on the SW., along lines 34-35, 35-36, by lot 2687,
Dasol Cad. 624D; along lines 36-37 and 37-38, by Public Land; on
the NW., along lines 38-39, and succeeding lines up to line 122-123,
by Public Land. Beginning at a point marked “1” on plan, being S 02
deg. 00’W., 5,033.61 m. from BLLM No. 1, Mabini Cad. 552D,
thence S 61 deg. 03’E., 253.05 m. to point 2;

thence S 47 deg. 03’E., 1,054.88 m. to point 4;
thence S 02 deg. 05’W., 256.04 m. to point 6;
thence N 84 deg. 26’W., 57.58 m. to point 9;
1631

thence N 79 deg. 45’E., 398.00 m. to point 17;
thence DUE SOUTH, 400.10 m. to point 31;
thence DUE SOUTH, 398.60 m. to point 32;
thence S 40 deg. 12’W., 3,551.20 m. to point 34;
thence N 32 deg. 46’W., 2,698.50 m. to point 35;
thence N 19 deg. 05’E., 1,322.82 m. to point 37;
1632

1633

1634

1635

thence S 62 deg. 30’E., 100.25 m. to point of
beginning; containing an area of FOUR THOUSAND FOUR
HUNDRED NINETY SIX (4,496) HECTARES, more or less. All
points referred to are indicated on the plan and are marked on the
ground. Corners 4 & 5 are marked by BBM NO. 27 & 23 respectively;
corner 37 by MBM No. 7, the rest by Old Points; Bearings: True.

All areas within the reservation that fall under the

classification of timberland, forest land, or mineral public land, if

as of the date hereof shall continue to process such applications. All
vested rights inside the reservation shall be respected.

By the President:

Executive Secretary
1636
MALACAÑAN PALACE
MANILA
RESERVING FOR THE EXCLUSIVE, USE OF NON-CHRISTIANS,

A PARCEL OF THE PUBLIC DOMAIN SITUATED IN THE
BARRIO OF CULAT, MUNICIPALITY OF CASIGURAN,
PROVINCE OF TAYABAS, ISLAND OF LUZON

Commerce and pursuant to the provisions of section eighty-four
of Commonwealth Act Numbered One hundred and forty-one, as
amended, I hereby reserve for the exclusive use of non-Christians,
under the administration of the Secretary of the Interior, subject
to private rights, if any there be, the following parcel of the public
domain, situated in the barrio of Culat, municipality of Casiguran,
Province of Tayabas, Island of Luzon, and particularly described in
Bureau of Lands plan Ir-466, to wit:
Beginning at a point marked 1 on Bureau of Lands plan Ir-466,

S. 81° 22′ W. 2,326.26 m., more or less, from C. & G. S. triangulation
station “War” 1929-1930, thence S. 21° 14′ 239.86 m. to point 2i; S.
25° 17′ W. 277.39 m. to point 3; S. 40° 05′ .284.48_m._to point 4; S.
51° 23′ W. 196.14 m. to point 5;. N. 41° 58′ W. 279.64 m. to point 6;
N. 6° 58′ E. 318.54 m. to point 7; N. 15° 40′ W. 190.68 m. to point 8;
N. 28° 03′ E. 241.76 m. to point; 9; N. 26° 41′ E. 257.80 m. to point
10; N. 23° 19′ E. 113.06 m. to point 11; N. 31° 56′ E. 246.94 m. to
point 12; S. 81° 11′ E. 155.93 m. to point 13; S. 10° 10′ W. 206.33 m.
to point 14; S. 6° 12’ E. 133.82 m. to point 15; S. 34° 40′ E. 246.62′
m. to point 16; S. 36° 24′ E. 108.35 m. to point 1, point of beginning.
1637
Points 1, 5, 8, and 12, B. L. cylindrical concrete monuments;

points 2, 9, and 10, galvanized-iron spikes on trees; points 3, 4, 6, 7,
and 11, crosses on trees; points 13, 14, 15, and 16, stakes.
Bounded on the north and northeast by Casapsapan Bay; and

on the southeast, southwest, west, and northwest, by public land.
Bearings true. Declination, 0° 18′ E.
Points referred to are marked on Bureau of Lands plan Ir-466.
Surveyed: May 3-5, 1939.
Approved: August 11, 1939.

Done at the City of Manila, this ninth day of October, in the

year of Our Lord, nineteen hundred and thirty-nine, and of the
Commonwealth of the Philippines, the fourth.
MANUEL L. QUEZON
By the President:
JORGE B. VARGAS
1638
MALACAÑANG
Manila
ADOPTING AN OFFICIAL DEFINITION OF SOCIAL REFORM

AGENDA (SRA) PROGRAMS AND PROJECTS FOR
BUDGETARY AND OTHER PURPOSES
WHEREAS, government agencies must reflect Social Reform

Agenda programs and projects in their budget submission as priority,
given that this is one of the priority programs of the Administration;
WHEREAS, synchronization in the planning and budgeting

of the Agenda package requires the adoption of a common definition
of Social Reform Agenda programs and projects; and,
WHEREAS, this definition must take into account the thrusts

of the Social Reform Agenda in prioritizing certain geographical
areas and in converging Flagship programs in clearly identified
communities to ensure greater impact of these programs.

law, do hereby declare the adoption of the following definition for
Social Reform Agenda programs and projects in the 1996 General
Appropriations Act and for other purposes:
SRA programs, projects and activities are those responsive

to the government commitments under the nine (9) Social Reform
Flagship Programs approved pursuant to Memorandum Order No.
213 dated 17 June 1994.
These programs, projects and activities shall cater to the

following Social Reform Agenda geographical focus:
1639
2.1. Nineteen (19) priority provinces for Poverty Alleviation,

Countryside Development, and Comprehensive and Integrated
Delivery of Social Services (CIDSS);
2.2. Agrarian Reform Communities (ARCs) of the Department

of Agrarian Reform (DAR);
2.3. Certificate of Ancestral Domain Claims (CADCs)

communities of Indigenous Peoples (IPs) especially within the nine
(9) priority provinces identified by the Department of Environment
and Natural Resources (DENR);
2.4 Urban poor priority areas and resettlement sites especially

in six (6) identified centers;
2.5 Priority bays and lakes of the Department of Agriculture;

and
2.6 Other priority programs as may be determined by the

Flagship champions.

DONE, in the City of Manila, this 6th day of March, in the

year of Our Lord, Nineteen Hundred and Ninety-Five.
By the President

Executive Secretary
1640
MALACAÑANG
Manila
APPROVING A POLICY ON CONVERGENCE AND ITS

OPERATIONALIZATION THROUGH THE COORDINATED
ACTION OF THE AGENCIES’ TECHNICAL ACTION
OFFICERS
WHEREAS, the Social Reform Agenda (SRA) is implemented

along both a sectoral focus and a geographical focus to maximize
both government resources and the Flagship Programs’ impact;
WHEREAS, the geographical focus involves the

implementation and localization of the Social Reform Agenda and
its Flagship Programs in the nineteen (19) priority provinces;
WHEREAS, there is a need to further define the government’s

specific focal points within these nineteen (19) priority provinces to
effect a convergence of interventions and services that will bring
about the desired maximum impact of the SRA Flagship Programs;
WHEREAS, the convergence of interventions and services

may be fully coordinated at the technical level by the Technical
Working Group composed of representatives of the Social Reform
Agenda Flagship Champions;

Republic of the Philippines, by virtue of the powers vested in me
by law, do hereby declare the adoption of the following policies on
Convergence of Flagship Programs and Projects:
SECTION 1. Convergence shall be defined as the focusing

of resources, services and interventions by Social Reform Agenda
Flagship Programs and other agencies/entities on specific target
families and communities;
1641
SEC. 2. All Flagship Programs, where deemed appropriate,

shall address the needs of the Basic Sectors in the following
convergent areas especially in the nineteen (19) provinces and other
priority geographic areas:
a Farmers and landless agricultural workers in Agrarian

Reform Communities (ARCs);
b. Fisherfolk in priority bays and lakes of the Department of

Agriculture;
c Indigenous peoples within areas covered by Certificates of

Ancestral Domain Claims (CADCs);
d. Urban poor and workers in the informal sector in urban

areas, resettlement sites and growth centers;
e Victims of disasters in resettlement sites; and,
f Basic Sectors within the Comprehensive and Integrated

Delivery of Social Services (CIDSS) areas.
SEC. 3. The Minimum Basic Needs (MBN) approach to

improved quality of life shall be adopted as the strategy for
convergence.
SEC. 4. The process of convergence shall provide for multi-

level, multi-sectoral and interagency coordination and consultation.
The Flagship Champions and concerned heads of government

agencies shall instruct their respective Technical Action Officers to
coordinate in the implementation of this policy of convergence.

1642
DONE in the City of Manila, this 6th day of March, in the

year of Our Lord, Nineteen Hundred and Ninety-Five.
By the President

Executive Secretary
1643
MALACAÑANG

OF THE PHILIPPINES
MANILA
AMENDING PROCLAMATION NO. 378, DATED MARCH 13, 1953,

WHICH RESERVED FOR RURAL RECONSTRUCTION
PURPOSES UNDER THE ADMINISTRATION OF THE
SOCIAL WELFARE ADMINISTRATION CERTAIN PARCELS
OF LAND SITUATED IN THE MUNICIPALITY OF
BONGABON, PROVINCE OF NUEVA ECIJA, ISLAND OF
LUZON, BY PLACING THE ADMINISTRATION THEREOF
UNDER THE SECRETARY OF AGRICULTURE AND
NATURAL RESOURCES
Upon the recommendation of the Secretary of Agriculture

and Natural Resources and pursuant to the authority vested in me
by law, I, Carlos P. Garcia, President of the Philippines, do hereby
amend Proclamation No. 378, dated March 13, 1953, which reserved
for rural reconstruction purposes under the administration of the
Social Welfare Administration, certain parcels of land situated in
the municipality of Bongabon, province of Nueva Ecija, island of
Luzon, by placing the administration thereof under the Secretary
of Agriculture and Natural Resources who may enter into an
agreement consistent with law with any civic organization like the
Philippine Rural Reconstruction Movement, in order to carry out
more effectively the reconstruction and rehabilitation of the rural
areas.

1644
Done in the City of Manila, this 8th day of December, in

the year of Our Lord, nineteen hundred and fifty-nine, and of the
Independence of the Philippines, the fourteenth.
CARLOS P. GARCIA
By the President:
ENRIQUE C. QUEMA
1645
MALACAÑANG
MANILA
DEDICATING THE DEPARTMENT OF AGRARIAN REFORM

BUILDING’S FOURTH FLOOR AS THE JUSTICE MILAGROS
A GERMAN HALL
WHEREAS, Justice Milagros A. German has distinguished

herself not only as an illustrious member of the Court of Appeals
but also as a leading advocate of land reform, dedicating most of her
professional life in the upliftment of the lot of tenant-farmers;
WHEREAS, as a distinguished and illustrious member of the

bench, author, lecturer, and consultant on agrarian reform law, she
has left an indelible imprint in that field;
WHEREAS, it is fitting to lend recognition to her invaluable

contributions and services towards the development of land reform
in the country for the past 30 years;
WHEREAS, her sterling career as a brilliant lawyer, a jurist

par excellance and an exemplary public servant should be emulated
and remembered by the future generations of Filipinos;
NOW, THEREFOR, I, FIDEL V. RAMOS, President of the

Philippines, by virtue of the powers vested in me law by, do hereby
dedicate the Department of Agrarian Reform Building’s fourth floor
as the Justice Milagros A German Hall in recognition of her great
service to the cause of law, agrarian reform and social legislation.

1646

year of our Lord, nineteen hundred and ninety five.
By the President:

Executive Secretary
1647
MALACAÑANG
Manila
SUPPLEMENTING PRESIDENTIAL PROCLAMATION NOS.

295 AND 965, BY INCLUDING ADDITIONAL AREA OF
ABOUT 1,677.7575 HECTARES OF ALIENABLE AND
DISPOSABLE LANDS FROM THE SURIGAO MINERAL
RESERVATION FOUND TO BE SUITABLE AND UTILIZED
FOR AGRICULTURAL PURPOSES FOR DISPOSITION
PROGRAM OF THE DEPARTMENT OF AGRARIAN REFORM
WHEREAS, Proclamation Nos. 295 and 965 dated 9 November

1993 and 12 February 1997, respectively, segregated and released
portions of land within the Surigao Mineral Reservation for
distribution to qualified beneficiaries by the Department of Agrarian
Reform under the Comprehensive Agrarian Reform Program of the
government;
WHEREAS, the Secretaries of the Department of Environment

and Natural Resources and the Department of Agrarian Reform
have entered into a Memorandum of Agreement and through
their respective field offices conducted geological surveys and
have determined that there exists portions of the Surigao Mineral
Reservation which have low geological potential for minerals and
could be possibly reclassified and disposed as agricultural land;
WHEREAS, the residents and tillers of the subject lands are

clamoring for the exclusion of said lands from the mineral reservation
and their distribution under the agrarian reform program of the
government;
WHEREAS, Executive Order No. 448, as amended by

Executive Order No. 506 of 1992 provides that “except national parks
1648
and other protected areas, all lands or portions of the public domain
reserved, by virtue of proclamation or law for specific purposes or
uses by departments, bureaus and agencies of the government,
and exclusively used for the purpose for which they have been
reserved shall be segregated from the reservations and transferred
to the Department of Agrarian Reform for distribution to qualified
beneficiaries under the Comprehensive Agrarian Reform Program.
WHEREAS, Section 7 of R.A. No. 7942, series of 1995, otherwise

known as the Philippine Mining Act of 1995 provides that “the
Secretary shall periodically review existing mineral reservations
for the purpose of determining whether their continued existence is
consistent with the national interest, and upon his recommendation,
the President may, by proclamation, alter or modify the boundaries
thereof or revert the same to the public domain without prejudice to
prior existing rights”.

Secretaries of Environment and Natural Resources and Agrarian
Reform, and pursuant to the provisions of Section 7 of Republic Act
No. 7942, otherwise known as the Philippine Mining Act of 1995, and
by virtue of the powers vested in me by law, I, GLORIA MACAPAGAL
ARROYO, President of the Republic of the Philippines, do hereby
exclude from the operation of Executive Order No. 63 dated 25 June
1914 and Proclamation No. 391 dated 13 March 1939 and place
under the jurisdiction of the Department of Agrarian Reform for
distribution under the Comprehensive Agrarian Reform Program of
the government the parcels of land suitable for agricultural purposes
located in the municipalities of Loreto, Libjo and Cagdianao, Island
of Dinagat, all in the province of Surigao del Norte, containing an
area of ONE THOUSAND SIX HUNDRED SEVENTY SEVEN and
7575/10000 (1,677.7575) HECTARES, more or less, particularly
1649
PARCEL I
BARANGAY ALBOR, LIBJO,
DINAGAT ISLAND
A parcel of land (Parcel I) situated in the Barangay of Albor,

Municipality of Libjo, Dinagat Island, Surigao del Norte.
Bounded on the East, North, West and Southeast along lines

1-2-3-4-5-6-7-8-9-10-11-12-13-14-15-16-17-18-19-20-21-22-23-24-
25-26-27-28-29-30-31-32-33-34-35-36-37-38-39-40-41-42-43-44-45-
46-47-48-49-50-51 by Public Forest, on the Southeast along lines
51-52-1 by Block V (Alienable and Disposable), beginning at a point
marked 1 on the plan being S. 14-52 W., 18,469.96 m. from SRN # 4,
Dinagat Island, thence:
N. 50 – 20 E., 258.35 m. to point 2;

N. 27 – 18 E., 223.96 m. to point 3;
S. 46 – 41 E., 275.13 m. to point 4;
N. 87 – 53 E., 119.98 m. to point 5;
N. 56 – 15 E., 214.87 m. to point 6;
S. 86 – 48 E., 170.95 m. to point 7;
N. 49 – 01 E., 131.02 m. to point 8;
N. 39 – 22 W., 84.80 m. to point 9;
N. 11 – 55 W., 59.09 m. to point 10;
N. 60 – 35 E., 45.46 m. to point 11;
S. 76 – 18 E., 251.44 m. to point 12;
N. 66 – 14 E., 250.29 m. to point 13;
N. 70 – 54 E., 87.59 m. to point 14;
N. 49 – 15 E., 49.96 m. to point 15;
N. 18 – 12 W., 186.63 m. to point 16;
S. 73 – 19 W., 204.20 m. to point 17;
N. 68 – 00 W., 244.77 m. to point 18;
1650
S. 84 – 27 W., 335.90 m. to point 19;

N. 12 – 39 E., 496.56 m. to point 20;
N. 75 – 22 E., 170.95 m. to point 21;
N. 53 – 10 E., 128.78 m. to point 22;
N. 14 – 37 W., 103.35 m. to point 23;
N. 81 – 04 W., 83.87 m. to point 24;
S. 61 – 50 W., 94.92 m. to point 25;
S. 31 – 01 W., 31.83 m. to point 26;
N. 64 – 38 W., 44.71 m. to point 27;
N. 14 – 19 W., 148.02 m. to point 28;
N. 48 – 58 E., 153.90 m. to point 29;
N. 08 – 20 W., 154.25 m. to point 30;
N. 38 – 34 E., 87.45 m. to point 31;
S. 76 – 42 E., 244.94 m. to point 32;
S. 84 – 55 E., 115.15 m. to point 33;
S. 69 – 05 E., 243.63 m. to point 34;
S. 37 – 10 E., 662.09 m. to point 35;
S. 38 – 35 E., 366.28 m. to point 36;
S. 22 – 09 E., 105.60 m. to point 37;
S. 21 – 35 W., 123.14 m. to point 38;
S. 38 – 35 E., 264.96 m. to point 39;
S. 61 – 33 E., 386.89 m. to point 40;
S. 70 – 45 E., 215.73 m. to point 41;
S. 16 – 26 W., 315.56 m. to point 42;
N. 70 – 46 W., 120.11 m. to point 43;
S. 67 – 38 W., 299.66 m. to point 44;
N. 84 – 56 W., 629.11 m. to point 45;
S. 19 – 08 W., 106.55 m. to point 46;
1651
S. 56 – 20 E., 99.32 m. to point 47;

S. 05 – 09 E., 46.94 m. to point 48;
S. 38 – 30 E., 26.99 m. to point 49;
N. 81 – 33 W., 84.32 m. to point 50;
S. 47 – 39 W., 365.11 m. to point 51;
N. 00 – 06 W., 491.68 m. to point 52;
S. 89 – 54 W., 1,582.76 m. to the point of
beginning containing an area of 237.7138 hectares, more or less.
PARCEL II
BARANGAY OSMEÑA, LIBJO, DINAGAT ISLAND
A parcel of land (Parcel II) situated in the Barangay of Osmeña,

Municipality of Libjo, Dinagat Island, Province of Surigao del Norte.
Bounded on the South, West and North along lines 1-2-3-4-5-

6-7-8-9-10 by the Mineral Reservation, on the West and Southwest
along lines 10-11-12-13-14-15-16-17-18-19-20-21-22-23-24-25-26-
27-1 by Dayaangan bay, beginning at a point marked 1 on the plan
being S. 18-32 W., 21,287.86 m. from SRN # 4, Dinagat Island,
thence:
S. 88 – 43 W., 810.12 m. to point 2;

N. 03 – 35 W., 1,008.96 m. to point 3;
S. 66 – 01 E., 135.32 m. to point 4;
S. 73 – 44 E., 105.78 m. to point 5;
S. 36 – 18 W., 50.76 m. to point 6;
S. 67 – 47 E., 27.88 m. to point 7;
S. 29 – 06 W., 90.73 m. to point 8;
S. 44 – 35 E., 183.43 m. to point 9;
1652
N. 71 – 51 E., 147.89 m. to point 10;

S. 14 – 43 E., 10.00 m. to point 11;
S. 22 – 47 E., 23.47 m. to point 12;
S. 03 – 08 W., 70.01 m. to point 13;
S. 69 – 46 E., 42.76 m. to point 14;
S. 49 – 38 E., 71.51 m. to point 15;
S. 75 – 28 E., 92.13 m. to point 16;
N. 66 – 42 E., 38.07 m. to point 17;
S. 21 – 51 E., 39.09 m. to point 18;
S. 23 – 03 E., 13.77 m. to point 19;
S. 03 – 50 E., 73.72 m. to point 20;
S. 15 – 33 W., 89.97 m. to point 21;
S. 44 – 27 E., 121.94 m. to point 22;
S. 83 – 26 E., 37.20 m. to point 23;
S. 30 – 25 E., 31.11 m. to point 24;
S. 48 – 50 E., 41.44 m. to point 25;
S. 16 – 01 E., 46.81 m. to point 26;
S. 23 – 38 W., 31.52 m. to point 27;
S. 18 – 25 E., 94.93 m. to the point of
beginning containing an area of 50.0786 hectares more or less.
PARCEL III
BARANGAY SAN JUAN, LORETO, DINAGAT ISLAND
A parcel of land (Parcel III) situated in the Barangay of

San Juan, Municipality of Loreto, Dinagat Island, Province of
Surigao del Norte.
Bounded on the East, along lines 1-2-3-4-5-6 by the Surigao

Mineral Reservation, on the South along line 6-7 by A & D as released
thru Presidential Proclamation No. 965, on the West along lines
1653
7-8-9-10-11 by the Surigao Mineral Reservation, on the North along

lines 11-12-1 by A & D as released thru Presidential Proclamation
No. 295, beginning at a point marked 1 on the plan being S. 43-00
E., 1,375.41 m. from SRN # 4, Dinagat Island, thence:
S. 51 – 07 W., 1,005.62 m. to point 2;

S. 11 – 42 E., 875.09 m. to point 3;
S. 23 – 30 E., 313.88 m. to point 4;
S. 19 – 25 E., 244.88 m. to point 5;
S. 11 – 08 E., 45.83 m. to point 6;
N. 67 – 55 W. 1,102.12 m. to point 7;
N. 52 – 11 W., 968.71 m. to point 8;
N. 29 – 15 W., 341.63 m. to point 9;
S. 81 – 20 E., 365.01 m. to point 10;
N. 15 – 03 W., 347.97 m. to point 11;
N. 56 – 13 E., 831.00 m. to point 12;
N. 89 – 54 E., 1,382.01 m. to the point of
Beginning containing an area of 235.7261 hectares, more or less.
PARCEL IV
BARANGAY ESPERANZA, LORETO, DINAGAT ISLAND
A parcel of land (Parcel IV) situated in the Barangay of

Esperanza, Municipality of Loreto, Dinagat Island, Province of
Surigao del Norte.
Bounded on the East & South along lines 37-38-39-40-1-2 by

the Surigao Mineral Reservation Area, on the West and North along
lines 2-3-4-5-6-7-8-9-10-11-12-13-14-15-16-17-18-19-20-21-22-23-
24-25-26-27-28-29-30-31-32-33-34-35-36-37 by the sea, beginning at
a point marked 1 on the plan being N. 56-20 E., 3,594.38 m. from SRN
# 4, Dinagat Island, thence:
1654
N. 51 – 15 W., 149.98 m. to point 2;

N. 09 – 51 E., 693.32 m. to point 3;
N. 09 – 23 W., 301.25 m. to point 4;
N. 11 – 45 E., 278.66 m. to point 5;
N. 14 – 16 E., 188.85 m. to point 6;
N. 32 – 18 E., 164.83 m. to point 7;
N. 09 – 39 E., 94.18 m. to point 8;
N. 13 – 40 E., 55.67 m. to point 9;
N. 51 – 15 W., 91.54 m. to point 10;
N. 62 – 33 E., 44.60 m. to point 11;
N. 21 – 39 W., 159.56 m. to point 12;
N. 10 – 05 E., 215.30 m. to point 13;
N. 16 – 21 E., 115.85 m. to point 14;
N. 21 – 21 W., 199.11 m. to point 15;
N. 39 – 19 W., 103.88 m. to point 16;
N. 24 – 07 W., 168.67 m. to point 17;
N. 21 – 22 W., 119.99 m. to point 18;
N. 18 – 34 W., 342.53 m. to point 19;
N. 23 – 58 W., 168.53 m. to point 20;
N. 11 – 00 W., 311.61 m. to point 21;
N. 11 – 08 W., 181.86 m. to point 22;
N. 17 – 49 E., 60.38 m. to point 23;
N. 63 – 44 E., 115.74 m. to point 24;
S. 70 – 45 E., 141.40 m. to point 25;
S. 10 – 24 W., 109.69 m. to point 26;
S. 41 – 54 W., 26.48 m. to point 27;
S. 20 – 42 W., 83.78 m. to point 28;
S. 20 – 04 E., 67.63 m. to point 29;
1655
S. 22 – 06 E., 50.61 m. to point 30;

S. 41 – 34 E., 110.60 m. to point 31;
S. 60 – 43 E., 147.45 m. to point 32;
S. 50 – 38 E., 58.53 m. to point 33;
S. 68 – 32 E., 88.94 m. to point 34;
S. 67 – 58 E., 61.54 m. to point 35;
N. 84 – 06 E., 137.34 m. to point 36;
S. 87 – 19 E., 219.83 m. to point 37;
S. 06 – 51 W., 1,177.11 m. to point 38;
S. 08 – 21 W., 1,093.18 m. to point 39;
S. 15 – 27 W., 371.11 m. to point 40;
S. 15 – 16 W., 781.56 m. to the point of
PARCEL V
POBLACION, CAGDIANAO, SURIGAO DEL NORTE
A parcel of land [Parcel V (Lot 4)] situated in the Poblacion,

Municipality of Cagdianao, Dinagat Island, Province of
Surigao del Norte.
Bounded on the North along lines 101-102-1 by the Surigao

Mineral Reservation/Contract Area of Pacific Nickel Philippines,
Inc., on the East along lines 1-2-3-4-5-6-7-8-9-10-11-12-13-14-15-16-
17-18-19-20-21-22-23-24-25-26-27-28-29-30-31-32-33-34-35-36-37-
38-39-40-41-42-43-44-45-46-47-48-49-50-51 by the Surigao Mineral
Reservation/Dinagat Sound, on the South along lines 51-52-53-54-
55-56-57-58 by the Surigao Mineral Reservation/Contract Area of
Pacific Nickel Philippines, Inc., and on the West along lines 58-59-
60-61-62-63-64-65-66-67-68-69-70-71-72-73-74-75-76-77-78-79-80-
81-82-83-84-85-86-87-88-89-90-91-92-93-94-95-96-97-98-99-100-
101 by the Surigao Mineral Reservation/Pipe and Transmission
Lines of Pacific Nickel Philippines, Inc., beginning at a point marked
1656
1 on the plan being N. 25-33W., 3,520.66 m. from SRN # 33, Dinagat

Island, thence:
S. 54 – 22 W. 61.27 m. to point 2;
S. 31 – 11 W. 160.91 m. to point 3;
S. 36 – 16 W. 175.00 m. to point 4;
S. 36 – 16 W. 35.40 m. to point 5;
S. 08 – 47 E. 204.86 m. to point 6;
S. 71 – 46 E. 228.20 m. to point 7;
N. 88 – 01 E. 367.41 m. to point 8;
S. 19 – 40 W. 307.04 m. to point 9;
S. 46 – 21 W. 271.76 m. to point 10;
S. 10 – 04 E. 98.46 m. to point 11;
S. 09 – 05 E. 234.32 m. to point 12;
S. 48 – 30 E. 153.22 m. to point 13;
N. 87 – 33 E. 112.62 m. to point 14;
N. 47 – 10 E. 228.50 m. to point 15;
N. 31 – 23 W. 248.59 m. to point 16;
N. 62 – 04 E. 201.49 m. to point 17;
N. 28 – 03 E. 137.64 m. to point 18;
N. 82 – 09 E. 110.58 m. to point 19;
S. 79 – 41 E. 51.39 m. to point 20;
S. 79 – 41 E. 58.08 m. to point 21;
S. 51 – 25 E. 175.61 m. to point 22;
S. 63 – 58 E. 372.68 m. to point 23;
S. 43 – 03 E. 422.46 m. to point 24;
S. 71 – 00 E. 286.94 m. to point 25;
S. 02 – 52 W. 447.55 m. to point 26;
S. 66 – 51 W. 643.77 m. to point 27;
1657
N. 45 – 48 W. 294.23 m. to point 28;

N. 25 – 29 W. 289.93 m. to point 29;
S. 68 – 53 W. 329.58 m. to point 30;
S. 33 – 51 E. 438.77 m. to point 31;
N. 87 – 40 E. 399.02 m. to point 32;
N. 66 – 51 E. 643.77 m. to point 33;
S. 29 – 30 W. 319.72 m. to point 34;
S. 25 – 47 W. 277.49 m. to point 35;
S. 18 – 21 W. 91.79 m. to point 36;
S. 18 – 21 W. 195.97 m. to point 37;
S. 07 – 18 W. 316.30 m. to point 38;
S. 02 – 15 W. 113.36 m. to point 39;
S. 02 – 15 W. 112.91 m. to point 40;
S. 37 – 18 E. 446.25 m. to point 41;
S. 62 – 25 E. 336.90 m. to point 42;
S. 06 – 31 W. 24.06 m. to point 43;
N. 76 – 08 W. 1,572.57 m. to point 44;
N. 63 – 17 W. 674.28 m. to point 45;
S. 22 – 36 W. 55.20 m. to point 46;
S. 63 – 18 W. 60.91 m. to point 47;
S. 37 – 29 E. 552.50 m. to point 48;
S. 19 – 10 W. 1,821.60 m. to point 49;
N. 20 – 04 W. 67.61 m. to point 50;
N. 08 – 20 W. 263.55 m. to point 51;
N. 03 – 06 W. 86.28 m. to point 52;
N. 20 – 16 W. 85.52 m. to point 53;
N. 03 – 55 W. 109.12 m. to point 54;
N. 03 – 21 W. 110.29 m. to point 55;
1658
N. 16 – 05 W. 67.97 m. to point 56;

N. 07 – 31 W. 67.14 m. to point 57;
N. 08 – 24 W. 74.43 m. to point 58;
N. 12 – 26 W. 98.91 m. to point 59;
N. 24 – 03 W. 74.29 m. to point 60;
N. 34 – 55 W. 89.71 m. to point 61;
N. 03 – 07 W. 214.18 m. to point 62;
N. 11 – 31 W. 167.07 m. to point 63;
N. 24 – 08 E. 84.44 m. to point 64;
N. 37 – 41 E. 68.67 m. to point 65;
N. 40 – 42 E. 182.85 m. to point 66;
N. 28 – 23 E. 172.33 m. to point 67;
N. 69 – 44 E. 91.74 m. to point 68;
N. 42 – 32 E. 199.80 m. to point 69;
N. 31 – 38 E. 84.68 m. to point 70;
N. 42 – 01 E. 135.24 m. to point 71;
N. 53 – 14 E. 79.09 m. to point 72;
N. 46 – 15 E. 62.00 m. to point 73;
N. 10 – 45 E. 270.74 m. to point 74;
N. 08 – 01 W. 91.64 m. to point 75;
N. 11 – 21 W. 251.79 m. to point 76;
N. 20 – 41 W. 54.18 m. to point 77;
N. 20 – 41 W. 38.76 m. to point 78;
N. 20 – 25 W. 57.18 m. to point 79;
N. 20 – 46 W. 59.71 m. to point 80;
N. 20 – 46 W. 60.40 m. to point 81;
N. 20 – 46 W. 97.00 m. to point 82;
N. 20 – 46 W. 100.13 m. to point 83;
1659
N. 68 – 20 W. 173.51 m. to point 84;

N. 60 – 03 W. 156.74 m. to point 85;
N. 70 – 12 W. 427.80 m. to point 86;
N. 66 – 18 W. 95.60 m. to point 87;
N. 57 – 02 W. 168.31 m. to point 88;
N. 43 – 38 W. 54.99 m. to point 89;
N. 38 – 29 W. 81.62 m. to point 90;
N. 31 – 55 W. 59.16 m. to point 91;
N. 47 – 10 W. 155.60 m. to point 92;
N. 39 – 33 W. 84.02 m. to point 93;
N. 34 – 22 W. 176.81 m. to point 94;
N. 39 – 06 W. 247.04 m. to point 95;
N. 16 – 56 E. 123.26 m. to point 96;
N. 19 – 23 E. 166.31 m. to point 97;
N. 28 – 25 E. 248.84 m. to point 98;
N. 10 – 04 E. 170.22 m. to point 99;
N. 18 – 44 E. 99.29 m. to point 100;
N. 12 – 48 E. 14.99 m. to point 101;
N. 67 – 27 E. 204.12 m. to point 102;
N. 75 – 43 E. 1,249.45 m. to the point of
PARCEL VI
BARANGAY CABONGA-AN, CAGDIANAO, SURIGAO DEL
NORTE
A parcel of land [Parcel VI (Lot 1)] situated in the Barangay of

Cabonga-an, Municipality of Cagdianao, Dinagat Island, Province
of Surigao del Norte.
1660
Bounded on the South, West, North and East along lines

1-2-3-4-5-6-7-8-9-10-11-12-13-14-15-16-17-18-19-20-21-22-23-24-
25-26-27-28-29-30-31-32-33-34-35-36-37-38-39-40-41-42-43-44-45-
46-47-48-49-50-51-52-53-54-55-56-57-58-59-60-61-62-63-64-65-66-
67-68-69-70-71-72-73-74-75-76-77-78-79-80-81-82-83-84-85-86-87-
88-89-90-91-92-93-94-95-96-97-98-99-100-101-102-103-104-105-
106-107-108-1 by the Surigao Mineral Reservation/Contract Area of
Pacific Nickel Philippines, Inc. (Pipe and Transmission Lines/Silica
Deposit), beginning at a point marked 1 on the plan being S. 41-07
W., 3,327.62 m. from SRN # 33, Dinagat Island, thence:
S. 73 – 26 E. 98.73 m. to point 2;
S. 50 – 37 E. 94.81 m. to point 3;
S. 16 – 51 W. 187.89 m. to point 4;
N. 38 – 05 W. 99.86 m. to point 5;
N. 38 – 06 W. 17.34 m. to point 6;
N. 75 – 37 W. 287.02 m. to point 7;
S. 73 – 32 W. 348.06 m. to point 8;
N. 03 – 53 W. 352.13 m. to point 9;
N. 53 – 35 E. 287.79 m. to point 10;
N. 02 – 15 E. 427.96 m. to point 11;
N. 02 – 26 E. 326.16 m. to point 12;
N. 02 – 35 W. 210.49 m. to point 13;
N. 05 – 56 E. 380.23 m. to point 14;
N. 14 – 04 W. 269.74 m. to point 15;
N. 05 – 51 W. 251.67 m. to point 16;
N. 59 – 26 E. 202.76 m. to point 17;
N. 46 – 49 E. 334.00 m. to point 18;
N. 33 – 50 E. 280.94 m. to point 19;
N. 50 – 10 E. 213.32 m. to point 20;
N. 06 – 00 W. 270.99 m. to point 21;
1661
N. 66 – 18 W. 188.20 m. to point 22;

N. 87 – 30 W. 175.01 m. to point 23;
N. 80 – 56 W. 277.77 m. to point 24;
N. 29 – 29 W. 328.75 m. to point 25;
N. 24 – 49 W. 405.41 m. to point 26;
N. 66 – 08 W. 208.61 m. to point 27;
N. 75 – 48 W. 192.91 m. to point 28;
N. 21 – 55 W. 225.43 m. to point 29;
N. 65 – 58 W. 215.04 m. to point 30;
N. 01 – 04 W. 195.96 m. to point 31;
N. 42 – 29 W. 87.24 m. to point 32;
N. 50 – 49 W. 190.27 m. to point 33;
N. 20 – 19 W. 133.52 m. to point 34;
S. 76 – 55 W. 332.70 m. to point 35;
N. 01 – 40 E. 330.78 m. to point 36;
N. 51 – 47 W. 144.46 m. to point 37;
N. 40 – 09 W. 228.78 m. to point 38;
N. 88 – 03 E. 48.03 m. to point 39;
N. 43 – 39 E. 71.64 m. to point 40;
S. 65 – 25 E. 526.05 m. to point 41;
S. 73 – 05 E. 98.05 m. to point 42;
S. 70 – 43 E. 136.66 m. to point 43;
N. 81 – 28 E. 19.48 m. to point 44;
N. 16 – 25 W. 23.97 m. to point 45;
N. 25 – 46 E. 22.17 m. to point 46;
N. 00 – 58 E. 47.17 m. to point 47;
N. 17 – 34 W. 40.43 m. to point 48;
N. 73 – 28 W. 29.67 m. to point 49;
1662
N. 33 – 27 W. 77.29 m. to point 50;

N. 20 – 12 E. 32.92 m. to point 51;
N. 69 – 44 E. 49.88 m. to point 52;
N. 22 – 44 W. 145.74 m. to point 53;
N. 46 – 00 W. 65.32 m. to point 54;
N. 37 – 41 W. 119.98 m. to point 55;
N. 31 – 03 E. 59.52 m. to point 56;
S. 69 – 19 E., 101.43 m. to point 57;
S. 24 – 54 W. 49.86 m. to point 58;
S. 34 – 48 E. 111.63 m. to point 59;
S. 34 – 48 E. 133.26 m. to point 60;
S. 28 – 19 E. 163.81 m. to point 61;
S. 47 – 58 W. 44.31 m. to point 62;
S. 06 – 34 E. 30.37 m. to point 63;
S. 50 – 06 E. 37.60 m. to point 64;
N. 50 – 35 E. 113.95 m. to point 65;
N. 88 – 28 E. 298.22 m. to point 66;
S. 00 – 58 E. 100.78 m. to point 67;
S. 08 – 55 W. 159.16 m. to point 68;
S. 28 – 41 W. 246.71 m. to point 69;
S. 28 – 17 W. 150.63 m. to point 70;
S. 13 – 41 W. 164.96 m. to point 71;
S. 34 – 22 E. 271.40 m. to point 72;
S. 43 – 51 E. 171.97 m. to point 73;
S. 39 – 03 E. 90.79 m. to point 74;
S. 34 – 56 E. 149.86 m. to point 75;
S. 37 – 30 E. 41.48 m. to point 76;
S. 48 – 01 E. 87.24 m. to point 77;
1663
S. 30 – 30 E. 88.22 m. to point 78;

S. 59 – 00 E. 179.93 m. to point 79;
S. 64 – 01 E. 116.49 m. to point 80;
S. 68 – 30 E. 423.51 m. to point 81;
S. 77 – 01 E. 147.65 m. to point 82;
S. 68 – 20 E. 158.84 m. to point 83;
S. 22 – 06 E. 63.19 m. to point 84;
S. 22 – 06 E. 100.95 m. to point 85;
S. 22 – 06 E. 95.26 m. to point 86;
S. 22 – 06 E. 41.53 m. to point 87;
S. 19 – 45 E. 53.35 m. to point 88;
S. 14 – 34 E. 90.42 m. to point 89;
S. 11 – 58 E. 258.70 m. to point 90;
S. 11 – 29 E. 80.02 m. to point 91;
S. 18 – 09 W. 248.00 m. to point 92;
S. 45 – 54 W. 93.88 m. to point 93;
S. 81 – 06 W. 106.96 m. to point 94;
S. 67 – 24 W. 88.78 m. to point 95;
S. 71 – 19 W. 100.16 m. to point 96;
S. 68 – 00 W. 76.65 m. to point 97;
S. 54 – 15 W. 503.79 m. to point 98;
S. 08 – 28 W. 31.98 m. to point 99;
S. 03 – 01 W. 423.13 m. to point 100;
S. 20 – 14 E. 48.33 m. to point 101;
S. 23 – 09 E. 347.26 m. to point 102;
S. 40 – 12 E. 134.25 m. to point 103;
S. 09 – 38 W. 159.88 m. to point 104;
S. 32 – 59 W. 201.44 m. to point 105;
1664
S. 09 – 40 W. 564.57 m. to point 106;

S. 21 – 04 E. 39.97 m. to point 107;
S. 64 – 51 E. 44.49 m. to point 108;
S. 62 – 34 E. 230.02 m. to the point of
PARCEL VII
BARANGAY CABONGA-AN, CAGDIANAO, SURIGAO DEL
NORTE
A parcel of land [Parcel VII (Lot 2)] situated in the Barangay

of Cabonga-an, Municipality of Cagdianao, Dinagat Island, Province
of Surigao del Norte.
Bounded on the South, East, North and West along lines 1-2-
3-4-5-6-7-8-9-10-11-12-13-14-15-16-17-18-1 by the Surigao Mineral
Reservation/Contract Area of Pacific Nickel Philippines, Inc.,
beginning at a point marked 1 on the plan being S. 59 – 32 W.,
2,654.24 m. from SRN # 33, Dinagat Island, thence:
N. 22 – 35 W. 340.60 m. to point 2;
N. 20 – 12 W. 47.31 m. to point 3;
N. 02 – 54 E. 425.09 m. to point 4;
N. 53 – 32 E. 504.29 m. to point 5;
N. 67 – 00 E. 73.52 m. to point 6;
N. 72 – 08 E. 100.58 m. to point 7;
N. 67 – 18 E. 98.76 m. to point 8;
S. 26 – 53 E. 75.45 m. to point 9;
S. 37 – 21 W. 52.05 m. to point 10;
S. 52 – 04 W. 90.56 m. to point 11;
S. 42 – 02 W. 195.03 m. to point 12;
1665
S. 61 – 28 W. 88.85 m. to point 13;

S. 33 – 31 W. 181.49 m. to point 14;
S. 40 – 57 W. 174.04 m. to point 15;
S. 29 – 29 W. 79.20 m. to point 16;
S. 23 – 34 W. 97.75 m. to point 17;
S. 08 – 20 E. 165.23 m. to point 18;
S. 03 – 25 E. 224.11 m. to the point of
PARCEL VIII
BARANGAY TIGBAO, CAGDIANAO, SURIGAO DEL NORTE
A parcel of land [Parcel VIII (Lot 3)] situated in the Barangay

of Tigbao, Municipality of Cagdianao, Dinagat Island, Province of
Surigao del Norte.
Bounded on the North, West, South and East along lines

1-2-3-4-5-6-7-8-9-10-11-12-13-14-15-16-17-18-1 by the Surigao
Mineral Reservation/Contract Area of Pacific Nickel Philippines,
Inc., beginning at a point marked 1 on the plan being S. 55-46 W.,
2,650.07 m. from SRN # 33, Dinagat Island, thence:
S. 02 – 15 E. 96.25 m. to point 2;
S. 08 24 E. 74.43 m. to point 3;
S. 07 – 30 E. 66.36 m. to point 4;
S. 15 – 39 E. 75.23 m. to point 5;
S. 02 – 40 E. 99.19 m. to point 6;
S. 03 – 55 E. 109.90 m. to point 7;
S. 19 – 52 E. 91.72 m. to point 8;
S. 02 – 13 E. 79.40 m. to point 9;
S. 08 – 17 E. 268.16 m. to point 10;
1666
S. 19 – 21 E. 77.95 m. to point 11;

S. 23 – 40 E. 12.73 m. to point 12;
N. 51 – 24 W. 51.35 m. to point 13;
N. 73 – 16 W. 93.08 m. to point 14;
N. 62 – 38 W. 229.56 m. to point 15;
N. 69 – 48 W. 34.45 m. to point 16;
N. 07 – 41 E. 544.11 m. to point 17;
N. 29 – 11 E. 203.55 m. to point 18;
N. 13 – 37 E. 143.81 m. to the point of
The technical descriptions and areas covered by this

Proclamation may be subject to change as a result of the final survey
and delineation on the ground. The Department of Agrarian Reform
(DAR) shall be responsible for the conduct of the survey of the lands
embraced by this proclamation.
The following areas are excluded from the coverage of this

Proclamation:
1. All the areas within the proclamation which fall under the
classification of timberland, forestland or unclassified public land or
those covered by the National Integrated Protected Areas System
(NIPAS);
2. All rivers and creeks; and
3. All easement requirements pursuant to the provisions of

P.D. No. 705, as amended, otherwise known as the revised Forestry
Code of the Philippines, P.D. No. 1067 otherwise known as the Water
Code of the Philippines, Republic Act No. 1273 otherwise known as
an Act to amend Section 90 of C.A. 141, known as the Public Land
Act and other pertinent laws, rules and regulations.
1667
These areas are hereby reserved for environmental protection

purposes.
The Department of Environment and Natural Resources

shall retain jurisdiction over the portions covered by public land
applications. Vested rights in the areas subject of this Proclamation
shall be respected.

DONE in the City of Manila, this 30th day of November, in

the year of Our Lord, Two Thousand and Four.
By the President:

Executive Secretary
1668
MALACAÑANG
Manila
AMENDING PROCLAMATION NO. 166 DATED 21 JUNE 1955

ENTITLED “RESERVING FOR SETTLEMENT PURPOSES
THE NATIONAL RESETTLEMENT AND REHABILITATION
ADMINISTRATION (NARRA), A CERTAIN PARCEL OF THE
PUBLIC DOMAIN SITUATED IN THE MUNICIPALITIES
OF STA. INES, SAN LUIS, PROSPERIDAD, TALACOGON,
BORBON AND GUADALUPE, PROVINCE OF AGUSAN,
ISLAND OF MINDANAO,” BY INCLUDING CERTAIN
PARCELS OF PUBLIC LAND LOCATED IN THE
MUNICIPALITY OF SAN LUIS, AGUSAN DEL SUR
FOR SETTLEMENT EXPANSION AND DEVELOPMENT
DISPOSITION BY THE DEPARTMENT OF AGRARIAN
REFORM
Upon recommendation of the Secretary of Environment and

Natural Resources and the Secretary of Agrarian Reform and by
virtue of the powers vested in me by law, I, FIDEL V. RAMOS,
President of the Republic of the Philippines, do hereby amend
Proclamation No. 166 dated 21 June 1955 which reserved for
settlement purposes under the administration and disposition
of the National Resettlement and Rehabilitation Administration
(NARRA), a certain parcel of land of the public domain situated in
the municipalities of Sta. Ines, San Luis, Prosperidad, Talacogon,
Borbon and Guadalupe, Province of Agusan, Island of Mindanao,
by including certain parcels of land of the public domain located
in San Luis, Province of Agusan del Sur, for settlement expansion
and development under the administration of the Department of
Agrarian Reform, subject to private rights, if any there be, which
parcels of land are more particularly described as follows:
1669
Lot 1, Swo-10-000293 (AR)
A parcel of land (Lot 1) situated in the Barangays of New

Poblacion and Sta. Ines, Municipality of San Luis, Province of
Agusan del Sur. Bounded on the N., along lines 8-1-2 by Lot 5, Swo-
10-000293 (AR); on the NES and SE., along lines 2-3-4-5-6 by Lot 2,
Swo-10-000293 (AR), and on the SW., along lines 6-7-8 by Agusan
River.
Beginning at point marked “1” on the plan being S., 18º 48′ E.,
8,813.54 m. from BLLM No. 1, Pls-443, thence:
N. 83º 24′ E., 395.53 m. to point 2;

S. 06º 56′ W., 109.78 m. to point 3;
S. 70º 13′ E., 127.20 m. to point 4;
S. 30º 21′ E., 1,109.36 m. to point 5;
S. 32º 19′ W., 532.03 m. to point 6;
S. 70º 19′ W., 201.25 m. to point 7;
N. 38º 25′ W., 1,925.06 m. to point 8;
N. 83º 10′ E., 614.64 m. to point of
beginning, containing an area of 129.7842 hectares, more or less.
Lot 2, Swo-10-000293 (AR)

Agusan del Sur. Bounded on the SW., along lines 49-1-2 by Lot 3,
Swo-10-000293 (AR); on the SW., along lines 2-3-4-5-6-7-8-9-10-11
by Agusan River; on the SW., along lines 11-12-13-14-15 by Lot 1,
Swo-10-000293 (AR); on the NW., along lines 15-16-17-18-19-20-
21-22 by Lot 5, Swo 10-000293 (AR); on the NE., along lines 22-
23-24-25-26-27-28-29-30-31-32-33-34-35 by Timber Land LC Map
No. 2158, Project 19-D; on the NE., along lines 35-36-37-38-39 by
1670
Inabumcayan Creek; and on the SE., along lines 39-40-41-42-43-44-

45-46-47-48-49 by Agusan River.
Beginning at a point marked “1” on the plan being S. 23º 20′

E., 12,351.44 m. from BLLM No. 1, Pls-443, thence:
N. 76º 39′ W., 481.35 m. to point 2;

N. 72º 25′ W., 111.11 m. to point 3;
N. 05º 11′ E., 206.43 m. to point 4;
N. 14º 26′ W., 165.54 m. to point 5;
N. 31º 18′ W., 192.45 m. to point 6;
N. 43º 36′ W., 165.63 m. to point 7;
N. 24º 50′ W., 195.95 m. to point 8;
N. 35º 02′ W., 141.52 m. to point 9;
N. 30º 00′ W., 274.73 m. to point 10;
N. 48º 17′ W., 209.51 m. to point 11;
N. 32º 19′ E., 532.03 m. to point 12;
N. 30º 21′ W., 1,109.36 m. to point 13;
N. 70º 13′ W., 127.20 m. to point 14;
N. 06º 56′ E., 109.78 m. to point 15;
S. 84º 47′ E., 247.48 m. to point 16;
N. 50º 24′ E., 150.76 m. to point 17;
N. 50º 10′ E., 93.33 m. to point 18;
N. 38º 02′ E., 96.61 m. to point 19;
N. 63º 15′ E., 187.50 m. to point 20;
N. 75º 22′ E., 139.73 m. to point 21;
N. 14º 29′ E., 121.07 m. to point 22;
S. 27º 40′ E., 403.42 m. to point 23;
S. 33º 46′ E., 322.12 m. to point 24;
S. 16º 35′ E., 252.93 m. to point 25;
1671
S. 76º 32′ E., 215.98 m. to point 26;

S. 13º 23′ W., 206.66 m. to point 27;
S. 11º 33′ E., 204.92 m. to point 28;
S. 00º 06′ W., 205.47 m. to point 29;
S. 03º 41′ W., 256.75 m. to point 30;
S. 69º 07′ E., 291.55 m. to point 31;
N. 85º 06′ E., 374.04 m. to point 32;
N. 13º 02′ W., 446.57 m. to point 33;
N. 11º 41′ E., 343.48 m. to point 34;
N. 78º 54′ E., 135.37 m. to point 35;
S. 14º 55′ W., 156.87 m. to point 36;
S. 06º 19′ E., 441.04 m. to point 37;
S. 30º 59′ E., 936.50 m. to point 38;
S. 09º 54′ E., 473.43 m. to point 39;
S. 53º 48′ W., 121.36 m. to point 40;
S. 33º 18′ W., 156.35 m. to point 41;
S. 24º 39′ W., 119.01 m. to point 42;
S. 36º 14′ W., 162.96 m. to point 43;
S. 30º 38′ W., 91.69 m. to point 44;
S. 34º 04′ W., 205.54 m. to point 45;
S. 37 49′ W., 121.97 m. to point 46;
S. 75º 38′ W., 130.01 m. to point 47;
N. 75º 34′ W., 120.52 m. to point 48;
S. 85º 14′ W., 131.75 m. to point 49;
N. 35º 43′ W., 287.58 m. to point of;
1672
Lot 3, Swo-10-000293

Agusan del Sur. Bounded on the NE., along lines 8-1-2 by Lot 2,
Swo-10-000293 (AR); on the SE. and SW., along lines 2-3-4-5-6-7-8
by Agusan River.

E., 12,331.44 m. from BLLM No. 1, Pls-443, thence;
S. 35º 43′ E., 287.58 m. to point 2;

S. 88º 45′ W., 144.92 m. to point 3;
S. 80º 55′ W., 145.94 m. to point 4;
S. 87º 57′ W., 147.70 m. to point 5;
N. 72º 56′ W., 50.51 m. to point 6;
N. 67º 23′ W., 193.79 m. to point 7;
N. 05º 29′ E., 288.11 m. to point 8;
S. 76º 39′ E., 481.35 m. to point of;
Lot 4, Swo-10-000293 (AR)

Agusan del Sur. Bounded on the NE. and SE., along lines 24-1-2-
3-4-5-6-7-8-9-10-11-12-13-14-15-16-17-18-19-20-21 by portion of Lot
5, Swo-10-000293 (AR); and on the SW., along lines 21-22-23-24 by
Agusan River.
Beginning at a point marked “1” on the plan being S. 13 º 36′

1673
S. 74º 25′ E., 52.66 m. to point 2

N. 76º 22′ E., 46.17 m. to point 3
S. 60º 07′ E., 38.35 m. to point 4
N. 72º 45′ E., 44.51 m. to point 5
S. 64º 11′ E., 31.04 m. to point 6
N. 04º 04′ W., 23.71 m. to point 7
S.38º 02′ E., 60.95 m. to point 8
S. 24º 19′ E., 20.25 m. to point 9
S. 15º 55′ E., 49.91 m. to point 10
N. 61º 36′ E., 47.46 m. to point 11
S. 28º 03′ E., 34.53 m. to point 12
S. 08º 43′ E., 66.69 m. to point 13
S. 48º 51′ E., 33.56 m. to point 14
N. 06º 08′ E., 15.37 m. to point 15
S. 02º 05′ E., 89.17 m. to point 16
S. 30º 54′ E., 104.58 m. to point 17
S. 55º 10′ W., 129.51 m. to point 18
S. 86º 17′ E., 43.45 m. to point 19
S. 10º 02′ W., 15.77 m. to point 20
S. 06º 03′ E., 180.62 m. to point 21
N. 23º 00′ W., 278.47 m. to point 22
N. 56º 27′ W., 160.47 m. to point 23
N. 46º 33′ W., 629.09 m. to point 24
S. 59º 47′ E., 322.16 m. to point of
1674
Lots 5, Swo-10-000293 (AR)

Agusan del Sur. Bounded on the SW., along line 1-2 by Lot 4, Swo-
10-000293 (AR); on the SW., along lines 2-3-4-5-6-7-8-9 by Agusan
River; on the NE., along line 9-30 by Timber Land, LC Map No.
2158, Project 19-D; on the SE., along lines 30-37 by Lot 2, Swo-
10-000293 (AR); on the S., along lines 37-38-39 by Lot 1, Swo-10-
000293 (AR); on the SW., along lines 39-43 by Agusan River and on
the SW., along lines 43-62-1 by Lot 4, Swo-10-000293 (AR).

N. 59º 47′ E., 322.16 m. to point 2;

N. 60º 20′ W., 756.51 m. to point 3;
N. 09º 24′ E., 94.15 m. to point 4;
N. 88º 13′ E., 544.39 m. to point 5;
N. 68º 24′ E., 302.94 m. to point 6;
N. 33º 02′ E., 382.30 m. to point 7;
N. 01º 16′ E., 425.13 m. to point 8;
N. 26º 01′ W., 867.78 m. to point 9;
N. 87º 54′ E., 204.53 m. to point 10;
S. 46º 15′ E., 259.77 m. to point 11;
S. 55º 41′ E., 298.45 m. to point 12;
S. 15º 19′ W., 466.96 m. to point 13;
S. 10º 35′ E., 1,084.58 m. to point 14;
S. 88º 52′ E., 493.67 m. to point 15;
S. 88º 36′ E., 363.71 m. to point 16;
S. 77º 00′ E., 514.96 m. to point 17;
N. 25º 44′ E., 192.42 m. to point 18;
1675
N. 64º 14′ E., 302.58 m. to point 19;

N. 41º 57′ E., 132.20 m. to point 20;
S. 69º 22′ E., 356.95 m. to point 21;
Due South, 306.40 m. to point 22;
Due South, 456.47 m. to point 23;
S. 73º 51′ W., 166.89 m. to point 24;
S. 39º 25′ W., 208.39 m. to point 25;
S. 39º 24′ W., 228.87 m. to point 26;
S. 14º 04′ W., 346.69 m. to point 27;
S. 18º 13′ E., 247.17 m. to point 28;
S. 54º 14′ E., 368.32 m. to point 29;
S. 47º 16′ E., 330.32 m. to point 30;
S. 14º 29′ W., 121.07 m. to point 31;
S. 75º 22′ W., 139.73 m. to point 32;
S. 63º 15′ W., 187.50 m. to point 33;
S. 38º 22′ W., 96.61 m. to point 34;
S. 40º 10′ W., 93.33 m. to point 35;
S. 50º 24′ W., 150.76 m. to point 36;
S. 84º 47′ W., 247.48 m. to point 37;
S. 83º 24′ W., 395.53 m. to point 38;
S. 83º 10′ W., 614.64 m. to point 39;
N. 04º 35′ E., 519.35 m. to point 40;
N. 19º 08′ E., 242.82 m. to point 41;
N. 10º 47′ W., 382.19 m. to point 42;
N. 39º 08′ W., 549.57 m. to point 43;
N. 06º 03′ W., 180.62 m. to point 44;
N. 10º 02′ E., 15.77 m. to point 45;
N. 86º 17′ W., 43.45 m. to point 46;
N. 35º 10′ E., 129.51 m. to point 47;
1676
N. 30º 54′ W., 104.58 m. to point 48;

N. 32º 05′ W., 89.17 m. to point 49;
S. 06º 08′ W., 15.37 m. to point 50;
N. 48º 51′ W., 33.56 m. to point 51;
N. 08º 43′ W., 66.69 m. to point 52;
N. 28º 03′ W., 34.53 m. to point 53;
S. 61º 36′ W., 47.46 m. to point 54;
N. 15º 55′ W., 49.91 m. to point 55;
N. 24º 19′ W., 20.25 m. to point 56;
N. 58º 02′ E., 60.95 m. to point 57;
S. 04º 04′ E., 23.71 m. to point 58;
N. 64º 11′ W., 31.04 m. to point 59;
S. 72º 45′ W., 44.51 m. to point 60;
N. 60º 07′ W., 38.35 m. to point 61;
S. 76º 22′ W., 46.17 m. to point 62;
N. 74º 25′ W., 52.66 m. to point of
The parcels of land reserved herein contains an aggregate

area of 1,174.5973 hectares, more or less.
The area covered by this Proclamation is subject to final

survey and delineation on the ground.
All areas within the resettlement project covered by public

land applications, as well as those which could be covered by such
applications, when the requirements could be complied with by the
lawful claimants shall continue to be processed by the Department
of Environment and Natural Resources pursuant to existing laws,
rules and regulations.
1677
All activities related to natural resources including timber

utilization within the resettlement project shall be processed by the
Department of Environment and Natural Resources in accordance
with existing laws, rules and regulations.

DONE in the City of Manila, this 16th day of February in the

year of Our Lord, Nineteen Hundred and Ninety-Six.
By the President:

Executive Secretary
1678
MALACAÑANG
Manila
AMENDING PROCLAMATION NO. 1530, DATED FEBRUARY

2, 1976, BY VESTING IN THE LAND BANK OF THE
PHILIPPINES, IN LIEU OF THE PHILIPPINE AMANAH
BANK, THE PRIMARY RESPONSIBILITY OF FINANCING
THE ACQUISITION OF PRIVATELY OWNED PARCELS
OF LAND SITUATED AT PANAMAO, TALIPAO AND
TIPTIPON, PROVINCE OF SULU, WHICH ARE UNDER
ADMINISTRATION AND DISPOSITION OF THE
WHEREAS, Proclamation No. 1530, dated February 2, 1976,

reserved for settlement purposes certain parcels of land situated at
Panamao, Talipao and Tiptipon, Province of Sulu;
WHEREAS, the said Proclamation expressly provides that:

“with respect to those lots for which certificates of title were already
issued, the Department of Agrarian Reform and the Philippine
Amanah Bank are hereby authorized to expropriate the said areas
and/or negotiate for their acquisition pursuant to the provisions of
Republic Act 3844, as amended by Republic Act 6389. Whatever
amounts are necessary for the purpose shall be taken out of the
funds of the Philippine Amanah Bank to finance the acquisition of
the private properties covered by this Proclamation;
WHEREAS, the Philippine Amanah Bank until its closure

rendered no substantial financial assistance for the acquisition of
privately owned parcels of land covered by the Proclamation to the
prejudice of the program;

the Philippines, upon recommendation of the Secretary of Agrarian
1679
Reform and the President of the Land Bank of the Philippines and
by virtue of the powers vested in me by law, do hereby amend the
following paragraph of Proclamation No. 1530, s. 1976, to wit:
“With respect to those lots for which certificates of

titles were already issued, the Department of Agrarian
Reform and the Philippine Amanah Bank are hereby
authorized to expropriate the said areas and/or negotiate
for their acquisition pursuant to the provisions of
Republic Act No. 3844, as amended by Republic Act No.
6389. Whatever amounts are necessary for the purpose
shall be taken out of the funds of the Philippine Amanah
Bank to finance the acquisition of the private properties
covered by this Proclamation.”
which shall now read as follows:
“The Land Bank of the Philippines is hereby substituted

in the place of the defunct Philippine Amanah Bank in
all aspects having to do with the role of the Philippine
Amanah Bank under Proclamation No. 1530, dated
February 2, 1976.
“With respect to those lots, for which certificates of

titles were already issued, the Department of Agrarian
Reform and the Land Bank of the Philippines are
hereby authorized to expropriate the said areas and/
or negotiate for their acquisition pursuant to Republic
Act No. 3844, as amended by Republic Act No. 6389.
Whatever amounts are necessary for the purpose shall
be taken out of the Agrarian Reform Fund to be drawn
by the Land Bank of the Philippines to finance the
acquisition of the private properties covered by this
Proclamation.”

1680

year of Our Lord, nineteen hundred and ninety one.
By the President:

Executive Secretary
1681
MALACAÑANG
MANILA
AMENDING PROCLAMATION NO. 446 DATED AUGUST 15, 1994,

SO AS TO CORRECT THE TECHNICAL DESCRIPTIONS OF
THE LAND EMBRACED THEREIN AND TO TRANSFER
THE ADMINISTRATION AND DISPOSITION OF THE SAME
FROM THE DEPARTMENT OF AGRARIAN REFORM TO
THE DEPARTMENT OF ENVIRONMENT AND NATURAL
RESOURCES
Upon recommendation of the Secretaries of Environment

and Natural Resources and Agrarian Reform, and pursuant to the
powers vested in me by law, I, FIDEL V. RAMOS, President of the
Republic of the Philippines, do hereby amend Proclamation No. 446
dated August 15, 1994, so as to correct the technical descriptions of
the land embraced therein, subject to private rights, if any there be
and to transfer the administration and disposition thereof from the
Department of Agrarian Reform to the Department of Environment
and Natural Resources, it appearing that the parcel of land is more
suitable for residential purposes rather than agricultural purposes.
As amended, the technical descriptions of the said parcel of

land shall be as follows:
A PARCEL OF LAND, situated in the Cit y of General Santos,

Island of Mindanao bounded on the North along lines 1-2-3-4-5-6-
7-8-9 by FLGLA 504; on the East along lines 9-10-11-12-13-14-15
by Lot 1, Mr.-11-000022 (Human Settlement); on the South along
line 16-17 by FLGLA 618; and on the West along lines 17-18-19-
20-1 by General Santos City International Airport Reservation
(Proclamation No. 219). Beginning at a point marked “1” on sketch
plan being S. 78° 48′ W., 6667.97 m. form BLLM No. 1, Makar,
General Santos City. Thence:
1682
N. 79° 13′ E., 185.50 m. to point 2;

N. 81° 00′ E., 412.00 m. to point 3;
N. 83° 00′ E., 475.00 m. to point 4;
S. 70° 00′ E., 575.00 m. to point 5;
S. 70° 00′ E., 350.00 m. to point 6;
S. 70° 00′ E., 150.00 m. to point 7;
S. 70° 00′ E., 210.00 m. to point 8;
S. 70° 00′ E., 140.00 m. to point 9;
N. 88° 15′ W., 450.00 m. to point 10;
N. 88° 15′ W., 400.00 m. to point 11;
S. 01° 11′ W., 348.67 m. to point 12;
S. 01° 14′ W., 400.00 m. to point 13;
S. 01° 14′ W., 399.99 m. to point 14;
S. 01° 14′ W., 400.01 m. to point 15;
S. 01° 14′ W., 399.97 m. to point 16;
S. 71° 42′ W., 60.72 m. to point 17;
N. 15° 21′ W., 517.82 m. to point 18;
N. 31° 06′ W., 98.13 m. to point 19;
N. 06° 57′ W., 1254.99 m. to point 20;
N. 68° 17′ W., 1196.00 m. to point of
beginning, containing an area of ONE MILLION TWO HUNDRED

THOUSAND EIGHT HUNDRED AND FORTY (1,200,840) square
meters, more or less.
The utilization of the aforementioned parcel of land shall not,

in any way, prejudice the ecological balance in the area, and the
removal of timber and other forest products therein shall be subject
to forest and internal revenue laws and regulations.
1683

continue to process public land applications filed over portions of
the reserved area, prior to August 15, 1994.
The DENR shall undertake a final survey and delineation on

the ground of the area reserved herein.
All proclamations, orders, issuances inconsistent herewith

are hereby modified accordingly.

DONE in the City of Manila, this 22nd day of August in the

year of Our Lord, Nineteen Hundred and Ninety-Six.
By the President:

Executive Secretary
1684
MALACAÑANG
Manila
RESERVING FOR THE PURPOSE OF THE URBAN, COMMERCIAL,

AND INDUSTRIAL DEVELOPMENT PROGRAMS OF
PALAYAN CITY, CERTAIN PARCELS OF LAND OF THE
PUBLIC DOMAIN SITUATED IN THE CITY OF PALAYAN,
PROVINCE OF NUEVA ECIJA, ISLAND OF LUZON
WHEREAS, Proclamation No. 20, dated July 27, 1921, as

amended by Proclamation No. 377, dated March 13, 1953, and
Proclamation No. 415, dated February 7, 1955 reserved 2,102.9117
hectares, more or less, of the public domain then within the
territorial jurisdiction of the Municipality of Bongabon, Province of
Nueva Ecija, now situated in the City of Palayan, Province of Nueva
Ecija, as the Bongabon Stock Farm;
WHEREAS, Proclamation No. 983, dated March 9, 1972,

revoked the Bongabon Stock Farm reservation and converted the
same reservation for the purpose of the resettlement of displaced
residents of Pantabangan, Nueva Ecija, designating such land
reservation as Parcel “E”;
WHEREAS, Proclamation No. 983 allowed the exclusion from

Parcel “E” of such area as may be needed for community development
purposes as indicated by the National Irrigation Administration,
then the administrator, or later by the successor in interest, the
Department of Agrarian Reform;
WHEREAS, Proclamation No. 1355, dated December 3, 1974,

amending Proclamation No. 983 has removed from the coverage of
Parcel “E” 1,002.9117 hectares, more or less;
1685
WHEREAS, pursuant to the exclusion clause of Proclamation

No. 983 and the reduction provision of Proclamation No. 1355
and in view of the requirement of Palayan City for government
centers, as well as urban, commercial and industrial development
projects sites, the Department of Agrarian Reform (DAR) entered
into an agreement and signed the corresponding memorandum
with Palayan City on September 27, 1990, effecting the transfer of
administration over a total of 719 hectares, therein referred to as
Parcels “1”, “3” and “4” of the original Parcel “E” from the DAR to
Palayan City;
WHEREAS, the same Memorandum of Agreement between

the DAR and Palayan City provides for a joint administration by
the two parties of a 316 hectares parcel, referred to as Parcel “2”,
outside the Palayan City exclusive administration zone;

hereby reserve for sites of government centers and the purposes of
the urban, commercial and industrial development programs of the
City Government of Palayan (CGP), and for the agrarian reform
community model building efforts jointly of the DAR and the CGP,
certain parcels of the land of the public domain containing an
aggregate area of Ten Million One Hundred Sixty Six Thousand
Three Hundred Ninety Seven (10,166,397) square meters, subject to
private rights, if any there be, which parcels are more particularly
described as follows, to wit:
“A parcel of land, being a portion of Parcel “E” segregated

by Proclamation No. 983, dated March 9, 1972, situated in the
Barangay of Atate, City of Palayan, Province of Nueva Ecija, Island
of Luzon. Bounded on the SE., along line 1-2 by NG-130; on the S.,
along line 2-3 by Lot 1-A, Bsd 10908; on the W., along lines 3-14
by Parcel “2” of this Proclamation; on the NW., along lines 14-17
by the Provincial Road; on the N., along lines 17-32 by Lot 22, Bsd
03-001970; and along lines 32-54 by Lot 57, Bsd-03-001969; and on
the E., along line 54-55 and 55-1 by NG-130. Beginning at a point
1686
marked “1” on the plan being N. 69 deg. 08′ E., 18,468.66 m. from
BLLM No. 1, Cabanatuan Cadastre. Thence . . .
S. 09 deg. 44′ E., 342.04 m. to point 2;

N. 73 deg. 02′ W., 848.34 m. to point 3;
N. 01 deg. 19′ E., 274.87 m. to point 4;
N. 77 deg. 29′ W., 10.02 m. to point 5;
N. 02 deg. 19′ E., 224.30 m. to point 6;
N. 02 deg. 14′ E., 15.19 m. to point 7;
N. 21 deg. 50′ E., 292.84 m. to point 8;
N. 33 deg. 10′ E., 449.92 m. to point 9;
N. 56 deg. 50′ W., 806.00 m. to point 10;
N. 56 deg. 50′ W., 6.00 m. to point 11;
N. 30 deg. 16′ W., 223.61 m. to point 12;
N. 09 deg. 12′ E., 328.28 m. to point 13;
N. 56 deg. 50′ W., 608.55 m. to point 14;
N. 62 deg. 02′ E., 64.20 m. to point 15;
N. 62 deg. 02′ E., 376.19 m. to point 16;
N. 57 deg. 49′ E., 570.99 m. to point 17;
S. 04 deg. 09′ W., 224.07 m. to point 18;
S. 10 deg. 16′ E., 173.84 m. to point 19;
S. 78 deg. 02′ E., 129.65 m. to point 20;
S. 29 deg. 50′ E., 77.44 m. to point 21;
S. 14 deg. 35′ W., 58.88 m. to point 22;
S. 51 deg. 10′ E., 280.00 m. to point 23;
S. 51 deg. 10′ E., 287.05 m. to point 24;
S. 66 deg. 56′ E., 334.53 m. to point 25;
N. 41 deg. 34′ E., 137.43 m. to point 26;
N. 36 deg. 54′ E., 164.22 m. to point 27;
1687
N. 23 deg. 32′ E., 113.23 m. to point 28;

N. 28 deg. 14′ E., 134.53 m. to point 29;
N. 61 deg. 27′ E., 101.62 m. to point 30;
N. 06 deg. 26′ E., 124.90 m. to point 31;
N. 08 deg. 24′ E., 241.21 m. to point 32;
N. 84 deg. 15′ E., 29.56 m. to point 33;
N. 77 deg. 22′ E., 29.57 m. to point 34;
N. 74 deg. 31′ E., 155.79 m. to point 35;
N. 71 deg. 39′ E., 28.47 m. to point 36;
N. 65 deg. 00′ E., 28.46 m. to point 37;
N. 58 deg. 15′ E., 29.17 m. to point 38;
S. 83 deg. 00′ E., 24.67 m. to point 39;
S. 89 deg. 36′ E., 24.68 m. to point 40;
N. 83 deg. 44′ E., 12.65 m. to point 41;
S. 39 deg. 28′ E., 34.88 m. to point 42;
S. 56 deg. 09′ E., 35.58 m. to point 43;
S. 69 deg. 25′ E., 35.57 m. to point 44;
S. 82 deg. 38′ E., 35.58 m. to point 45;
N. 80 deg. 55′ E., 85.88 m. to point 46;
S. 24 deg. 17′ E., 22.76 m. to point 47;
S. 32 deg. 36′ E., 22.77 m. to point 48;
S. 40 deg. 58′ E., 22.78 m. to point 49;
S. 45 deg. 12′ E., 5.92 m. to point 50;
S. 48 deg. 16′ E., 28.61 m. to point 51;
S. 54 deg. 36′ E., 28.61 m. to point 52;
S. 60 deg. 55′ E., 28.61 m. to point 53;
S. 64 deg. 05′ E., 299.61 m. to point 54;
S. 18 deg. 50′ E., 1080.59 m. to point 55;
S. 51 deg. 26′ W., 2384.33 m. to point of
1688
beginning, containing an area of FIVE MILLION THREE

HUNDRED FIFTY FIVE THOUSAND TWO HUNDRED TWENTY-
ONE (5,355,211) SQUARE METERS, more or less.
Parcel “2”

of Luzon. Bounded on the N. and E., along lines 1-12 by Parcel “1” of
this Proclamation; on the S., along line 12-13 by Lot 1-A, Bsd-10908;
and on the W., along lines 13-19 by Parcel “3” of this Proclamation;
and along lines 19-20-1 by Provincial Road. Beginning at a point
marked “1” on the plan being N. 60 deg. 11′ E., 17,997.72 m. from
BLLM No. 1, Cabanatuan Cadastre. Thence . . . .
S. 56 deg. 50′ E., 608.55 m. to point 2;

S. 09 deg. 12′ W., 382.28 m. to point 3;
N. 30 deg. 16′ E., 223.61 m. to point 4;
S. 56 deg. 50′ E., 6.00 m. to point 5;
S. 56 deg. 50′ E., 806.00 m. to point 6;
S. 33 deg. 10′ W., 449.92 m. to point 7;
S. 21 deg. 50′ W., 292.84 m. to point 8;
S. 02 deg. 14′ W., 15.10 m. to point 9;
S. 02 deg. 10′ W., 224.30 m. to point 10;
S. 77 deg. 29′ E., 10.02 m. to point 11;
S. 01 deg. 19′ W., 274.87 m. to point 12;
N. 73 deg. 02′ W., 2013.57 m. to point 13;
N. 12 deg. 10′ E., 198.98 m. to point 14;
N. 46 deg. 49′ E., 262.70 m. to point 15;
N. 19 deg. 31′ E., 147.33 m. to point 16;
N. 08 deg. 19′ E., 546.88 m. to point 17;
1689
N. 18 deg. 18′ E., 253.57 m. to point 18;

N. 32 deg. 32′ E., 466.13 m. to point 19;
N. 62 deg. 02′ E., 279.54 m. to point 20;
N. 62 deg. 02′ E., 111.80 m. to point of
beginning, containing an area of THREE MILLION ONE

HUNDRED FIFTY FIVE THOUSAND THREE HUNDRED SIXTY-
EIGHT (3,155,368) SQUARE METERS, more or less.
Parcel “3”

of Luzon. Bounded on the S., along line 1-2 by Lot 1-A, Bsd-10908;
on the W. and N. along lines 2-4 by Provincial Road; and on the E.,
by Parcel “2” of this Proclamation. Beginning at a point marked “1”
on the plan, being N. 64 deg. 06′ E., 16,204.69 meters from BLLM
No. 1, Cabanatuan Cadastre. Thence . . . .
N. 73 deg. 02′ W., 526.47 m. to point 2;

N. 28 deg. 01′ E., 1419.84 m. to point 3;
N. 62 deg. 02′ E., 598.78 m. to point 4;
S. 32 deg. 32′ W., 446.13 m. to point 5;
S. 18 deg. 18′ W., 253.57 m. to point 6;
S. 08 deg. 19′ W., 546.88 m. to point 7;
S. 19 deg. 31′ W., 147.33 m. to point 8;
S. 46 deg. 49′ W., 262.70 m. to point 9;
S. 12 deg. 10′ W., 198.98 m. to point of
beginning, containing an area of SIX HUNDRED NINETY

THOUSAND THREE HUNDRED TWENTY-TWO (690,322)
SQUARE METERS, more or less.
1690
Parcel “4”
“A portion of land, being a portion of Parcel “E” segregated

of Luzon. Bounded on the E., along line 1-2 by Provincial Road; on
the S., along line 2-3 by Lot 2-A, Bsd-10908; on the W., along lines
3-8 by Pampanga River; and on the N., along lines 8-11-1 by Lot
354, Psd-03-027675. Beginning at a point marked “1” on the plan
being N. 60 deg. 16′ E., 16,912.70 m. from BLLM No. 1, Cabanatuan
Cadastre. Thence . . . .
S. 28 deg. 01′ W., 1294.82 m. to point 2;

N. 67 deg. 38′ W., 561.41 m. to point 3;
N. 19 deg. 14′ E., 114.47 m. to point 4;
N. 06 deg. 18′ W., 284.38 m. to point 5;
N. 15 deg. 23′ E., 447.25 m. to point 6;
N. 14 deg. 14′ E., 148.42 m. to point 7;
N. 16 deg. 34′ W., 231.69 m. to point 8;
N. 11 deg. 24′ W., 25.30 m. to point 9;
S. 73 deg. 27′ E., 374.95 m. to point 10;
S. 75 deg. 24′ E., 350.00 m. to point 11;
S. 75 deg. 24′ E., 350.00 m. to point of
beginning, containing an area of NINE HUNDRED SIXTY FIVE

THOUSAND FOUR HUNDRED EIGHTY-SIX (965,486) SQUARE
METERS, more or less.
PROVIDED, that Parcels 1, 3 and 4 shall be under the sole

administration of the City Government of Palayan, and Parcel
2 shall be under the joint administration of the Department of
Agrarian Reform and the City Government of Palayan.
1691

Done in the City of Manila, this 13th day of February in the

year of Our Lord, nineteen hundred and ninety two.
By the President:

Executive Secretary
1692
MALACAÑANG
MANILA
REVOKING PROCLAMATION NO. 174 DATED AUGUST 3, 1928

WHICH DECLARED A CERTAIN TRACT OF LAND LOCATED
IN THE MUNICIPALITY OF SANTIAGO, PROVINCE OF
ISABELA (NOW MUNICIPALITY OF DIFFUN, PROVINCE
OF QUIRINO), ISLAND OF LUZON, AS A RESERVATION
FOR THE EXCLUSIVE USE OF NON-CHRISTIANS AND
PROCLAIMING SAME AS A RESETTLEMENT PROJECT
FOR DISTRIBUTION BY THE DEPARTMENT OF AGRARIAN
REFORM IN COORDINATION WITH THE DEPARTMENT
OF ENVIRONMENT AND NATURAL RESOURCES AND THE
OFFICE FOR NORTHERN CULTURAL COMMUNITIES, TO
THE ACTUAL OCCUPANTS UNDER THE COMPREHENSIVE
AGRARIAN REFORM PROGRAM (CARP)
WHEREAS, Proclamation No. 174 was issued by then

Governor General Henry L. Stimson on August 3, 1928, reserving
a certain tract of land (previously within the jurisdiction and
geographical confines of Barrios Gayong-gayong and Calimaturog
of Santiago, Isabela), for the exclusive use of non-Christians;
WHEREAS, the said tract of land, containing an 203.4395

hectares, is within the political boundaries of Barangay Guribang
and Diego Silang, Municipality of Diffun, Province of Quirino, and
has been identified to be identical to Lot No. 5728, Cad-211;
WHEREAS, over the years the landless farmers, both non-

Christians and Christians entered and settled on the proclaimed
land, cultivated the same and built communities therein;
WHEREAS, it is now an established fact that the purpose for

which Proclamation No. 174 was issued no longer exists as evidenced
1693
by the existence of Christians in the said area who comprise forty

percent (40%) of the present population which include former non-
Christians and who have since embraced the Christian faith;
WHEREAS, their intermingling or co-existence for sometime

now has not caused trouble or friction between them and in fact,
the situation has even resulted in inter-marriages between non-
Christians and Christians;
WHEREAS, these actual occupants are now clamoring for the

security of ownership over their respective portions of cultivation
within the subject area through the issuance of individual titles;

the Republic of the Philippines, upon the recommendation of the
Reform and the Executive Director of the Office of the Northern
Cultural Communities and by virtue of the powers vested in me by
law, do hereby revoke Proclamation No. 174 dated August 3, 1928
which declared a certain parcel of land situated in the Municipality
of Santiago, Province of Isabela (now Municipality of Diffun),
Province of Quirino, Island of Luzon, under the administration of
the then Bureau of Non-Christians Tribes, for the exclusive use
of Non-Christians, and declare the land embraced therein as a
resettlement project for distribution by the Department of Agrarian
Reform, in coordination with the Department of Environment and
Natural Resources (DENR) and the Office for Northern Cultural
Communities (ONCC) to the actual occupants thereof, under the
Comprehensive Agrarian Reform Program (CARP), which parcel of
land is more particularly described as follows:
Lot No. 5728, Cad-211
A PARCEL OF LAND, Lot No. 5728, Cad-211, identical Plan

IR-275, situated in the Barangays of Diego Silang and Guribang,
Municipality of Diffun, Province of Quirino, Island of Luzon. Bounded
on the North, by Public Land, property claimed by Arsenio Arela,
Public Land, property claimed by Marcelo Espiritu, Public Land
1694
properties claimed by Carlos Laslas and Fernando delos Santos and

Public Land; on the East, by Public Land, properties claimed by
Pedro Pablo, Pedro Inson, Duma Oditen Creek, and Public Land;
on the South by Public Land, Duma Oditen Creek, and Forest Zone;
and on the West, by Forest Zone and Public Land. Beginning at a
point marked “1” on plan, being N. 36 deg. 33’E., 102.69 m. from
P.No. 227 thence:
S. 40° 38′ E., 187.72 m. to point 2;

S. 44° 11′ E., 204.05 m. to point 3;
S. 05° 03′ W., 139.14 m. to point 4;
S. 40° 34′ E., 243.52 m. to point 5;
N. 62° 03′ E., 169.06 m. to point 6;
S. 54° 13′ E., 985.65 m. to point 7;
S. 03° 09′ E., 76.02 m. to point 8;
S. 03° 36′ W., 416.28 m. to point 9;
S. 21° 41′ E., 105.48 m. to point 10;
S. 17° 54′ E., 121.03 m. to point 11;
S. 15° 25′ W., 173.26 m. to point 12;
S. 30° 01′ W., 79.54 m. to point 13;
S. 38° ’31’ W., 104.56 m. to point 14;
S. 84° 38′ W., 63.47 m. to point 15;
N. 16° 22′ W., 839.24 m. to point 16;
N. 70° 01′ W., 1782.17 m. to point 17;
N. 39° 19′ W., 947.80 m. to point 18;
N. 44° 34′ E., 506.66 m. to point 19;
S. 53° 31′ E., 279.64 m. to point 20;
N. 88° 29′ E., 159.25 m. to point 21;
S. 61° 37′ E., 410.29 m. to point 22;
S. 86° 24′ W., 212.42 m. to point of
1695
beginning, containing an area of TWO MILLION THIRTY FOUR

THOUSAND THREE HUNDRED NINETY-FIVE (2,034,396)
SQUARE METERS, more or less.
Bearings True. Declination 0 deg. 20’E., of Points referred to

marked on Bureau of Lands plan IR-275. Points 11 to 14, inclusive,
are stakes; points 10 to 15, inclusive, on bank of Duma Oditen
Creek. All corners of Lot No. 5728 which are not described are B.L.
Concrete Monuments 15 x 60m. Surveyed on November 12-13, 1926
and approved on March 26, 1928.
The area covered by this Proclamation is subject to change

as a result of the final survey to be conducted by the Department
of Agrarian Reform in coordination with the Department of
Environment and Natural Resources within thirty (30) days upon
approval of this Proclamation.
Priority in the distribution of the area covered by this

Proclamation must be given to the non-Christians for whom the
original Proclamation was intended.

DONE in the City of Manila, this 10th day of October in the

year of our Lord, Nineteen Hundred and Ninety-Six.
By the President:

Executive Secretary
Proc. 900 s. 1996 repealed Proc. 174 s. 1928.
1696
MALACAÑANG
MANILA
PROCLAIMING THE SECOND WEEK OF JUNE AS “AGRARIAN

REFORM WEEK”
WHEREAS, Republic Act No. 6657, otherwise known as the

Comprehensive Agrarian Reform Law of 1988, was promulgated on
June 10, 1988 and took effect on June 15 of the same year;
WHEREAS, Republic Act No. 6657 has declared the policy of

the State to pursue the Comprehensive Agrarian Reform Program
(CARP) in order that the welfare of the landless farmers and
farmworkers will receive highest consideration and that the nation
can move towards sound rural development and industrialization;
WHEREAS, since the inception of the Comprehensive

Agrarian Reform Program, lands were distributed and component
support services were provided on a wide scale to farmers and
farmworkers of a country, thereby improving the quality of life and
enhancing the dignity of our rural folks and ushering countryside
development;
WHEREAS, to sustain this growth and to realize the full

development of our rural communities, it is imperative that we
preserve the gains of and institutionalize the annual celebration
to highlight and invigorate further this centerpiece program of the
government;

hereby proclaim the Second Week of the Month of June of this year
and every year thereafter as “Agrarian Reform Week.”
1697
The Department of Agrarian Reform is hereby mandated to

be the lead agency in the celebration of “Agrarian Reform Week.”
All other PARC-member agencies are directed to participate and
coordinate with the DAR in this regard.
Farmers’ conventions, seminars and fora are hereby

encouraged. Appropriations for this purpose may be sourced from
the Agrarian Reform Funds.
DONE in the City of Manila, this 29th day of May, in the year
of Our Lord, nineteen hundred and ninety-two.
By the President:

Executive Secretary
1698
MALACAÑANG
MANILA

SETTLEMENT AND AGRICULTURAL COMMUNITY
OF THE DEPARTMENT OF AGRARIAN REFORM, CERTAIN
PARCELS OF LANDS OF THE PUBLIC DOMAIN SITUATED
IN THE MUNICIPALITIES OF ARTECHE, JIPAPAD, ORAS
AND SAN POLICARPO, ALL OF EASTERN SAMAR

Act No. 141, approved on 7 November 1936, otherwise known as
the “Public Land Act”, authorizes the President to designate by
proclamation, any tract or tracts of lands of the public domain for
the establishment of agricultural colonies;
WHEREAS, Section 14, Chapter IV, Title I, Book III of the

Administrative Code of 1987 provides that “The President shall have
the power to reserve for settlement or public use, and for specific
public purposes, any of the lands of the public domain, the use of
which is not otherwise directed by law. The reserved land shall
until otherwise provided by law”;
WHEREAS, Section 3 [5], Chapter I, Title XI, Book IV of

of Agrarian Reform shall “administer and dispose of, under a
settlement scheme, all portions of the public domain declared as
1699
WHEREAS, it is the declared policy of the State to pursue a


provide deserving and qualified Filipinos with lands as well as
guidance and technical assistance to make them productive, self-
reliant and responsible citizens; and
WHEREAS, there are big agricultural lands in the

municipalities of Arteche, Jipapad, Oras and San Policarpo, all of
Eastern Samar, found to be suitable for cultivation and conservation
into a well-organized and developed resettlement area for qualified
and deserving Filipinos and rebel returnees.
NOW, THEREFORE, upon recommendation of the Secretaries

of Environment and Natural Resources and Agrarian Reform, by
virtue of the power vested in me by law, and pursuant to Section 85,
Chapter XII, Title 5 of Commonwealth Act No. 141, otherwise known
as the “Public Land Act” and Section 14, Chapter IV, Title I, Book III
of the Administrative Code of 1987, I, FIDEL V. RAMOS, President
of the Republic of the Philippines, do hereby reserve for the purpose
of establishing a settlement and an agricultural community under
Reform, subject to private rights, if any there be, and to final survey
and delineation on the ground, certain parcels of land of the public
domain located in the municipalities of Arteche, Jipapad, Oras and
San Policarpo, all of the province of Eastern Samar, which parcels
of land are more particularly described as follows:
PARCEL I
SK-08-000020 (AR)
A parcel of alienable and disposable land described in the

sketch map of SK-08-000020 (AR) located at the Municipality of
Oras, Province of Eastern Samar, Island of Samar. Bounded on the
SE., along line 1-2 by portion of Project No. 6 Block 1; along line
2-3 by portion of Project 6, Block 1, along line 3 to 16 by Project No.
1700
6, Block B (Timberland); along line 16-17 by Project No. 6, Block 1

(Portion); on the South along line 17-18 by Project No. 6, Block 1 (A
& D); on the South and southwest along lines 18-43 by unclassified
public forest; along line 43-44 by Project No. 21, Block 1 (A & D)
portion, Municipality of Arteche; along lines 44-74 by Project No. 6
Block A (Timberland); along line 74-1 by portion of Project No. 34,
Block 1 (A & D) Municipality of San Policarpo. The projects and
blocks herein mentioned are of Land Classification Map LC No.
2435.
Beginning at a point marked 1 on the sketch map SK-08-

000020 (AR) being approximately S 47 deg. 12’E., 22,528.97 m. from
BLLM # 1, Cad. 1149-D, Lapinig Cadastre. Thence:
S. 25º 58′ W., 1,680.00 m. to point 2;

N. 05º 43′ W., 401.88 m. to point 3;
N. 54º 11′ E., 222.10 m. to point 4;
N. 48º 00′ W., 201.80 m. to point 5;
N. 09º 39′ W., 238.40 m. to point 6;
N. 08º 08′ E., 212.16 m. to point 7;
N. 41º 12′ W., 106.36 m. to point 8;
N. 13º 46′ W., 205.94 m. to point 9;
N. 28º 15′ E., 171.44 m. to point 10;
S. 09º 51′ E., 467.87 m. to point 11;
S. 176 57′ E., 262.77 m. to point 12;
S. 12º 37′ W., 196.91 m. to point 13;
S. 54º 53′ E., 99.06 m. to point 14;
S. 09º 40′ E., 244.45 m. to point 15;
N. 59º 02′ E., 116.66 m. to point 16;
S. 05º 43′ E., 401.88 m. to point 17;
N. 88º 24′ W., 5,001.94 m. to point 18;
N. 05º 17′ W., 401.73 m. to point 19;
1701
N. 55º 58′ W., 534.50 m. to point 20;

S. 60º 46′ W., 423.96 m. to point 21;
S. 50º 38′ W., 555.28 m. to point 22;
S. 78º 17′ W., 591.13 m. to point 23;
N. 38º 31′ W., 613.44 m. to point 24;
N. 84º 57′ W., 341.41 m. to point 25;
N. 71º 15′ W., 348.39 m. to point 26;
N. 87′ 51′ W., 480.33 m. to point 27;
N. 59º 01′ W., 291.41 m. to point 28;
N. 21º 04′ W., 334.28 m. to point 29;
N. 33º 51′ E., 394.98 m. to point 30;
N. 22º 14′ W., 290.57 m. to point 31;
N. 67º 42′ W., 529.61 m. to point 32;
N. 01º 05′ W., 525.11 m. to point 33;
N. 19º 03′ E., 275.10 m. to point 34;
N. 20º 24′ W., 229.42 m. to point 35;
N. 50º 42′ W., 284.25 m. to point 36;
N. 30º 42′ W., 372.16 m. to point 37;
N. 77º 56′ W., 526.60 m. to point 38;
N. 17º 02′ W., 324.24 m. to point 39;
N. 28º 46′ E., 353.40 m. to point 40;
N. 24º 18′ W., 340.16 m. to point 41;
N. 46º 04′ W., 347.83 m. to point 42;
N. 76º 30′ W., 257.08 m. to point 43;
N. 61º 44′ E., 1,203.56 m. to point 44;
S. 33º 41′ E., 72.08 m. to point 45;
S. 57º 16′ E., 166.39 m. to point 46;
S. 71º 34′ E., 189.71 m. to point 47;
1702
N. 88º 01′ E., 290.16 m. to point 48;

N. 51º 22′ E., 255.96 m. to point 49;
N. 49º 24′ E., 276.61 m. to point 50;
N. 63º 26′ E., 268. 34 m. to point 51;
N. 31º 25′ W., 210.96 m. to point 52;
N. 23º 12′ E., 228.50 m. to point 53;
S. 86º 31′ E., 329.63 m. to point 54;
N. 89º 28′ E., 111.02 m. to point 55;
S. 55º 15′ E., 194.74 m. to point 56;
S. 26º 34′ E., 380.12 m. to point 57;
S. 31º 06′ E., 268.74 m. to point 58;
S. 09º 59′ E., 294.43 m. to point 59;
S. 41º 38′ W., 240.80 m. to point 60;
S. 19º 40′ W., 148.65 m. to point 61;
S. 71º 34′ E., 442.73 m. to point 62;
N. 70º 42′ E., 211.92 m. to point 63;
S. 62º 29′ E., 541.21 m. to point 64;
N. 49º 11′ E., 290. m. to point 65;
N. 20º 00′ E., 234.03 m. to point 66;
N. 40º 56′ E., 198.52 m. to point 67;
N. 13º 08′ E., 308.07 m. to point 68;
N. 73º 36′ W., 354.38 m. to point 69;
N. 55º 00′ W., 195.30 m. to point 70;
N. 46º 46′ W., 274.49 m. to point 71;
N. 03º 01′ E., 380.65 m. to point 72;
N. 45º 00′ E., 141.45 m. to point 73;
N. 18º 26′ E., 126.52 m. to point 74;
S. 55º 44′ E., 8,632.96 m. to point of
1703
beginning, containing an area of FOUR THOUSAND TWENTY

TWO (4,022) has. more or less. All points referred to are indicated
on the plan and marked accordingly.
PARCEL II
SK-08-000020 (AR)

sketch map of SK-08000020 (AR) located at the Municipality of San
Policarpo, Province of Eastern Samar, Island of Samar. Bounded
on the SW., along line 1-2 by Project No. 6, Block 1 (A & D), LC
No. 2435; on the NW., along lines 2-5 by Project No. 34, Block A,
Timberland; along line 5-7 by portion of Project No. 21, Block 1 (A &
D), LC No. 2435, on the NE., along line 7-8 by portion of Project No.
34, Block 1 (A & D) LC No. 2435, portion of Mun. of San Policarpo;
on the SE., along line 8-1 by portion of Project No. 34, Block 1 (A &
D), LC-2435, portion of Municipality of San Policarpo.

000020 (AR) being approximately S 47 deg. 12’E., 22,528.97 m. from
BLLM #1, Cad. 1149-D, Lapinig Cadastre. Thence:
N. 55º 44′ W., 8,632.96 m. to point 2;

N. 63º 26′ E., 267.83 m. to point 3;
N. 52º 13′ E., 310.11 m. to point 4;
N. 45º 29′ W., 245.36 m. to point 5;
N. 83º 51′ E., 1,277.33 m. to point 6;
N. 49º 24′ E., 2,199.20 m. to point 7;
S. 58º 37′ E., 6,548.05 m. to point 8;
S. 25º 58′ W., 3,892.53 m. to point of;
beginning, containing an area of TWO THOUSAND SEVEN

HUNDRED FORTY NINE (2,749) has. more or less. All points
referred to are indicated on the plan and marked accordingly.
1704
PARCEL III
SK-08-000020 (AR)

sketch map of SK-08-000020 (AR) located at the Municipality of San
Policarpo, Province of Eastern Samar, Island of Samar. Bounded
on the SE., & SW., along lines 1-5 by Project No. 34, Block A,
Timberland, LC-2435; and on the NW., along lines 5-1 by portion of
Project No. 21, Block 1, (A & D), LC-2435, Municipality of Arteche.

000020 (AR) being approximately S 43 deg., 39’E., 13,801.09 m.
from BLLM #1, Cad. 1149-D, Lapinig Cadastre.
S. 45º 00′ W., 70.65 m. to point 2;

S. 26º 35′ W., 223.56 m. to point 3;
N. 36º’ 44′ W., 225.88 m. to point 4;
N. 41º 11′ W., 53.20 m. to point 5;
N. 84º 51′ E., 321.41 m. to point of;
beginning, containing an area of THREE (3) has. more or less. All

points referred to are indicated on the plan and marked accordingly.
PARCEL IV
SK-08-000020 (AR)

Arteche, Province of Eastern Samar, Island of Samar. Bounded on
the SW., along lines 1-52 by Project No. 21-A, Forest Land; along
lines 52-53 by portion of Project No. 21, Block 1, (A & D); along
lines 53-67 by Project No. 21, Block G, Timberland; along line 67-68
by portion of Project No. 21, Block 1 (A & D); and along lines 68-
103 by Project No. 21-A, Forest Land; on the NW., along line 103-
104 by Project No. 41-A, (A & D) LC-2435, Municipality of Jipapad;
along lines 104-106 by portion of Project No. 21, Block 1, (A & D);
1705
along lines 106-114 by Project No. 21, Block A, Timberland; on the

NE., along lines 114-129 by Project No. 21, Block B, Timberland,
LC-2435; along lines 129-136 by portion of Project No. 21, Block 1
(A & D), LC-2435, portion of Municipality of Arteche; on the SE.,
along lines 136-141 by Project No. 34, Block 1 (A & D) LC-2435,
Municipality of San Policarpo; on the SW., & SE., along lines 141-
169 by Project No. 21, Block F (Timberland); along lines 169-170-1
by Project No. 6, Block 1 (A & D) LC-2435, Municipality of Oras. The
Projects and Blocks herein mentioned are all of Land Classification
Map LC No. 2435.

000020 (AR) being approximately on S 16 deg. 10′ E., 12,335.13 m.
from BLLM #1, Cad. 1149-D, Lapinig Cadastre.
N. 42º 00′ E., 269.07 m. to point 2;

N. 38º 40′ E., 320.15 m. to point 3;
N. 39º 48′ W., 312.38 m. to point 4;
S. 48º 40′ W., 332.95 m. to point 5;
N. 89º 40′ W., 349.99 m. to point 6;
N. 84º 17′ E., 381.91 m. to point 7;
N. 63º 26′ W., 357.76 m. to point 8;
N. 53º 46′ W., 372.19 m. to point 9;
N. 29º 03′ W., 205.92 m. to point 10;
S. 72º 39′ W., 335.23 m. to point 11;
S. 61º 50′ W., 317.66 m. to point 12;
S. 48º 21′ W., 374.70 m. to point 13;
S. 43º 44′ W., 289.30 m. to point 14;
N. 08º 07′ E., 212.15 m. to point 15;
N. 71º 07′ E., 370.13 m. to point 16;
N. 38º 56′ E., 334.24 m. to point 17;
N. 20º 33′ W., 256.33 m. to point 18;
1706
S. 79º 57′ W., 223.41 m. to point 19;

N. 35º 07′ W., 243.33 m. to point 20;
S. 47º 44′ E., 297.29 m. to point 21;
N. 27º 33′ W., 259.44 m. to point 22;
N. 13º 14′ W., 174.66 m. to point 23;
S. 68º 33′ W., 300.81 m. to point 24;
S. 72º 45′ W., 303.82 m. to point 25;
S. 33º 42′ E., 216.33 m. to point 26;
S. 34º 42′ W., 316.21 m. to point 27;
S. 46º 59′ W., 410.35 m. to point 28;
S. 26º 34′ E., 290.68 m. to point 29;
S. 38º 40′ W., 448.19 m. to point 30;
S. 47º 25′ E., 502.50 m. to point 31;
S. 28º 13′ W., 465.28 m. to point 32;
S. 18º 08′ W., 610.31 m. to point 33;
N. 50º 20′ W., 156.32 m. to point 34;
N. 10º 46′ W., 213.89 m. to point 35;
N. 55º 30′ W., 194.13 m. to point 36;
S. 66º 12′ W., 371.60 m. to point 37;
S. 24º 46′ W., 286.33 m. to point 38;
N. 45º 00′ W., 325.27 m. to point 39;
N. 07º 50′ W., 220.08 m. to point 40;
N. 89º 28′ W., 319.99 m. to point 41;
N. 61º 59′ W., 317.18 m. to point 42;
N. 81º 53′ E., 636.22 m. to point 43;
S. 61º 50′ E., 317.66 m. to point 44;
N. 2º’ 06′ E., 483.04 m. to point 45;
N. 06º 51′ E., 251.83 m. to point 46;
1707
N. 87º 17′ W., 210.20 m. to point 47;

N. 52º 12′ W., 367.02 m. to point 48;
N. 82º 53′ W., 362.80 m. to point 49;
S. 88º 22′ W., 350.12 m. to point 50;
N. 66º 02′ W., 196.95 m. to point 51;
N. 47º 43′ W., 594.58 m. to point 52;
N. 52º 02′ E., 698.96 m. to point 53;
S. 70º 38′ E., 210.96 m. to point 54;
N. 71º 34′ E., 316.27 m. to point 55;
N. 12º 48′ E., 451.24 m. to point 56;
N. 60º 15′ E., 322.47 m. to point 57;
N. 24º 38′ W., 264.03 m. to point 58;
S. 73º 30′ W., 281.62 m. to point 59;
N. 35º 13′ W., 208.11 m. to point 60;
N. 42º 37′ W., 162.81 m. to point 61;
N. 58º 18′ W., 399.63 m. to point 62;
S. 22º 56′ W., 282.29 m. to point 63;
S. 34º 51′ E., 316.79 m. to point 64;
S. 28º 49′ W., 251.05 m. to point 65;
S. 32º 44′ E., 332.86 m. to point 66;
S. 12º 19′ W., 276.38 m. to point 67;
S. 52º 02′ W., 698.93 m. to point 68;
S. 65º 33′ W., 362.48 m. to point 69;
S. 36º 52′ W., 300.04 m. to point 70;
S. 87º 29′ W., 340.41 m. to point 71;
N. 58º 34′ W., 316.42 m. to point 72;
S. 58º 41′ W., 269.26 m. to point 73;
S. 46º 20′ W., 304.11 m. to point 74;
1708
S. 55º 51′ W., 338.41 m. to point 75;

S. 46º 16′ W., 318.26 m. to point 76;
S. 69º 41′ W., 287.94 m. to point 77;
N. 08º 53′ W., 323.90 m. to point 78;
N. 10º 36′ W., 265.40 m. to point 79;
N. 01º 41′ E., 309.14 m. to point 80;
S. 76º 23′ W., 339.54 m. to point 81;
N. 46º 48′ W., 246.90 m. to point 82;
N. 68º 02′ E., 323.51 m. to point 83;
N. 09º 52′ E., 700.38 m. to point 84;
N. 36º 15′ W., 372.03 m. to point 85;
S. 43º 58′ W., 432.09 m. to point 86;
N. 08º 51′ W., 324.89 m. to point 87;
S. 32º 18′ W., 449.73 m. to point 88;
S. 45º 16′ W., 156.24 m. to point 89;
S. 18º 49′ W., 337.99 m. to point 90;
S. 55º 37′ W., 230.19 m. to point 91;
N. 33º 41′ W., 180.28 m. to point 92;
S. 35º 45′ W., 308.02 m. to point 93;
N. 56º 18′ W., 540.83 m. to point 94;
N. 08º 45′ W., 262.94 m. to point 95;
N. 53º 08′ W., 249.97 m. to point 96;
N. 59º 34′ W., 197.31 m. to point 97;
N. 78º 41′ W., 203.94 m. to point 98;
N. 67º 23′ W., 260.00 m. to point 99;
N. 77º 54′ W., 429.52 m. to point 100;
N. 41º 00′ W., 304.80 m. to point 101;
N. 53º 07′ W., 199.99 m. to point 102;
1709
N. 34º 41′ W., 316.23 m. to point 103;

N. 67º 47′ E., 7,431.59 m. to point 104;
N. 77º 56′ E., 3,539.27 m. to point 105;
S. 26º 58′ W., 134.55 m. to point 106;
S. 39º 07′ E., 206.10 m. to point 107;
N. 77º 28′ E., 266.37 m. to point 108;
N. 35º 09′ E., 173.71 m. to point 109;
N. 09º 28′ E., 304.16 m. to point 110;
N. 72º 29′ E., 335.51 m. to point 111;
S. 68º 36′ E., 139.99 m. to point 112;
N. 65º 52′ E., 733.91 m. to point 113;
N. 62º 08′ E., 1,583.55 m. to point 114;
S. 15º 39′ W., 519.22 m. to point 115;
N. 80º 32′ E., 243.29 m. to point 116;
S. 08º 58′ E., 192.33 m. to point 117;
S. 52º 14′ W., 163.22 m. to point 118;
S. 75º 55′ E., 246.39 m. to point 119;
S. 48º 01′ E., 134.49 m. to point 120;
S. 59º 42′ E., 277.90 m. to point 121;
N. 64º 59′ E., 165.56 m. to point 122;
N. 16º 42′ E., 104.42 m. to point 123;
N. 87º 36′ E., 240.23 m. to point 124;
S. 73º 20′ E., 208.80 m. to point 125;
S. 19º 10′ E., 243.65 m. to point 126;
S. 78º 42′ W., 101.96 m. to point 127;
S. 12º 53′ E., 179.50 m. to point 128;
S. 16º 19′ W., 213.58 m. to point 129;
S. 26º 31′ E., 268.31 m. to point 130;
1710
S. 34º 18′ E., 266.27 m. to point 131;

S. 56° 19′ E., 180.28 m. to point 132;
N. 83º 53′ E., 140.82 m. to point 133;
S. 76º 18′ E., 190.46 m. to point 134;
N. 56º 53′ E., 805.73 m. to point 135;
S. 58º 26′ E., 4,718.14 m. to point 136;
S. 50º 59′ W., 2,020.80 m. to point 137;
S. 81º 27′ W., 1,346.03 m. to point 138;
N. 68º 01′ W., 138.99 m. to point 139;
S. 53º 00′ W., 86.44 m. to point 140;
S. 80º 18′ W., 285.14 m. to point 141;
N. 45º 00′ W., 396.07 m. to point 142;
N. 72º 29′ W., 199.22 m. to point 143;
N. 58º 10′ W., 530.85 m. to point 144;
N. 69º 34′ W., 372.41 m. to point 145;
N. 29º 03′ W., 308.91 m. to point 146;
N. 48º 50′ W., 637.80 m. to point 147;
S. 48º 44′ E., 1,197.51 m. to point 148;
N. 69º 40′ W., 287.84 m. to point 149;
N. 29º 03′ W., 308.91 m. to point 150;
N. 36º 46′ W., 349.40 m. to point 151;
N. 58º 06′ W., 189.46 m. to point 152;
N. 21º 47′ E., 107.59 m. to point 153;
S. 68º 11′ W., 161.64 m. to point 154;
N. 15º 57′ E., 218.42 m. to point 155;
N. 84º 48′ W., 331.41 m. to point 156;
S. 15º 32′ W., 373.60 m. to point 157;
N. 62º 42′ W., 348.71 m. to point 158;
1711
S. 16º 19′ W., 605.33 m. to point 159;

S. 05º 48′ W., 197.99 m. to point 160;
S. 08º 03′ W., 214.08 m. to point 161;
S. 33º 52′ W., 179.57 m. to point 162;
S. 25º 28′ W., 255.84 m. to point 163;
S. 29º 13′ W., 389.49 m. to point 164;
S. 27º 34′ W., 259.38 m. to point 165;
DUE SOUTH, 400.00 m. to point 166;
S. 26º 41′ E., 222.82 m. to point 167;
S. 42º 29′ E., 177.67 m. to point 168;
S. 50º 27′ E., 298.33 m. to point 169;
S. 62º 06′ W., 1,154.01 m. to point 170;
N. 65º 38′ W., 120.79 m. to point of;
beginning, containing an area of SEVEN THOUSAND THREE

HUNDRED FIFTY (7,350) has. more or less. All points referred to
are indicated on the plan and marked accordingly.
PARCEL V
SK-08-000020 (AR)

Jipapad, Province of Eastern Samar, Island of Samar. Bounded on
the SE., along 1-2 by portion of Project No. 21, Block 1 (A & D),
LC-2435, Municipality of Arteche; along lines 2-3-4 by unclassified
public forest; on the SW., and NW., along lines 4-17 by Unclassified
Public Forest; along lines 17-29 by Oras River; along line 29-30-1 by
Unclassified Public Forest.
Beginning at point marked 1 on the sketch map SK-08-000020

(AR) being approximately S 04 deg. 07′ W., 6,403.67 m. from BLLM
#1, Cad. 1149-D, Lapinig Cadastre.
1712
S. 68º 06′ W., 7,398.82 m. to point 2;

S. 00º 09′ W., 80.18 m. to point 3;
S. 67º 22′ W., 205.80 m. to point 4;
N. 10º 11′ W., 395.51 m. to point 5;
N. 28º 35′ E., 250.80 m. to point 6;
N. 19º 48′ W., 265.55 m. to point 7;
N. 47º 13′ W., 368.01 m. to point 8;
N. 52º 03′ E., 374.06 m. to point 9;
S. 56º 52′ E., 292.57 m. to point 10;
S. 30º 28′ E., 197.14 m. to point 11;
S. 19º 39′ E., 297.48 m. to point 12;
S. 81º 53′ E., 282.88 m. to point 13;
N. 48º 17′ E., 308.14 m. to point 14;
N. 64º 05′ E., 400.28 m. to point 15;
N. 64º 42′ E., 409.30 m. to point 16;
N. 16º 35′ E., 245.29 m. to point 17;
N. 60º 55′ E., 103.00 m. to point 18;
N. 48º 48′ E., 212.56 m. to point 19;
N. 61º 12′ E., 228.36 m. to point 20;
S. 89º 59′ E., 279.78 m. to point 21;
N. 67º 53′ E., 172.74 m. to point 22;
N. 60º 48′ E., 194.89 m. to point 23;
N. 21º 22′ E., 246.92 m. to point 24;
N. 49º 50′ E., 185.94 m. to point 25;
N. 82º 42′ E., 78.62 m. to point 26;
S. 60º 45′ E., 286.51 m. to point 27;
N. 42º 30′ E., 162.74 m. to point 28;
N. 27º 13′ W., 393.55 m. to point 29;
1713
N. 64º 03′ E., 2,880.31 m. to point 30;

S. 50º 27′ E., 1,523.63 m. to point of;
beginning, containing an area of SIX HUNDRED FIFTY NINE

(659) has. more or less. All points referred to are indicated on the
plan and marked accordingly.
The technical description and area covered by this

Proclamation is subject to change as a result of the final survey
and delineation on the ground and after consultations with the
affected local government units and communities. The Department
of Agrarian Reform (DAR) shall provide funds for the conduct of the
survey.
The following areas are hereby segregated from the coverage

of this Proclamation and are deemed inalienable and may not be
subject to titling:
1. All areas within the reservation which shall fall under

the classification of timberland, forest land or unclassified
public land and those covered by the National Integrated
Protected Areas System;

P.D. No. 705 otherwise known as the Revised Forestry
Code of the Philippines, P.D. 1067 otherwise known as the
Water Code of the Philippines and other pertinent laws,
rules and regulations.
Further, these areas are hereby reserved for environmental

protection purposes.

1714
applications. All vested rights inside the reservation shall be

respected.
DONE in the City of Manila, this 20th day of December, in the

year of our Lord, Nineteen Hundred and Ninety Six.
By the President:

Executive Secretary
1715
MALACAÑANG
MANILA
SUPPLEMENTING PROCLAMATION NO. 295, DATED 9

NOVEMBER 1993, ENTITLED “EXCLUDING FROM THE
OPERATION OF EXECUTIVE ORDER NO. 63, DATED 25
JUNE 1914 AND PROCLAMATION NO. 391, DATED 13
MARCH 1939, WHICH ESTABLISHED THE MINERAL
LAND RESERVATION IN THE PROVINCE OF SURIGAO,
ISLAND OF MINDANAO CERTAIN ALIENABLE AND
DISPOSABLE PARCELS OF LAND EMBRACED THEREIN,
AND DECLARING THE SAME OPEN TO DISPOSITION
PROGRAM OF THE DEPARTMENT OF AGRARIAN
REFORM AND OTHER PERTINENT LAWS RELATIVE TO
TITLING OF LANDS SUITABLE FOR AGRICULTURE”, BY
INCLUDING CERTAIN PARCELS OF LAND FURTHER
IDENTIFIED AS SUITABLE FOR AGRICULTURE IN THE
MUNICIPALITIES OF BASILISA, TUBAJON, LORETO,
ISLAND OF DINAGAT AND MUNICIPALITY OF CLAVER,
ALL WITHIN THE PROVINCE OF SURIGAO DEL NORTE
WHEREAS, Proclamation No. 295 dated 9 November 1993,

segregated and released portions of land within Surigao Mineral
Reservation for distribution to qualified beneficiaries under the
Comprehensive Agrarian Reform Program of the Department of
Agrarian Reform;
WHEREAS, the Secretaries of the Department of Environment

and Natural Resources and the Department of Agrarian Reform have
entered into a Memorandum of Agreement to conduct geological
surveys for the determination of lands classified as alienable and
disposable and those suitable for residential and/or agricultural
purposes;
1716
WHEREAS, per the findings of the DAR-DENR geological

and field survey team, there exist portions of the Surigao Mineral
Reservation which have low geological potential for minerals and
could be possibly reclassified as agricultural areas which were not
included in Presidential Proclamation No. 295;
WHEREAS, the residents of the parcels of lands covered by

this amended proclamation are clamoring for the inclusion by the
government of said parcels under the agrarian reform program;
WHEREAS, Executive Order No. 448, as amended by

Executive Order No. 506 of 1992 provides that “except national parks
and other protected areas, all lands or portions of the public domain
reserved by virtue of proclamation or law for specific purposes or
uses by departments, bureaus and agencies of the government,
and exclusively used or necessary for the purpose for which they
have been reserved shall be segregated from the reservations and
transferred to the Department of Agrarian Reform for distribution
to qualified beneficiaries under the Comprehensive Agrarian Reform
Program.”
WHEREAS, Section 7 of R.A. No. 7942, series of 1995,

otherwise known as the Philippine Mining Act of 1995 provides that
the Secretary shall periodically review existing mineral reservations
for the purpose of determining whether their continued existence is
consistent with the national interest, and upon his recommendation,
the President may, by proclamation, alter or modify the boundaries
thereof or revert the same to the public domain without prejudice to
prior existing rights.

Reform, and pursuant to the provisions of Section 7 of Republic
Act No. 7942, otherwise known as the Philippine Mining Act of
1995, and by virtue of the powers vested in me by law, I, FIDEL
V. RAMOS, President of the Republic of the Philippines, do hereby
supplement Proclamation No. 295 dated 9 November 1993 so as to
1717
include certain parcels of land suitable for agricultural purposes

located in the municipalities of Basilisa, Tubajon, and Loreto,
Island of Dinagat and the municipality of Claver, all in the Province
of Surigao del Norte, covering an aggregate area of two thousand
six hundred forty three (2,643.3278) hectares, more or less, which
parcels of land are more particularly described as follows, to wit:
PARCEL 2
BARANGAY CATADMAN, BASILISA,
DINAGAT ISLAND
A parcel of land (Parcel 2) situated in the Barangay of

Catadman, Municipality of Basilisa, Dinagat Island, Province of
Surigao del Norte.
Bounded on the Northeast, Southwest and Northwest, along

lines 70-71-72-73-1 to 70 by Surigao Strait, beginning at point
marked “1” on the plan being N. 61º 23W., 6,609.28 m. from SRN-3,
Dinagat Island, thence:
S. 86º51′ E., 57.25 m. to point 2;

S. 42º49′ E., 241.50 m. to point 3;
S. 54º26′ W., 46.91 m. to point 4;
S. 01º30′ W., 114.04 m. to point 5;
S. 31º03′ W., 94.83 m. to point 6;
S. 39º36′ E., 85.27 m. to point 7;
S. 67º29′ E., 117.51 m. to point 8;
S. 48º42′ E., 172.01 m. to point 9;
S. 0º28′ W., 84.06 m. to point 10;
S. 24º24′ E., 96.50 m. to point 11;
S. 82º32′ E., 114.46 m. to point 12;
N. 75º22′ E., 116.35 m. to point 13;
S. 54º49′ E., 90.28 m. to point 14;
1718
S. 87º00′ E., 32.35 m. to point 15;

N. 49º08′ E., 93.38 m. to point 16;
S. 80º32′ E., 11.61 m. to point 17;
S. 15º57′ E., 106.75 m. to point 18;
S. 02º08′ E., 48.96 m. to point 19;
N. 72º08′ E., 55.93 m. to point 20;
S. 52º56′ E., 63.20 m. to point 21;
S. 04º17′ W., 131.56 m. to point 22;
N. 61º23′ E., 29.04 m. to point 23;
S. 40º27′ E., 39.82 m. to point 24;
S. 22º02′ E., 153.83 m. to point 25;
S. 00º49′ E., 183.87 m. to point 26;
S. 80º27′ E., 113.22 m. to point 27;
N. 70º08′ E., 145.65 m. to point 28;
S. 40º05′ E., 84.74 m. to point 29;
N. 60º28′ E., 68.91 m. to point 30;
S. 87º41’E., 103.70 m. to point 31;
N. 60º47′ E., 83.54 m. to point 32;
N. 68º52′ E., 97.35 m. to point 33;
N. 89º02′ E., 69.23 m. to point 34;
S. 10º05′ W., 124.11 m. to point 35;
S. 26º01′ E., 100.83 m. to point 36;
S. 04º33′ W., 99.72 m. to point 37;
S. 43º23′ E., 60.05 m. to point 38;
N. 85º58′ E., 93.31 m. to point 39;
S. 47º29′ E., 82.52 m. to point 40;
S. 20º51′ W., 93.48 m. to point 41;
S. 16º26′ E., 138.70 m. to point 42;
1719
S. 34º52′ E., 155.73 m. to point 43;

S. 52º03′ W., 155.12 m. to point 44;
N. 75º40′ W., 332.65 m. to point 45;
N. 42º28′ W., 61.11 m. to point 46;
N. 14º54′ E., 39.27 m. to point 47;
N. 45º36′ E., 77.37 m. to point 48;
N. 15º15′ W., 134.70 m. to point 49;
N. 51º30′ W., 359.29 m. to point 50;
N. 65º05′ W., 276.75 m. to point 51;
N. 80º29′ W., 107.12 m. to point 52;
S. 63º27′ W., 124.71 m. to point 53;
N. 81º55′ W., 144.74 m. to point 54;
S. 39º15′ W., 179.62 m. to point 55;
S. 76º13′ W., 215.08 m. to point 56;
N. 18º51′ W., 84.55 m. to point 57;
N. 40º33′ W., 72.31 m. to point 58;
N. 79º04′ W., 53.15 m. to point 59;
N. 19º04′ E., 78.94 m. to point 60;
N. 37º35′ W., 15.42 m. to point 61;
S. 89º59′ W., 180.53 m. to point 62;
N. 26º30′ W., 450.52 m. to point 63;
N. 56º33′ W., 129.59 m. to point 64;
N. 00º57′ E., 93.54 m. to point 65;
N. 25º54′ W., 93.47 m. to point 66;
N. 06º23′ W., 304.92 m. to point 67;
N. 18º05′ W., 179.72 m. to point 68;
N. 08º52′ E., 240.44 m. to point 69;
N. 31º07′ E., 114.99 m. to point 70;
1720
N. 81º03′ E., 22.00 m. to point 71;

S. 34º27′ E., 45.28 m. to point 72;
S. 50º54′ E., 100.45 m. to point 73;
S. 61º25′ E., 105.85 m. to point of
BARANGAYS COLUMBUS AND CORING

BASILISA, DINAGAT ISLAND
A parcel of land, situated in the Barangays of Columbus

and Coring, Municipality of Basilisa, Dinagat Island, Province of
Surigao del Norte.
Bounded on the Northeast, along lines 9-10-11-12-13-14-15-

16-17 by Mineral Reservation; on the Southeast, Southwest and
Northwest, along lines 17 to 46, 1 to 9 by Surigao Strait, beginning
at a point marked “1” on the plan being N. 56º01’W., 10,382.76 m.
from NAMRIA STA. SRN-3, Municipality of Dinagat, thence:
N. 25º20′ W., 70.73 m. to point 2;

N. 05º 48′ E., 72.96 m. to point 3;
N. 06º35′ E., 255.27 m. to point 4;
N. 01º33′ W., 171.18 m. to point 5;
N. 14º13′ E., 71.69 m. to point 6;
N. 37º53′ E., 115.23 m. to point 7;
N. 75º40′ E., 204.08 m. to point 8;
N. 40º25′ E., 180.54 m. to point 9;
S. 40º57′ E., 88.58 m. to point 10;
S. 55º58′ E., 124.19 m. to point 11;
N. 88º01′ E., 100.05 m. to point 12;
S. 50º39′ E., 188.88 m. to point 13;
1721
S. 32º23′ E., 327.67 m. to point 14;

S. 01º21′ W., 31.36 m. to point 15;
S. 68º00′ E., 84.17 m. to point 16;
S. 39º02′ E., 148.03 m. to point 17;
S. 23º25′ W., 221.06 m. to point 18;
S. 05º55′ E., 145.71 m. to point 19;
S. 79º11′ W., 135.51 m. to point 20;
S. 28º38′ W., 121.20 m. to point 21;
S. 51º02′ W., 25.39 m. to point 22;
S. 50º14′ W., 91.84 m. to point 23;
S. 45º51′ W., 138.25 m. to point 24;
S. 68º02′ W., 68.66 m. to point 25;
S. 47º44′ W., 168.96 m. to point 26;
S. 49º35′ W., 207.66 m. to point 27;
S. 60º53′ W., 160.69 m. to point 28;
S. 16º11′ W., 101.74 m. to point 29;
S. 25º21′ W., 40.46 m. to point 30;
N. 64º47′ W., 68.60 m. to point 31;
N. 12º21′ E., 241.50 m. to point 32;
N. 03º05′ W., 29.07 m. to point 33;
N. 57º44′ E., 162.19 m. to point 34;
S. 73º23′ E., 48.59 m. to point 35;
N. 78º17′ E., 68.48 m. to point 36;
N. 01º09′ W., 284.98 m. to point 37;
N. 17º14′ W., 74.03 m. to point 38;
N. 45º11′ W., 36.73 m. to point 39;
N. 00º40′ W., 83.90 m. to point 40;
N. 22º39′ E., 49.09 m. to point 41;
1722
N. 33º47′ W., 161.67 m. to point 42;

S. 52º30′ W., 131.28 m. to point 43;
S. 74º57′ W., 118.76 m. to point 44;
S. 51º44′ W., 35.88 m. to point 45;
N. 65º56′ W., 39.91 m. to point 46;
N. 02º34′ W., 25.50 m. to point of
BARANGAY RIZAL, EMEE ROXAS BASILISA

DINAGAT ISLAND
A parcel of land situated in the Barangays of Rizal, Emee and

Roxas, Municipality of Basilisa, Dinagat Island, Province of Surigao
del Norte;
Bounded on the Northeast, Southeast, Southwest and

Northwest, along lines 83 to 101, and 1 to 83 by Surigao Strait,
beginning at point marked “1” on the plan being N. 61º55’W.,
10,343.99 m. from NAMRIA STA. SRN-3, Dinagat Island, thence:
S. 28º32′ E., 125.54 m. to point 2;

S. 16º53′ E., 197.00 m. to point 3;
S. 31º16′ E., 74.52 m. to point 4;
S. 29º21′ E., 16.15 m. to point 5;
S. 23º08′ E., 265.70 m. to point 6;
S. 54º29′ E., 84.94 m. to point 7;
S. 07º32′ W., 247.34 m. to point 8;
S. 04º02′ W., 32.40 m. to point 9;
S. 17º07′ W., 41.12 m. to point 10;
S. 33º13′ W., 71.23 m. to point 11;
S. 74º09′ W., 35.14 m. to point 12;
1723
S. 22º07′ W., 45.66 m. to point 13;

S. 11º32′ W., 38.50 m. to point 14;
S. 14º12′ W., 37.36 m. to point 15;
S. 11º13′ E., 36.70 m. to point 16;
S. 64º55′ W., 95.81 m. to point 17;
S. 33º40′ W., 37.08 m. to point 18;
S. 75º34′ W., 25.20 m. to point 19;
S. 50º09′ W., 47.84 m. to point 20;
S. 76º33′ W., 30.20 m. to point 21;
S. 38º58′ W., 63.47 m. to point 22;
S. 44º07′ W., 64.82 m. to point 23;
S. 84º26′ W., 80.16 m. to point 24;
S. 06º48′ W., 79.05 m. to point 25;
S. 14º07′ W., 990.17 m. to point 26;
N. 23º21′ W., 450.25 m. to point 27;
S. 72º45′ W., 58.00 m. to point 28;
N. 77º40′ W., 221.86 m. to point 29;
N. 41º04′ E., 48.52 m. to point 30;
N. 81º15′ E., 374.11 m. to point 31;
N. 19º37′ E., 147.92 m. to point 32;
N. 22º17′ E., 43.87 m. to point 33;
N. 08º15′ E., 166.25 m. to point 34;
N. 01º41′ E., 111.10 m. to point 35;
N. 21º07′ W., 158.31 m. to point 36;
N. 10º56′ W., 56.23 m. to point 37;
N. 23º26′ W., 161.50 m. to point 38;
N. 30º18′ E., 37.07 m. to point 39;
N. 10º46′ W., 55.52 m. to point 40;
1724
N. 04º34′ E., 74.04 m. to point 41;

N. 14º34′ W., 59.20 m. to point 42;
N. 08º26′ W., 40.87 m. to point 43;
N. 46º06′ E., 68.10 m. to point 44;
N. 43º48′ E., 73.12 m. to point 45;
N. 23º21′ E., 17.96 m. to point 46;
N. 06º26′ E., 118.57 m. to point 47;
N. 41º09′ W., 63.78 m. to point 48;
N. 64º14′ W., 44.41 m. to point 49;
N. 25º01′ W., 41.20 m. to point 50;
N. 41º13′ W., 47.83 m. to point 51;
N. 04º09′ E., 71.76 m. to point 52;
N. 37º30′ W., 75.06 m. to point 53;
N. 77º42′ W., 58.79 m. to point 54;
N. 30º58′ W., 58.65 m. to point 55;
N. 04º02′ E., 46.81 m. to point 56;
N. 09º55′ E., 76.08 m. to point 57;
N. 10º09′ W., 35.90 m. to point 58;
N. 03º17′ E., 20.38 m. to point 59;
N. 25º35′ E., 60.77 m. to point 60;
N. 40º15′ E., 43.40 m. to point 61;
N. 08º59′ E., 31.78 m. to point 62;
N. 33º11′ E., 37.23 m. to point 63;
N. 05º44′ E., 59.56 m. to point 64;
N. 06º12′ E., 50.01 m. to point 65;
N. 35º09′ W., 59.24 m. to point 66;
N. 21º14′ W., 41.43 m. to point 67;
N. 40º44′ W., 57.40 m. to point 68;
1725
N. 38º30′ W., 126.98 m. to point 69;

N. 54º55′ W., 120.70 m. to point 70;
N. 17º25′ W., 135.24 m. to point 71;
N. 50º49′ W., 26.26 m. to point 72;
S. 82º50′ W., 121.72 m. to point 73;
N. 18º06′ W., 151.10 m. to point 74;
N. 48º39′ W., 92.91 m. to point 75;
N. 60º36′ W., 113.27 m. to point 76;
N. 09º39′ W., 102.03 m. to point 77;
N. 10º35′ W., 165.73 m. to point 78;
N. 53º16′ W., 57.44 m. to point 79;
N. 15º27′ E., 154.57 m. to point 80;
N. 64º38′ E., 161.98 m. to point 81;
N. 17º27′ E., 92.20 m. to point 82;
N. 12º29′ W., 35.00 m. to point 83;
N. 79º59′ E., 18.00 m. to point 84;
S. 43º50′ E., 80.27 m. to point 85;
S. 64º25′ E., 82.17 m. to point 86;
S. 78º57′ E., 121.66 m. to point 87;
S. 79º01′ E., 92.65 m. to point 88;
S. 37º08′ E., 89.70 m. to point 89;
S. 25º46′ E., 66.12 m. to point 90;
S. 47º24′ E., 107.16 m. to point 91;
S. 20º18′ E., 241.02 m. to point 92;
S. 25º16′ E., 240.12 m. to point 93;
S. 30º35′ E., 127.94 m. to point 94;
S. 30º13′ E., 75.84 m. to point 95;
S. 04º37′ E., 59.72 m. to point 96;
1726
S. 43º18′ E., 73.83 m. to point 97;

S. 23º44′ E., 119.25 m. to point 98;
S. 35º13′ E., 161.79 m. to point 99;
S. 36º15′ E., 68.92 m. to point 100;
S. 24º00′ E., 44.05 m. to point 101;
S. 35º40′ E., 80.75 m. to point of
beginning; containing an area of 200.8183 hectares, more or less.
PARCEL 1
BARANGAY PUERTO PRINCESA
A parcel of land (Parcel 1) situated in the Barangay of Puerto

Princesa, Municipality of Basilisa, Dinagat Island, Province of
Surigao del Norte.
Bounded on the North along lines 25 to 37 by mineral area,

along lines 37-38 by mangrove area; on the East, along lines 38-39-
40-1 by mineral area; on the South and West, along lines 1 to 25 by
Surigao Strait, beginning at a point marked “1” on the plan being N.
35º45’W., 19,267.55 m. from NAMRIA STA. SRN-3, Dinagat Island,
thence:
N. 70º12′ W., 270.94 m. to point 2;

N. 89º44′ W., 119.20 m. to point 3;
N. 79º20′ W., 258.69 m. to point 4;
S. 72º18′ W., 76.70 m. to point 5;
N. 74º36′ W., 75.41 m. to point 6;
N. 57º01′ W., 50.61 m. to point 7;
N. 45º49′ W., 103.46 m. to point 8;
N. 41º58′ W., 87.89 m. to point 9;
N. 39º19′ E., 43.37 m. to point 10;
1727
N. 06º34′ W., 25.42 m. to point 11;

N. 39º13′ W., 26.60 m. to point 12;
N. 08º42′ W., 52.86 m. to point 13;
N. 30º45′ W., 35.34 m. to point 14;
N. 59º45′ W., 32.39 m. to point 15;
N. 48º39′ W., 34.02 m. to point 16;
N. 02º51′ E., 156.14 m. to point 17;
N. 36º23′ W., 61.00 m. to point 18;
N. 07º59′ E., 134.57 m. to point 19;
N. 35º02′ W., 84.13 m. to point 20;
N. 21º01′ E., 164.80 m. to point 21;
N. 13º47′ E., 248.13 m. to point 22;
N. 03º17′ E., 185.47 m. to point 23;
N. 72º46′ W., 29.59 m. to point 24;
N. 27º15′ W., 101.70 m. to point 25;
S. 56º22′ E., 240.79 m. to point 26;
N. 87º30′ E., 245.57 m. to point 27;
S. 31º22′ W., 522.53 m. to point 28;
S. 18º49′ W., 41.88 m. to point 29;
S. 33º43′ E., 192.30 m. to point 30;
S. 26º58′ W., 320.36 m. to point 31;
S. 56º08′ E., 318.71 m. to point 32;
S. 82º23′ E., 219.61 m. to point 33;
N. 25º39′ E., 758.62 m. to point 34;
N. 21º10′ E., 514.48 m. to point 35;
S. 87º30′ W., 245.57 m. to point 36;
N. 58º45′ E., 287.82 m. to point 37;
S. 61º11′ E., 105.78 m. to point 38;
1728
S. 57º22′ E., 161.36 m. to point 39;

S. 15º19′ E., 1,393.47 m. to point 40;
S. 08º35′ W., 124.36 m. to point of
PARCEL 2

Surigao del Norte;
Bounded on the Northeast and Southeast, along lines 7-8-1-2

by Surigao Strait; on the South, along lines 2-3-4-5 by mangrove
area; on the Southwest and West, by mineral area, beginning at
point marked “1” on the plan being N. 37º40’W., 18,673.536 m. from
SRN-3 of Dinagat Island, thence:
S. 34º58′ W., 95.69 m. to point 2;

S. 78º05′ W., 20.01 m. to point 3;
N. 59º17′ W., 30.16 m. to point 4;
S. 37º14′ W., 49.52 m. to point 5;
N. 45º02′ W., 75.94 m. to point 6;
N. 05º10′ W., 149.06 m. to point 7;
S. 20º48′ E., 53.66 m. to point 8;
S. 75º43′ E., 184.07 m. to point of
1729
PARCEL 3
A parcel of land (Parcel 3), situated in the Barangay of Puerto

Surigao del Norte.
Bounded on the Northwest and Northeast, along lines 1 to

15 by mangrove area; on the East and Southwest, along lines 15
to 20 by Surigao Strait, along lines 20 to 25 by mangrove area,
along lines 25 to 29 by Surigao Strait, along lines 29-1 by mineral
area, beginning at point marked “1” on the plan being N. 37º56’W.,
19,160.065 m. from SRN-3 of Dinagat Island, thence:
N. 59º29′ E., 78.77 m. to point 2;

N. 00º25′ W., 153.88 m. to point 3;
N. 75º44′ E., 42.11 m. to point 4;
S. 19º58′ E., 43.97 m. to point 5;
S. 02º54′ W., 85.33 m. to point 6;
S. 22º14′ W. 82.04 m. to point 7;
S. 05º55′ W., 69.06 m. to point 8;
N. 41º01′ E., 14.99 m. to point 9;
N. 49º36′ E., 39.26 m. to point 10;
N. 81º43′ E., 43.64 m. to point 11;
S. 62º20′ E., 50.78 m. to point 12;
S. 30º48′ E., 43.16 m. to point 13;
N. 69º41′ E., 35.66 m. to point 14;
S. 65º51′ E., 48.92 m. to point 15;
S. 03º55′ E., 66.72 m. to point 16;
S. 18º26′ W., 54.34 m. to point 17;
S. 14º50′ E., 43.75 m. to point 18;
1730
S. 03º49′ E., 13.49 m. to point 19;

N. 83º54′ W., 49.31 m. to point 20;
N. 43º11′ W., 122.29 m. to point 21;
N. 72º31′ W., 26.44 m. to point 22;
S. 89º06′ W., 98.88 m. to point 23;
S. 55º06′ W., 14.19 m. to point 24;
S. 11º46′ W., 19.03 m. to point 25;
N. 48º11′ W., 7.24 m. to point 26;
N. 14º30′ E., 29.78 m. to point 27;
N. 08º39′ E., 95.36 m. to point 28;
N. 79º26′ W., 89.15 m. to point 29;
N. 25º56′ W., 58.29 m. to point of
PARCEL 4

Surigao del Norte.
Bounded on the Northwest and Northeast, along lines 1 to

6 by mangrove area, along lines 6-7-8-9 by mineral area; on the
Southwest, along lines 9 to 12, 12-1 by Surigao Strait, beginning at
point marked “1” on the plan being N. 38º35’W., 18,588.56 m. from
SRN-3, Dinagat Island, thence:
N. 69º37′ W., 146.13 m. to point 2;

S. 28º23′ W., 85.81 m. to point 3;
S. 13º35′ E., 67.92 m. to point 4;
S. 31º50′ E., 32.49 m. to point 5;
S. 86º30′ E., 27.15 m. to point 6;
1731
S. 57º44′ E., 10.77 m. to point 7;

S. 64º18′ W., 32.60 m. to point 8;
S. 52º30′ E., 42.13 m. to point 9;
N. 83º27′ W., 65.70 m. to point 10;
N. 58º38′ W., 81.19 m. to point 11;
N. 35º32′ W., 99.97 m. to point 12;
N. 59º35′ W., 67.77 m. to point of
PARCEL 5

Surigao del Norte.
Bounded on the Northwest, Northeast and Southeast, along

lines 3-4-5-1 by mineral area; on the Southwest and Northwest,
along lines 1-2-3 by Surigao Strait, beginning at point marked “1”
on the plan being N. 35º38′ W., 17,234.35 m. from SRN-3 of Dinagat
Island, thence:
N. 11º04′ W., 156.61 m. to point 2;

N. 03º50′ E., 58.57 m. to point 3;
N. 63º04′ E., 21.75 m. to point 4;
S. 17º52′ E., 199.30 m. to point 5;
S. 59º18′ W., 63.27 m. to point of
1732
PARCEL 6

Surigao del Norte.
Bounded on the North along lines 13-14 by mineral area; on

the East along lines 14 to 46 by mangrove area, along lines 46-47-48
by mineral area, along lines 48–53 by Surigao Strait; on the South,
along lines 53-54-1 by mineral area; on the West along lines 1 to 13
by Surigao Strait, Hagakhak Island, beginning at point marked “1”
on the plan being N. 43º29′ W., 17,909.31 m. from SRN-3, Dinagat
Island, thence:
N. 50º24′ W., 127.36 m. to point 2;

N. 14º32′ E., 87.61 m. to point 3;
N. 17º38′ W., 71.34 m. to point 4;
N. 39º15′ W., 188.99 m. to point 5;
N. 18º55′ E., 34.63 m. to point 6;
N. 05º58′ E., 239.36 m. to point 7;
N. 01º02′ E., 152.98 m. to point 8;
N. 05º07′ E., 150.13 m. to point 9;
N. 00º15′ E., 91.44 m. to point 10;
S. 88º22′ E., 54.42 m. to point 11;
N. 40º06′ W., 95.63 m. to point 12;
N. 11º06′ E., 79.37 m. to point 13;
N. 87º01′ E., 82.98 m. to point 14;
S. 43º02′ W., 81.41 m. to point 15;
S. 19º26′ E., 29.76 m. to point 16;
S. 79º36′ W., 73.64 m. to point 17;
1733
S. 05º34′ W., 96.66 m. to point 18;

N. 53º01′ W., 40.04 m. to point 19;
S. 38º19′ W., 18.40 m. to point 20;
S. 13º07′ E., 15.17 m. to point 21;
S. 52º58′ W., 55.43 m. to point 22;
S. 01º31′ W., 56.22 m. to point 23;
S. 57º09′ E., 27.98 m. to point 24;
N. 70º19′ E., 30.91 m. to point 25;
S. 68º03′ E., 16.53 m. to point 26;
S. 18º31′ E., 65.53 m. to point 27;
S. 03º03′ E., 50.14 m. to point 28;
S. 55º50′ W., 51.15 m. to point 39;
S. 24º20′ W., 28.05 m. to point 30;
S. 02º24′ W., 116.29 m. to point 31;
S. 16º44′ W., 42.85 m. to point 32;
S. 06º04′ W., 72.99 m. to point 33;
S. 17º34′ W., 60.32 m. to point 34;
S. 38º41′ E., 18.90 m. to point 35;
S. 55º41′ E., 48.45 m. to point 36;
S. 09º41′ W., 18.01 m. to point 37;
N. 62º13′ E., 35.45 m. to point 38;
N. 41º36′ E., 24.96 m. to point 39;
N. 06º55′ E., 157.01 m. to point 40;
S. 76º40′ E., 102.46 m. to point 41;
S. 27º21′ E., 109.35 m. to point 42;
S. 40º43′ E., 101.94 m. to point 43;
N. 37º00′ E., 158.50 m. to point 44;
1734
N. 01º32′ W., 135.86 m. to point 45;

S. 51º35′ E., 91.96 m. to point 46;
S. 18º20′ W., 61.94 m. to point 47;
S. 33º38′ E., 95.88 m. to point 48;
S. 50º05′ W., 99.48 m. to point 49;
S. 68º51′ W., 56.32 m. to point 50;
S. 37º47′ W., 30.21 m. to point 51;
S. 12º36′ W., 36.36 m. to point 52;
S. 00º32′ E., 94.71 m. to point 53;
S. 53º05′ W., 172.31 m. to point 54;
S. 25º45′ W., 210.51 m. to point of
PARCEL 7

Surigao del Norte;
Bounded on the North, Northeast, Southeast, Southwest and

Northwest, along lines 1 to 7 to 1 by Surigao Strait, Hagakhak Island
II, beginning at point marked “1” on the plan being N. 44º36W.,
18,810.52 m. from SRN-3, Dinagat Island, thence:
S. 74º25′ E., 55.47 m. to point 2;

S. 35º25′ E., 342.86 m. to point 3;
S. 16º44′ W., 46.34 m. to point 4;
N. 42º49′ W., 306.01 m. to point 5;
1735
N. 89º40′ W., 87.40 m. to point 6;

N.11º02′ E., 95.78 m. to point 7;
N. 62º43′ E., 43.09 m. to point of
PARCEL 7
MUNICIPALITY OF TUBAJON
DINAGAT ISLAND
A parcel of land (Parcel 7) situated in the Municipality of

Tubajon, Dinagat Island, Province of Surigao del Norte.
Bounded on the Northwest, along lines 25 to 30 to 1 by

shoreline; on the Northeast, Southeast and Southwest, along lines
1 to 25 by mineral reservation, beginning at point marked “1” on
the plan being N. 5º36’W., 1,130.11 m. from SRN STA No. 3, thence:
S. 60º34′ E., 612.67 m. to point 2;

S. 58º26′ E., 551.75 m. to point 3;
N. 01º18′ W., 1,048.00 m. to point 4;
S. 67º55′ E., 2,271.06 m. to point 5;
S. 67º27′ E., 1,502.90 m. to point 6;
S. 37º42′ E., 870.59 m. to point 7;
S. 45º80′ W., 488.80 m. to point 8;
S. 00º19′ W., 471.29 m. to point 9;
S. 34º20′ E., 1,311.79 m. to point 10;
S. 25º52′ E., 494.91 m. to point 11;
S. 47º26′ W., 2,384.68 m. to point 12;
S. 50º05′ W., 544.38 m. to point 13;
N. 88º12′ W., 278.92 m. to point 14;
S. 15º53′ W., 352.32 m. to point 15;
S. 35º47′ W., 99.91 m. to point 16;
1736
N. 53º04′ W., 887.19 m. to point 17;

N. 23º07′ E., 2,631.36 m. to point 18;
N. 88º16′ W., 1,569.13 m. to point 19;
N. 67º14′ W., 578.53 m. to point 20;
N. 65º18′ W., 653.97 m. to point 21;
N. 78º31′ W., 266.41 m. to point 22;
N. 33º34′ W., 1,043.97 m. to point 23;
N. 27º08′ E., 316.22 m. to point 24;
N. 14º51′ W., 541.51 m. to point 25;
S. 79º25′ E., 561.86 m. to point 26;
N. 30º13′ E., 133.76 m. to point 27;
S. 60º56′ E., 97.22 m. to point 28;
S. 32º13′ E., 194.50 m. to point 29;
N. 25º50′ W., 900.29 m. to point 30;
N. 50º30′ E., 779.37 m. to point of
beginning; containing an area of 1,935.0672 hectares, more or less.
PARCEL 3
BARANGAYS PUYO ISLAND AND SANTIAGO,
LORETO, DINAGAT ISLAND
A parcel of land (Parcel 3) situated in the Barangay of Puyo

Island and Santiago, Municipality of Loreto, Dinagat Island,
Province of Surigao del Norte.
Bounded on the Northeast, along lines 11 to 14; on the

Southeast, along lines 14 to 24-1-2; on the Southwest, along lines
2 to 10; on the Northwest, along lines 10-11, all by Panamaon Bay,
Surigao Strait, beginning at a point marked “1” on the plan being
N. 57º03 E., 1,973.76 m. from NAMRIA STA. SRN-4, Municipality
of Loreto, thence:
1737
S. 53º52′ W., 34.11 m. to point 2;

N. 68º49′ W., 59.37 m. to point 3;
N. 14º39′ W., 26.52 m. to point 4;
N. 48º26′ W., 169.05 m. to point 5;
N. 54º34′ W., 64.84 m. to point 6;
N. 43º07′ W., 136.22 m. to point 7;
N. 36º49′ W., 151.74 m. to point 8;
N. 61º25′ W., 158.00 m. to point 9;
N. 32º41′ W., 99.37 m. to point 10;
N. 46º56′ E., 956.35 m. to point 11;
S. 17º36′ E., 99.89 m. to point 12;
S. 18º03′ E., 221.67 m. to point 13;
S. 06º48′ W., 112.28 m. to point 14;
S. 72º15′ W., 61.41 m. to point 15;
S. 25º06′ W., 72.29 m. to point 16;
N. 74º08′ W., 41.37 m. to point 17;
S. 83º22′ W., 17.76 m. to point 18;
S. 24º27′ W., 206.99 m. to point 19;
S. 28º33′ W., 59.58 m. to point 20;
S. 02º32′ W., 254.52 m. to point 21;
S. 21º05′ W., 84.11 m. to point 22;
S. 26º39′ E., 97.17 m. to point 23;
S. 47º19′ E., 81.17 m. to point of
1738
BARANGAY LAPINIGAN ISLAND, CLAVER,

SURIGAO DEL NORTE
A parcel of land situated in the Barangay of Lapinigan Island,

Municipality of Claver, Province of Surigao del Norte.
Bounded on the Northeast, Southeast, Southwest and

Northwest, along lines 9 to 28-1 to 9 by Pacific Ocean and Candos
Bay, beginning at point marked “1” on the plan being S. 72º33’E.,
7,613 m. from BLLM No. 1, Pls-754, thence:
N. 31º53′ W., 162.88 m. to point 2;

N. 53º54′ W., 198.24 m. to point 3;
N. 66º28′ W., 179.35 m. to point 4;
S. 84º20′ W., 91.27 m. to point 5;
S. 84º06′ W., 54.73 m. to point 6;
S. 89º47′ W., 239.72 m. to point 7;
N. 13º38′ W., 292.78 m. to point 8;
N. 41º32′ E., 163.25 m. to point 9;
N. 07º51′ E., 248.27 m. to point 10;
N. 87º46′ E., 90.23 m. to point 11;
S. 36º51′ E., 22.16 m. to point 12;
S. 77º45′ E., 67.28 m. to point 13;
S. 83º51′ E., 186.07 m. to point 14;
S. 60º33′ E., 298.29 m. to point 15;
S. 70º32′ E., 177.46 m. to point 16;
S. 67º03′ E., 69.78 m. to point 17;
S. 09º00′ W., 98.39 m. to point 18;
S. 25º46′ E., 47.36 m. to point 19;
S. 41º08′ E., 72.55 m. to point 20;
S. 60º32′ E., 226.31 m. to point 21;
1739
S. 05º37′ W., 91.61 m. to point 22;

S. 33º58′ W., 94.89 m. to point 23;
S. 51º36′ W., 171.93 m. to point 24;
N. 87º16′ E., 2.10 m. to point 25;
S. 32º06′ W., 73.75 m. to point 26;
S. 50º31′ W., 118.97 m. to point 27;
S. 67º20′ W., 31.79 m. to point 28;
N. 85º39′ W., 126.54 m. to point of
The technical description and areas covered by this

Proclamation may be subject to change as a result of the final survey
and delineation on the ground. The Department of Agrarian Reform
(DAR) shall provide funds for the conduct of the surveys.
The following areas are excluded from the coverage of this

Proclamation:
1. All areas within the proclamation which fall under the

classification of timberland, forestland or unclassified
public land or those covered by the National Integrated
Protected Areas System (NIPAS);

P.D. No. 705, as amended, otherwise known as the Revised
Forestry Code of the Philippines, P.D. No. 1067 otherwise
known as the Water Code of the Philippines Republic Act
No. 1273 otherwise known as an Act to Amend Section
90 of C.A. 141, known as the Public Land Act and other
pertinent laws, rules and regulations.
1740
These areas are hereby reserved for environmental protection

purposes.

applications. Vested rights in the areas subject of this Proclamation
shall be respected.


year of Our Lord, Nineteen Hundred and Ninety-Seven.
By the President:

Executive Secretary
1741
TANGGAPAN NG PANGULO NG PILIPINAS

(OFFICE OF THE PRESIDENT OF THE PHILIPPINES)
RESERVING FOR RESETTLEMENT PURPOSES OF THE

RESIDENTS OF PANTABANGAN, NUEVA ECIJA,
SITUATED IN THE MUNICIPALITIES OP BONGABON AND
PANTABANGAN, PROVINCE OF NUEVA ECIJA; MARIA
AURORA, SUB-PROVINCE OF AURORA; AND DUPAX,
PROVINCE OF NUEVA VIZCAYA
WHEREAS, the Pantabangan Dam of the Upper Pampanga

River Project will submerge in its reservoir the town of Pantabangan
and seven of its barrios and require the resettlement of over 1,600
families;
WHEREAS, it is the obligation of the government to relocate

the town of Pantabangan and resettle the residents who will be
displaced by the reservoir inundation and make available to them
agricultural lands and other sources of livelihood; and
WHEREAS, certain parcels of public land have been found to

be available and suitable for development into resettlement sites for
the said residents;
NOW, THEREFORE, upon recommendation of the Secretary

of Agriculture and Natural Resources and by virtue of the powers
vested in me by law, I, FERDINAND E. MARCOS, President of the
Philippines, do hereby reserve for the resettlement of the residents
of Pantabangan who will be displaced by the reservoir inundation
and for purposes related thereto, as stipulated hereunder, certain
parcels of land of the public domain, subject to future survey, and
under the administration of the National Irrigation Administration
as implementing agency of the Upper Pampanga River Project
under Republic Act No. 5499;and the Department of Agrarian
Reform in accordance with the provisions of Republic Act No. 3844,
1742
as amended, which parcels of land are more particularly described

as follows:
PARCEL “A”
“A parcel of land identifiable as Lot ‘B’ Block I of the Bureau

of Forestry Land Classification Project No. 36-G, Province of Nueva
Ecija, situated in the Municipality of Pantabangan, Province of
Nueva Ecija, Island of Luzon, bounded on the. West by Lot “A”, Block
I, Bureau of Forestry Land Classification Project No. 36-G, Province
of Nueva Ecija, and by the reservoir area of the Pantabangan Dam;
on the North by the reservoir area of the Pantabangan Dam; and
on the East and South by public forest (Project No. 36-F, Block A,
province of Nueva Ecija), beginning at a point marked 217/3 on the
Plan of Block I, Project No. 36-G, which point is along the Rizal-
Pantabangan Road and 540 meters more or less from the concrete
monument marked DIA-N,
thence N 53 deg. 00 min. W., 1,040 meters to point 33;

thence N 15 deg. 00 min. W., 75 meters to point 34;
thence S 84 deg. 00 min. W., 200 meters to point 37;
thence N 62 deg. 00 min. W., 204 meters to .point 38;
thence N 24 deg. 00 min. E., 110 meters to point 39;
thence Due East, 100 meters to point 42;
thence N 08 deg. 00 min E., 220 meters to point 43;
thence S 63 deg. 00 min. E., 224 meters to point 46;
thence Due North, 220 meters to point 48;
thence S 63 deg. 00 min. E., 240 meters to point 52 ;
1743

thence N 13 deg, 00 min. E., 135 meters to point 54;
thence N 45 deg. 00 min. B., 215 meters to point 68;
thence Due South, 200 meters to point 70;
thence S 82 deg. 00 min. E., 200 meters to, point 83;
identical to FZ/48, Proj. No. 36-F, Block A; Timberland; thence to
point 84;
identical to FZ/49, Proj. No 36-F, Block A; Timberland; thence to
point 85;
point 86;
1744
identical to FZ/51, Proj. No. 36-F, Block. A; Timberland; thence to

point 87;
point 88;
point 89;
point 90;
thence S 26 deg. 00 min. E., 200 meters to-point 93;
thence S 36 deg. 00 min. W.,, 264 meters to point 99;
thence S 45 deg. 00 min. E., 10C meters to point 103;
thence S 35 deg. flu min. E., 205 meters to point 105;
thence foll. Tanawan Creek downstream on a general NE and NW
direction with a straight distance of 120 meters to point 113;
thence foll. Tanawan Crk. downstream on a general NW and NE
1745

thence foll. Tana wan Crk. downstream on’ a general NW and NE
thence foll. Tanawan Crk. downstream on a general NE and NW
thence Due West, 150 meters to point 125;
thence Due West, 20O meters to point 131;
thence Due South, 200 meters, to point 135;
thence N 71 deg. 00 min. W.,278 meters to point 138;
thence N 63 deg. 00 ruin. W., 223 meters to point 147;
thence S 18 deg. 00 min. E., 316 meters to point 148:
1746

thence following the Rizal Pantabangan Road in a more or less

northern direction with a straight distance of about 2070 meters
to the point of beginning; containing an approximate area of ONE
THOUSAND SIX HUNDRED NINETY SIX (1,696) HECTARES”
of which shall be alloted two hundred sixty-five (265) hectares on
the west side of the Road to Pantabangan for park site purposes,
about two hundred (200) hectares for the townsite of Pantabangan,
twenty (20) hectares for the National Irrigation Administration and
the Department of Agrarian Reform for settlement administration
purposes, and ten (10) hectares as Nursery of the Bureau of Forestry;
PARCEL ”B”
“A parcel of land identifiable as Block II of Bureau of Forestry

Land Classification Survey No. 36-G, province of Nueva Ecija,
situated in the municipality of Pantabangan, province of Nueva
Ecija, Island of Luzon, bounded on the West by Cadaclan River, on
the North’ by Block II, (alienable or disposable) Project No. 36-F and
on the East and South by Forest Land (Project No. 36-F, Block A,
province of Nueva Ecija) beginning at a point marked 1 on the plan,
thence foll. Cadaclan River on a general NW and NE direction

with a, straight distance of about 240 m., to point 2 identical to Cor.
FZ/65, Timberland, Project No. 36-F, Block A, Pantabangan Nueva
Ecija;
1747
thence to numerically successive points 3 to 13, identical to

Corners FZ/65 to FZ/76, Timberland, Project No. 36-F; Block A,
Pantabangan, Nueva Ecija,
thence S 86. deg. 00 min. W., 560 meters, to point 14;

thence foll, road on a general SW. and SE., direction with a straight
distance of about 600 meters to point 16;
thence S. 29 deg. 00 mm. E., 340 meters to point 17;
thence foll, creek downstream on a general NW direction with a
straight distance of about 200 meters to point 21;
straight distance of about 940 meters, to point 22;
thence foll, creek downstream on a. general NW direction with a
straight distance of about 860 meters to point 23;
straight distance of about 600 meters to the point of beginning;
containing an approximate area of TWO HUNDRED (200)
HECTARES”, of which shall be alloted ten (10) hectares more or
less as barrio site.
PARCEL “C”
“A parcel of land identified as Project No. 36-1, Bureau of

Forestry Land Classification, in the municipality of Maria Aurora,
sub-province of Aurora, island of. Luzon, bounded on the north by
Project No. 5-P municipality of Dupax, province of Nueva Vizcaya;
on the east by unclassified public forest; on the south by the
Cabatangan River and portion of Project No. 36-H, Timber-land,
L.C. 2342;; and on the west by the Dicoliat River and Project No.
36, Block I and II, L.C. 1772, beginning at-the point marked “1” on
the plan,

1748
thence N 80 deg. 00 min. E.,, 325 meters to point 4;

thence foll. Dicanile River in a NW direction with a straight distance

of 880 meters to point 7; thence foll. Dicanile River in a NW direction
with a straight distance of 420 meters to point 8;
thence S. 88 deg. 00 min. E., 200 meters to point 9;

thence N 63 deg. 00 min.. E., 250 meters to point 14;
thence foll, creek in a NE direction with a straight distance of 580
meters to point 16;
thence foll, provincial boundary of Nueva Vizcaya and subprovince
of Aurora N 40 E 2,540 meters to point 21;
thence foll, Creek in SW direction with a straight distance of about
230 meters to point 25;
thence foll, Creek in SW direction with a straight distance of about
1749

thence foll. Diayo Creek upstream right branch with a straight
distance of 410 meters to point 39;
thence foll. Diayo Creek upstream with a straight, distance of 130
meters to point 40;
thence foll. logging road in a general S and SE direction with a
straight distance of 380 meters to point 41;
thence foll. logging road in a general S and SE direction with a
thence foll. Logging road in a general S and SE direction with a
thence foll. Dimutol Creek downstream with a straight distance of
about 550 meters to point 44;
thence foll. Dicanile River downstream with a straight distance of
1750

640 meters to .point 56;
thence foll. Cabatangan River upstream, W and then S direction
thence foll. Cabatangan River upstream in SW direction with a
thence foll. Cabatangan River upstream in SW direction with a
thence foll. Dilawitan Creek upstream in a general West direction
thence foll. Dilawitan Creek upstream general West direction with
a straight distance of 190 meters to point 61;
thence foll. Dilawitan Creek upstream in a general West direction
thence foll. Dilawitan Creek upstream in a NW direction, with a
straight distance of 4G0 meters to point 63;
thence foll. logging road in a NW direction with a straight distance
of about 400 meters to point 65;
thence N 12. deg. 00 min. E., 360 meters to point 66;
thence foll. Buloy Creek upstream with a straight distance of 410
meters to point 68;
thence N 45 deg. 00. min. W., 220 meters to point 75;
thence N 50 deg. 00 min. W., 400 meters to point 76
thence N 17 deg. 00 min. E., 100 meters to the point of
beginning; containing an approximate area of TWO THOUSAND
SIX HUNDRED FOUR (2,604) HECTARES” of which shall be
alloted not more than one hundred fifty (150) hectares as barrio
sites.
1751
PARCEL “D”
“A parcel of land identified as Project No. 5-P, Bureau of

Forestry Land Classification Survey, in the municipality of Dupax,
province of Nueva Vizcaya, island of Luzon, bounded on the North
by unclassified public forest; on the east by Project 36-1, Bureau of
Forestry Land Classification Survey, municipality of Maria Aurora,
sub-province of Aurora; on the south by Project No. 36. Block V; in
the municipality of Dupax, province of Nueva Vizcaya; and on the
west by unclassified public forest, beginning at a point marked “1”
on the plan,

thence foll. Dicanile River upstream a straight distance of 580
meters to point 3;
.thence S 77 deg. 00 min. E., 160 meters to point 13;
.thence S 77 deg. 00 min. E., 160 meters to point 14;
thence N 73 deg. 00 min. E., 195 meters: to point 18;
thence N 73 deg. 00 min. E., 200′ meters to point 20;
thence N 46 deg. 00 min. E’., 225 meters to- point 22;
1752

thence N 49 deg. 00 min. E., 225 meters to point 31.
thence foll. Creek in a NE direction with a straight distance of about
thence. Due East, 250 meters to point 40;
thence S 40 deg. 00 min. W., 2,540 meters to point of beginning;
containing an approximate area of FOUR HUNDRED FOUR (404)
HECTARES”;
PARCEL “E”
A parcel of land known as the Bongabon Stock Farm

Reservation located in Bongabon, Nueva Ecija, established under
Proclamation No. 20 dated July 27, 1921, which is hereby revoked,
as amended by Proclamation No. 377 dated March 13, 1953, and
Proclamation No. 115 dated February 7, 1955, containing an area
of 2,102.9117 hectares, more or less, excluding such areas as may
be needed for community development or plant experiment station
purposes as indicated by the NIA.
PROVIDED, that after the -settlers are transferred to the

resettlement sites, Parcels “C” and “D” above shall thereafter be
under the sole administration of the Department of Agrarian
1753
Reform; however, Parcels “A”, “B”, and “E” shall remain under the
administration of the National Irrigation Administration and the
Department of Agrarian Reform over separate specific areas to be
defined in a memorandum of agreement between these two agencies.

of Our Lord, nineteen hundred and seventy-two.

By the President:

Executive Secretary
1754
MALACAÑANG
MANILA
DECLARING CERTAIN DELINEATED AREAS OF LAND

COVERING THE AREAS OF SAMAL ISLANDS SITUATED
IN THE MUNICIPALITY OF KAPUTIAN, DAVAO DEL
NORTE PROVINCE WITH POTENTIAL TOURISM VALUES
PURSUANT TO PRESIDENTIAL PROCLAMATION NO. 1801
Whereas, the Department of Tourism has identified Samal

Islands as a priority area of tourism development under the
Philippine Tourism Master Plan;
Whereas, the islands of Malipano-Talikud, Ligid and

the eastern side of Samal was declared as tourist zones under
Presidential Proclamation No. 1801 dated 10 November 1978;
Whereas, under Presidential Proclamation No. 1801, the

Philippine Tourism Authority was tasked to delineate within the
tourist zone areas with potential tourism values and coordinate
the integrated development of these areas for the optimum use of
natural assets and attractions, as well as existing facilities;
Whereas, Republic Act No. 7016 identifies Samal Islands as a

potential Special Economic Zone;
Whereas, the identified areas for tourism development are

consistent with the Municipality of Kaputian’s Comprehensive
Development Plan;
Whereas, in harmony with the government’s land reform

program, the identified areas for tourism development do not
include landholdings covered under R.A. 6657 or the Comprehensive
Agrarian Reform Program;
1755

Philippines, do hereby set aside and declare certain parcels of land
covering Samal Islands situated in the Municipality of Kaputian,
Davao del Norte Province as tourist zones.
The technical description of the delineated areas is based on

the ground survey totalling to 4,128.6038 hectares of lands.
MALIPANIO ISLET
Bearings and Distances

TP TO LINE 1-2 LINE 2-3 LINE 3-4 LINE 4-5 AREA IN
CORNER SQ. METERS
S78º48’E S53º13’E S48º26′ W S27º08’W N74º26’W
691.01 126.76 32.05 248.43 80.11

N33º10’E N39º27’W N22º34’W N34º51’W
28.24 153.64 146.46 143.46

S69º23’E N85º41’E S53º53’E N88º45’E
57.48 57.15 21.45 58.95

S64º20’E
8.2858 HAS.
149.60
BARANGAY SAN REMIGIO

TP TO LINE 1-2 LINE 2-3 LINE 3-4 LINE 4-5 AREA IN SQ.
CORNER METERS
N66º02’E N38º36’E N31º09’W N42º17’E
330.35 168.68 136.71 136.62

N15º22’E N10º56’E N31º52’E N2º03’W
139.27 88.70 127.50 382.02
1756
N39º10’E N11º08’W N18º09’E N72º48’W
20.78 226.72 101.93 147.69

N6º33’E N27º53’E N29º40’E N70º15’E
280.75 407.01 390.53 207.18

S77º01’E N33º34’E S62º42’E S22º02’E
302.74 135.62 174.43 367.90

S52º00W S72º31’E S58º24’E S30º12’E
40.61 133.15 305.29 367.90

S64º25’W S1º15’W S72º23’W S45º46’W
218.98 460.11 330.49 265.19

S19º56’W S10º23’E S11º45’W S88º13’W
255.98 122.00 383.03 32.02

S19º24’W S36º04’W S10º26’W S3º18’E
150.55 113.81 347.76 173.29

S54º28’W S46º33’W S22º29’E S5º35’W
215.06 130.86 195.74 578.60

S19º52’W S18º13’W N20º47’W N20º47’W
115.42 315.09 358.50 461.68

N20º47’W N20º47’W N20º47’W N20º47’W
140.85 363.33 150.46 208.27

N20º47’W N20º47’W 405.0202 HAS.
98.35 217.99
BARANGAY PANGUBATAN

CORNER METERS
1757
N1º15’E N64º25’E N30º12’W N58º24’W
460.11 218.98 367.90

N72º31’W N52º00’E N22º02’W N62º42’W
133.15 40.61 226.55 174.43

S33º34’W N77º01’W S70º15’W N61º10’W
135.62 302.74 270.18 364.01

N57º19’W N7º21’W N2º02’W S72º10’E
247.00 224.62 208.75 145.68

N4º36’W N65º42’E N35º58’W N0º25’E
177.53 214.33 39.11 278.80

N12º03’W N5º45’E N88º29’E N10º48’E
90.84 508.18 327.58 100.00

N76º37’E S61º11’E S60º56’E N87º55’E
67.39 203.73 151.83 258.93

N87º14’E N88º23’E S81º57’E N5º28’W
128.62 116.73 86.15 283.27

S85º09’E N31º10’W N81º16’E N86º41’E
440.62 374.85 580.74 378.95

N5º04’W N67º41’E S7º48’E S8º25’E
53.97 296.08 161.88 209.17

S15º40’E S11º10’E S20º09’E S14º22’E
264.21 96.16 104.55 96.08

S19º50’E S0º59’E S27º03’E S22º49’E
93.95 214.56 290.92 236.14

S0º01’E S28º44’W S57º33’W S58º53’W
155.89 79.28 288.30 399.39
1758
S44º4’W S32º17’W S41º22’W S18º51’W
40.38 55.37 31.06 26.49

S36º36’W S18º53’W S16º48’W S18º47’W
13.85 58.96 45.50 83.20

S29º11’W S27º31’W S29º50’W S28º43’W
55.77 58.58 60.17 74.44

S16º11’E S81º46’E S2º19’E N68º41’W
113.06 117.11 125.74 97.74

S72º24’W N82º52’W S36º43’W S34º57’W
90.90 143.81 149.05 216.17

S16º40’W S19º50’E S32º46’W S51º33’W
73.95 167.09 144.00 378.04

S83º25’W 737.5389 HAS
225.58
BARANGAY KANA-AN

CORNER METERS
S67º41’W S5º04’E S86º41’W S81º16’W
296.08 53.97 378.95 580.74

N33º41’E N21º48’W N1º18’W N83º44’W
180.28 484.66 220.06 256.53

S16º23’W N58º50’W N80º01’W N14º47’W
20.88 251.25 126.92 333.03

N30º50’E N20º10’W N1º21’E N7º16’W
234.10 86.31 640.18 695.57
1759
N13º16’W N32º51’E N19º39’W S65º33’E
575.35 285.70 74.33 302.08

N88º42’E N82º51’E S78º30’E N28º32’E
440.11 297.31 301.04 89.07

N24º14’E S42º08’E N84º48’E S6º40’E
205.11 141.60 110.45 448.03

S15º55’W S11º19’W S3º09’E S24º25’E
576.07 326.34 346.52 142.76

S5º48’E S3º16’W S14º16’E S30º37’E 542,4475 HAS.
613.14 315.51 296.14 619.29
BARANGAY LIBERTAD

CORNER METERS
N20º47’W N20º47’W N20º47’W N20º47’W
112.91 186.48 113.43 83.67

N20º47’W N20º47’W N20º47’W N20º47’W
507.70 60.25 437.04 273.04

N20º47’W N20º47’W N20º47’W N20º47’W
243.89 234.36 388.37 76.91

N20º47’W N20º47’W N20º47’W N20º47’W
301.24 284.36 20.94 46.49

S88º59’E N12º55’E N73º13’E N17º52’W
202.09 226.09 65.80 89.59

N80º04’E N85º32’E N88º42’E S32º20’E
227.04 222.80 322.05 189.50
1760
S740 58’E N200 56’W N75º04’E N2º51’E
90.05 209.85 15.52 306.76

S77º31’E N1º343’E N86º18’E S79º31’E
254.53 143.09 70.25 205.16

S12º03’E S0º25’W S35º58’E S65º42’W
90.84 278.80 39.11 214.33

S4º36’E N72º10’W S2º02’E S7º21’E
177.53 145.68 208.75 224.62

S67º19’E S61º10’E S29º40’W N27º53’W
247.00 364.01 390.53 407.01

S6º33’W S72º48’E S18º09’W S11º08’E
280.75 147.69 101.93 226.72

S39º10’W S2º03’E S31º52’W S10º56’W
20.78 382.02 127.50 88.70

S15º22’W S42º17’W S31º09’E S38º36’W
139.27 136.62 136.71 168.68

S66º02’W 404.5855 HAS.
330.35
BARANGAY LINOSUTAN

CORNER METERS
N54º52’E N14º02’W N43º22’W N59º52’E
330.15 20.62 99.04 344.58

N24º42’W N7º58’E N82º00’E S3º02’W
150.79 151.46 481.68 189.26
1761
N89º36’E S4º30’E S39º27’E S52º55’E
288.01 140.43 146.45 210.60

S31º08’E N73º15’E N78º34’E S22º02’E
280.40 194.25 272.41 90.62

S36º52’E S41º32’E S34º05’E N88º48’W
110.00 93.51 82.10 288.06

S0º57’E N84º34’E S12º40’E N69º22’E
243.03 147.67 255.22 90.82

S140 46’E S22º12’W S40º56’E S71º34’W
188.22 52.92 109.88 31.62

S41º59’W S32º04’W S3º51’W S49º47’W
161.44 97.94 223.50 127.02

S27º46’W S78º51’W S16º34’E S63º48’W
42.94 424.00 242.04 353.31

S78º26’W S84º43’W N4º10’E N45º50’E
259.27 108.46 110.29 97.59

N13º54’W N22º43’W N22º43’W N22º43’W
226.72 112.13 102.14 102.15

N25º40’W N25º40’W N32º21’W N32º21’W
100.98 54.86 81.79 75.30

N23º21’W N23º21’W N29º30’W N29º30’W
85.88 75.00 99.68 54.68

N32º48’W N32º8’W N30º29’W N30º29’W
45.59 80.39 18.15 25.00

N39º29’W N29º54’W N39º31’W N37º12’W
88.65 250.44 128.08 205.71
1762
N62º49’W 348.5173 HAS.
209.32
BARANGAY STA. CRUZ

CORNER METERS
S35º06’E S81º39’E S81º02’E S20º35’E
124.76 94.90 175.90 674.55

S13º48’E S27º43’W S22º28’W S16º52’W
1067.19 480.43 140.69 9.61

S21º28’W S16º08’E S47º10’W S35º54’W
377.15 417.45 573.82 145.45

S42º40’W S34º37’W S4º55’W S32º19’W
12.84 525.30 205.93 124.12

S23º49’W S40º42’W S86º47’W N68º13’W
10.82 26.96 200.37 215.36

N69º55’W N71º09’W N40º31’E N40º31’E
283.44 1064.59 466.99 146.65

N40º31’E N40º31’E N40º31’E N40º31’E
116.73 35.87 146.56 136.39

S38º05’E S35º19’E N52º15’E N52º16’E
378.57 392.30 10.33 702.00

N14º52’E N14º53’E N50º01’E N46º35’W
10.39 1388.00 10.00 321.63

N3º9’E N17º10’E N10º48’W N6º02’E
173.23 138.04 110.00 233.33
1763
N4º01’W N5º18’W N2º20’W N7º31’W
78.65 178.61 104.84 80.47

N3º15’E N8º14’E N49º12’E N33º55ºE
125.20 184.80 105.73 263.86

N33º17’E S76º29’E S42º24’E S53º41’E
530.46
109.37 780.01 751.00
S40º24’E S34º33’E 663.5632 HAS.
857.67 906.56
BARANGAY SAN ISIDRO

CORNER METERS
N20º47’W N20º47’W N20º47’W N20º47’W
47.51 104.97 90.31 186.82

N20º47’W N20º47’W N20º47’W N57º15’E
93.40 101.25 1803.30 168.83

S76º59’E S63º18’E N80º32’E N62º17’W
156.92 128.08 351.73 48.66

N26º52’W N14º07’E N66º3’E N41º37’E
235.84 215.33 163.37 219.35

N10º58’E S81º42’E S4º18’E S84º34’E
360.00 566.76 77.62 252.24

S13º56’W S6º29’E S62º08’W S35º49’E
474.42 315.94 49.50 137.44

N77º54’E S23º48’E S58º11’W S8º19’E
14.32 162.46 185.40 399.64
1764
S55º18’W S77º545’W S38º51’E S19º33’E
15.18 14.32 255.34 105.60

S33º40’E S2º13’W S73º18’E S61º13’W
235.72 238.03 31.32 218.22

S75º32’E S83º39’E S2º51’W S75º04’W
173.29 90.55 306.76 15.52

S20º56’E N74º58’W N32º20’W S88º42’W
209.85 90.05 189.50 322.05

S85º32’W S80º04’W S17º52’E S73º13’W
65.80
222.80 227.04 89.59
S12º55′ N88º59’W 391.4865 HAS.
226.09 202.09
BARANGAY DADATAN

CORNER METERS
N19º42’W N38º05’W N39º04’W N43º20’W
228.37 141.03 88.87 145.73

N33º59’W N12º16’W N48º43’W N39º10’W
107.34 94.15 109.12 278.63

N6º36’W N27º40’W N5º21’E N55º31’E
121.81 140.00 236.03 139.52

N53º33’E N61º29’E N39º26’E N19º31’E
161.60 52.35 407.81 134.74
1765
N36º44’E N51º35’E N34º31’E N58º24’E
334.40 74.03 77.67 91.99

N81º05’E N62º23’E N29º06’E N75º09’E
206.49 97.06 224.01 171.73

S89º48’E S61º18’E S49º16’E S7º38’W
277.00 108.30 1207.47 175.51

N51º43’E S18º29’W 28º23’W S45º14’E
48.41 324.77 98.88 169.00

N75º32’E S47º46’E S63º15’W N54º38’W
32.02 601.03 133.27 190.07

S41º28’W N57º28’W N57º04’W S42º19’W
252.21 68.80 169.20 196.08

S49º59’E S5º57’E S12º41’E S47º42’E
171.06 115.62 164.00 240.68

S1º21’W S78º34’W S73º15’W N31º08’W
126.03 272.41 194.25 280.40

N52º55’W N39º27’W N4º30’W S89º36’W
210.60 146.45 40.43 288.01

N3º02’E S82º00’W S7º58’W S24º42’E
189.26 481.68 151.46 150.79

S59º52’W S43º22’E S14º02’E S54º52’W
528.1339 HAS.
344.58 99.04 20.62 330.15
1766
BARAN GAY COGON

TP TO LINE 1-2 LINE 2-3 LINE 3-4 LINE 4-5 LINE 4-5 AREA IN SQ.
CORNER METERS
LOT #259
N81º118’E N68º20’E S13º17’E S67º25’W
295.45 161.07 458.66 407.02

N32º57’W N7º24’W N2º48’W 22.1226
178.79 115.02 72.31 HAS.

LOT #258
S1º19’E S66º57’W N45º46’W N68º54’E
458.81 263.54 437.11 118.05

N7º35’W N80º46’E 21.7299
98.78 490.42 HAS.

LOT #256
S80º46’W N23º50’W N16º28’W N78º06’W
490.42 177.84 251.9 442.58

S24º59’E 20.5455
459.84 HAS.
LOT #255
N64º44’W S23º50’E S7º38’E S68º54’W
98.78
363.91 177.84 118.05
S45º46’E S81º02’E N13º17’W S68º20’W
487.11 458.39 458.66 161.07

N17º13’E 22.2129
180.76 HAS.
LOT # 252
1767
N7º37’E N8º18’W N86º38’E N78º00’E
65.59 92.62 34.47 263.16

S17º43’W S81º18’W 4.8905
180.76 295.45 HAS.

LOT # 260
S28º27’W S50º17’W N19º21’W N11º56’W
260.68 322.40 277.16 97.47

N80º46’E 10.8836
490.42 HAS.
LOT # 302
N23º10’E N58º53’E S24º30’W N88º50’W N83º06’W 14.64
466.86 401.33 267.07 289.68 127.72 HAS.

TOTAL 117.0250 HAS.
AREA
The delineated areas shall be part and parcel of the Samal

Island Tourism Estate as identified in the Philippine Tourism
Master Plan which was adopted through Presidential Proclamation
No. 1801.
The delineation of tourism areas provides specific suitable

sites for development in order to regulate and manage the utilization
of land for the optimum use of the local natural assets and to further
enhance local activity.
The Department of Tourism and the Philippine Tourism

Authority together with other government agencies shall prioritize
the implementation of Tourism Estate Management Plan to ensure
that the development of the tourism facilities and utilities are
within the delineated areas and shall provide sustainable growth
in the locality.
1768

caused the SEAL of the Republic of the Philippines to be affixed.
DONE in the City of Manila, this 19th day of Oct in the year of
Our Lord, Nineteen Hundred and Ninety Seven.
By the President:

Executive Secretary
1769
MALACAÑANG
Manila
DECLARING THE NEW BILIBID PRISON RESERVATION

LOCATED IN BARANGAY POBLACION, MUNTINLUPA
CITY AS GOVERNMENT AND SOCIALIZED HOUSING
SITE WITH MIXED-USE COMPONENT AND PROVIDING
FOR THE DISPOSITION THEREOF TO QUALIFIED
BENEFICIARIES AND FOR OTHER USEFUL PURPOSES
WHEREAS, Article XIII, Section 9 of the Philippine

Constitution provides that the State shall, by law, undertake a
continuing program of urban land reform and housing which will
make available at affordable cost, decent housing and basic services
to underprivileged and homeless citizens in urban cities and
resettlement areas;
WHEREAS, it is the policy of the State to pursue asset

reform based on social justice and to serve as the springboard for
sustainable rural development and industrialization pursuant to
Article XII, Section I of the Constitution which affirms that the
State shall promote industrialization and full employment based
on sound agricultural development and agrarian reform, through
industries that make full and efficient use of human and natural
resources;
WHEREAS, there is a need to guide and improve the allocation,

utilization, management, and development of the country’s land
resources, and to ensure their optimum use, under the principles of
economic growth and efficiency, social equity and justice;
WHEREAS, the government is aware that shelter programs

generate multiple economic benefits to the marginalized sectors
1770
of society and result in the pump priming of our economy and the
simulation of growth in all sectors;
WHEREAS, the President has laid out a Ten-point Agenda to

decongest Metro Manila by forming new cores of government and
housing centers in Luzon, Visayas and Mindanao;
WHEREAS, the President has directed the HUDCC to

rationalize the land use and prepare a Master Development Plan to
optimize the utilization of the remaining areas in the Muntinlupa
Penitentiary for housing projects intended for government employees
and legitimate occupants;
WHEREAS, such initiatives showcase the government’s

commitment to implement its poverty reduction strategies,
particularly on assets reform that directs the redistribution of
physical assets to the poor;
NOW, THEREFORE, I GLORIA MACAPAGAL-

ARROYO, President of the Republic of the Philippines, by virtue
of the powers vested in me by law, do hereby declare portions of
the New Bilibid Prison Reservation embracing an aggregate area of
three hundred sixty six hectares and seven thousand square meters
(366.7 hectares), more or less, open for disposition and development
in conformity with the approved land use plan for the NBP (which
is attached hereto as Annex A) and consistent with the development
framework, policies, guidelines and strategies to be set forth in
the NBP Master Development Plan, subject to the following land
allocation:
A total area of SEVEN HUNDRED EIGHTY THOUSAND

(780,000) SQUARE METERS for government housing purposes
(priority shall be given to the Office of the President, Department
of Justice/Bureau of Corrections and DENR qualified employees);
A total of TWO HUNDRED TWENTY THOUSAND (220,000)

SQUARE METERS for mixed-income residential purposes (priority
shall be given to existing and qualified residents within NBP);
1771
A total of FOUR HUNDRED FORTY THOUSAND (440,000)

SQUARE METERS for institutional, public or quasi-public purposes;
A total of ONE MILLION FOUR HUNDRED SEVENTY

THOUSAND (1,470,000) SQUARE METERS for mixed-use/
commercial/residential purposes;
A total of FIVE HUNDRED SEVENTEEN THOUSAND

(517,000) SQUARE METERS for open space/park purposes; and
A total of TWO HUNDRED FORTY THOUSAND (240,000)

SQUARE METERS for the implementation of the Daang-Hari-
SLEX Road Link Project.
Provided, that in the event that the total land area, upon
actual survey, be less than that specified herein, the allocation shall
be revised and prorated accordingly based on the above distribution.
The Housing and Urban Development Coordinating Council

(HUDCC), the Department of Environment and Natural Resources
(DENR), the Office of the President (OP), the Department of Justice
(DOJ), the Bureau of Corrections (BUCOR), the City Government of
Muntinlupa,. the National Housing Authority (NHA), and the Office
of Lone Congressional District of Muntinlupa City shall constitute
the Inter-Agency Steering Committee that will oversee the
preparation and implementation of the Master Development Plan
of the NBP site and will issue the necessary implementing rules
and regulations consistent with this proclamation and previous
presidential directives. The HUDCC shall act as Chairman and
DOJ as co-chairman of the Inter-Agency Steering Committee.
The NHA shall be the lead implementing agency or sponsor

of all development subprojects within the NBP site. It may,
however, enter into suitable and binding agreements with the
other government agencies involved for the development of specific
portions of the site and/or the implementation of a defined section of
the NBP Master Development Plan.
1772
The disposition of land to be made pursuant to this

proclamation shall be undertaken through lawful and appropriate
modalities including sale, lease, usufruct or other variants, in
accordance with all applicable laws.
Usufruct shall be applied to dwelling units in government and

socialized housing sites for an initial period of fifty (50) years. The
usufructuary right of the beneficiary shall not be transferable to
other parties except in cases of hereditary succession or to his/her
relative on first degree of consanguinity.
The Inter-Agency Steering Committee and its members are

authorized to use available resources, apply fund reflows, and
allocate, raise, or arrange the necessary financing to implement
the different subprojects contemplated herein, subject to applicable
government budget, accounting and auditing laws, rules and
regulations.
This proclamation supersedes all other proclamations that

have been issued regarding the NBP site, the inconsistent provisions
of which are hereby deemed repealed or modified.
IN WITNESS WHEREOF, I have set my hand and caused the

seal of the Republic of the Philippines to be affixed hereto.

year of Our Lord, Two Thousand and Six.
By the President:

Executive Secretary
1773
MALACAÑANG
MANILA
DECLARING OCTOBER 21ST AS TENANTS’ EMANCIPATION

DAY
WHEREAS, on October 21, 1972, Presidential Decree No. 27

emancipating tenants from the bondage of tenancy was promulgated,
extending the coverage of the land reform program to all lands
devoted primarily to rice and corn tilled by tenants and setting forth
in accelerated motion the implementation of the program;
WHEREAS, the promulgation of the Decree itself was

acclaimed as a historic act of Government;
WHEREAS, during the one year period since October 21,

1972, the land reform program was implemented vigorously and at
a pace never before achieved;
WHEREAS, the farmers, themselves, through their

organizations have expressed satisfaction over the implementation
of the land reform program, although, the government believes
that much more has to be done, and is endeavoring to upgrade the
mechanism for its implementation and to provide funds necessary
for it;
WHEREAS, in view of the accelerated implementation of land

reform program during the last one year period, farmers have sent
in petitions that October 21 of every year be proclaimed as Tenants’
Emancipation Day as a manifestation of their satisfaction over the
program.

1774
September 21, 1972 and General Order No. 1, dated September 22,
1972, as amended, do hereby declare October 21, 1973 and every
year thereafter as Tenants’ Emancipation Day.
I further order that the Department of Agrarian Reform shall

attend to its appropriate observance every year in cooperation with
the tenants or their organizations.



President
By the President:

Executive Secretary
1775
MALACAÑANG
Manila
RESERVING FOR SETTLEMENT PURPOSES EXCLUSIVELY FOR

MUSLIM EVACUEES AND LANDLESS MUSLIM FAMILIES
FROM THE TROUBLED AREAS OF MINDANAO CERTAIN
IN THE MUNICIPALITIES OF LUMBA-A-BAYABAO AND
BUBONG, PROVINCE OF LANAO DEL SUR, UNDER
WHEREAS, in this period of economic development of our

country, it is the primordial duty of the Government to uplift the
economic well-being of our people, especially the less fortunate
Muslim farmers of Mindanao;
WHEREAS, there are Muslim farmers in some sectors of

Mindanao who were forced to abandon their landholdings by reason
of the subversive activities of the misguided elements of our society
as well as Muslim landless families who have been the victims
of land-grabbing by scrupulous individuals, both Muslims and
Christians;
WHEREAS, it is the policy and responsibility of the

Government to rehabilitate the lives of these unfortunate Muslims
by providing them with lands to till, technical guidance and skill, in
order to train and develop them as economic leaders and builders of
our country; and
WHEREAS, a big tract of fertile agricultural public lands,

classified and unclassified, located in the municipality of Lumba-
A-Bayabao and Bubong, province of Lanao del Sur, consisting of
1776
6,939 hectares, was found suited for settlement purposes by the

Department of Agrarian Reform;

of the Philippines, by virtue of the powers vested in me by law, and
upon recommendation of the Secretary of Agrarian Reform with the
concurrence of the Secretary of Agriculture and Natural Resources,
do hereby reserve for settlement purposes as pilot farm project
exclusively for the Muslim settlers under the administration and
disposition of the Department of Agrarian Reform, subject to private
rights, if any there be, and to future classification and survey,
certain parcels of land more particularly described as follows:
3,965 hectares in Lumba-A-Bayabao indicated in the attached

BFD sketch map, identified as PMD 736 Amd., Annex “A”
of draft proclamation;
1,550 hectares indicated in BFD LC Map No. 2777 (Annex “A-

1”) identified as Blks. I, II and III of Project 7-C, Bubong;
and
1,424 hectares indicated in BFD LC Map No. 2777 (Annex “A-

1”) identified as Project 19-A, Maguing; or a total area of
6,939 hectares.

this proclamation, the Bureau of Forest Development is hereby
directed to reclassify and release immediately to the Department of
Agrarian Reform all such areas not needed for forest conservation
and/or other forest purposes. The Department of Agrarian Reform
is hereby allowed to cut the available timber in the area for its use
in the development of the settlement, subject to forestry rules and
regulations governing the matter.
The Secretary of Agrarian Reform is hereby authorized

to issue patents to Muslim settlers who have complied with the
requirements of the law pursuant to the provisions of Section 51,
1777
sub-paragraph 9 of Republic Act No. 3844, as amended by Republic

Act No. 6389, otherwise known as the Code of Agrarian Reforms of
the Philippines.



President
By the President:

Executive Secretary
1778
MALACAÑANG
MANILA

PARCELS OF LAND SITUATED IN THE MUNICIPALITIES
OF CATARMAN, LOPE DE VEGA AND BOBON ALL OF THE
PROVINCE OF NORTHERN SAMAR

Act No. 141, as amended and approved on 7 November 1936,
otherwise known as the “Public Land Act”, authorizes the President
to designate by proclamation, any tract or tracts of land of public
domain for the establishment of agricultural communities;
WHEREAS, Section 14, Chapter IV, Title I, Book III of the

Administrative Code of 1987 provides that “the President has
the power to reserve for settlement or public use, and for specific
purposes, any of the lands of the public domain, the use of which is
not otherwise directed by law. The reserved land shall thereafter
remain subject to the specific public purpose indicated until
otherwise provided by law or proclamation”;
WHEREAS, Section 3 [5], Chapter I, Title XI, Book IV of

the Administrative Code of 1987 provides that the Department of
Agrarian Reform shall “administer and dispose of, under a settlement
scheme, all portions of the public domain declared as alienable and
disposable lands for speedy distribution to and development by
deserving and qualified persons who do not own any land and under
such terms and conditions as the Department may prescribe giving
priority to qualified and deserving farmers and occupants/tillers in
1779

Philippines, by virtue of the powers vested in me by law, and upon
recommendation of the Secretaries of the Department of Environment
and Natural Resources and Department of Agrarian Reform, do
the Department of Agrarian Reform, subject to private rights, if any
there be, and subject to actual survey and delineation on the ground,
certain parcels of land more particularly described as follows:
PARCEL I
Beginning at point marked “1” on plan being N. 54 deg. 02′

W. 10.592.21 m from BLLM # 1. Pls-857-D. Catarman Public Land
Subdivision, Catarman, Northern Samar.
thence: N 56 deg. 18 min. E 155.85 m. to point 2;

thence N 24 deg. 35 min. E 241.42 m. to point 4;
thence: S 11 deg. 06 min. W 205.09 m. to point 6;
thence: S 77 deg. 23 min. E 56.90 m. to point 7;
1780

thence S 14 deg. 23 min. E 34.61 m. to point 32;
thence: S 82 deg. 25 mi n. E 72.64 m. to point 38;
thence: N 63 deg. 34 min. W 62.09 m. to point 44;
thence: S 32 deg. 4min. W 42.86 m. to point 53;
1781

thence: N 09 deg. 9min. E 82.41 m. to point 84;
1782

1783
thence: S 85 deg. 57.0 min. W 37.42 m. to point 141;

1784

thence: N 44 deg 38 min. E 8.77 m. to point 181;
1785

1786

thence. S 13 deg. 42 min. W 38.47 m. to point 279;
1787

1788

1789

thence: N 17 deg. 27 min. E 294.59 m. to point of;
beginning: containing an area of TWO THOUSAND ONE

HUNDRED TWENTY-TWO (2,122) hectares more or less.
1790
PARCEL II
Beginning at a point marked “1” on plan being N. 77 deg.

37’W. 9754.68 m from BLLM # 1 Pls-857-D Catarman Public Land
Subdivision. Catarman, Northern Samar.

thence: N 84 deg. 25 min.W 51.68 m. to point24;
thence: N 4 deg. 42 min.W 20.10 m. to point 25;
thence: S 87 deg. 12 min.W 45.96 m. to point 26;
thence: S 0 deg. 58 min.E 216.84 m. to point 27;
1791

1792

1793

thence: S 26 deg. 38 min.W 299.12 m. to point 123;
1794

thence: S 31deg. 33 min. E 21.92 m. to point 153;
thence: S 62deg. 1 min. W 53.30 m. to point 154;
thence: S43 deg. 44 min. W 437.76 m. to point 158;
thence: S 28deg. 17 min. E 57.41 m. to point 165;
thence: S59 deg. 6 min. E 61.13 m. to point 166;
thence: N 71deg. 42 min. W 36.46 m. to point 170;
1795

1796

thence: N 85deg. 18 min. E 240.04 m. to point 230;
1797

1798

1799

thence: S 77 deg. 16 min. E 126.44 m. to point of;
beginning; containing an area of THREE THOUSAND FOUR

HUNDRED SIXTEEN (3,416) hectares more or less.
PARCEL III
Beginning at a point marked “1” on plan being S 54 deg. 07′

W. 9347.33 m from BLLM # 1 Pls-857-D Catarman Public Land

thence: N66 deg. 57 min. E 105.33 m. to point 5;
thence: N51 deg. 25 min. E 123.46 m. to point 10;
1800

thence: S 37 deg. 19 mm. E 49.30 m. to point 51;
1801

1802

thence: S 26 deg. 51 min. E 134.81 m.to point 125;
thence N 82 deg. 1 min. E 263.98 m. to point 126;
thence: S 16 deg. 58 min.E 145.54 m. to point 133;
thence: S 0 deg. 6 min E 694.18 m. to point 135;
1803

thence: S 53 deg. 24 min. E 114.77 m. to point162;
1804

thence: N38 deg. 28 min. W 114.76 m. to point 192;
1805

1806

thence: N 83 deg. 16 min. W 1031.51 m. to point of;
beginning; containing an area of ONE THOUSAND SEVEN

HUNDRED FORTY-THREE (1,743) hectares more or less.
PARCEL IV

54′ W. 10.127.06 m from BLLM # 1. Pls-738-D Bobon. Public Land
Subdivision. Bobon, Northern Samar

thence: S 15 deg. 1 min. W 1810.50 m. to point of;
beginning; containing an area of NINETY-TWO (92) hectares more

or less.
1807
PARCEL V
Beginning at a point marked “1” on plan being N. 72 deg. 38′

W. 7.587.14 m from BLLM # 1. Pls-857-D. Catarman Public Land
Subdivision. Catarman Northern Samar.

beginning; containing an area of FIFTEEN (15) hectares more or

less.
PARCEL VI

01′ E. 6.106.13 m from BLLM # 1. Pls-857-D Catarman Public

1808

thence:S 11 deg. 53 min. W 86.06 m. to point 38;
1809

thence: S 18 deg. 15 min. E 250.69 m. to point 55:
thence: N 28 deg. 11 min E 318.38 m. to point 64;
1810

thence: S 23 deg 9 min. W 347.37 m. to point 107;
1811

1812

beginning, containing an area of SEVEN HUNDRED NINETY

NINE (799) hectares more or less. prcd
PARCEL VII
Beginning at a point marked “1” on plan being S. 14 deg. 54′

E. 7.036.22 m from BLLM # 1. Pls-857-D. Catarman Public Land

1813

1814

1815

1816

1817

thence: S 6 deg. 14 min. E 80.07 m. to point of;
beginning; containing an area of EIGHT HUNDRED FORTY-

SEVEN (847) hectares more or less.
PARCEL VIII
Beginning at a point marked “1” on plan being S 10 deg. 53’E

4.290.97 BLLM # 1. Pls-857-D. Catarman Public Land Subdivision,
Catarman, Northern Samar.

1818

thence: N 59 deg. 40 min. W 362.74 m. to point of;
beginning; containing an area of SIXTY (60) hectares more or less.
PARCEL IX
Beginning at a point marked “1” on the plan being S. 77 deg.

36′ E. 7.631.42 from BLLM # 1. Pls-857-D. Catarman Public Land

1819

1820

1821

beginning; containing an area of EIGHT HUNDRED THIRTEEN

(813) hectares more or less.
PARCEL X
Beginning at a point marked “1” on plan being N. 68 deg. 00′

E. 11.108.42 m from BLLM # 1. Pls-857-D. Catarman, Northern
Samar.

1822

beginning; containing an area of TWO HUNDRED FIFTY (250)

hectares more or less.
PARCEL XI
Beginning at a point marked “1” on the plan being N. 51 deg

07′ E. 9961.23 m from BLLM # 1. Pls-857-D, Catarman Public Land
Subdivision.

1823

thence: N 87 deg. 36 min.. W 70.07 m. to point 37;
1824

thence: S 13 deg. 46 min. W 102.25 m. to point of;
beginning; containing an area of THREE HUNDRED SEVENTY-

TWO (372) hectares more or less.
1825
PARCEL XII
Beginning at a point marked “1” on the plan being from N. 51

deg. 41′ E. 9850.65 m from BLLM # 1, Pls-857-D, Catarman Public
Land Subdivision.

beginning; containing an area of NINETEEN (19) hectares more or

less.
The Technical Description of the area covered by this

Proclamation is subject to change as a result of the final survey and
delineation on the ground and after consultations with affected local
government units and communities. The Department of Agrarian
Reform (DAR) shall provide funds for the conduct of the survey.
The following areas are hereby segregated from the coverage

of this Proclamation and are deemed inalienable and may not be
subject to titling:
1. All areas within the reservation which fall under the

classification of timberland, forest lands and those covered by the
National Integrated Protected Areas System;
1826
3. All bank protection requirements pursuant to the provisions

of P.D. 705 otherwise known as the Revised Forestry Code of the
Philippines, P.D. 1067 otherwise known as the Water Code of
the Philippines, R.A. 1273, and other pertinent laws, rules and
regulations.
Further, these areas are hereby reserved for environmental

protection purposes.

applications. All vested rights inside the reservation shall be
respected.

DONE in the City of Manila, this 22nd day of April, in the

year of Our Lord, Nineteen Hundred and Ninety-Eight.
By the President:
(Sgd.) ALEXANDER P. AGUIRRE

Executive Secretary
1827
MALACAÑANG
MANILA
PROCLAMATION NO. 1495-A, s. 1975

IN THE MUNICIPALITIES OF KAROMATAN AND
NUNUNGAN, PROVINCE OF LANAO DEL NORTE UNDER

a more vigorous and systematic land resettlement program and
public land distribution in order to create a truly social and viable
economic structure in agriculture;
WHEREAS, it is the duty of Government to uplift the economic

well-being of our people, especially the less fortunate farmers who
do not own their farm or who do not own sufficient land;
WHEREAS, there are Muslim farmers in Lanao del Norte who

were forced to abandon their homes and landholdings by reason of
the subversive activities of some misguided elements of our society,
as well as Muslim landless families who are victims of land grabbing
by scrupulous individuals both Muslims and Christians;

government to rehabilitate the lives of these unfortunate Muslims
by providing them with lands and technical guidance in order to
make them independent, self-reliant and responsible citizens of our
country;
WHEREAS, a big tract of fertile agricultural public land,,

classified and unclassified, located in the municipalities of
Karomatan and Nunungan, Province of Lanao del Norte, consisting
1828
of 19,674 hectares, was found suitable for settlement purposes by

the Bureau of Forest Development and the Department of Agrarian
Reform.

upon recommendation of the Secretary, Department of Agrarian
Reform, with the concurrence of the Secretary of Natural Resources,
do hereby reserve for settlement purposes under the administration
and disposition of the Department of Agrarian Reform, subject
to private rights, if any there be, and to the future classification
and survey, certain parcels of land more particularly described as
follows:
TECHNICAL DESCRIPTION OF
KAROMATAN-NUNUNGAN SETTLEMENT RESERVATION
A parcel of public land, proposed Karomatan-Nunungan

Settlement Reservation, situated in the Municipalities of Karomatan-
Nunungan, province of Lanao del Norte; Bounded on the southwest
along lines from points 1-5, Municipality of Karomatan and on the
west and north along points 5-8, Municipality of Sapad and on the
north along points from 8-10, Municipality of Nunungan; and on
the east and south along points 10-15 and 1, province of Lanao del
Sur, to the point of beginning; N. 52 deg. 00′ E; 3,700 meters from
the junction of the National Highway and logging road going to sitio
Coloy, Municipality of Nunungan, province of Lanao del Norte;
thence S. 83 deg. 00′ W; ;600 m. to point “2”;

thence N. 34 deg. 00′ W; 2,800 m. to point “3”;
thence Due west 1,850 m. to point “5”;
thence Due north 5,800 m. to point “6”;
thence N. 86 deg. 00′ E; 4,100 m. to point “7”;
thence S. 68 deg. 00′ E; 3,750 m. to point “9”;
1829

thence S. 4 deg. 00′ W; 10,000 m. to point “11”;
thence N. 89 deg. 00′ W; 600 m. to point “13”,
thence S. 1 deg. 00′ E; 500 m. to point “15”;
thence S. 83 deg. 00′ E; 490 m. to point of beginning;
containing an area of NINETEEN THOUSAND SIX HUNDRED

SEVENTY FOUR (19,674) HECTARES, more or less. Date of
boundary survey, January 15 to February 10, 1974 and marked on
the ground X on tree 80 centimeters in diameter.

development of the settlement, subject to forestry rules and
The Secretary of Agrarian Reform is hereby authorized to

issue patents to settlers who have complied with the requirements
of the law pursuant to provisions of Section 51, sub-paragraph 9 of
Republic Act 3844 as amended by Republic Act No. 6389.

cause the seal of the Republic of the Philippines to be affixed.
Done in the City of Manila, this 11 day of September the year

of our Lord, nineteen hundred and seventy-five.

By the President:

1830
MALACAÑANG
MANILA
RESERVING FOR SETTLEMENT PURPOSES CERTAIN PARCELS

MUNICIPALITIES OF MATANAO, MAGSAYSAY AND
KIBLAWAN, PROVINCE OF DAVAO DEL SUR, AND
MUNICIPALITY OF COLUMBIO, PROVINCE OF SULTAN
KUDARAT, UNDER THE ADMINISTRATION AND
DISPOSITION OF THE DEPARTMENT OF AGRARIAN
REFORM

WHEREAS, it is the duty of the Government to uplift the

economic well being of our people, especially the less fortunate
farmers who do not own their farms or who do not own economic
family size farms;
WHEREAS, it is the responsibility of the Government to

provide the less fortunate farm-tillers with lands and technical
guidance in order to make them independent, self-reliant and
responsible citizens; and
WHEREAS, a big tract of fertile agricultural public land,

classified and unclassified, located in the municipalities of Matanao,
Magsaysay and Kiblawan, Province of Davao del Sur and in the
municipality of Columbio, Province of Sultan Kudarat, consisting
of TWENTY TWO THOUSAND (22,000) HECTARES, more or less,
1831
was found suitable for settlement purposes by the Department of

Agrarian Reform.

Reform, with the concurrence of the Secretary, Department of
Natural Resources, do hereby reserve for settlement purposes under
Reform, subject to private rights, if any there be, and to the future
classification and survey certain parcels of land more particularly
A parcel of land, proposed Davao del Sur Settlement

Reservation situated in the municipalities of Matanao, Kiblawan
and Magsaysay, Province of Davao del Sur, and in the municipality
of Columbio, Province of Sultan Kudarat.
Lines 1 to 2 – beginning at corner 1 which is located

at creek intersection (refer to topo map No. 4040-III) at
latitude 6 deg., 46 min., 35 sec. and longitude 125 deg., 04
min., 53 sec, thence following the Blocon creek downstream
(Southeastward) until it joins Balatukan river, a distance of
12,000 meters;
Lines 2 to 3 – beginning at corner 2 which is a Bagac

tree, 60 cm. in diameter at corner intersection of Blocon
– Balatukan river, thence following Balatukan river
downstream (Southeastward) until it intersects Maal river, a
distance of 7,500 meters;
Lines 3 to 4 – beginning at corner 3 which is an Anilaw

tree, 50 cm. in diameter at the intersection of Balatukan – Maal
river, thence following Maal river upstream (Southwestward)
until it reaches the northern most corner -(boundary Eugenio
1832
de Jesus Cattle Ranch, Pasture Lease No. 1608), a distance of

4,500 meters
Lines 4 to 5 – beginning at corner 4 which is a wooden

post, 20 cm. in diameter, thence following S. 51 deg., 00 min.,
E. along Northeastern boundary of Eugenio de Jesus Ranch
until it intersects Paitan creek, a distance of 4,500 meters;
Lines 5 to 6 – beginning at corner 5 which is marked by

a wooden stake at the western bunk of Paitan creek, thence
following Paitan creek upstream (southwestward), a distance
of 8,500 meters;
Lines 6 to 7 – beginning at corner 6 which is equal to

corner 143 of PLS 1038, C-1, due west until it intersects Maal
river, a distance of 1,600 meters;
Lines 7 to 8 – beginning at corner 7 which is a big rock

at a Western bunk of Maal river and N. 76 deg., 00 min. W., a
distance of 12,500 meters;
Lines 8 to 1 – beginning at corner 8 which is latitude

6 deg., 38 min., 00 sec. and longitude 125 deg., 02 min., 10
sec. to N. 12 deg., 30 min. E., a distance of 16,300 meters,
containing an area of TWENTY TWO THOUSAND (22,000)
HECTARES, more or less.
In order to facilitate the development of the area, subject of

authorized to cut, remove and dispose of the available timberstand
in the area to be used in the development of the settlement, subject
to forestry laws, rules and regulations governing the matter.

of the law pursuant to provisions of Section 51, sub-paragraph 9 of
Republic Act No. 3844 as amended by Republic Act No. 6389.
1833

Done in the City of Manila, this 11 day of September in the

year of Our Lord, nineteen hundred and seventy five.
By the President:

1834
MALACAÑANG
MANILA

MUNICIPALITIES OF HINUNANGAN, SAN JUAN AND ST.
BERNARD, PROVINCE OF SOUTHERN LEYTE UNDER

more vigorous land resettlement program in order to create a truly
viable social and economic structure in agriculture;

well-being of our people, particularly the less fortunate farmers who
do not own their farms or who are cultivating uneconomic farms or
who have been displaced from their farms;
WHEREAS, it is the responsibility of Government to provide

such farmers with lands and technical guidance and assistance to
make them independent, self-reliant and responsible citizens; and
WHEREAS, a large tract of fertile agricultural public land,

located in the municipalities of Hinunangan, San Juan and St.
Bernard, province of Southern Leyte consisting of THIRTEEN
THOUSAND (13,000) HECTARES more or less, was found to be
available and suitable for settlement purposes.
NOW, THEREFORE, upon recommendation of the Secretary,

Department of Natural Resources, I, FERDINAND E. MARCOS,
President of the Philippines, by virtue of the powers vested in
me by law do hereby reserve for settlement purposes under the
1835
Reform, subject to private rights if any there be and to the

future classification and survey, that certain parcel of land more
“A parcel of land situated in the municipalities of Hinunangan,

San Juan and St. Bernard, province of Southern Leyte, beginning
at a point marked “1” on plan being latitude 10 degree 18’36” and
longitude 125 deg. 12’27”
thence S. 28 deg. 27’W., 1,851.98 m. to point 2;

thence N. 13 deg. 41’E., 3,731.20 m. to point 6;
thence N. 45 deg. 28’E., 4,863.43 m. to point 8;
thence S. 51 deg. 16’E., 7,563.33 m. to point 9;
thence S. 7 deg. 34’W., 4,153.05 m. to point 10;
thence S. 59 deg. 06’E., 957.15 m. to point 11;
thence S. 26 deg. 01’E., 11, 452.70 m. to point of
beginning containing an approximate area of TWELVE

THOUSAND SIX HUNDRED SEVENTY THREE (12,673)
HECTARES, more or less.

development of the Settlement, subject to forestry rules and

1836
Done in the City of Manil a, this 11 day of September in the


By the President:

1837
MALACAÑANG
MANILA
RESERVING FOR SETTLEMENT PURPOSES UNDER THE

IN THE MUNICIPALITIES OF DUPAX, PROVINCE
OF NUEVA VIZCAYA AND MADDELA, PROVINCE OF
QUIRINO, ISLAND OF LUZON, PHILIPPINES
WHEREAS, in this period of national reconstruction (economic

and industrial) and global oil crisis, all projects be it public or private
which generate energy for industrial and commercial use must be
preserved and be operational at all times;
WHEREAS, statistics and past experiences show that during

the summer months, the power output of these government projects
are quite low thereby causing occasional electrical brownouts in
some sector of Luzon and the principal cause of this power shortage
is the lack of sufficient water necessary to generate electrical
tribunes and household electrical power;
WHEREAS, it is of public knowledge that there are thousands

of occupants, legal or illegal in the Ambuklao-Biñga Watershed
areas, who have been there for quite a number of years and their
method of land utilization for agricultural purposes has been the
principal cause of the denudation of the reservation of its natural
water conservation agents such as trees and other natural vegetation,
soil erosion, floods during the rainy months and low water, supply
during summer, including the continuous accumulation of silts on
the river reservoirs;
1838
WHEREAS, it is high time that the government adopts

measures and make immediate steps to clear the Ambuklao-Biñga
watershed reservations and all watershed reservations for the
matter in the Philippines of occupants;
WHEREAS, on the other hand, it is believed that it is the

moral obligation of government to relocate these occupants and
provide them with lands to till;
WHEREAS, there is a big tract of public Iand both classified

and unclassified, consisting of FORTY THOUSAND (40,000)
HECTARES in the municipalities of Dupax, Province of Nueva
Vizcaya, and Maddela, Province of Quirino, which is found suited
for the purpose by the Department of Agrarian Reform and likewise
recommended by the provincial governments of Benguet, Nueva
Vizcaya and Quirino as the relocation site of the displaced and/or to
be displaced occupants families of the Ambuklao-Biñga watershed
areas and landless residents of Nueva Vizcaya and Quirino who
may wish to settle in the said settlement project.

President of the Philippines, upon recommendation of the Secretary
of the Department of Agrarian Reform, after consultation with
the Secretary of Natural Resources, by virtue of the powers in
me vested by the Constitution do hereby reserve, for settlement
purposes under administration and disposition of the Department
of Agrarian Reform subject to private rights, if any there be, and
to future classification and survey, certain parcels of land more
A PARCEL OF LAND (part of the public domain), situated in

the Municipality of Maddela and Dupax, Provinces of Quirino and
Nueva Vizcaya, respectively. Bounded on the North by public land;
on the East, by public land and Cagayan and Casecuan Rivers; on
the South and West, by the National Irrigation Administration
Watershed Reservation. Beginning at point marked “1” on plan,
which is on the intersection of Cagayan River and Conwap River;
1839
thence in southerly direction following the Casecuan River

going upstream 11,500 meters to point “2”;
thence N. 53 deg. 45′ W; 3,500 meters to point “3”;

thence S. 58 deg. 30’ W; 2,100 meters to point “4”;
thence N. 69 deg. 00’ W; 2,500 meters to point “5”;
thence S. 24 deg. 30′ W; 2,000 meters to point “9”;
thence N. 16 deg. 30′ E; 2,300 meters to point “13”;
thence N. 56 deg. 30′ W; 900 meters to point “14”;
thence due North; 2,800 meters to point “15”;
thence N. 20 deg. 00’ E; 1,700 meters to point “17”;
thence S. 85 deg. 00’ E; 11,100 meters to point “25”;
thence in a Southeasterly direction following the Addelen
River going downstream 9,600 meters to point “26”;
thence S. 18 deg. 30’ E; 17,550 meters to the point of beginning;
containing an approximate area of Forty Thousand (40,000)

Hectares, more or less.
The Department of Agrarian Reform, with the assistance of

the Armed Forces of the Philippines, the provincial government of
Benguet and the municipalities concerned, together with the National
Power Corporation and the Department of Social Welfare, shall
provide facilities and equipment including funding requirements
1840
which will be necessary for the transfer of the resettlement site

including the construction of roads and bridges and bunk houses,
if necessary. The Department of Agrarian Reform, however, will
administer the settlement and dispose the lots therein pursuant to
the provisions of Republic Act No. 3844, as amended and hereby
allowed to cut, collect and dispose of timber stand in the area for its
use in the development of the settlement, subject to forestry rules
and regulations governing the matter.
Likewise, the Department of Natural Resources through the

Bureau of Forest Development, under this proclamation is hereby
instructed to immediately reclassify the said parcels of land into
alienable and disposable, and thereafter, turn over the same to the
Department of Agrarian Reform for disposition.

Done in the City of Manila, in the year of our Lord this 11 day
of September nineteen hundred and seventy-five.

By the President:

1841
MALACAÑANG
MANILA

IN THE MUNICIPALITIES OF BININDAYAN, BAYANG,
TUBURAN, BUTIG, LUMBATAN, AND PAGAYAWAN
(TATARICAN) PROVINCE OF LANAO DEL SUR UNDER


well-being of our people, especially the less fortunate farmers who
do not own their farms or who do not own economic size farms;
WHEREAS, there are Muslim farmers in Lanao del Sur who

were forced to abandon their homes and landholdings by reason of
the subversive activities of some misguided elements of our society,
as well as Muslim landless families who are victims of land grabbing
by scrupulous individuals, both Muslims and Christians;

government to rehabilitate the lives of these unfortunate Muslims
by providing them with lands and technical guidance in order to
make them independent, self-reliant and responsible citizens of our
country;
WHEREAS, a big tract of fertile agricultural land, classified

as Lanao Projects No. 3, 3-A, 9, 16 and 23 by the Bureau of Forest
1842
Development and located in the municipalities of Binidayan, Bayang,

Tubaran, Butig, Lumbatan and Pagayawan (Tatarican), all in the
province of Lanao del Sur, consisting of EIGHTEEN THOUSAND
ONE HUNDRED NINETY SEVEN (18,197) HECTARES, more
or less, is found to be suitable to rice, corn, coffee, fruit trees and
other short-term crop and for settlement purposes under the
Reform.

Reform, with the concurrence of the Secretary of Natural Resources,
do hereby reserve for settlement purposes under the administration
and disposition of the Department of Agrarian Reform, subject
to private rights, if any there be, and to the future classification
and survey, certain parcels of land more particularly described as
follows:
A parcel of land of the proposed DAR UNAYAN VALLEY

SETTLEMENT RESERVATION situated in the municipalities of
Binidayan, Bayang, Tubaran, Butig, Lumbatan and Pagayawan
(Tararican), all in the province of Lanao del Sur, bounded on the
southwest from points 1, 2, 3, 4, and 5, municipality of Nunugnan;
on the northwest along points 6, 7, 8, 9, 10, 11, 12, and 13, Lake
Lanao; on the east along points 13, 14, 15 and 16, Timberland area;
on the southeast along points 16, 17, 18, 19, 20, 21, 22, 23 to point
1, province of Lanao del Sur, S 45 deg. 30′ W, 4,230 meters from
B.L.L.M. of the municipality of Malabang, Lanao del Sur:
thence N. 25 deg. 30′ W., 4,000 m. to point 2;

thence N. 25 deg. 00′ E., 5,000 m. to point 5;
thence S. 84 deg. 30′ E., 4,000 m. to point 6;
thence S. 24 deg. 30′ W., 3,200 m. to point 7;
1843

thence S. 72 deg. 30′ E., 4,600 m. to point 10
thence N. 67 deg. 00’ E., 4,000 m. to point 13;
thence N. 88 deg. 30’ W., 3,000 m. to point 17;
beginning; containing an area of EIGHTEEN THOUSAND ONE

HUNDRED NINETY-SEVEN (18,197) HECTARES, more or less,
date of Economic and Census Survey on December, 1973 and
January, .1974, marked on the ground with X on tree, X on rocks
and intersection of creeks.
In order to facilitate the development of the area, subject of

authorized to cut, remove and dispose of the available timberland in
the area to be used in the development of the settlement, subject to
forestry laws, rules and regulations governing this matter.
The Secretary of the Department of Agrarian Reform is

hereby authorized to issue patents to settlers who have complied
with the requirements of the law pursuant to provisions of Section
51, sub-paragraph 9 of Republic Act 3844 as amended by Republic
Act No. 6389.

1844
Done in the City of Manila, this 11 day of September in the

year of Our Lord, Nineteen Hundred and Seventy-Five.
By the President:

1845
RESERVING FOR SETTLEMENT PURPOSES UNDER THE

IN THE MUNICIPALITIES OF UPI AND DINAIG,
PROVINCE OF MAGUINDANAO, ISLAND OF MINDANAO,
PHILIPPINES
WHEREAS, it is the policy of the State to pursue a well

sustained Agrarian Reform Program through a more vigorous and
systematic land resettlement program and public land distribution;
WHEREAS, the implementation of the resettlement program

requires that the portions of the public domain be set aside as
resettlement projects for subdivision into economic family-size farms
for allocation and distribution to qualified and deserving citizens;
WHEREAS, it is the policy of the administration to set

a balanced pace of agricultural production with the increasing
demands of the fast-growing population;
WHEREAS, a large tract of land classified as alienable

and disposable consisting of approximately FOUR THOUSAND
TWO HUNDRED SIXTY-EIGHT (4,268) HECTARES, more or
less, situated in the Municipalities of Upi and Dinaig, province of
Maguindanao, is found to be suitable for agricultural purposes by
a technical committee composed of representatives of the Bureau of
Lands, Bureau of Forest Development and Department of Agrarian
Reform;

President of the Philippines upon recommendation of the Secretary
of the Department of Agrarian Reform after consultation with the
Secretary of Natural Resources, by virtue of the powers vested in
me by the Constitution do hereby reserve for settlement purposes
under the administration and disposition of the Department of
1846
Agrarian Reform, subject to private rights if any there be and

to future classification and survey, certain parcels of land more
(Parcel-1, Pres. Proc. No. __, s-1975)
A parcel of land situated at Bo. Kindal, Municipality of Upi,

Province of Maguindanao; Bounded on the N. by a National road;
on the E. by Parcel-2 (Dinaig portion of this project); on the S. by
Project No. 12-H Blk.-2), Cotabato PMD No. 890, and by proposed
Timberland Pro. No. 12-H (Blk.-B); and on the W. by National Road.
Beginning at a point marked “1” on the plan, which is km. post No.
21, along the Cotabato City-Upi National Road;
thence S. 26 deg. E’., 4,400 m. to point 2;

thence S. 33 deg. W’., 160 m. to point 3;
thence N. 40 deg. W’., 200 m. to point 5;
thence Due West 200 m. to point 7;
thence N. 40 deg. E’., 300 m. to point 22;
1847

thence S. 35 deg. E’., 214 m. to point 33;
thence Due South 200 m. to point 42;
1848
thence S. 76 deg. W’., 157.55 m. to point 62;

thence following the National Road in a North-Northeast
direction about 8,430 meters to point of beginning.
Containing an approximate area of TWO THOUSAND (2,000)

HECTARES. All points are indicated on the ground by natural land
marks and some by trees.
(NOTE: All data are approximate and subject to change to

conform with the final Surveys as verified by the Director,
Bureau of Forest Development and Director, Bureau of
Lands.)
(Parcel-2, Pres. Proc. No. ______, S-1975)
A parcel of land (Parcel-2) situated in the barrio of Labungan,

Municipality of Dinaig, Province of Maguindanao; Bounded on
the NW., along line 1-2 by Timberland, along line 2-21 by (A & D)
Proj. No. 12, Blk-B, LC-518, along line 21-23 by National Road; on
the NE., along line 23-54 by Timberland; on the East., along line
54-61 by Proj. No. 19-C, Blk. III (A & D), and along line 61-86 by
Timberland; on the South by Proj. No. 19-C, Blk, IV (LD-1722); and
on the SW., by parcel-1 (this proj.) Beginning at a point marked “2”
on the plan, which is km. post No. 21, along the Cotabato City-Upi
National Road;

1849

thence Following Nat. Rd. to
Cot. City, NW direction 600 m. to point 22;
thence Following Nat. Rd. to
Cot. City, NW direction 2,260 m. to point 23;
thence Due East 240 m. to point 26;
thence Due East 250 m. to point 40;
1850

thence Due South 240 m. to point 79;
1851

thence N. 26 deg. W’., 4,400 m. to point of
beginning; containing an area of TWO THOUSAND, TWO

HUNDRED SIXTY-EIGHT (2,268) HECTARES. All points are
indicated on the ground by trees if not by other natural land marks.
(NOTE: All data are approximate and subject to change to

conform with the final survey as verified by the Director of
the Bureau of Forest Development and by the Director of the
Bureau of Lands)
1852
The Department of Agrarian Reform, with the assistance of

the Armed Forces of the Philippines, the provincial government
of Maguindanao and the municipalities concerned, shall provide
facilities and equipment including funding requirements which
will be necessary for the transfer of the settlers from their places of
origin to the resettlement site and in the land preparation including
the construction of roads and bridges and bunkhouses, if necessary.
The Department of Agrarian Reform however, will administer the
settlement and dispose the lots therein pursuant to the provisions
of Republic Act No. 3844, as amended and is hereby allowed to cut,
collect and dispose of timber stand in the area for its use in the
development of the settlement.

DONE in the City of Manila, this 11th day of September, in

the year of Our Lord, Nineteen Hundred and Seventy-Five.
1853
MALACAÑANG
MANILA

OF LAND SITUATED IN PANAMAO, TALIPAO AND
TIPTIPON, PROVINCE OF SULU, PHILIPPINES, UNDER

more vigorous land resettlement program in order to create a truly
viable social and economic structure in agriculture;
WHEREAS, it is the duty of the government to uplift the

economic well-being of the people, particularly the less fortunate
farmers and/or fishermen who do not own their farms, the formerly
misguided elements of society who now have expressed their skills
in nation building, and farmers cultivating uneconomic farms or
have been displaced from their farms;

provide such people with lands as well as technical guidance and
citizens;
WHEREAS, there are numerous dissidents and/or rebels in

the different sectors of Mindanao who have already abandoned
their political ideology and have sworn their allegiance and loyalty
to the Republic of the Philippines;
WHEREAS, there are law abiding citizens, both Muslims and

Christians, in the different areas of Mindanao who were forced to
abandon their homes and landholdings by reason of the subversive
and insurgent activities of some misguided elements of society,
1854
landless families who are victims of land grabbing by unscrupulous

individuals, both Muslims and Christians, and similarly, there are
deserving landless, both Muslims and Christians, whose welfare
and well-being should be looked into by the government;

government to rehabilitate the lives of those unfortunate Muslims
and Christian;
WHEREAS, it is part of the government commitment to

insure a lasting and peaceful settlement to the conflict in Southern
Philippines, by building up a politically, economically and socially
stable citizenry; and
WHEREAS, there are big tracts of potential agricultural lands

in Jolo Island particularly in the Tiptipon area and other adjacent
areas which were found after due investigation to be suitable for
agricultural cultivation, development of fishing, establishment
of industries, and conversion into well-organized and developed
resettlement areas for the rebel-returnees, evacuees and other
deserving landless of Mindanao under the administration and
disposition of the Department of Agrarian Reform;

of the Philippines, by virtue of the powers vested in me by law and
upon recommendation of the Secretary of Agrarian Reform, do
hereby reserve for settlement purposes under the administration and
disposition of the Department of Agrarian Reform in coordination
with other government agencies concerned subject to private rights,
if any there be, and to the future classification, certain parcels of
land shown on the attached topographic map, more particularly
I. BSD. 864
(1) Lot 2408-C=Lot 2459 Mt. Dajo Cad.

99 Case 2
A=9,345,337 sq. m.
1855
(2) Lot 1877-A=Lot 2464 Mt. Dajo Cad.

99 Case 2
A=874,685 sq. m.
(3) Lot 1877-B=Lot 2465 Mt. Dajo Cad.

99 Case 2
Public Land A=13,162,399 sq. m.
(4) Lot 2410-B=Lot 2461. Mt. Dajo Cad.

99 Case 2
A=5,307,983 sq. m.
(5) Lot No. 2410-A=Lot 2460 Mt. Dajo Cad.

99 Case 2
A=8,102,318 sq. m.
(6) Lot No. 2177

A=1,490,11 sq. m.

99 Case 2 Public Land
A=9,359,653 sq. m.

99 Case 2
A=374,427 sq. m.

99 Case 2 Public Land
A=267, 259 sq. m.
(10) Lot 465-C CAD. 159=Lot 524 Panamao

Cadastre Public Land
A=7,992,653 sq. m.
(11) Lot 465-A=Lot 522 Panamao Cadastre

A=451,050 sq. m.
1856

99 Case 2
A=4,480,954 sq. m.

99 Case 2
A=10,247,301 sq. m.
In order to facilitate the development of the area subject of the

Proclamation, the Bureau of Forest Development is hereby ordered
to immediately reclassify the said areas as alienable and disposable
and the Department of Agrarian Reform in coordination with other
government agencies shall immediately conduct the subdivision
survey of the same into homelots, farmlots, roadlots, and other lots
for public purposes. The screening, however, of prospective allocatee
of the lots therein shall be done by the Regional Processing Centers
established under Memorandum Order No. 516 dated June 16,
1975, of this Office. The Department of Agrarian Reform is hereby
authorized to cut, remove and dispose of available timber stand in
the area to be used in the development of settlement, subject to
forestry laws, rules, and regulations governing the matter.
With respect to those lots, for which certificates of titles

were already issued, the Department of Agrarian Reform and the
Philippine Amanah Bank are hereby authorized to expropriate the
said areas and/or negotiate for their acquisition on pursuant to the
provisions of Republic Act No. 3844, as amended by Republic Act
No. 6389. Whatever amounts are necessary for the purpose shall be
taken out of the funds of the Philippine Amanah Bank to finance the
acquisition of the private properties covered by this Proclamation.

issue Certificates of Land Transfer and/or Emancipation Patents
as the case may be, to settlers properly screened by the Regional
Processing Centers who have complied with the requirements of the
law pursuant to Republic Act No. 3844, as amended by Republic Act
No. 6389.
1857
The Department of Agrarian Reform and/or the Armed Forces

of the Philippines are hereby authorized to call upon any department,
bureau, office, agency or instrumentality of the government for any
assistance that may be necessary in the development, administration
and disposition of the areas covered by this Proclamation.

Done in the City of Manila, this 2nd day of February, in the


By the President:


1858
MALACAÑANG
MANILA
EXCLUDING FROM THE OPERATION OF PROCLAMATION NOS.

457 AND 544, SERIES OF 1939 AND 1940, RESPECTIVELY,
AN AREA OF FIFTEEN THOUSAND HECTARES AND
RESERVING THE SAME AND OTHER PARCELS OF
LAND OF THE PUBLIC DOMAIN SITUATED IN THE
MUNICIPALITIES OF ISABELA, LAMITAN AND MALUSO,
PROVINCE OF BASILAN FOR SETTLEMENT PURPOSES
THE SECRETARY OF AGRARIAN REFORM
WHEREAS, it is the policy of the State to provide a more

systematic public land distribution and development through
a massive resettlement program in order to create a truly viable
social and economic structure in agriculture;
WHEREAS, it is the duty of the government to uplift the

economic well-being of our people especially the less fortunate who
do not own the land they till or who do not own economic size family
operated farms;
WHEREAS, it is necessary to accommodate the Muslims

and other dislocated landless farm tillers living at southwestern
Philippines especially in the provinces of Basilan, Sulu and
Zamboanga del Sur with lands and packages of assistance in order
to make them independent, self-reliant and responsible citizens;
and
WHEREAS, a big tract of fertile agricultural land, classified

and unclassified, situated in the municipalities of Isabela, Lamitan
and Maluso, Province of Basilan containing an area of FIFTEEN
THOUSAND (15,000) HECTARES, more or less, was found
1859
suitable and available for settlement purposes by the Department

of Agrarian Reform;

upon the recommendation of the Secretary of Agrarian Reform,
with the concurrence of the Secretary of Natural Resources, do
hereby exclude from the operation of Proclamation Nos. 457 and
544, series of 1939 and 1940, respectively certain portion of the
land embraced therein, and reserve the same and other parcels of
land of the public domain situated in the municipalities of Isabela,
Lamitan and Maluso, Province of Basilan, for settlement purposes
under the administration and disposition of the Secretary of the
Agrarian Reform, subject to private rights, if there be any, and to
future classification and precise survey, which parcels of public
lands are more particularly described as follows:
Bounded on the North by Basilan Forest Reserve FR. 97, and

Basilan National Park, NP. 27; on the West by Projects Nos. 11-I,
11-H; and 11-L; and on the South by Project Nos. 11-D, 11-I, Blk. XX
and Project No. 12-F Block V and VI and Project No. 12-E, alienable
and disposable.
Beginning on Point “I” being 38º00″ E-13, 500 meters from the
Municipality of Maluso, Province of Basilan:
Thence to point 1-10-30 of Proj. No. 12-F, Blk VIII, A and D;

thence along lines 31-44 of Proj. No. 12-F, Blk VI, A and D;
thence along lines 45-80 of Proj. No. 12-F, Blk V, A and D;
thence along lines 81-99 of Proj. No. 12-E, LC 2002;
thence S 5º00 E 14,000 meters to point 100;
thence N 13º00 E 4,550 meters to point 101;
thence S 84º30″ E 5,300 meters to point 102;
1860
thence along lines 105-130 of Proj. No. 11-I, Blk XIV, A and D;
thence along line 131-143 of Proj. No. 11-H, A and D, LC 2488;
thence along lines 144-156 of Proj. No. 11-I, Blk XVII, A and D, LC
1557;
thence along lines 157-160 of Proj. No. 11-I, Blk XIX, A and D;
thence along lines 161-177 of Proj. No. 11-D, Blk III, A and D, LC
1919;
thence along lines 178-192 of Proj. No. 11-I, Blk XX, A and D;
to the point of beginning containing an estimated area of FIFTEEN
THOUSAND (15,000) HECTARES, more or less.
NOTE: 1. All points are approximate and are subject to change

based on actual classification and precise boundary
survey.
2. The area petitioned for release for agricultural

purposes by Yakan Farmers situated at sitio
Limbutolan, Barrio Tumahubong, District of Lamitan,
containing an area of One Thousand (1,000) Hectares,
more or less, shall be segregated for them as a group.

authorized to cut, remove and dispose of the available timber stand
in the area to be used in the development of the settlement.

of the law pursuant to the provisions of Republic Act No. 3844 as
amended by Republic Act No. 6389.

1861
Done in the City of Manila, this 2nd day of February, in the


By the President:


1862
MALACAÑANG
MANILA
RESERVING FOR RESETTLEMENT PURPOSES A CERTAIN

IN THE MUNICIPALITY OF SAMPALOC, PROVINCE OF
QUEZON, ISLAND OF LUZON
Upon the recommendation of the Secretary of the Department

of Natural Resources and pursuant to the provisions of Section 51 of
Republic Act No. 3844, I, FERDINAND E. MARCOS, President of the
Philippines, do hereby reserve for resettlement purposes under the
administration and disposition of the Secretary of Agrarian Reform,
subject to private rights, if any there be, and to future classification
and survey and to the condition that the utilization and removal of
timber and other forest products therein shall be subject to forest
and internal revenue laws and regulations, a parcel of land of the
public domain situated in the municipality of Sampaloc, province of
Quezon, Island of Luzon, which parcel is more particularly described
as follows:
“Beginning at the point marked “1” which is identical to point

“14” in Sketch Plan of the area covered by the Forest Industries Food
Production Program of the International Hardwood and Veneer Co.
of the Philippines bearing:
thence S. 66 deg. E., 240 m. to point 2;

thence N. 80 deg. E., 200 m. to point 3;
thence S. 62 deg. W., 280 m. to point 8;
1863

thence S. 25 deg. W., 1,100 m. to point 12;
thence S. 89 deg. W., 1,400 m. to point 18;
thence, following creek upstream in northeasterly direction,
about 520 m. to point 19;
thence N. 07 deg. W., 250 m. to point 20;
thence N. 35 deg. E., 240 m. to point 24;
thence, following creek downstream in northeasterly,
northerly direction about 560 m. to point 25;
thence, following creek downstream in a general northwesterly
direction, about 360 m. to point 26;
thence, following creek downstream in a general northwesterly
thence, following logging road in a general northwesterly
thence, following same logging road in a general northeasterly
thence, following same logging road, northeasterly direction,
thence, following same logging road in a general northeasterly
thence, following same logging road, northeasterly direction,
thence, following same logging road, in a northerly direction,
thence S. 75 deg. E’., 320 m. to point 1, the
point of beginning, containing an approximate area of SEVEN
HUNDRED SIXTY (760) HECTARES.”
1864

Done in the City of Manila, this 12th day of April, in the year
of Our Lord, nineteen hundred and seventy-six.

President of the Republic of
the Philippines
By the President
1865
MALACAÑANG
Manila
DECLARING THE PERIOD FROM OCTOBER 15, TO 21, 1977, AS

AGRARIAN REFORM WEEK
WHEREAS, the fifth anniversary of Presidential Decree No.

27 which emancipated the tenant-farmers in rice and corn lands
from the bondage of the soil falls on October 21, 1977;
WHEREAS, land reform is one of the main program thrusts

of the New Society in uplifting the tenant-farmers in their struggle
for social and economic freedom;
WHEREAS, in order to give meaning and focus public attention

to the significance of this historical landmark in the upliftment of
our tenant-farmers, it is fitting that we celebrate the event with
meaningful programs;

hereby declare the period from October 15 to 21, 1977, as Agrarian
Reform Week.
I call upon all departments, offices and our citizenry to

celebrate the success of land reform with fitting ceremonies and to
inculcate in the minds of our people the importance thereof.
The Department of Agrarian Reform shall coordinate all

activities for the successful celebration of the week.

1866

year of Our Lord, nineteen hundred and seventy-seven.

By the President:

1867
MALACAÑANG
MANILA
PROCLAMATION NO. 1798-A, s. 1978

MUNICIPALITY OF KAPAI, PROVINCE OF LANAO DEL
SUR, ISLAND OF MINDANAO, PHILIPPINES, UNDER THE
ADMINISTRATION AND DISPOSITION OF THE MINISTRY
OF AGRARIAN REFORM
Upon the recommendation of the Minister of Agrarian Reform

with the concurrence of the Minister of Natural Resources, I,
of the powers vested in me by law, do hereby reserve for settlement
purposes certain parcels of land of the public domain situated in
the Municipality of Kapai, Province of Lanao del Sur, Island of
Mindanao, Philippines, under the administration and disposition
of the Ministry of Agrarian Reform, subject to private rights if any
there be and to future classification and boundary survey, which
parcels of public lands are more particularly described as follows:
A parcel of land within the public domain situated in the

Municipality of Kapai, Province of Lanao del Sur, bounded in the
North by timberland, on the East by public and private lands, on
the South and West by timberland.
Beginning from a point marked “1” as shown in ANNEX

PLAN “1”, which is the intersection of Bayog River tributaries with
approximate geographical position of 8 deg. 05′ 25″ N and 124 deg.
32′ 15″ E; thence S 35 deg. 00′ E 4,750 m. to point 2;
1868
thence S 45 deg. 30′ W 2,030 m. to point 3; thence N 86 deg.

30′ W 4,930 m. to point 4; thence N 77 deg. 30′ W 4,320 m. to point
5; thence N 56 deg. 00′ W 3,110 m. to point 6; thence N 0 deg. 30′ E
2,050 m. to point 7; thence S 87 deg. 30′ E 3,850 m. point 8; thence S
56 deg. 30′ E 3,350 m. to point 9; thence S 66 deg. 30′ E 2,610 m. to
point 10; thence S 53 deg. 39′ E 1,500 m. to point of
beginning; containing an area of FIVE THOUSAND FIVE

HUNDRED (5,500) HECTARES, more or less. All bearings and
distances are approximate and are subject to change based on the
final boundary survey.
The National Coordinating Committee (NCC) created under

Memorandum Order No. 516, as amended, is hereby directed
to organize a Plans and Programs Committee composed of the
representatives from the NCC as Chairman, the Ministry of
Agrarian Reform, Bureau of Forest Development, Bureau of Lands
and the Bureau of Soils as members, which shall prepare the
area development plan, work program, cost estimates and other
technical plans and designs necessary for the total development of
the settlement.
The Bureau of Forest Development is hereby directed to

undertake the classification of lands subject of this proclamation and
to release as alienable and disposable all areas which are suitable
for agricultural purposes. The Bureau of Lands shall undertake the
boundary, topographic and subdivision surveys and the Bureau of
Soils, the soil survey. All expenses for said surveys shall be charged
against the funds set aside for this project.
The Bureau of Resettlement, Bureau of Forest Development

and the NCC are jointly charged with the responsibility of overseeing
and supervising the implementation of the development plans and
programs of the settlement project. For this purpose, the Bureau
of Forest Development shall immediately issue the necessary
licenses and/or permits for the gathering of forest products found in
the settlement area in accordance with the area development plan
therefor and existing forestry rules and regulations.
1869
For purposes of maintaining a balance ecosystem in the

settlement and to assure a sustained and sufficient supply of surface
water for domestic and agricultural purposes, all portions classified
as timberland inside the settlement reservation and areas within
a distance of 500 meters from the boundary of the reservation, are
hereby declared and reserved as critical watersheds and shall not
be subject to log extraction or harvest in any form. Towards this
end, all logging permits and/or licenses within the area are hereby
cancelled. Likewise, any pasture permit or pasture lease agreement
affecting areas within the settlement reservation shall not be
renewed upon its expiration.
To preclude overlapping or conflicting jurisdiction over the

reservation, all alienable and disposable lands previously released
to the Bureau of Lands are hereby transferred to the Ministry of
Agrarian Reform. However, in the disposition of the same, vested
rights e. g. land patents or titles, approved applications for issuance
of patents filed by public land applicants who have complied with
the requirements of the Public Land Law, as amended, shall be
respected.
The Ministry of Agrarian Reform is hereby authorized to issue

patents to qualified beneficiaries in accordance with the rules and
regulations that may be promulgated by the Ministry of Agrarian
Reform.


year of Our Lord, Nineteen hundred and seventy-eight.

By the President:

1870
MALACAÑANG
Manila
DECLARING THE ENTIRE METROPOLITAN MANILA AREA AS

AN URBAN LAND REFORM ZONE
WHEREAS, the monopoly of land ownership by a few, as well

as the absence of an effective regulatory mechanism, has spawned
disastrous land speculation and has caused irrational patterns of
land development resulting in the emergence of blighted areas,
slums and squatters’ colonies;
WHEREAS, unrestricted pricing and rentals of land put them

beyond the economic capabilities of the common man, resulting in
acute housing shortage and unreasonable and oppressive housing
rentals;
WHEREAS, it is imperative to change the traditional

concept of land ownership so that land shall no longer be treated
as a commodity of trade but as an effective means of production,
particularly in agriculture and industry, in order to minimize the
adverse effects of inflation;
WHEREAS, the fundamental law of the land provides for

the regulation of the acquisition, ownership, use, enjoyment and
disposition of private property and the equitable diffusion of profits
and of the ownership of property, which includes land and land
resources;
WHEREAS, Presidential Decree No. 1517, proclaiming urban

land reform in the Philippines and providing for the implementing
machinery thereof, empowers the President to proclaim urban and
urbanizable lands as urban land reform zones;
WHEREAS, the government has no intention of taking over

lands in places which may be declared urban land reform zones;
1871
WHEREAS, the intention of the government is to safeguard

the public interest, especially that of future generations, by
undertaking the regulation of the use and ownership of land as part
of the program of equitable and rational distribution of wealth to
which the government under the New Society is committed;
WHEREAS, such regulation for the public interest, particularly

with respect to the development of land for subdivisions and for
commercial and industrial purposes, is enunciated in Presidential
Decree No. 1517;
WHEREAS, the government has no intention of expropriating

or taking over all private urban lands including those which are now
being utilized as viable undertakings or projects, and on the contrary
the government will enhance the rational use and development of
lands by private owners, subject to regulation;
WHEREAS, the purpose of urban land reform is to place all

urban land under the management of the state which will, however,
allow its use by private owners subject to the zonification plans as
well as the rules and regulations for urban land use;
WHEREAS, it is necessary to emphasize that urban land

reform differs, as indicated above, from rural land reform, so as to
quiet the fears and dispel doubts or speculations arising from the
misconception that urban land reform and agrarian land reform as
provided under P.D. No. 27 are identical;
WHEREAS, the problems and needs identified above as

arising from unregulated use, ownership and development of urban
land are most pronounced and acute in Metro Manila, which is the
most thickly populated area in the country;
WHEREAS, the proclamation of Metro Manila as an urban

land reform zone is therefore timely, logical, desirable and urgent
for the well-being of its inhabitants and to provide a model for social
and economic reforms for other cities and municipalities.
1872

of the Philippines, pursuant to Section 4 of Presidential Decree No.
1517 entitled “Proclaiming Urban Land Reform in the Philippines
and Providing for the Machinery Thereof,” do hereby declare the
entire Metropolitan Manila composed of the Cities of Manila,
Quezon, Pasay and Caloocan and the Municipalities of Valenzuela,
Malabon, Navotas, Marikina, San Juan, Mandaluyong, Makati,
Pasig, Pateros, Taguig, Parañaque, Las Piñas and Muntinlupa as
an Urban Land Reform Zone.
Accordingly, as Section 4 of Presidential Decree No. 1517

provides, “No urban land can be disposed of or used or constructed
on unless its disposition or use conforms with the development
and zoning plans of the Ministry (of Human Settlements), and
the approved enforcement and implementation guidelines in
accordance with the official Development Registry System and the
Development Use Permit System provided for in Sections 13 and 16
of this Decree.”
In consonance with the above, all landowners in Metro

Manila are required under Sections 4, 9, 12 and 15 of said Decree
to register their existing rights, development proposals, proposed
improvements, and proposals to sell, lease or encumber lands with
the Human Settlements Regulatory Commission.
The Ministry of Human Settlements may call upon any

government ministry, office, agency or instrumentality for such
assistance as it may need or designate any of the aforementioned
government agencies or instrumentalities to exercise specific
functions and activities related to or necessary for the implementation
hereof.
IN WITNESS WHEREOF, I have thereunto set my hand and

1873

year of Our Lord, nineteen hundred and seventy-nine.

By the President:

1874
MALACAÑANG
Manila
DECLARING THE PERIOD FROM OCTOBER 15 TO 21, 1979 AS

WHEREAS, agrarian problems have plagued the country for

centuries and agrarian reform has been instituted and implemented
by the government to improve the social and economic conditions of
our people;
WHEREAS, a milestone in our land reform program was the

promulgation of Presidential Decree No. 27 on October 21, 1972,
emancipating tenants of rice and corn lands from the bondage of
the soil; and
WHEREAS, it is fitting and proper to declare this year an

agrarian reform week to celebrate the anniversary of this significant
event in our history so as to focus national attention on the agrarian
reform program of the government which has uplifted the living
conditions of our people especially the farmers;

Reform Week under the auspices of the Ministry of Agrarian Reform.

1875

year of Our Lord, Nineteen hundred and seventy-nine.

By the President:

1876
MALACAÑANG
Manila
PROCLAIMING THE TRANSFER OF JURISDICTION OVER

SACOBIA RESETTLEMENT AREA FROM THE MINISTRIES
OF NATIONAL DEFENSE AND AGRARIAN REFORM TO
THE MINISTRY OF HUMAN SETTLEMENTS
WHEREAS, the Ministry of Human Settlements, (MHS),

in exercising its functions, has been given the task to provide the
eleven basic needs to every human settlement, including relocation
sites for squatter families;
WHEREAS, Sacobia, 5,612 hectares of military reservation

in Bamban, Tarlac and Mabalacat, Pampanga has been designated
the relocation site for the Marcos and Macapagal squatter villages,
particularly, another squatter villages in the periphery of the Clark
Air Base Military Reservation, generally, including the San Vicente
community, developed by the MHS as a Bagong Lipunan Sites and
Services (BLISS) Level II pilot community with target beneficiaries
of 100 families;
WHEREAS, there is a pressing need to integrate and

rationalize the facilities and services to be rendered to the beneficiary
families of Sacobia, initial target of which is at 600 families.
WHEREAS, the BLISS Program of the MHS is an integrated

human settlements approach in delivering basic services and fac
ilities for the development of a new self-contained community,
incorporating not only the housing component, but livelihood and
ecosystem development as well;
WHEREAS, the development of San Vicente in Sacobia,

called for an immediate response to urgent shelter and livelihood
1877
needs, successfully met with inter-agency participation and thus

exemplifies the immediate rendition of impact projects for the
speedy development of the site;

by the Constitution and the sovereign will of the Filipino people,
do hereby proclaim that Sacobia, a property of the Government of
the Philippines and formerly jointly administered by the Ministries
of National Defense and Agrarian Reform, be transferred to the
Ministry of Human Settlements to undertake its development in
consonance with the BLISS Program; accordingly, any provision
of law, decree, executive order, ordinance, rules and regulations,
inconsistent herewith are hereby repealed, amended, or modified
accordingly.

of Our Lord, nineteen hundred and eighty.

By the President:

Presidential Staff Director
1878
MALACAÑANG
MANILA
TITLE: RESERVING FOR SETTLEMENT PURPOSES CERTAIN

DAVAO ORIENTAL, ISLAND OF MINDANAO, PHILIPPINES
THE MINISTRY OF AGRARIAN REFORM.
DATE: SEPTEMBER 19, 1980
REMARKS: ORIGINAL WITHDRAWN BY THE LEGAL OFFICE

ON SEPTEMBER 23, 1980.
1879
MALACAÑANG
MANILA
DECLARING THE PERIOD FROM OCTOBER 15 TO 21, 1980, AS


our people;
WHEREAS, a milestone in our agrarian reform program was

the promulgation of Presidential Decree No. 27 on October 21, 1972,
emancipating tenants of rice and corn lands from the bondage of the
soil; and


Reform Week under the auspices of the Ministry of Agrarian Reform
and duly organized farmer associations.

1880
Done in the City of Manila, this 9th day of October, in the year
of Our Lord, nineteen hundred and eighty.

By the President:

Senior Presidential Assistant
1881
MALACAÑANG
MANILA
By the President of the Philippines
RESERVING FOR AGRO-INDUSTRIAL COOPERATIVE

SETTLEMENT PURPOSES CERTAIN PARCELS OF
LAND OF THE PUBLIC DOMAIN SITUATED IN THE
MUNICIPALITIES OF WAO AND BUMBARAN, PROVINCE
OF LANAO DEL SUR, ISLAND OF MINDANAO, PHILIPPINES
UNDER THE ADMINISTRATION AND DISPOSITION OF THE
SOUTHERN PHILIPPINES DEVELOPMENT AUTHORITY
OF THE MINISTRY OF HUMAN SETTLEMENTS
WHEREAS, the establishment and development of frontier

agricultural communities in Southern Philippines has significantly
enhanced attainment of lasting peace and the accelerated economic
rehabilitation and upliftment of “Balik-Kapatid” and other
dislocated inhabitants affected by the disturbed peace and order
situation in the area;
WHEREAS, Southern Philippines is now the focus of

government programs for countryside development and resolving
rural poverty, unemployment and discontent among the rural
populations in isolated but potentially productive agricultural lands;
WHEREAS, the MNLF forces, under the command of Jamil

Lucman, operating within the Provinces of Lanao del Sur, Lanao
del Norte and adjoining areas, who have just returned to the folds
of the law and pledged their allegiance to the government and
their desire to actively participate in the government’s economic
development programs have identified and petitioned that a big
tract of undeveloped potentially productive agricultural land of
the public domain is available and suitable for the establishment
of an Agro-Industrial Cooperative Settlement for their relocation
including their families and other muslims and other landless
1882
farmers situated in the Kalaga Plateau of Wao and Bumbaran,

Province of Lanao del Sur;

of the Philippines by virtue of the powers vested in me by law and
upon the recommendation of the Minister of Human Settlements and
the National Resettlement Survey and Review Committee (NRSRC)
do hereby reserve for Agro-Industrial Cooperative Settlement
purposes certain parcels of land of the public domain situated in
the Municipalities of Wao and Bumbaran, Province of Lanao del
Sur, Island of Mindanao, Philippines, under the management
and administration of the Southern Philippines Development
Authority, of the Ministry of Human Settlements in coordination
and with cooperation of the Ministry of Agrarian Reform, Ministry
of Agriculture and the Presidential Committee for Rehabilitation
and Development of Southern Philippines (PMO 697), subject to
private rights and forestry rules and regulations, if any there be
and future classification and final boundary survey, which parcels
of public land are shown in Annex PLAN “A” and more particularly
Beginning at a point marked “1” as shown in ANNEX PLAN

“A” which is identical to point 36 of Lot 3, SWO 41776 of Wao
Settlement Project, thence, in a north-westerly direction following
the Lanao del Sur-Cotabato Boundary, up to point 2 which is the
intersection of Malitbug River with the boundary:
thence, in a westerly direction following the boundary, 5,00m,

to point 3;
Thence, N-00 degrees — 14,700 m. to point 4;
thence, N-23 degrees East — 4,300 m. to point 5;
thence, N-38 degrees West — 7,400 m. to point 6;
Points 6 to 51 are identical to points 10 to 55 of SWO 41745,

Parcel 2 of Rugman Valley Settlement Project;
1883
Thence, N-84 degrees East — 750 m. to point 42;
which is identical to point 21 of SWO 41745 of parcel 3,

Rugman Valley Settlement Project;
thence, in a southernly direction following the boundaries of

Parcel 3, Rugman Valley Settlement Project, PLS 969-D of
Wao Settlement Project, PLS 727 Case 2 of Wao Settlement
Project, up to point 70 of Lot 3, SWO 41776, Wao Settlement
Project;
thence, due West along the Wao Settlement Project, boundary

up to point 45 of Lot 3, SWO 41776;
thence, S-13 degrees West following the boundary, 2,300 m. up

to point of beginning; containing an area of TWENTY-FIVE
THOUSAND (25,000) hectares, more or less. All bearings and
distances are approximate and are subject to change based on
the results of the final boundary survey.



By the President:

1884
MALACAÑANG
MANILA
DECLARING THE PERIOD FROM OCTOBER 21 TO 27, 1981, AS


our people;

soil; and


and duly organized farmers associations.

1885


By the President:

1886
MALACAÑANG
Manila

WHEREAS, agrarian reform has been instituted and

implemented by the government to improve the social and economic
conditions of our farmers;

soil;
WHEREAS, it is fitting and proper to declare an agrarian

reform week to celebrate the anniversary of this significant event in
our history so as to focus national attention to the agrarian reform
program of the government which has given to our farmers a better
quality of life;

of the Philippines, by virtue of the powers vested in me by the law, do
and duly organized farmers associations.

1887
Done in the City of Manila, this 13th day of October in the


By the President:

1888
MALACAÑANG
MANILA
RESERVING FOR SETTLEMENT PURPOSES A CERTAIN

IN THE MUNICIPALITY OF TAPAZ, PROVINCE OF CAPIZ,

massive agricultural resettlement program and a systematic public
land distribution and development, in order to create a truly viable,
social and economic agricultural structure of the country;
WHEREAS, it is now the priority program and concern of

the Government to accelerate the development of all potentially
productive agricultural lands, particularly public lands, which
have remained idle in the isolated and depressed provinces, as an
approach to upgrade the economic growth and the general well-
being of the people;
WHEREAS, it is also the concern and commitment of the

Government to provide deserving landless farmers with agricultural
lands which they can develop as their own with technical and
material assistance from the Government to make them self-reliant,
independent and responsible citizens;
WHEREAS, a big tract of fertile and potentially productive

agricultural land consisting of 9,660 hectares of alienable and
disposable lands of the public domain situated in the Municipality
of Tapaz, Province of Capiz, has been identified and verified by the
Regional Composite Resettlement, Survey and Review Committee,
to be suitable and available for settlement purposes;
1889

upon recommendation of the Minister of Agrarian Reform, after
due consultation with the Minister of Natural Resources, do hereby
reserve for settlement purposes under the administration and
disposition of the Ministry of Agrarian Reform, subject to private
rights, if any there be, and to future classification and survey,
that certain parcel of land of the public domain consisting of 9,660
hectares situated in the Municipality of Tapaz, Province of Capiz,
more particularly described as follows:
A parcel of land situated in the Municipality of Tapaz, Province

of Capiz, beginning at a point marked “1” on plan (LC Map-1270 &
2019) being Latitude 11 deg. 25′ 06″ M. and longitude 122 deg 25′
51″E.
thence Due – East, 2,785.00 m. to point 2;

thence Due – East, 5,850.00 m. to point 3;
thence Due – South, 3,340.00 m. to point 4;
thence Following Malinao River upstream is SW direction
about 1,800.00 m. to point 5;
thence S.35 deg. 00’E, 1,070.00 m. to point 6;
thence S.33 deg. 00’E, 1,580.00 m. to point 7;
thence Due – South, 8,040.00 m. to point 8;
thence Due – West, 4,030.00 m. to point 9;
thence N.70 deg. 00’W., 3,230.00 m. to point 10;
thence N.70 deg. 00’W., 1,740.00 m. to point 11;
thence Due – North, 365.00 m. to point 12;
thence Due – North, 2,180.00 m. to point 13;
thence Following Panay River downstream is SW direction
thence Following Panay River downstream in NW direction
thence N.3 deg. 00’W., 700.00 m. to point 16;
thence N.34. deg. 00’W., 388.00 m. to point 18;
1890
thence S.87 deg. 00’W., 213.00 m. to point 19;

thence N.83 deg. 00’W. 365.00 m. to point 20;
thence Following Sebaguan Creek upstream in NW direction
thence Following Agtilog Creek upstream in NW direction
thence Following a Creek upstream in NE direction about
125.00 m. to point 24;
thence N.42 deg. 00’E. 325.00 m. to point 25;
thence Following Malinao Creek downstream in NW direction
about 900.00 m. to point 27;
thence Following Malinao Creek downstream in SW direction
thence Following Malinao Creek in NW direction about
1,350.00 m. to point 31;
thence Following Toslon Creek downstream in SW direction
thence Due – North, 4,400.00 m. to point of
beginning, containing an approximate area of NINE
THOUSAND SIX HUNDRED SIXTY (9,660) HECTARES,
more or less.
In order to accelerate the development of the area, in accordance

with the Area Development Plans and Programs of the Ministry
of Agrarian Reform and other government agencies concerned,
including local governments, along the concept of agricultural group
resettlement, the Ministry of Agrarian Reform is hereby authorized
to cut, remove and dispose of the timber stand within the alienable
and disposable areas for the development of the settlement and as
1891
assistance to settler-beneficiaries, subject however, to the Bureau of

Forest Development rules and regulations.
In order to eliminate overlapping jurisdiction on the

administration and disposition of all alienable and disposable lands
within the reservation, all areas that were previously released to
the Bureau of Lands, subject to private rights, if any there be, shall
now be under the Ministry of Agrarian Reform and disposed of
in accordance with the provisions of R.A. 3844, as amended, and
other applicable laws and Presidential Decrees, policies, rules and
regulations promulgated thereunder by the Ministry of Agrarian
Reform.
The Minister of the Ministry of Agrarian Reform is hereby

authorized to issue patents to qualified settlers who have complied
with the requirements of the Public Land Act and the provisions of
R. A. No. 3844 as amended by R. A. No. 6389.
DONE in the City of Manila, Philippines, this 21st day of

May, in the year of Our Lord nineteen hundred and eighty-three.

By the President:

1892
MALACAÑANG
MANILA

IN THE MUNICIPALITIES OF BASEY, STA. RITA AND
PINABACDAO, PROVINCE OF WESTERN SAMAR, UNDER

massive agricultural resettlement program and a systematic public
land distribution and development in order to create a truly viable,
social and agricultural national structure of the country;
WHEREAS, it is a priority program and also primary concern

of the State to accelerate the development of all public agricultural
lands which have remained idle in the isolated and depressed
provinces to upgrade the economic growth and general well being
of the people;
WHEREAS, the government has taken steps to effectuate

the emancipation of tenant farmers of private agricultural lands,
and to uplift the economic and special well being of our deserving
landless farmers by providing them with lands from the vast areas
of potentially productive agricultural public lands for development
and cultivation under government supervision and guidance;
WHEREAS, there are certain parcels of fertile and potentially

productive lands of the public domain, classified and unclassified in
the interior portions of the Municipalities of Basey, Sta. Rita and
Pinabacdao, Province of Western Samar, which have been identified
and found to be suitable for agricultural resettlement project by the
Ministry of Agrarian Reform, Ministry of Natural Resources and the
1893
National Resettlement Survey and Review Committee coordinated

by the Development Coordinating Council for Leyte and Samar
(LOI 576);

upon recommendation of the Minister of Agrarian Reform after due
consultation with the Minister of Natural Resources, do hereby
reserve for settlement purposes under the administration and
disposition of the Ministry of Agrarian Reform, certain parcels of
land of the public domain situated in the Municipalities of Basey,
Sta. Rita and Pinabacdao, Province of Western Samar, and more
particularly bounded and described as follows:
Beginning at a point marked “1” on plan (based on BOGS

maps) being longitude 11 deg. 30’N and latitude 125 degree 1.92’E.
thence, S. 84 deg. 15’E., 15,500 m. to point 2

thence, S. 04 deg. 00’E., 9,125 m. to point 3
thence, S. 13 deg. 30’W. 5,625 m. to point 4
thence, S. 80 deg. 00’W., 9,000 m. to point 5
thence, N. 35 deg. 20’W., 7,500 m. to point 6
thence, N. 13 deg. 20’W., 11,187 m. to point of
beginning, containing an area of NINETEEN THOUSAND EIGHT

HUNDRED NINETY THREE (19,893) hectares, more or less.
In order to accelerate the development of the area subject

of this proclamation, the Bureau of Forest Development is hereby
directed to undertake immediately the necessary land classification
survey of said area to delineate areas available for release as
alienable and disposable lands.
The Ministry of Agrarian Reform is hereby authorized to

cut, remove and dispose of the timber within the alienable and
disposable portions of the reservation to be used in the development
of the settlement and to fill the timber needs of qualified settlers
1894
therein, subject however to the Bureau of Forest Development rules

and regulations on the matter.
With respect to those lots for which certificates of title were

already issued, the Ministry of Agrarian Reform is hereby authorized
to expropriate the said areas and/or negotiate for their acquisition
pursuant to the provisions of Republic Act No. 3844, as amended
by Republic Act No. 6389, if such areas are very necessary for the
overall development of the settlement. The amounts necessary
for the purpose shall be taken out of the funds of the Ministry of
Agrarian Reform to finance the acquisition of the private properties
covered by this proclamation.
The Ministry of Agrarian Reform is hereby directed to organize

a Plans and Programs Committee, composed of representatives
from the Bureau of Forest Development, the Bureau of Lands and
the Bureau of Soils, which shall prepare the area development plan,
work program, cost estimates and other technical plans and designs
necessary for the total development of the settlement.
Since permanent agricultural and profitable farming ventures

necessitate a sustained sufficient water supply for irrigation
purposes as well as the adoption of measures to prevent soil erosion,
the areas marked “B-1”, “E”, “F” and “G” in the attached sketch plan
being within the proposed Sohotan Natural Bridge Reservation,
timberland and unclassified areas respectively, should be retained
as permanent forest lands to be reserved as watersheds.
To maximize land use and development as well as to avoid

any land speculation, the Ministry of Agrarian Reform is hereby
directed to observe the leasehold system in the distribution of the
land covered by this proclamation, and similarly observe and/or
adopt the cooperative system of management and development.
1895
Done in the City of Manila, this 21st day of May, in the year
of Our Lord, nineteen hundred and eighty-three.
By the President:

1896
MALACAÑANG
MANILA

WHEREAS, a milestone in our agrarian reform program

was the promulgation of P.D. 27 on October 21, 1972 emancipating
tenants from feudal bondage;
WHEREAS, agrarian reform has strengthened the security

of tenure of the farmers and improved their social and economic
conditions, thus enabling them to branch out to livelihood projects
in line with the Kilusang Kabuhayan at Kaunlaran (KKK);

our history to focus national attention on Tenant Emancipation as a
turning point in our efforts at national development;

hereby declare the period from October 17 to 23, 1983 as AGRARIAN
REFORM WEEK under the auspices of the Ministry of Agrarian
Reform, Land Bank of the Philippines, Philippine Crop Insurance
Corporation and duly organized farmers associations.

1897
of Our Lord, nineteen hundred and eighty-three.

By the President:

1898
MALACAÑANG
MANILA
AMENDING PRESIDENTIAL PROCLAMATION NO. 284, SERIES

OF 1938, AS AMENDED, BY EXCLUDING A PORTION
THEREOF CONSISTING OF 2,598 HECTARES SITUATED
IN THE MUNICIPALITIES OF DIPLAHAN AND SIAY,
PROVINCE OF ZAMBOANGA DEL SUR AND RESERVING
THE SAME FOR SETTLEMENT PURPOSES UNDER THE
OF AGRARIAN REFORM
WHEREAS, the Sangguniang Bayan of Diplahan and Siay and

Sangguniang Panlalawigan of Zamboanga del Sur and the Executive
Officer of the Philippine Australian Development Assistance
Program (PADAP) have requested for the release from the coal
mining reservation established under Presidential Proclamation
No. 284, Series of 1938, as amended by Presidential Proclamation
No. 402, Series of 1953, certain portions thereof consisting of 2, 598
hectares situated in Diplahan and Siay, Province of Zamboanga
del Sur and reserving the same for settlement purposes under the
administration and disposition of the Ministry of Agrarian Reform;
WHEREAS, the Ministry of Energy, thru the Bureau of

Energy Development, after geological investigation have found the
area requested to have no indication of potential coal deposits and
therefore, interposed no objection to its release from the mining
reservation for agricultural resettlement project;
WHEREAS, the subject land has been identified and verified

by the Regional Resettlement Survey and Review Composite Team
of Region IX, Zamboanga City and the National Resettlement
1899
Survey and Review Committee to be suitable for an agricultural

settlement;
WHEREAS, it is the concern and commitment of the

government to provide deserving landless farmers with potentially
productive public agricultural lands which they can develop as
their own and make it productive with the technical and material
assistance of the government in the economic development of the
country;

of the Philippines, by virtue of the power vested in me by law, and
upon recommendation of the Minister, Ministry of Agrarian Reform;
the Minister of the Ministry of Natural Resources and the Ministry
of Energy, do hereby release from the operation of Presidential
Proclamation No. 284, Series of 1938, as amended by Presidential
Proclamation No. 402, Series of 1953, certain portions thereof
consisting of 2,598 hectares, more or less and reserve the same for
resettlement purposes under the administration and disposition of
the Ministry of Agrarian Reform pursuant to the provisions of R.A.
3844, as amended, subject however, to private rights, if any there
be, and to future classification and survey, which areas is more
TECHNICAL DESCRIPTION OF
SIBUGUEY VALLEY RESETTLEMENT PROJECT
A parcel of land of the public domain situated in the

Municipalities of Diplahan and Siay, Province of Zamboanga
del Sur; Beginning at point one (1) which is the NW corner
point of Coal Block No. 41-N-318 having geographical
coordinates: 7°46’00″0 North Latitude and 122º55’30″0 East
Longitude located in the Municipality of Imelda, Zamboanga
del Sur. From point one (1) this boundary shall run on the
bearing of S 89°59’29″6E for distance of 2,757.528 meters to
point two (2):
THENCE DUE NORTH 1,804.112 m to point 3
1900
” N 48°33’31” 2 E 2,843.194 m to point 4

” S 89°59’41″9 E 626.384 m to point 5
” DUE SOUTH 4,782.272 m to point 6
” S 33°20’02″1 W 2,330.639 m to point 7
” S 48°49’01″6 W 1,381.944 m to point 8
” N 66°49’04″6 W 3,100.189 m to point 9
” N 28°59′ 29″7 W 3,103.486 m to point 10
” S 89°59’29″7 W 1,124.446 m to point 1
which is the point of beginning, containing an approximate

area of 2,598.5881 hectares.
In order to accelerate the development of the area, in accordance

with the Area Development Plans and Programs of the Ministry
of Agrarian Reform and other government agencies concerned
including local government along the concept of agricultural group
resettlement, the Ministry of Agrarian Reform is hereby authorized
to cut, remove and dispose of the timber stand within the alienable
and disposable areas for the development of the settlement and as
assistance to settler-beneficiaries, subject however, to the Bureau of
Forest Development rules and regulations and its programs on water
conservation and land utilization programs of other government
agencies concerned.


By the President:

1901
MALACAÑANG
Manila

WHEREAS, agrarian reform is a program of the State

aimed at emancipating the tenant from the bondage of the soil and
achieving the goals enunciated in our Constitutions;
WHEREAS, Presidential Decree No. 27 was promulgated to

give meaning and substance to the said program;

reform week to celebrate the anniversary of this significant
event in our history to focus national attention to Small Farmers
Emancipation and to give more support to this endeavor;

hereby declare the period from October 15 to 21, 1984, an Agrarian
Reform Week under the auspices of the Ministry of Agrarian
Reform, Land Bank of the Philippines, Philippine Crop Insurance
Corporation and duly organized farmers associations.


By the President:

1902
MALACAÑANG
MANILA


the promulgation of P.D. 27 on October 21, 1972, emancipating
tenants from feudal bondage;
WHEREAS, agrarian reform has strengthened the security

of tenure of the farmers and improved their social and economic
conditions and is now being pursued as a support measure to the
national economic recovery program;

our history to focus national attention on Tenant Emancipation as a
turning point in our efforts at national development;

by law, do hereby declared the period from October 21 to 27, 1985
as AGRARIAN REFORM WEEK under the auspices of the Ministry
of Agrarian Reform, Land Bank of the Philippines, Philippine Crop
Insurance Corporation and duly organized farmers associations.

1903

year of Our Lord, nineteen hundred and eighty-five.

By the President:

1904
MALACAÑANG
Manila

MUNICIPALITY OF CATEEL, PROVINCE OF DAVAO,
ISLAND OF MINDANAO, PHILIPPINES UNDER THE
OF AGRARIAN REFORM
WHEREAS, the government has embarked into a program

of identification, segregation and setting-up of more resettlement
projects throughout Mindanao which could be made available for
disposition to the rebel returnees, evacuees from the troubled areas
in Mindanao and other deserving qualified landless farmers;
WHEREAS, there are sizeable and available parcels of land of

the public domain which were identified and verified by the Ministry
of Agrarian Reform and Ministry of Natural Resources including
other coordinating government agencies to be available and suitable
for agricultural cultivation and reservation as a resettlement project,
situated in the Municipality of Cateel, Province of Davao Oriental;

Minister, Ministry of Agrarian Reform with the concurrence of
the Minister, Ministry of Natural Resources I, FERDINAND E.
MARCOS, President of the Republic of the Philippines, by virtue
of the power vested in me by law, do hereby reserve for settlement
purposes under the administration and disposition of the Ministry
of Agrarian Reform subject however to private rights, if any
there be, certain parcels of land of the public domain, situated in
the Municipality of Cateel, Province of Davao Oriental, Island of
Mindanao, which parcels of land are more particularly described as
follows:
1905
“A parcel of land (Proposed Cateel Resettlement Project CR-

367 situated in the Municipality of Baganga and Cateel, Province of
Davao Oriental, Island of Mindanao. Bounded on the NE. points 1-3
by Cateel Bay; on the SE., points 3-6 by Block A, Proj. No. 11-C, LC-
2660; on the SW., and W., points 10-22 by unclassified land; on the
NW., E., and W., points 22 to 25 by Proj. No. 12, Block A, LC-2660;
and on the N., and NE., points 25-1 by Manat River. Beginning at a
point marked “1” on plan being the mouth of Manat River.
thence follows coast line in general SE direction about 15,700

m. to point “2”;
thence follows F.Z. corner No. 219 to 221 Block II, A or D,
Project No. 17 in straight distance of 1,600.00 m. to point “3”;
thence follows Cadungunan Creek upstream in general SW
direction about 900.00 m. to point “4”;
thence follows F.Z. corner No. 214-217, Block A, A or D,
Project No. 11, in general SW direction in straight distance
about 1,950.00 m. to point “5”;
thence follows F.Z. corner No. 3-35 of Block 1-A or D, Project
No. 12 in general SW direction in straight distance of 14,500.00
m. to point “6”;
thence follows F.Z. corners 35 to 55, Block 1, A or D, Project
No. 12 in general NW direction in straight distance of about
5,100 m. to point “7”;
thence follows Cateel River, upstream in general SW direction
about 1500.00 m. to point “8”;
thence follows F.Z. corners No. 1 to 10, Block III, A or D,
Project No. 77-C in general SW direction about 2,750.00 m.
to point “9”;
thence N. 87 deg. 00’W., 420 m. to point “10”;
thence N. 34 deg. 00’W., 1,200 m. to point “13”;
1906

thence follows Juid River upstream in general NE direction
about 400 m. to point “22”;
thence follows F.Z. corners No. 272-250, Block A, Proj. No. 12
LC-2660 in general SE direction about 2,630.00 m. to point
“23”;
thence follows F.Z. corner No. 1 to 15, Block D, T.L. Proj. No.
11-C in general SE direction 3,450 m. to point “24”;
thence F.Z. corners No. 33-143, Block I, A or D, Proj. No. 12,
LC-2660 in general NW direction about 7,300.00 m. to point
“25”;
thence follows Manat River, downstream in general NE
direction about 3,750.00 m. to point of beginning,
containing an area of nine thousand four hundred seventy five

(9,475) hectares, more or less. All points referred to are indicated
on plan and are marked on the ground as follows: point 1-2 and 10-
25 x mark on ground; point 3 is a coconut tree; point 4 is a TOOG
TREE; point 5 is a Tara-Tara Tree 35 inches in diameter; point 6 is
a Malakamias Tree 70 inches in diameter; point 7 is a Toog Tree 70
inches in diameter; point 8 is a Pugurigan Tree 40 cm. in diameter
and point 9 is a K Banay Tree 45 inches in diameter. This parcel of
land is subject to future surveys.”
The Ministry of Agrarian Reform with the assistance of other

government agencies concerned is hereby directed to prepare the
area development plan work program, cost estimates, work papers
and other technical plans and designs necessary for the total
development of the settlement area.
The Bureau of Forest Development is hereby directed to

undertake the classification of all timberland areas embraced by
the proclamation and to release as alienable and disposable all
areas which are suitable for agricultural purposes, and to issue
1907
the necessary licenses and/or permits in favor of the Ministry of

Agrarian Reform for cutting and disposition of timber within the
reservation to be used in the development of the resettlement
project in accordance with the Ministry of Natural Resources rules
and regulations governing the matter.
For purposes of maintaining a balance ecosystem in the

proclaimed area and to insure a sustained and sufficient surface
water supply, all government projects within the settlement
relative thereto shall be respected and all rules and regulations
of the different government agencies concerned regarding forest
conservation, water conservation, preservation of wild life and
soil preservation should be strictly observed and included in the
development program of the settlement. Towards this end, the
Ministry of Natural Resources is hereby directed to reexamine all
logging permits and/or licenses, if any, within the area with the
view to cancel and/or amend the same if circumstances so warrant
to achieve the purposes of this proclamation.
The Ministry of Agrarian Reform is hereby authorized to

issue patents and/or Certificates of Land Transfers to the settlers
who have complied with the rules and regulations promulgated
pursuant to the promulgated pursuant to the provisions of Sec. 51,
R.A. 3844, as amended.
IN WITNESS WHEREOF, I hereunto set my hand and caused

the seal of the Republic of the Philippines to be affixed.

year of Our Lord, nineteen hundred and eighty-six.

By the President:

1908
MALACAÑANG
MANILA
DECLARING THE KARAGAN VALLEY RESETTLEMENT

PROJECT IN THE PROVINCE OF DAVAO DEL NORTE AS A
CIVIL RESERVATION EXCLUSIVELY FOR THE MANSAKA
AND MANDAYA TRIBES AND OTHER CULTURAL
MINORITIES
Upon the recommendation of the Minister of Natural Resources

and with the concurrence of the Minister of Agrarian Reform and
pursuant to the authority vested in me by the Constitution I,
FERDINAND E. MARCOS, hereby declare the Karagan Valley
Resettlement Project in the Municipalities of San Mariano, Maco
and Mabini, Province of Davao del Norte as a civil reservation
exclusively for settlement by, and disposition to, the Mansaka and
Mandaya Tribes and other cultural Minorities, subject to private
rights, if any.

Done in the City of Manila, Philippines, this 29th day of

January, in the year of Our Lord, nineteen hundred and eighty-six.

By the President:

1909
1910
APPENDIX: INDEX
APPENDIX:
INDEX
1911
1912
APPENDIX: INDEX
A
ACCFA SEE Agricultural Credit and Cooperative Financing
Administration
AFMA SEE Agriculture and Fisheries Modernization Act
AFMech SEE Agricultural and Fisheries Mechanization
AFMP SEE Agriculture and Fisheries Modernization Plan
AFP SEE Armed Forces of the Philippines
AIDA SEE Agro-Industrial Development Areas
AMCFP SEE Agro-Industry Modernization Credit and Financing
Program
ARBs SEE Agrarian Reform Beneficiaries
ARCs SEE Agrarian Reform Communities
ARMM SEE Autonomous Region in Muslim Mindanao
ATI SEE Agricultural Training Institute
Abaca Capital of the Philippines

Catanduanes, Province of RA 11700
Abaca industry RA 11700
Abot-Kaya Pabahay Fund RA 7835
Administrative Code CA 441
Administrative Code of 1987 Proc. 245 s. 1993; Proc. 942 s. 1996
Ambuklao-Biñga Watershed Proc. 1498 s. 1975
Ancestral domain reform EO 364 s. 2004
Agrarian land reform program Proc. 82 s. 1987
Agrarian Reform SEE Land reform
Agrarian Reform Beneficiaries (ARBs) LOI 1391; PD 544; PD 717; RA
7905; RA 10878
Liabilities
Inter-Agency Task Force AO 176 s. 2007
Agrarian Reform Bonds PD 85
Eligibility EO 659 s. 2007
Features EO 659 s. 2007
Issuance EO 267 s. 1995
Negotiability EO 659 s. 2007
Transferability EO 659 s. 2007
Usage
Payments EO 659 s. 2007
Agrarian Reform Code of the Philippines PD 717
Amendments PD 1039; PD 1817; RA 7907
Agrarian Reform Commission PD 85
1913
Laws & Executive Issuances on Agrarian Reform
Agrarian Reform Communities (ARCs) Proc. 547 s. 1995; Proc. 548 s.

1995; RA 7905; RA 10601
Agrarian Reform Community Development Program Proc. 180 s. 1993;
Proc. 245 s. 1993; Proc. 254 s. 1993; Proc. 392 s. 1994; Proc. 418 s. 1994;
Proc. 1209 s. 1998
Agrarian Reform Community Program SEE Agrarian Reform Community
Development Program
Agrarian Reform Coordinating Council PD 2
Composition EO 437 s. 1974
Functions EO 437 s. 1974
Membership EO 437 s. 1974
Agrarian Reform Credit PD 717; RA 10000
Agrarian Reform Fund Proc. 131 s. 1987; Proc. 136 s. 1993; Proc. 913 s.
1992; RA 7661; RA 7907; RA 8758
Administration PD 85
Establishment PD 85
Utilization PD 85
Agrarian Reform Fund Commission PD 462; RA 7907
Agrarian Reform Month Proc. 263 s. 2000
Agrarian Reform Operating Fund EO 228 s. 1987
Agrarian Reform Program AO 176 s. 2007; BP 337 §208; BP 649; BP
869; EO 228 s. 1987; EO 1083 s. 1986; LOI 227 s. 1974; PD 2; PD 462; PD
544; PD 1039; Proc. 131 s. 1987; Proc. 1500 s. 1975; Proc. 1909 s. 1979;
Proc. 2022 s. 1980; Proc. 2122 s. 1981; Proc. 2234 s. 1982; Proc. 2316 s.
1983; Proc. 2342 s. 1984; Proc. 2382 s. 1984; Proc. 2459 s. 1985; RA 6389;
RA 6657; RA 7661; RA 9700
Agrarian Reform Operating Fund (Agrarian Fund)
Source EO 228 s. 1987
Beneficiaries
Land titles
Mortgages EO 228 s. 1987
Ownership EO 228 s. 1987
Payment EO 228 s. 1987
Payment
Condonation EO 1083 s. 1986
Fact-finding Committee AO 127 s. 1989
Authority EO 228 s. 1987
Bonds EO 228 s. 1987
Land consolidation LOI 650 s. 1978
Land owners
1914
APPENDIX: INDEX
Compensation EO 228 s. 1987

Rights EO 228 s. 1987
Land titles
Registration and transfer EO 228 s. 1987
National Land Titles and Deeds Registration Administration
Agrarian Reform Week Proc. 180 s. 1993; Proc. 263 s. 2000; Proc. 913 s.
1992; Proc. 1679 s. 1977; Proc. 1909 s. 1979; Proc. 2022 s. 1980; Proc. 2122
s. 1981; Proc. 2234 s. 1982; Proc. 2316 s. 1983; Proc. 2382 s. 1984; Proc.
2459 s. 1985
Agrarian system RA 1400
Agri-Agra Allocation Funds RA 7835
Agri-Agra Law
Law and legislation
Enforcement EO 83 s. 1998
Agri-Agra Reform Credit Act of 2009 RA 10000
Agribusiness Development Group RA 7900
Agricultural and Biosystems Engineering RA 10915
Agricultural and Fisheries Mechanization (AFMech) RA 10601
Agricultural and Fisheries Mechanization (AFMech) Law RA 10601
Agricultural commodities RA 821
Agricultural communities
Abuyog, Municipality of, Leyte Proc. 418 s. 1994
Baybay, Municipality of, Leyte Proc. 418 s. 1994
Borongan, Eastern Samar Proc. 245 s. 1993
Bunawan, Municipality of, Agusan del Sur Proc. 254 s. 1993
Calbiga, Municipality of, Samar Proc. 392 s. 1994
Dasol, Municipality of, Pangasinan Proc. 455 s. 1994
Hilongos, Municipality of, Leyte Proc. 418 s. 1994
Infanta, Municipality of, Pangasinan Proc. 455 s. 1994
Inopacan, Municipality of, Leyte Proc. 418 s. 1994
Javier, Municipality of, Leyte Proc. 418 s. 1994
Mabini, Municipality of, Pangasinan Proc. 455 s. 1994
Mahaplag, Municipality of, Leyte Proc. 418 s. 1994
Pinabacdao, Municipality of, Samar Proc. 392 s. 1994
San Julian, Eastern Samar Proc. 245 s. 1993
Veruela, Municipality of, Agusan del Sur Proc. 254 s. 1993
Agricultural Credit Administration AO 72 s. 1963; RA 821; RA 3844
Agricultural Credit and Cooperative Financing Administration RA 821;
RA 1160
Agricultural credit programs PD 792
1915
Agricultural credits LOI 571 s. 1977

Agricultural development RA 8435; RA 11700
Agricultural Engineering RA 10915
Agricultural Guarantee Fund PD 544
Agricultural Guarantee Fund Board
Creation EO 348 s. 1971; RA 6390
Duties EO 348 s. 1971
Report EO 348 s. 1971
Agricultural inactivity RA 8435
Agricultural labor RA 3844
Agricultural Land Reform Code AO 79 s. 1963; RA 3844; RA 4886; RA 6390
Amendments PD 251; PD 444; PD 946; RA 5984; RA 6389; RA 10878
Agricultural lands
ACT 4054; AO 363 s. 1997; CA 178; PD 251; PD 316; PD 444; PD 946; Proc. 454
s. 1994; Proc. 741 s. 2004; Proc. 1497 s. 1975; Proc. 1531 s. 1976; Proc. 2046
s. 1981; Proc. 2342 s. 1984; RA 1400; RA 6657; RA 7881; RA 7900; RA 9700
Agricultural communities
Borongan, Eastern Samar Proc. 245 s. 1993
Bunawan, Municipality of, Agusan del Sur Proc. 254 s. 1993
San Julian, Eastern Samar Proc. 245 s. 1993
Veruela, Municipality of, Agusan del Sur Proc. 254 s. 1993
Conversion
Premature AO 363 s. 1997
Fish ponds
Conversion RA 7881
Government-owned
Acquisition EO 75 s. 2019
Distribution EO 75 s. 2019
Identification EO 75 s. 2019
Law and legislation EO 75 s. 2019
Rules and regulation EO 75 s. 2019
Segregation EO 75 s. 2019
Transfer EO 75 s. 2019
Validation EO 75 s. 2019
Inventory LOI 227 s. 1974
Landlord and tenant RA 34
Contracts ACT 4054
Loans ACT 4054
Share ACT 4054
1916
APPENDIX: INDEX
Possession RA 3844
Prawn farms
Conversion RA 7881
Prime AO 363 s. 1997
Private BP 649; RA 3844
Public RA 3844
Purchase RA 3844
Reclassification AO 363 s. 1997
Agricultural Land Use Conversion (Series 1992)
Guidelines EO 124 s. 1993
Agricultural leasehold contract RA 3844
Agricultural leasehold relation BP 869; RA 3844
Agricultural leasehold system PD 1040; RA 3844
Agricultural lessees PD 815; PD 816
Agricultural mechanization RA 10601
Agricultural production RA 10574
Agricultural Productivity Commission AO 72 s. 1963; RA 6538
Creation RA 3844
Agricultural products RA 11203
Agricultural projects PD 544
Agricultural services RA 10915
Agricultural settlement Proc. 196 s. 1987
Agricultural share tenancy PD 1040
Abolition RA 3844
Prohibitions PD 1040
Agricultural Special Account
Creation RA 6390
Agricultural Tariffication Act
Amendments RA 11203
Agricultural tenancy RA 1199
Agricultural Tenancy Act of the Philippines RA 1199
Agricultural Training Institute (ATI) EO 127 s. 1999
Agricultural workers
Benefits LOI 1035
Agriculture and Fisheries Modernization Act of 1997 (AFMA) RA 8435;
RA 10000; RA 10068
Agriculture and Fisheries Modernization Plan (AFMP) RA 8435
Agriculture, Fisheries and Agrarian Reform Credit, Insurance and
Financing System RA 10000
Agriculture Reform Credit RA 10000
Agro-industrial development RA 8435
1917
Agro-Industrial Development Areas (AIDA) EO 511 s. 1992

Agro-Industry Modernization Credit and Financing Program (AMCFP)
RA 8435
Ancestral domain RA 9054
Ancestral lands RA 6657; RA 9700
Aparceros ACT 4054; CA 178
Aquifer Recharge Areas AO 363 s. 1997
Arbor Day Act of 2012 RA 10176
Arbor Day Committee
Creation RA 10176
Armed Forces of the Philippines (AFP) PD 583; Proc. 1500 s. 1975; Proc.
1530 s. 1976
Assets Privatization Trust Proc. 82 s. 1987; RA 7661; RA 7907; RA
8532; RA 8758
Autonomous Region in Muslim Mindanao (ARMM) RA 9054
Autonomous Regional Government
Responsibility EO 482 s. 1991
Organic Act
Amendments RA 9054
B
BAI SEE Bureau of Animal Industry
BAFPS SEE Bureau of Agriculture and Fisheries Product Standards
BAFS SEE Bureau of Agriculture and Fisheries Standards
BALA SEE Bureau of Agrarian Legal Assistance
BAR SEE Bureau of Agricultural Research
BFD SEE Bureau of Forest Development
BLISS SEE Bagong Lipunan Sites and Services
BoI SEE Board of Investments
BPI SEE Bureau of Plant Industry
BSP SEE Bangko Sentral ng Pilipinas
Bagong Lipunan Sites and Services (BLISS) Proc. 1954 s. 1980

Bangko Sentral ng Pilipinas (BSP) RA 10574
Banking institutions PD 717
Biosystems Engineering
Services RA 10915
Board of Investments (BoI)
Complaints and Action Center for Investments
Officials and employees
1918
APPENDIX: INDEX
Appointment EO 180 s. 1999

Natural Resources,
Transportation, Communications and Services
Budget EO 180 s. 1999
Investment One-Stop Action Center
Renaming EO 180 s. 1999
Office of the Investment Ombudsman
Creation EO 180 s. 1999
Funds EO 180 s. 1999
Inter-agency coordination EO 180 s. 1999
Investment Facilitation Specialists
Designation EO 180 s. 1999
Powers EO 180 s. 1999
Quick Response One-Stop Action Center (QROSACI)
Reports EO 180 s. 1999
Supervision EO 180 s. 1999
Bongabon Stock Farm Proc. 861 s. 1992
Budget process PD 1177
Budget Reform Decree of 1977 PD 1177
Bureau of Agrarian Legal Assistance
Claims and Conflicts Division EO 347 s. 1971
Employee fringe benefits PD 1426
Functions EO 129 s. 1987; EO 129-A s. 1987; EO 347 s. 1971
Judicial Cases Division EO 347 s. 1971
Legal Information and Mediation Division EO 347 s. 1971
Bureau of Agrarian Reform Beneficiaries Development
Functions EO 129 s. 1987; EO 129-A s. 1987
Bureau of Agrarian Reform Information and Education EO 129 s. 1987;
1919
EO 129-A s. 1987
Bureau of Agricultural Economics EO 76 s. 1964
Bureau of Agricultural Research (BAR) EO 127 s. 1999
Bureau of Agriculture and Fisheries Product Standards (BAFPS) RA
10068
Bureau of Agriculture and Fisheries Standards (BAFS) RA 11511
Bureau of Animal Industry (BAI) EO 76 s. 1964; Proc. 190 s. 1955
Bureau of Farm Management
Divisions
Agricultural Development EO 347 s. 1971
Cooperatives Organization EO 347 s. 1971
Home Management and Rural Youth Development EO 347 s. 1971
Bureau of Forest Development (BFD) PD 389; Proc. 1500 s. 1975; Proc.
1798-A s. 1978; Proc. 2479 s. 1986
Bureau of Forestry EO 76 s. 1964
Bureau of Land Acquisition and Distribution
Bureau of Land Acquisition, Distribution and Development EO 347 s. 1971
Divisions
Land Acquisition EO 347 s. 1971
Land Capability and Classification Survey EO 347 s. 1971
Land Distribution EO 347 s. 1971
Land Surveys EO 347 s. 1971
Bureau of Lands EO 76 s. 1964; Proc. 196 s. 1987; Proc. 1500 s. 1975; Proc.
1798-A s. 1978; Proc. 2291 s. 1983; Proc. 2292 s. 1983; RA 1400; RA 10574
Bureau of Plant Industry (BPI) EO 76 s. 1964
Bureau of Resettlement EO 347 s. 1971; Proc. 1798-A s. 1978; RA 6389
Bureau of Soils EO 76 s. 1964; Proc. 1798-A s. 1978
C
CADCs SEE Certificate of Ancestral Domain Claims
CAIDS SEE Countryside Agro-Industrial Development Strategy
CALF SEE Comprehensive Agricultural Loan Fund
CARL SEE Comprehensive Agrarian Reform Law
CARP SEE Comprehensive Agrarian Reform Program
CBAs SEE Collective Bargaining Agreements
CERDAF SEE Council for Extension, Research and Development in
1920
APPENDIX: INDEX
Agriculture and Fisheries

CHED SEE Commission on Higher Education
CIDSS SEE Comprehensive and Integrated Delivery of Social Services
CLUPs SEE Comprehensive Land Use Plans
COCOFED SEE Philippine Coconut Producers Federations, Inc.
CODA SEE Cotton Development Administration
CRDI SEE Cotton Research and Development Institute
Calamities
Floods RA 6538
Rains RA 6538
Rehabilitation RA 6538
Relief RA 6538
Typhoons RA 6538
Victims RA 6538
Calamity funds RA 8175
Central Bank of the Philippines PD 251; PD 717; RA 3844
Monetary Board BP 65
Certificate of Ancestral Domain Claims (CADCs) Proc. 547 s. 1995; Proc.
548 s. 1995
Certificate of Land Ownership Awards holders
Agricultural credit
Loans
Certificate of Land Transfer PD 816; PD 1817
Clark Air Base Military Reservation Proc. 1954 s. 1980
Comprehensive Agrarian Reform Program beneficiaries
Agricultural credit
Loans
Coconut industry LOI 1035; PD 1854
Coconut Trust Fund
Capitalization EO 313 s. 2000
Coconut Trust Fund Committee
Accounting EO 313 s. 2000
1921

Decision making EO 313 s. 2000
Meetings EO 313 s. 2000
Responsibilities EO 313 s. 2000
Extent EO 313 s. 2000
Purpose EO 313 s. 2000
Trust income
Disposition EO 313 s. 2000
Use EO 313 s. 2000
Trustee bank
United Coconut Planters Bank (UCPB) EO 313 s. 2000
Coconut Trust Fund Committee
Accounting EO 313 s. 2000
Decision making EO 313 s. 2000
Collective Bargaining Agreements (CBAs) RA 7661
Colonization SEE ALSO Land settlement
Kapalong, Municipality of, Davao Proc. 29 s. 1936
Tagum, Municipality of, Davao Proc. 29 s. 1936
Commercial farming RA 6657; RA 7881
Commission on Higher Education (CHED) EO 8 s. 2001; EO 26 s. 2011
Committee on Non-Member Agencies for Land Reform
1922
APPENDIX: INDEX
Officials and employees EO 76 s. 1964

Committee on Privatization and the Asset Privatization Trust RA 7661;
RA 8758
Creation RA 7661
Comprehensive Agrarian Reform Law AO 363 s. 1997; EO 124, s. 1993;
Proc. 913 s. 1992
Comprehensive Agrarian Reform Law of 1988 RA 6657; RA 7652; RA
7881; RA 7907; RA 9520; RA 9593; RA 9700; RA 10574
Comprehensive Agrarian Reform Program (CARP) AO 363 s. 1997; EO 124,
s. 1993; EO 229 s. 1987; EO 406 s. 1990; EO 407 s. 1990; EO 448 s. 1991; EO
506 s. 1992; Proc. 295 s. 1993; Proc. 446 s. 1994; Proc. 454 s. 1994; Proc. 741
s. 2004; Proc. 900 s. 1996; Proc. 913 s. 1992; Proc. 965 s. 1997; RA 6657; RA
6938; RA 7881; RA 7900; RA 8532; RA 9458; RA 9700; RA 10659; RA 11203
Agrarian Reform Fund
Agricultural lands
Land titles
Lease agreements EO 407 s. 1990
Agro-forestry lands
Land titles
Ancestral lands EO 229 s. 1987
Barangay Agrarian Reform Council (BARC)
Beneficiaries
Credit support EO 229 s. 1987
Land titles
Ownership EO 229 s. 1987; EO 407 s. 1990
Bird refuges
Bird sanctuaries
1923

Agrarian reform development projects EO 406 s. 1990
Employee fringe benefits PD 1426 s. 1978
Exemptions EO 229 s. 1987
Fishponds
Land titles
Game refuge
Government purchasing of real property EO 229 s. 1987
Government reserved lands
Acquisition EO 448 s. 1991; EO 506 s. 1992
Distribution EO 448 s. 1991; EO 506 s. 1992
Exemptions EO 506 s. 1992
Land titles
Transfer EO 448 s. 1991; EO 506 s. 1992
Segregation EO 448 s. 1991; EO 506 s. 1992
Implementation EO 229 s. 1987
Institutionalization Proc. 131 s. 1987
Inter-agency CARP Implementing Team EO 406 s. 1990
Landforms
Classification EO 506 s. 1992;Proc. 295 s. 1993; Proc. 965 s. 1997
Land titles
Registration and transfer EO 229 s. 1987
Land valuation Proc. 295 s. 1993; Proc. 965 s. 1997
Mineral land reservation
Alienable lands
Disposition Proc. 295 s. 1993; Proc. 965 s. 1997
Exclusion Proc. 295 s. 1993
Land use Proc. 295 s. 1993; Proc. 965 s. 1997
Arellano, Dinagat Island, Surigao del Norte Proc. 295 s. 1993
Cantilan, Surigao del Sur Proc. 454 s. 1994
Carrascal, Surigao del Sur Proc. 454 s. 1994
1924
APPENDIX: INDEX
Claver, Surigao del Norte Proc. 295 s. 1993; Proc. 965 s. 1997
Dinagat Island, Surigao del Norte Proc. 965 s. 1997
Disposable lands
Gigaquit, Surigao del Norte Proc. 295 s. 1993
Libjo, Dinagat Island, Surigao del Norte Proc. 295 s. 1993
Loreto, Dinagat Island, Surigao del Norte Proc. 295 s. 1993
Melgar, Dinagat Island, Surigao del Norte Proc. 295 s. 1993
Puyo Island and Santiago, Loreto, Dinagat Island, Surigao del Norte
Proc. 965 s. 1997
San Jose & Dinagat, Dinagat Island, Surigao del Norte Proc. 295 s. 1993
Tubajon, Dinagat Island, Surigao del Norte Proc. 295 s. 1993; Proc.
965 s. 1997
National parks and reserve
Pasture lands
Land titles
Presidential Agrarian Reform Council (PARC)
Protected areas
Provincial Agrarian Reform Coordinating Committee (PARCCOM) EO
406 s. 1990
Real property Proc. 295 s. 1993
Utilization EO 229 s. 1987
Valuation Proc. 295 s. 1993
Sanctions EO 229 s. 1987
1925
Scope EO 229 s. 1987

Wildlife refuges
Wildlife reserve
Comprehensive Agricultural Loan Fund (CALF) RA 7900; RA 8435
Comprehensive and Integrated Delivery of Social Services (CIDSS) Proc.
548 s. 1995
Comprehensive and Integrated Shelter and Urban Development
Financing Program RA 7835
Comprehensive and Integrated Shelter Financing Act of 1994 RA 7835
Comprehensive Land Reform Law of 1988 AO 176 s. 2007; Proc. 263 s.
2000; RA 6657; RA 7652; RA 7881
Amendments RA 7905
Funding Source RA 8532
Comprehensive Land Reform Program Proc. 82 s. 1987
Comprehensive Land Use Plans (CLUPs) AO 363 s. 1997; EO 204 s. 2000
Inter-Agency Steering Committee
Establishment EO 204 s. 2000
Funds
Technical working groups EO 204 s. 2000
Compulsory arbitration CA 461
Construction projects
Real property
Displaced tenants/occupants
Assistance EO 1035 s. 1985
Expropriation EO 1035 s. 1985
Right of way
Acquisition
Procedure EO 1035 s. 1985
Registration EO 1035 s. 1985
Taxation EO 1035 s. 1985
1926
APPENDIX: INDEX

Surveys EO 1035 s. 1985
Consultas PD 1817
Convergence of Flagship Programs and Projects Proc. 548 s. 1995
Cooperative Code of the Philippines RA 6938; RA 9520
Cooperative Development Authority RA 6938; RA 9520
Cooperative financing system
Administration RA 821
Cooperative unions RA 9520
Cooperatives LOI 253
Administration RA 6938; RA 9520
Agrarian Reform RA 9520
Bylaws RA 9520
Membership RA 9520
Objectives RA 6938; RA 9520
Organization RA 6938; RA 9520
Powers and Capacities RA 6938
Registration RA 6938; RA 9520
Types RA 6938
Corn
Production PD 1947
Corn-Based Farmer-Scientist Research, Development and Extension (RDE)
Training Program (FSTP)
Adoption EO 710 s. 2008
Coverage EO 710 s. 2008
Funds
Institutional arrangements EO 710 s. 2008
Inter-agency coordination
Local Government Units (LGUs) EO 710 s. 2008
Nationwide adoption EO 710 s. 2008
Corn industry PD 4
Corn lands Proc. 2022 s. 1980; Proc. 2122 s. 1981; Proc. 2234 s. 1982; RA
6657
Corporation Law CA 441
Cotton Development Administration (CODA) RA 8486
Cotton farmers RA 8486
1927
Cotton Industry Development Law of 1998 RA 8486

Cotton Research and Development Institute (CRDI) RA 8486
Council for Extension, Research and Development in Agriculture and
Fisheries (CERDAF)
Constitution EO 127 s. 1999
Natural Resources, Transportation, Communications and Services
Abolition EO 180 s. 1999
Budget EO 180 s. 1999
Countryside Agro-Industrial Development Strategy (CAIDS) EO 511 s.
1992
Court of First Instance ACT 496
Court of Industrial Relations CA 461
Court of Land Registration ACT 496
Courts of Agrarian Relations PD 316; PD 583; PD 816; RA 4886; RA 5984;
RA 6389
Creation RA 3844
Judges PD 946
Reorganization PD 946
Credit Memo Advise System EO 407 s. 1990
Crop Insurance Program RA 8175
Crop sharing PD 1040
Crops RA 1199
Cuenco, Rosa
Property of LOI 1273
Cultural communities RA 9054
D
DA SEE Department of Agriculture
DAR SEE Department of Agrarian Reform
DBM SEE Department of Budget and Management
DBP SEE Development Bank of the Philippines
1928
APPENDIX: INDEX
DENR SEE Department of Environment and Natural Resources

DepED SEE Department of Education
DFA SEE Department of Foreign Affairs
DHSUD SEE Department of Human Settlements and Urban Development
DILG SEE Department of the Interior and Local Government
DND SEE Department of National Defense
DNR SEE Department of Natural Resources
DOF SEE Department of Finance
DOH SEE Department of Health
DOJ SEE Department of Justice
DOLE SEE Department of Labor and Employment
DOST SEE Department of Science and Technology
DOT SEE Department of Tourism
DOTC SEE Department of Transportation and Communications
DPS SEE Direct Payment Scheme
DPWH SEE Department of Public Works and Highways
DSWD SEE Department of Social Welfare and Development
DTI SEE Department of Trade and Industry
DA-DAR-DENR Convergence Initiative EO 26 s. 2011

Davao del Norte Free Farmers Cooperative, Inc. LOI 1274
Defining Open Space in Residential Subdivision BP 220
Department of Agrarian Reform (DAR) AO 176 s. 2007; AO 206 s. 1995;
AO 226 s. 2008; AO 226-A s. 2008; BP 337 §208; BP 649; BP 869; BP 870;
EO 8 s. 2001; EO 26 s. 2011; EO 124, s. 1993; EO 129, s. 1987; EO 129-A, s.
1987; EO 290 s. 2000; EO 347 s. 1971; EO 360 s. 1989; EO 405, s. 1990; EO
406 s. 1990; EO 407 s. 1990; EO 710, s. 2008; PD 287; PD 583; PD 717; Proc.
s. 1996; Proc. 942 s. 1996; Proc. 1495-A s. 1995; Proc. 1496 s. 1975; Proc.
1497 s. 1975; Proc. 1498 s. 1975; Proc. 1499 s. 1975; Proc. 1500 s. 1975;
Proc. 1530 s. 1976; Proc. 1531 s. 1976; Proc. 1679 s. 1977; Proc. 1798-A s.
1978; RA 3844; RA 6538; RA 6657; RA 6938; RA 7900; RA 7900; RA 8435;
RA 9520; RA 9593; RA 9700; RA 10000; RA 10176; RA 10601; RA 10659;
RA 10915; RA 11201; RA 11203
Agrarian Reform Coordinating Council
Agrarian reform development projects EO 406 s. 1990
Appropriations EO 347 s. 1971
1929
Assets
Transfer
Autonomous Regional Government (ARG) EO 482 s. 1991
Authority EO 129 s. 1987; EO 129-A s. 1987; EO 407 s. 1990; Proc. 1195
s. 1973
Budget
Transfer
Building
Justice Milagros A German Hall Proc. 708 s. 1995
Bureaus
Bureau of Agrarian Legal Assistance EO 129 s. 1987; EO 129-A s.
1987; EO 347 s. 1971; RA 6389
Bureau of Agrarian Reform Beneficiaries Development EO 129 s.
1987; EO 129-A s. 1987
Bureau of Agrarian Reform Information and Education EO 129 s.
1987; EO 129-A s. 1987
Bureau of Farm Management EO 347 s. 1971; RA 6389
Conversion PD 980
Bureau of Land Acquisition and Distribution EO 129 s. 1987; EO
129-A s. 1987
Bureau of Land Acquisition, Distribution and Development EO 347
s. 1971; RA 6389
Bureau of Land Development
Creation EO 129-A, s. 1987
Bureau of Land Tenure Improvement
Appropriations PD 980
Creation PD 980
Field Personnel PD 980
Functions PD 980
Transfer of Personnel PD 980
Bureau of Lands SEE ALSO Bureau of Lands
RA 10574
Bureau of Resettlement Proc. 1798-A s. 1978; RA 6389
Census and Statistics Division EO 347 s. 1971
Engineering Division EO 347 s. 1971
Settlers’ Affairs Division EO 347 s. 1971
Special Projects Division EO 347 s. 1971
1930
APPENDIX: INDEX
Consultative and Coordinating Committee EO 347 s. 1971

Creation RA 6389
Delegation of powers EO 482 s. 1991
Department of Land Reform EO 364 s. 2004; EO 726 s. 2008
Duties EO 710 s. 2008; Proc. 1209 s. 1998
Equipment and supplies
Transfer
Evaluation EO 129-A, s. 1987
Functions EO 129 s. 1987; EO 129-A, s. 1987; EO 347 s. 1971; EO 405
s. 1990; EO 406 s. 1990
Retention EO 482 s. 1991
Transfer
Funds
Source EO 129 s. 1987; EO 129-A, s. 1987; EO 347 s. 1971
Land Reform Education Fund
Trusts and trustees EO 361 s. 1971
Lands
Disposition EO 360 s. 1989
Right of first refusal EO 360 s. 1989
Sale
Right of first refusal EO 360 s. 1989
Law and legislation EO 129 s. 1987;EO 129-A, s. 1987
Mandate EO 129 s. 1987; EO 129-A s. 1987; EO 290 s. 2000
Ministry of Agrarian Reform EO 1059 s. 1985
National Commission on Indigenous Peoples’ (NCIP) SEE ALSO
National Commission on Indigenous Peoples’ (NCIP)
EO 364 s. 2004; EO 379 s. 2004; EO 726 s. 2008
Office of the Secretary
Agrarian Reform Adjudication Board
Composition EO 129-A s. 1987
Creation EO 129-A s. 1987
Functions EO 129-A s. 1987
Powers EO 129-A s. 1987
Assistant Secretary EO 129-A s. 1987
Foundation for the Agrarian Reform Movement of the Philippines
1931
(FARM-Philippines) EO 129-A s. 1987

Functions EO 129-A s. 1987; EO 347 s. 1971
Public Affairs Staff EO 129-A s. 1987
Special Concerns Staff EO 129-A s. 1987
Undersecretary EO 129-A s. 1987
Offices
Administrative Service EO 347 s. 1971
General Services Division EO 347 s. 1971
Information Division EO 347 s. 1971
Personnel Division EO 347 s. 1971
Agrarian Reform Education Service
District Offices EO 347 s. 1971
Field Operations Office
Finance, Management and Administrative Office EO 129-A s.
1987
Financial and Management Service
Accounting Division EO 347 s. 1971
Budget Division EO 347 s. 1971
Management Division EO 347 s. 1971
Legal Affairs Office
Municipal Agrarian Reform Offices
Officials and employees EO 129-A s. 1987
Planning and Project Management Office
Planning Service EO 347 s. 1971
Policy and Strategic Research Office
Provincial Offices
Officials and employees EO 129 s. 1987; EO 129-A s. 1987
1932
APPENDIX: INDEX
Regional Offices
Administrative Division EO 347 s. 1971
Operations Division EO 347 s. 1971
Regional Field Offices
Officials and employees EO 129 s. 1987; EO 129-A s. 1987
Team Offices
Action Groups
Authority EO 129 s. 1987; EO 129-A s. 1987
Composition EO 129-A s. 1987
Functions EO 129-A s. 1987; EO 347 s. 1971
Redeployment EO 290 s. 2000
Salaries, etc. EO 290 s. 2000; EO 347 s. 1971
Separation benefits EO 290 s. 2000
Structure EO 347 s. 1971
Transfer
Organization EO 347 s. 1971
Organizational structure EO 129 s. 1987; EO 129-A s. 1987
Powers EO 129 s. 1987; EO 129-A s. 1987; EO 290 s. 2000
Transfer
Presidential Commission on the Urban Poor (PCUP) SEE ALSO
Presidential Commission on the Urban Poor (PCUP)
EO 364 s. 2004
Programs
Transfer
Projects
Transfer
Rationalization and Streamlining Plan (RSP)
Funds
1933
Real property
Transfer
Regional Development Councils (RDC)
Reinstatement EO 562 s. 2006
Renamed EO 456 s. 2005
Tenants’ Emancipation Day Proc. 1193 s. 1973
Transformation EO 364 s. 2004
Reorganization EO 129 s. 1987; EO 129-A s. 1987
Rules and Regulation EO 129 s. 1987; EO 129-A s. 1987
Services
Administrative, Personnel and Management Service EO 129 s. 1987
Finance and Physical Assets Management Service EO 129 s. 1987
Legal and Public Assistance Service EO 129 s. 1987
Research and Planning Service EO 129 s. 1987
Department of Agriculture (DA) AO 182 s. 1969; AO 200 s. 1970; AO 206
s. 1995; AO 363 s. 1997; EO 8 s. 2001; EO 26 s. 2011; EO 148 s. 2021; EO
168 s. 2022; EO 407 s. 1990; Proc. 82 s. 1987; Proc. 547 s. 1995; Proc. 548 s.
1995; Proc. 635 s. 1959; RA 7900; RA 10000; RA 10176; RA 10601; RA 10659
Attachment EO 168 s. 2022
Philippine Crop Insurance Corporation (PCIC)
Detachment EO 148 s. 2021
Philippine Rice Research Institute (PHILRICE)
Department of Agriculture and Food SEE Department of Agriculture (DA)
Department of Agriculture and Natural Resources SEE Department of
Agriculture (DA); Department of Environment and Natural Resources
(DENR)
Department of Budget and Management (DBM) EO 26 s. 2011
Department of Education (DepED) AO 206 s. 1995; EO 26 s. 2011
Department of Education, Culture and Sports (DECS) SEE Department of
Education (DepED)
Department of Environment and Natural Resources (DENR) AO 363 s.
1997; EO 26 s. 2011; EO 407 s. 1990; EO 726 s. 2008; PD 389; Proc. 82 s.
1934
APPENDIX: INDEX
1987; Proc. 196 s. 1987; Proc. 246 s. 1988; Proc. 254 s. 1993; Proc. 289 s.
1975; RA 10176; RA 10915
National Commission on Indigenous Peoples (NCIP) EO 11 s. 2010; EO
726 s. 2008
Department of Finance (DOF)
Department of Foreign Affairs (DFA) AO 206 s. 1995
Department of Health (DOH) AO 206 s. 1995; EO 562 s. 2006; RA 6538
Regional Development Councils (RDC) EO 562 s. 2006
Department of Human Settlements and Urban Development (DHSUD)
Creation RA 11201
Department of Human Settlements and Urban Development Act RA
11201
Department of Justice (DOJ) AO 182 s. 1969; AO 200 s. 1970; CA 461
Ministry of Justice EO 1059 s. 1985
Department of Labor and Employment (DOLE) AO 206 s. 1995
Ministry of Labor and Employment EO 1059 s. 1985
Department of Land Reform SEE Department of Agrarian Reform
Department of Natural Resources SEE Department of Environment Natural
Resources (DENR)
Department of National Defense (DND) AO 206 s. 1995; Proc. 1954 s. 1980
Department of Public Works and Communications SEE Department of Public
Works and Highways (DPWH)
Department of Public Works and Highways (DPWH) AO 182 s. 1969; AO
200 s. 1970; AO 206 s. 1995; BP 220; EO 8 s. 2001
Department of Science and Technology (DOST) AO 206 s. 1995; EO 8 s.
2001
Department of Social Welfare and Development (DSWD) EO 26 s. 2011
Department of the Interior and Local Government (DILG) AO 206 s. 1995;
EO 8 s. 2001; EO 562 s. 2006
1935

Department of Tourism (DOT) AO 206 s. 1995; RA 9458; RA 9593
Department of Trade and Industry (DTI) AO 363 s. 1997; EO 8 s. 2001;
RA 7652
Department of Transportation and Communications (DOTC) AO 206 s.
1995; EO 8 s. 2001
Development Bank of the Philippines (DBP) RA 7900
Development zones RA 8435
Direct Payment Scheme (DPS) AO 363 s. 1997
Donor’s Tax
Payment
Exemption BP 649
E
ECC SEE Environmental Compliance Certificate
EMB SEE Environmental Management Bureau
Ecological balance RA 9054

Ejectment cases PD 1038
Emancipation patents LOI 1391
Environment protection RA 10068; RA 11511
Environmental Compliance Certificate (ECC) AO 363 s. 1997
Environmental Management Bureau (EMB) RA 7881
Environmentally Critical Areas AO 363 s. 1997
Executive Committee
Funds
Office of the Presidential Adviser on the Peace Process EO 203 s. 1994
Social Reform Agenda Council EO 203 s. 1994
1936
APPENDIX: INDEX
F
FARM-Philippines SEE Foundation for the Agrarian Reform Movement
of the Philippines
FMSJR SEE Federated Movement for Social Justice and Reforms
Famy-Infanta Forest Reserve Proc. 196 s. 1987

Farm Mechanization Program PD 287; RA 10659
Farm practices
Modernization PD 287
Farmers AO 200 s. 1970; BP 870; Proc. 131 s. 1987; Proc. 1497 s. 1975; Proc.
Proc. 2382 s. 1984; Proc. 2459 s. 1985; RA 8175; RA 10574
Assistance LOI 1035
Muslim Proc. 1495-A s. 1995; Proc. 1499 s. 1975
Yakan Proc. 1531 s. 1976
Farmers Trust Development Program
Components EO 151 s. 1999
Department of Finance (DOF)
Farmers Trust Development Fund EO 151 s. 1999
Farmers Trust Guaranty Fund EO 151 s. 1999
Program committee
Quedan and Rural Credit Guarantee Corporation
Role EO 151 s. 1999
Farmholdings PD 316; PD 583; PD 815
Federated Movement for Social Justice and Reforms (FMSJR) AO 182 s.
1969; AO 200 s. 1970
Fertilizer and Pesticide Authority RA 7881
Financing programs LOI 571
Fire Code of the Philippines BP 220
Fisheries RA 8435
Fisheries mechanization RA 10601
Fishermen RA 10574
Fish ponds
Conversion RA 7881
Food and Jobs Council SEE National Council on Food Security and Job
1937
Creation
Foreign investing RA 7652
Forestry agency
Revitalization PD 389
Forestry laws
Codifying PD 389
Revising PD 389
Updating PD 389
Forest research PD 389
Forest resources
Management PD 389
Foundation for the Agrarian Reform Movement of the Philippines (FARM-
Philippines)
Attachment EO 129-A s. 1987
Authority EO 129 s. 1987; EO 129-A s. 1987
Supervision EO 129-A s. 1987
G
GFIs SEE Government Financing Institutions
Global YES SEE Global Youth Earthsaving Summit
Game reserves
Real, Quezon Proc. 196 s. 1987
Garchitorena land
Camarines Sur AO 127 s. 1989
General Ricarte Agricultural Cooperative LOI 253
Global Indigenous Cultural Olympics and Summit for Peace and
Sustainable Development AO 206 s. 1995
Global Youth Earthsaving Summit (Global YES) AO 206 s. 1995
Government bonds
Usage
Government Financing Institutions (GFIs) RA 8425
1938
APPENDIX: INDEX
Government reserved lands

Bobon, Northern Samar Proc. 1209 s. 1998
Bongabon, Province of Nueva Ecija Proc. 983 s. 1972
Bubong, Province of Lanao del Sur Proc. 1195 s. 1973
Catarman, Northern Samar Proc. 1209 s. 1998
Dupax, Province of Nueva Ecija Proc. 983 s. 1972
Kisolon, Impasugong, Province of Bukidnon Proc. 300 s. 1938
Libona, Province of Bukidnon Proc. 345 s. 1938
Lumba-A-Bayabao, Province of Lanao del Sur Proc. 1195 s. 1973
Maguing, Province of Lanao del Sur Proc. 1195 s. 1973
Maria Aurora, Aurora Proc. 983 s. 1972
Milagros, Province of Masbate Proc. 357 s. 1965
Poblacion, Barangay, Muntinlupa City Proc. 1159 s. 2006
Pantabangan, Province of Nueva Ecija Proc. 983 s. 1972
Government securities
Usage
H
HLURB SEE Housing and Land Use Regulatory Board
HUDCC SEE Housing and Urban Development Coordinating Council
HVCDF SEE High-Value Crops Development Fund
Haciendas San Antonio and Sta. Isabel LOI 1180

Hand tractors
Acquisition PD 287
High-Value Crops Development Act of 1995 RA 7900
High-Value Crops Development Fund RA 7900
Home lots LOI 46 s. 1972
Housing and Land Use Regulatory Board (HLURB) AO 363 s. 1997; EO
124 s. 1993; RA 11201
Housing and Urban Development Coordinating Council (HUDCC) EO
124 s. 1993; RA 11201
HUK VETS Association, Inc. LOI 650
1939
Human Settlements Proc. 1893 s. 1979; Proc. 1954 s. 1980

Human Settlements Commission PD 815
Human Settlements Regulatory Commission
Reorganization AO 363 s. 1997
Hybrid Rice Program EO 76 s. 2002
I
IACC-LAMP SEE Inter-Agency Coordinating Committee to Prepare and
Coordinate Implementation of a Land Administration and Management
Program
ILO SEE International Labour Organization (ILO)
IPs SEE Indigenous Peoples
ITI SEE International Theatre Institute
Igorot LOI 1275

Ilocos Sur Stock Farm
Daing, Cervantes Proc. 190 s. 1955
Indigenous Cultural Communities
Lands RA 9054
Indigenous Peoples (IPs) AO 206 s. 1995; Proc. 547 s. 1995
Indigenous Peoples Rights Act EO 11 s. 2010
Integrated National Police BP 220
Inter-Agency AIDA Task Force
Inter-Agency Coordinating Committee to Prepare and Coordinate
Implementation of a Land Administration and Management Program
(IACC-LAMP)
Finance EO 129 s. 1999
Inter-Agency Project Coordinating Committee (IPCC)
Creation LOI 547
Inter-Agency Steering Committee
1940
APPENDIX: INDEX
Comprehensive Land Use Plans (CLUPs) EO 204 s. 2000

Funds
Technical working groups EO 204 s. 2000
Inter-Agency Task Force on Zero Hunger
Interagency coordination EO 101 s. 2020
International Conference and Festival for Indigenous and Traditional
Cultures AO 206 s. 1995
International Decade of the World’s Indigenous Peoples
National Committee
Composition AO 206 §1
Functions AO 206 §2
Funding AO 206 §3
International Labour Organization (ILO)
Convention 169 AO 206 s. 1995
International Theatre Institute (ITI) AO 206 s. 1995
International Year for the World’s Indigenous Peoples AO 206 s. 1995
Inventory of Lands and Sites for Socialized Housing
Guidelines EO 124 s. 1993
Investors’ Lease Act RA 7652
Irrigation Service Unit (DPWC) EO 76 s. 1964
Irrigation systems RA 34
J
Jacinto Estate
Acquisition LOI 370
Justice Milagros A German Hall Proc. 708 s. 1995
K
KKK program LOI 1275
1941
Karagan Valley Resettlement Project Proc. 2484 s. 1986
L
LASEDCO SEE Land Settlement and Development Corporation
LGUs SEE Local Government Units
LMB SEE Land Management Bureau
Labor Code of the Philippines LOI 1035

Laguna Resettlement Project PD 1474
Land, Acquisition of Proc. 136 s. 1993
Land, Alienable Proc. 196 s. 1987; Proc. 454 s. 1994
Land amortization
Payment
Interest EO 1083 s. 1986
Condonation EO 1083 s. 1986
Land Authority AO 72 s. 1963; RA 3844; RA 6389
Land Bank of the Philippines AO 72 s. 1963; AO 176 s. 2007; BP 649; EO
267 s. 1995; EO 405, s. 1990; PD 462; PD 583; Proc. 136 s. 1993; Proc. 835
s. 1991; RA 3844; RA 6389; RA 7900; RA 7907; RA 10878
Administrative structure PD 444
Board of Directors PD 444; PD 1039
Compulsory Acquisition (CA) Arrangement EO 405 s. 1990
Creation PD 251
Land
Valuation EO 405 s. 1990
Land capability for agriculture EO 405 s. 1990
Land titles
Land transfer payments EO 267 s. 1995
Organizational structure PD 444
Real property
Reorganization PD 85 s. 1972
1942
APPENDIX: INDEX

Voluntary Offer to Sell (VOS) EO 405 s. 1990
Land capability for agriculture
Segregation EO 75 s. 2019
Validation EO 75 s. 2019
Land classification PD 389
Land consolidation scheme LOI 253
Land conversion
Applications AO 226 s. 2008; AO 226-A s. 2008
Priority development areas
Agricultural lands EO 124 s. 1993
Evaluation EO 124 s. 1993
Regional agri-industrial centers (RAICs) EO 124 s. 1993
Regional industrial centers (RICs) EO 124 s. 1993
Tourism development areas EO 124 s. 1993
Socialized housing
Selection EO 124 s. 1993
Land, Disposable Proc. 196 s. 1987; Proc. 454 s. 1994
Land disposition PD 1517; Proc. 246 s. 1988; Proc. 742 s. 1996; Proc. 1496
s. 1975; Proc. 1499 s. 1975; Proc. 1531 s. 1976
Surigao, Mindanao Proc. 454 s. 1994
Land districts
Delegation of powers
Land grants EO 407 s. 1973
Land titles EO 407 s. 1973
Landforms
Classification Proc. 300 s. 1938; Proc. 345 s. 1938; Proc. 357 s. 1965;
Proc. 983 s. 1972; Proc. 1108 s. 1997; Proc. 1159 s. 2006; Proc. 1195 s.
1973; Proc. 1209 s. 1998
Landholdings LOI 143
Payments LOI 1326
1943
Settlement LOI 253

Landless farmers Proc. 254 s. 1993
Landlord and tenant ACT 4054; CA 178; AO 182 s. 1969; AO 200 s. 1970;
CA 461; RA 1199
Ejectment LOI 226 s. 1974
Contracts ACT 4113
Landlords ACT 4054; CA 178; RA 34
Land Management Bureau (LMB) EO 124 s. 1993
Landowners ACT 4113; BP 869; CA 461; PD 316; PD 583; PD 815; PD 816;
Proc. 131 s. 1987
Benefits LOI 273
Compensation claims LOI 1326
Payments LOI 273; LOI 474
Land ownership LOI 143 s. 1973; PD 1517; Proc. 1893 s. 1979
Transfer PD 27
Land, Public SEE ALSO Public land
ACT 496; Proc. 2015 s. 1980; RA 6938
Classification PD 389
Disposable PD 389
Land reform AO 79 s. 1963; PD 583 s. 1974; Proc. 82 s. 1987; Proc. 180 s.
s. 1979, RA 9054
Acquisition Proc. 835 s. 1991
Special Committee on Reorganization of Agencies
Agriculture and Natural Resources AO 72 s. 1963
Budget AO 72 s. 1963
Finance AO 72 s. 1963
Justice AO 72 s. 1963
Labor AO 72 s. 1963
National Defense AO 72 s. 1963
National Economic Council AO 72 s. 1963
Public Works and Communications AO 72 s. 1963
Urban Proc. 1893 s. 1979
Land Reform Act of 1955 RA 1400
Land reform area PD 2
Land reform beneficiaries
Agricultural credit
Loans
1944
APPENDIX: INDEX

Land Reform Program AO 72 s. 1963; BP 870; PD 84; Proc. 1909 s. 1979
Assistance LOI 273
Implementation EO 150 s. 1968; LOI 46
Awards EO 150 s. 1968
Pilot projects LOI 46
Land Reform Project Administration RA 3844; RA 6389
Land Registration Act ACT 496
Land Registration Commission RA 6389
Officials and employees PD 1817
Land Registration Office ACT 496
Land registration systems PD 1817
Land resettlement SEE Land settlement
Land rights
Limitations PD 1817
Lands
Adverse claims PD 1817
Conveyance PD 1817
Registration PD 1817
Unregistered lands PD 1817
Land settlement Proc. 196 s. 1987; Proc. 254 s. 1993; Proc. 295 s. 1993;
Proc. 965 s. 1997
Abuyog, Municipality of, Leyte Proc. 418 s. 1994
Arteche, Municipality of, Eastern Samar Proc. 942 s. 1996
Bamban, Municipality of, Tarlac Proc. 1954 s. 1980
Basey, Sta. Rita, Western Samar Proc. 2292 s. 1983
Bayang, Lanao del Sur Proc. 1499 s. 1975
Baybay, Municipality of, Leyte Proc. 418 s. 1994
Binindayan, Lanao del Sur Proc. 1499 s. 1975
Bobon, Northern Samar Proc. 1209 s. 1998
Bongabon, Province of Nueva Ecija Proc. 983 s. 1972
Borbon, Agusan del Sur Proc. 742 s. 1996
Bubong, Province of Lanao del Sur Proc. 1195 s. 1973
Budget LOI 547
Bumbaran, Municipality of, Lanao del Sur Proc. 2046 s. 1981
Butig, Lanao del Sur Proc. 1499 s. 1975
Calbiga, Municipality of, Samar Proc. 392 s. 1994
1945
Catarman, Northern Samar Proc. 1209 s. 1998

Cateel, Municipality of, Davao Proc. 2015 s. 1980
Cateel, Municipality of, Davao Oriental Proc. 2479 s. 1986
Claver, Surigao del Norte Proc. 295 s. 1993
Colonization
Kapalong, Municipality of, Davao Proc. 29 s. 1936
Tagum, Municipality of , Davao Proc. 29 s. 1936
Culat, Barrio of, Casiguran, Municipality of, Tayabas Proc. 467 s. 1939
Columbio, Municipality of, Sultan Kudarat Proc. 1496 s. 1975
Dasol, Municipality of, Pangasinan Proc. 455 s. 1994
Diffun, Municipality of, Quirino Proc. 900 s. 1996
Dinaig, Municipality of, Maguindanao Proc. 1500 s. 1975
Diplahan, Municipality of, Zamboanga Proc. 983 s. 1972; Proc. 2342 s.
1984
Dupax, Municipality of, Nueva Vizcaya Proc. 1498 s. 1975
General Santos City, Mindanao Proc. 446 s. 1994; Proc. 858 s. 1996
Guadalupe, Agusan del Sur Proc. 742 s. 1996
Gigaquit, Surigao del Norte Proc. 295 s. 1993
Hilongos, Municipality of, Leyte Proc. 418 s. 1994
Hinunangan, Municipality of, Southern Leyte Proc. 246 s. 1988; Proc.
1497 s. 1975
Infanta, Municipality of, Pangasinan Proc. 455 s. 1994
Inopacan, Municipality of, Leyte Proc. 418 s. 1994
Isabela, Municipality of, Basilan Proc. 1531 s. 1976
Javier, Municipality of, Leyte Proc. 418 s. 1994
Jipapad, Municipality of, Eastern Samar Proc. 942 s. 1996
Kapai, Municipality of, Lanao Del Sur Proc. 1798-A s. 1978
Karomatan, Municipality of, Lanao del Norte Proc. 1495-A s. 1995
Kiblawan, Municipality of, Davao del Sur Proc. 1496 s. 1975
Lamitan, Municipality of, Basilan Proc. 1531 s. 1976
Lumba-A-Bayabao, Province of Lanao del Sur Proc. 1195 s. 1973
Lumbatan, Lanao del Sur Proc. 1499 s. 1975
Mabalacat, Pampanga Proc. 1954 s. 1980
Mabini, Municipality of, Pangasinan Proc. 455 s. 1994
Mabini, Municipality of, Davao del Norte Proc. 2484 s. 1986
Maco, Municipality of, Davao del Norte Proc. 2484 s. 1986
Maddela, Quirino Proc. 1498 s. 1975
Magsaysay, Municipality of, Davao del Sur Proc. 1496 s. 1975
1946
APPENDIX: INDEX
Maguing, Province of Lanao del Sur Proc. 1195 s. 1973

Mahaplag, Municipality of, Leyte Proc. 418 s. 1994
Maluso, Municipality of, Basilan Proc. 1531 s. 1976
Maria Aurora, Aurora Proc. 983 s. 1972
Matanao, Municipality of, Davao del Sur Proc. 1496 s. 1975
Muslims Proc. 1531 s. 1976
Nunungan, Municipality of, Lanao del Norte Proc. 1495-A s. 1995
Oras, Municipality of, Eastern Samar Proc. 942 s. 1996
Pagayawan (Tatarican), Lanao del Sur Proc. 1499 s. 1975
Palayan City, Nueva Ecija Proc. 861 s. 1992
Panamao, Sulu Proc. 136 s. 1993; Proc. 835 s. 1991; Proc. 1530 s. 1976
Pantabangan, Province of Nueva Ecija Proc. 983 s. 1972
Pinabacdao, Municipality of, Samar Proc. 392 s. 1994
Pinabacdao, Western Samar Proc. 2292 s. 1983
Prosperidad, Agusan del Sur Proc. 742 s. 1996
Puyo Island and Santiago, Loreto, Dinagat Island, Surigao del Norte Proc.
965 s. 1997
Sampaloc, Municipality of, Quezon Proc. 1540 s. 1976
San Jose & Dinagat, Dinagat Island, Surigao del Norte Proc. 295 s. 1993
San Juan, Municipality of, Southern Leyte Proc. 246 s. 1988; Proc. 1497
s. 1975
San Luis, Agusan del Sur Proc. 742 s. 1996
San Mariano, Municipality of, Davao del Norte Proc. 2484 s. 1986
San Policarpo, Municipality of, Eastern Samar Proc. 942 s. 1996
San Remigio, Municipality of, Antique Proc. 289 s. 1993
Santiago, Municipality of, Isabel SEE Land settlement–Diffun,
Municipality of, Quirino
Siay, Municipality of, Zamboanga Proc. 2342 s. 1984
St. Bernard, Municipality of, Southern Leyte Proc. 246 s. 1988; Proc.
1497 s. 1975
Sta. Ines, Agusan del Sur Proc. 742 s. 1996
Talacogon, Agusan del Sur Proc. 742 s. 1996
Talipao, Sulu Proc. 136 s. 1993; Proc. 835 s. 1991; Proc. 1530 s. 1976
Tapaz, Municipality of, Capiz Proc. 2291 s. 1983
Tiptipon, Sulu Proc. 136 s. 1993; Proc. 835 s. 1991; Proc. 1530 s. 1976
Tubajon, Dinagat Island, Surigao del Norte Proc. 295 s. 1993; Proc. 965
s. 1997
Tuburan, Lanao del Sur Proc. 1499 s. 1975
Upi, Municipality of, Maguindanao Proc. 1500 s. 1975
Wao, Municipality of, Lanao del Sur Proc. 2046 s. 1981
1947
Land Settlement and Development Corporation (LASEDECO)

Abolition RA 1160
Auditing EO 355 s. 1950
Board of Directors
Tenure EO 355 s. 1950
Capital EO 355 s. 1950
Funds
Management EO 355 s. 1950
Appointments EO 355 s. 1950
Prohibition EO 355 s. 1950
Promotions EO 355 s. 1950
Land Tenure Administration RA 1400; RA 3844
Land titles Proc. 454 s. 1994
Application PD 1817
Assurance fund PD 1817
Patents PD 1817
Registration and transfer ACT 496; BP 870; PD 1817
Transfer fees LOI 1326
Land transfer
Certificates PD 84
Land transfer program
Beneficiaries LOI 1180; LOI 1180-A
Exemptions PD 1947
Requirements LOI 474
Land use AO 226 s. 2008; AO 226-A s. 2008; AO 363 s. 1997; EO 124, s. 1993;
Proc. 1159 s. 2006
Conversion AO 363 s. 1997
Culat, Barrio of, Casiguran, Municipality of, Tayabas Proc. 467 s. 1939
1948
APPENDIX: INDEX
Diffun, Municipality of, Quirino Proc. 900 s. 1996

Non-Christians Proc. 900 s. 1996
Planning EO 124 s. 1993; Proc. 1159 s. 2006
Priority development areas
Agricultural lands EO 124 s. 1993
Regional agri-industrial centers (RAICs) EO 124 s. 1993
Regional industrial centers (RICs) EO 124 s. 1993
Tourism development areas EO 124 s. 1993
Rural
Bongabon, Nueva Ecija Proc. 635 s. 1959
Government policy EO 75 s. 2019
Santiago, Municipality of, Isabela SEE Land use–Diffun, Municipality
of, Quirino
Socialized housing
Land valuation PD 1517; Proc. 136 s. 1993;Proc. 300 s. 1938; Proc. 345 s.
s. 1998
Launching of the NDC Agri-Agra Economic Recovery through Agricultural
Productivity (ERAP) Bonds for Rural Development
Agri-Agra Law
Enforcement EO 83, s. 1998
National Development Company (NDC)
NDC Agri-Agra ERAP Bonds
Funds EO 83 s. 1998
Mobilization EO 83 s. 1998
Legislative-Executive Development Advisory Council
Leasehold rentals PD 816
Local government
Construction projects
Feasibility study EO 1035 s. 1985
Information campaign EO 1035 s. 1985
1949
Real property
Right of way
Displaced tenants/occupants EO 1035 s. 1985
Surveys EO 1035 s. 1985
Local Government Code of 1991 AO 363 s. 1997; EO 124, s. 199; RA 8748
Local Government Units (LGUs) RA 8425
Luntiang Pilipinas EO 26 s. 2011
M
MBN SEE Minimum Basic Needs
MHS SEE Ministry of Human Settlements
MTPDP SEE Medium Term Philippine Development Plan
Magna Carta of Social Justice and Economic Freedom RA 6389

Mandaya Tribe Proc. 2484 s. 1986
Manila hemp RA 11700
Mansaka Tribe Proc. 2484 s. 1986
Masagana ’99 LOI 571
Medium Term Philippine Development Plan (MTPDP) 1993-1998 EO
124 s. 1993
Microfinance Program RA 8425
Mineral Land Reservation
Alienable lands
1950
APPENDIX: INDEX

Cantilan, Surigao del Sur Proc. 454 s. 1994
Carrascal, Surigao del Sur Proc. 454 s. 1994
Claver, Surigao del Norte Proc. 295 s. 1993; Proc. 965 s. 1997
Disposable lands
Gigaquit, Surigao del Norte Proc. 295 s. 1993;
Tubajon, Dinagat Island, Surigao del Norte Proc. 295 s. 1993; Proc. 965
s. 1997
Mineral Resources Development Decree of 1974 Proc. 454 s. 1994
Minimum Basic Needs (MBN) Proc. 548 s. 1995
Ministry of Agrarian Reform SEE Department of Agrarian Reform (DAR)
Ministry of Human Settlements (MHS) BP 220; Proc. 1893 s. 1979; Proc.
1954 s. 1980
Ministry of Justice SEE Department of Justice (DOJ)
Ministry of Labor and Employment SEE Department of Labor and
Employment
Ministry of National Defense SEE Department of National Defense (DND)
Ministry of Public Works and Highways SEE Department of Public Works
and Highways
Misamis Oriental Free Farmers Cooperative, Inc. LOI 1273
Mortgages and leases PD 1817; PD 1817
Chattel mortgages PD 1817
Mountain State Agricultural College LOI 1275
N
NAMRIA SEE National Mapping Resource and Information Authority
NARRA SEE National Resettlement and Rehabilitation Administration
NCC SEE National Coordinating Committee
NCIP SEE National Commission on Indigenous Peoples
NDC SEE National Development Company
NEDA SEE National Economic and Development Authority
NFAC SEE National Food and Agriculture Council
NHMFC SEE National Home Mortgage Finance Corporation
1951
NIA SEE National Irrigation Administration

NIPAS SEE National Integrated Protected Areas
NOAB SEE National Organic Agriculture Board
NPAA SEE Network of Protected Areas for Agriculture
NPAAD SEE Network of Protected Areas for Agricultural and Agro-
industrial Development
NYC SEE National Commission on Youth
National Agri-fishery Mechanization Program RA 10601

National Anti-Poverty Commission
Creation RA 8425
National Building Code of the Philippines BP 220
National Commission on Youth (NYC) AO 206 s. 1995
National Commission on Indigenous Peoples (NCIP) SEE ALSO
Department of Agrarian Reform–National Commission on Indigenous
Peoples’ (NCIP)
EO 11 s. 2010
Control EO 364 s. 2004
Department of Land Reform
Department of Land Reform EO 355 s. 1950
National Coordinating Committee (NCC) Proc. 1798-A s. 1978
National Council on Food Security and Job Creation EO 174 s. 2003
Constitution EO 174 s. 2003
National Agricultural and Fisheries Council (NAFC) EO 174 s. 2003
National Decade of Philippine Indigenous Peoples AO 206 s. 1995
National Development Company (NDC) EO 83 s. 1998; Proc. 82 s. 1987
Machinery and Equipment Department
Dissolution EO 355 s. 1950
1952
APPENDIX: INDEX

Real property
Records
National Economic and Development Authority Proc. 82 s. 1987; RA 7661
National Food and Agriculture Council (NFAC) EO 754 s. 1981
Privileges and immunities EO 754 s. 1981
Promotions EO 754 s. 1981
National Grains Authority
Creation PD 4 s. 1972
National Greening Program
Coverage EO 26 s. 2011
Monitoring EO 26 s. 2011
Social mobilization EO 26 s. 2011
National Home Mortgage Finance Corporation (NHMFC) RA 7835
National Housing Authority RA 7835
National Integrated Protected Areas System (NIPAS) AO 363 s. 1997;
Proc. 741 s. 2004
Law and legislation AO 363 s. 1997
National Internal Revenue Code RA 8748
National Irrigation Administration (NIA) AO 363 s. 1997; EO 168 s. 2022;
RA 6389; RA 6538
Department of Agriculture EO 168 s. 2022
National Land Reform Council AO 79 s. 1963; AO 182 s. 1969; AO 200 s.
1970; EO 361 s. 1971; RA 6389
Creation RA 3844
National Land Settlement Administration
1953
Creation CA 441
Board of Directors CA 441 §4
Objectives CA 441 §2
Powers CA 441 §3
Real property
Records
National Land Use Committee EO 124 s. 1993
National Mapping Resource and Information Authority (NAMRIA) EO
124 s. 1993
National Organic Agricultural Board (NOAB) RA 10068; RA 11511
National Organic Agricultural Program RA 10068; RA 11511
National parks and reserves
Real, Quezon Proc. 196 s. 1987
National Planning Commission RA 6389
National Resettlement and Rehabilitation Administration (NARRA) Proc.
742 s. 1996; RA 3844
Creation RA 1160
National Tourism Zones RA 9458
Biri, Capul, San Antonio, Northern Samar RA 9458
San Vicente, Northern Samar RA 9458
National Treasury RA 7661
NBP Master Development Plan Proc. 1159 s. 2006
NDC Agri-Agra ERAP Bonds
Funds
Issuance
Authorization EO 83 s. 1998
Proceeds
National Resettlement Survey and Review Committee Proc. 2046 s. 1981
1954
APPENDIX: INDEX
National Shelter Program RA 7835

Natural resources RA 9054
Network of Protected Areas for Agricultural and Agro-industrial
Development (NPAAD) AO 226 s. 2008; AO 226-A s. 2008
Network of Protected Areas for Agriculture (NPAA) AO 363 s. 1997
New Bilibid Prison Reservation Proc. 1159 s. 2006
New Society Proc. 1679 s. 1977; Proc. 1893 s. 1979
O
OLT SEE Operation Land Transfer
ONCC SEE Office for Northern Cultural Communities
OPAAM SEE Office of the Presidential Adviser on Agricultural
Modernization
Office for Northern Cultural Communities (ONCC) Proc. 900 s. 1996

Office of Agrarian Counsel RA 6389
Appointment of Subordinate Officials RA 5984
Creation RA 3844
Functions RA 4886
Office of the President
National Commission on Indigenous Peoples
Presidential Commission for the Urban Poor (PCUP)
Presidential Commission to Fight Poverty
Office of Muslim Affairs AO 206 s. 1995
Office of Northern Cultural Communities AO 206 s. 1995
Office of Southern Cultural Communities AO 206 s. 1995
Office of the Agrarian Council AO 72 s. 1963
Office of the Investment Ombudsman
Investment Facilitation Specialists
1955

Quick Response One-Stop Action Center (QROSACI)
Office of the Presidential Adviser on Agricultural Modernization
Office of the Register of Deeds
Officials and employees PD 1817 s. 1981
Office of the Presidential Adviser on Agricultural Modernization (OPAAM)
Funds EO 8 s. 2001
Office of the Solicitor General RA 5984
Official Development Registry
Establishment PD 1517 s. 1978
Operation Land Transfer (OLT) BP 649
Organic Agriculture Act of 2010 RA 10068
Amendments RA 11511
Organic Agriculture RDE Network
Creation RA 10068
Organic Certifying Body RA 11511
Accreditation RA 10068
Organic food RA 10068; RA 11511
Organic production system RA 10068; RA 11511
Oversight Committee EO 203 s. 1994
1956
APPENDIX: INDEX

Legislative-Executive Development Advisory Council EO 203 s. 1994
P
PACLAP SEE Presidential Action Committee on Land Problems
PAGCOR SEE Philippine Amusement and Gaming Corporation
PARC SEE Presidential Agrarian Reform Council
PARCCOM SEE Provincial Agrarian Reform Coordinating Committee
PCAC SEE Presidential Committee on Agricultural Credit
PCC SEE Philippine Cotton Corporation
PCCD SEE Presidential Council for Countryside Development
PCFP SEE Presidential Commission to Fight Poverty
PCGG SEE Presidential Commission on Good Government
PCIC SEE Philippine Crop Insurance Corporation
PCSO SEE Philippine Charity Sweepstakes Office
PCARRD SEE Philippine Council for Agriculture, Forestry, Natural
Resources Research and Development
PCAMRD SEE Philippine Council for Aquatic and Marine Research and
Development
PCUP SEE Presidential Commission on Urban Poor
PDTF SEE People's Development Trust Fund
PEZA SEE Philippine Economic Zone Authority
PHILCOA SEE Philippine Coconut Authority
PLUC SEE Provincial Land Use Committee
People's Development Trust Fund (PDTF)

Establishment RA 8425
Philippine Agricultural and Biosystems Engineering Act of 2016 RA
10915
Philippine Amanah Bank Proc. 835 s. 1991; Proc. 1530 s. 1976
Philippine Coconut Authority
Fees PD 1854 s. 1982
Funding PD 1854 s. 1982
Philippine Cooperative Code of 2008 RA 9520
Philippine Cotton Corporation (PCC) RA 8486
Philippine Council for Agriculture, Forestry, Natural Resources Research
and Development (PCARRD) EO 127 s. 1999
Philippine Council for Aquatic and Marine Research and Development
(PCAMRD) EO 127 s. 1999
Philippine Council for United States RA 821
1957
Philippine Economic Zone Authority (PEZA) RA 8748

Philippine Land Reform Education Program
Philippine Mining Act of 1995 Proc. 741 s. 2004
Philippine National Bank RA 1400
Philippine National Railways RA 6538
Philippine Press Institute AO 182 s. 1969; AO 200 s. 1970
Board of Trustees
Privileges and immunities EO 76 s. 2002
Reconstitution EO 76 s. 2002
Tenure EO 76 s. 2002
Department of Agriculture (DA)
Hybrid Rice Action Teams
Hybrid Rice Program
Funds EO 76 s. 2002
Implementation EO 76 s. 2002
Philippine Rice Share Tenancy Act ACT 4054; RA 34
Philippine Rural Reconstruction Movement Proc. 635 s. 1959
Presidential Agency for Reforms on Government Operations AO 182 s.
1969; AO 200 s. 1970
Presidential Agrarian Reform Council (PARC) RA 6657; RA 7907; RA 9700
Philippine Amusement and Gaming Corporation (PAGCOR)
Proceeds
Philippine Coconut Producers Federations, Inc. (COCOFED) LOI 1035
1958
APPENDIX: INDEX
Philippine Charity Sweepstakes Office (PCSO) RA 8175

Proceeds
Attachment
Department of Finance (DOF) EO 148 s. 2021
Board of Directors
Reorganization EO 148 s. 2021
Charter
Amendments RA 8175
Detachment
Department of Agriculture (DA) EO 148 s. 2021
Department of Finance (DOF) EO 148 s. 2021
Philippine National Bank PD 251; PD 544
Philippine Tourism Master Plan Proc. 1108 s. 1997
Pilot Land Consolidation Project LOI 370
Poverty Alleviation RA 8425
Prawn farms
Conversion RA 7881
Premature Conversion RA 8435
Presidential Action Center EO 12 s. 1992
Presidential Action Committee on Land Problems (PACLAP)
Creation of Special Action Group PD 832 s. 1975
Functions and duties PD 832 s. 1975
Policy Body PD 832 s. 1975
Provincial PACLAP Committee PD 832 s. 1975
Reorganization PD 832 s. 1975
Presidential Assistant on Community Development EO 76 s. 1964; RA
6538
Presidential Commission on Good Government (PCGG) RA 7661; RA
8532; RA 8758
Presidential Commission on Urban Poor (PCUP) SEE ALSO Department of
Agrarian Reform–Presidential Commission on the Urban Poor (PCUP);
SEE ALSO Office of the President–Presidential Commission on the
Urban Poor (PCUP)
EO 12 s. 1992
1959

Department of Agrarian Reform EO 364 s. 2004
Office of the President EO 69 s. 2012
Presidential Commission to Fight Poverty (PCFP)
Abolition RA 8425
Presidential Committee on Agricultural Credit (PCAC)
Creation PD 792 s. 1975
Presidential Coordinating Committee for Social Justice and Agrarian
Reforms
Creation AO 182 s. 1969
Amendments AO 200 s. 1970
Presidential Council for Countryside Development (PCCD)
Abolition RA 8425
Presidential Golden Plow Award
Awardees
Screening EO 150 s. 1968
Awarding
Committee on Awards
Decoration EO 150 s. 1968
Design EO 150 s. 1968
Government Service Award EO 150 s. 1968
International Understanding Award EO 150 s. 1968
Nomination
Public Service Award EO 150 s. 1968
Presidential Management Staff EO 12 s. 1992
Press Secretary, The AO 206 s. 1995
Property Registration Decree PD 1529 s. 1978
Protected areas AO 363 s. 1997
Provincial Agrarian Reform Coordinating Committee (PARCCOM) RA
6657; RA 7900; RA 9700
1960
APPENDIX: INDEX
Provincial Land Use Committee (PLUC) EO 124 s. 1993

Public land SEE ALSO Land, Public
ACT 496; Proc. 2015 s. 1980; RA 6938
Classification PD 389 s. 1974
Disposable PD 389 s. 1974
Public Land Act ACT 496; CA 441; Proc. 245 s. 1993; Proc. 254 s. 1993; Proc.
s. 1996; Proc. 1798-A s. 1978; Proc. 2291 s. 1983; Proc. 2292 s. 1983; RA 1160
Public works RA 6538
Q
QUEDANCOR SEE Quedan and Rural Credit Guarantee Corporation
QROSACI SEE Quick Response One-Stop Action Center
Quedan and Rural Credit Guarantee Corporation (QUEDANCOR) RA 7900

Quick Response One-Stop Action Center (QROSACI) SEE ALSO Bureau
of Investments (BOI)–Quick Response One-Stop Action Center
(QROSACI)
Functions
R
RAICs SEE Regional Agri-Industrial Growth Centers
Ramos, Emerito M.
Property of
Acquisition and settlement LOI 650
Real property Proc. 300 s. 1938; Proc. 345 s. 1938; Proc. 357 s. 1965; Proc.
965 s. 1997; Proc. 983 s. 1972; Proc. 1108 s. 1997; Proc. 1195 s. 1973; Proc.
1209 s. 1998
Valuation Proc. 300 s. 1938; Proc. 345 s. 1938; Proc. 357 s. 1965; Proc.
Proc. 1209 s. 1998
Rebel-returnees Proc. 254 s. 1993
Rehabilitation Finance Corporation RA 1400
Regional Agri-Industrial Growth Centers (RAICs) AO 363 s. 1997
Department of Agrarian Reform EO 562 s. 2006
1961

Department of Health (DOH) EO 562 s. 2006
Department of the Interior and Local Government (DILG) EO 562 s.
2006
Regional Growth Networks/Corridors AO 363 s. 1997
Regional Land Use Committees (RLUCs) EO 124 s. 1993
Regional Trial Court BP 870
Reorganization Act of the Department of Agrarian Reform EO 129-A s.
1987
Residential lands PD 1517 s. 1978
Revised Administrative Code PD 1177 s. 1977
Revised Charter of the Philippine Crop Insurance Corporation Act of
1995 RA 8175
Revised Forestry Code of the Philippines Proc. 741 s. 2004; Proc. 942 s.
1996
Rice CA 178; RA 34; RA 1199
Exportation RA 11203
Importation RA 11203
Production PD 1947 s. 1984
Trading RA 11203
Rice and Corn Production Administration
Dissolution EO 355 s. 1950
Equipment and supplies EO 355 s. 1950
Real property EO 355 s. 1950
Records EO 355 s. 1950
Rice lands Proc. 2022 s. 1980; Proc. 2122 s. 1981; Proc. 2234 s. 1982; RA 6657
Rice Share Tenancy RA 1199
Rural Bank Act of 1992
1962
APPENDIX: INDEX
Amendments RA 10574
Rural banks PD 544 s. 1974; RA 10574
Law and legislation
Amendments BP 65
Loans RA 6390
Rural Banks’ Act
Amendments BP 65
S
SAFDZ SEE Strategic Agriculture and Fisheries Development Zones
SEC SEE Securities and Exchange Commission
SRA SEE Social Reform Agenda
SRA SEE Sugar Regulatory Administration
SRC SEE Social Reform Council
Sacobia Resettlement Area Proc. 1954 s. 1980

Jurisdiction
Transfer Proc. 1954 s. 1980
Sagana Plantation, Inc. LOI 1274
Samal Island Tourism Estate
Kaputian, Davao del Norte
Cogon, Barangay Proc. 1108 s. 1997
Dadatan, Barangay Proc. 1108 s. 1997
Kana-an, Barangay Proc. 1108 s. 1997
Libertad, Barangay Proc. 1108 s. 1997
Linosutan, Barangay Proc. 1108 s. 1997
Pangubatan, Barangay Proc. 1108 s. 1997
San Isidro, Barangay Proc. 1108 s. 1997
San Remigio, Barangay Proc. 1108 s. 1997
Sta. Cruz, Barangay Proc. 1108 s. 1997
San Pedro Tunasan Estate
Conversion PD 1474
Transfer PD 1474
Savings
Priority use PD 1177
Securities and Exchange Commission (SEC) RA 8425
Share tenancy ACT 4054; BP 869
Small Farmers’ Commission AO 182 s. 1969; AO 200 s. 1970
Social Reform Agenda (SRA) Proc. 548 s. 1995; RA 8425
Appropriations Proc. 547 s. 1995
1963
Definition Proc. 547 s. 1995

Programs Proc. 547 s. 1995
Projects Proc. 547 s. 1995
Social Reform Agenda Council
Funds
Office of the Presidential Adviser on the Peace Process EO 203 s. 1994
Social Reform Agenda (SRA) Flagship Champions Proc. 548 s. 1995
Social Reform Agenda (SRA) Flagship Programs Proc. 548 s. 1995
Social Reform and Poverty Alleviation Act RA 8425
Social Reform Council (SRC)
Abolition RA 8425
Socialized credit facility RA 10878
Socialized housing AO 363 s. 1997; EO 184 s. 1994
Design and construction EO 184 s. 1994
Licenses EO 184 s. 1994
Non-compliance EO 184 s. 1994
Penalties EO 184 s. 1994
Permits EO 184 s. 1994
Rules and Regulation EO 184 s. 1994
Socialized Housing One-Stop Processing Centers AO 363 s. 1997; EO 184
s. 1994
Agencies
Chamber of Real Estate and Builders Associations, Inc. (CREBA) EO
184 s. 1994
Department of Agrarian Reform (DAR) EO 184 s. 1994
Department of Agriculture (DA) EO 184 s. 1994
Department of Environment and Natural Resources-Land Management
Bureau (DENR-LMB) EO 184 s. 1994
Department of the Interior and Local Government (DILG) EO 184 s.
1994
Housing and Land Use Regulatory Board (HLURB) EO 184 s. 1994
Housing and Urban Development Coordinating Council (HUDCC) EO
184 s. 1994
1964
APPENDIX: INDEX
League of Governors and City Mayors of the Philippines (LGCMP) EO

184 s. 1994
Socialized Housing Program/Projects
Design and construction
Licenses EO 184 s. 1994
Non-compliance
Penalties EO 184 s. 1994
Permits
Rules and Regulation EO 184 s. 1994
Socialized Housing sites
Poblacion, Barangay, Muntinlupa City Proc. 1159 s. 2006
Solicitor General BP 870
Special Economic Zones AO 363 s. 1997
Special Economic Zone Act of 1995
Amendments RA 8748
Special Guaranty Fund PD 251
Stock farms
Ilocos Sur
Daing, Barrio of, Cervantes, Municipality of Proc. 190 s. 1955
Strategic Agriculture and Fisheries Development Zones (SAFDZ) RA 8435
Subdivision and Condominium Buyers’ Protective Decree BP 220
Sugarcane ACT 4113
Sugarcane Industry Development Act of 2015 RA 10659
Sugar industry RA 10659
Sugar Regulatory Administration (SRA) RA 10659
Sugar Supply Monitoring System RA 10659
Surigao Mineral Reservation Proc. 741 s. 2004
T
TBAC SEE Technical Board for Agricultural Credit
TEZs SEE Tourism Enterprise Zones
1965
TRICAP SEE Tribal Communities Association of the Philippines
Tabacalera Estates LOI 1180; LOI 1180-A

Taxation
Exemption PD 85; RA 8748
Taxes
Real estate taxes
Condonation LOI 1391
Technical Board for Agricultural Credit (TBAC) PD 792
Tenancy PD 1038; PD 1040
Tenant emancipation PD 27
Tenant-Farmers BP 649; CA 441; PD 84; PD 316; PD 583; PD 816; Proc.
1679 s. 1977
Emancipation PD 27
Unlawful ejectment, exclusion, or removal PD 815
Tenant-Tillers PD 316
Tenure PD 1038
Tenants SEE Landlord and tenant
Tenants’ Emancipation Day LOI 143; LOI 46; LOI 227; LOI 273; LOI 474;
Proc. 1193 s. 1973
Declaration Proc. 1193 s. 1973
Tourism Act of 2009 RA 9593
Tourism Development Areas AO 363 s. 1997
Tourism Enterprise Zones (TEZs) RA 9593
Tourist Estate Management Plan Proc. 1108 s. 1997
Tree planting RA 10176
Tribal Communities Association of the Philippines (TRICAP) AO 206
s. 1995
U
United Nations
Convention on Biodiversity and the Principles on Tropical Forests AO 206
s. 1995
General Assembly AO 206 s. 1995
Universal Declaration on the Rights of Indigenous Peoples AO 206 s. 1995
University of the Philippines College of Agriculture AO 182 s. 1969; AO
200 s. 1970
Upland Development Program EO 26 s. 2011
Urban Development and Housing Act of 1992 EO 124 s. 1993
Urban land reform EO 364 s. 2004
Urban Land Reform Act PD 1517
Urban Land Reform Coordinating Council
1966
APPENDIX: INDEX
Creation PD 1517
Urban Land Reform Zone Proc. 1893 s. 1979
Taxation PD 1517
Urban Zone Expropriation and Land Management Committee
Creation PD 1517
V
VLT SEE Voluntary Land Transfer
Voluntary Land Transfer (VLT) AO 363 s. 1997
W
Water Code of the Philippines Proc. 741 s. 2004; Proc. 942 s. 1996
Watersheds AO 363 s. 1997
Ambuklao-Biñga Proc. 1498 s. 1975
Protection RA 8435
Z
Zoning AO 363 s. 1997
Zoning Ordinance AO 363 s. 1997
1967
1968
APPENDIX:
LIST OF AMENDMENTS
1969
1970
REPEALS OR REPEALED OR
AMENDED REPEALED
LAW AMENDS MODIFIES MODIFIED REPEALS
BY BY
ACCORDINGLY ACCORDINGLY BY
ACT 2711 (secs. PD 1177
ACT 4054 RA 1199

1656, 1657)
RA
1199
CA 53
CA 461 RA
1199
ACT 4054 RA 34
(secs. 3, 4, 7,
AO 206
1971
8, 9, 22)
s. 1995
AO 28 s. 1993
EO 203 s.
1994
AO 79 s. 1993
AO 182 s. AO 200
1969 s. 1970
AO 200 s. AO 182 s.
1970 1969
AO 206 s.
1995
AO 28 s. 1993
AO 226 s. AO
2008 226-A s.
APPENDIX: LIST OF AMENDMENTS ON AGRARIAN REFORM (1902-2022)
2008
AMENDED REPEALED
BY BY
AO 226-A s. AO 226 s. 2008
2008
ACT 4054 CA 178
(secs. 7, 15,
RA 9520
23, 29)
BIR Revenue
Regulation
BP 65
No. 20-2001
CA 178
RA 720
1972
ACT 4054 (secs.
PD 1177
7, 15, 23, 29)
RA 9593
CA 246
RA 9593
EO 20 s. 1987
RA 9593
EO 30 s. 1963
EO 76 s.
EO 46 s. 1987
2002
EO 60 s. 1986
Proc.
(sec. 1)
454 s.
1994
EO 63 s. 1914
EO 76 s. 2002 EO 60 s. 1986
(sec. 1); EO
1061 s. 1985
RA
(sec. 4)
11201
EO 90 s. 1986
AMENDED REPEALED
BY BY
EO 129 s. EO
1987 129-A s.
1987
EO 129-A s. EO 129 s. 1987
1987
EO 180
s. 1999
EO 155 s.
EO 180 s. 1999
1999
EO 754
EO 155 s. 1999
s. 1981
EO 183 s.
EO 203 s. 1994
1973
1969
EO 203 s. EO 252
AO 79 s. 1993
1994 [sec. 1 s. 1995

(1.3)]
EO 252 s. 1995 EO 203 s. 1994
[sec. 1 (1.3)]
EO 251 s. PD 832
EO 313
1970
s. 2000
EO 277 s.
1995
EO 313 s. 2000 EO 277 s. 1995;
EO 347 s. 1971 EO 437 s.

EO 481 s. 1998
1974
AMENDED REPEALED
BY BY
EO 305 s. PD 832
EO 355 s. 1950 RA
1971
1160
EO 364 s. EO 379
s. 2004
EO 379 s. 2004 EO 364 s. 2004
2004 (sec. 3)
EO 407 s. EO 448
(sec. 3)
1990 s. 1991;
EO 506
1974
s. 1992
EO 437 s. EO 347 s.
1974 1971
EO 448 s. 1991 EO 407 s. 1990;
EO 506 s.
1992
EO 313
s. 2000
EO 481 s.
EO 506 s. 1992 EO 407 s. 1990;

1998
EO 448 s.
1991
EO 754
s. 1981
EO 596 s.
RA 9520
1980
EO 623 s. 2007
AMENDED REPEALED
BY BY
RA
11201
EO 648 s. 1981
EO 754 s. 1981 EO 183 s. 1969;
EO 76 s.
EO 596 s. 1980
2002
EO 1061 s.
RA 9593
1985 (sec. 4)
PD 85 PD 462
PD 37
RA
6938;
RA
PD 175
1975
9520
RA 9593
PD 251 RA 3844
PD 189
PD 316 RA 6657
RA 9593
PD 444 RA 3844
PD 442
PD 462 PD 85
PD 544 RA 6390
PD 815
PD 583 (sec.
PD 717 RA
4)
10000
AMENDED REPEALED
BY BY
PD 815 PD 583 (sec.
PD 832
4)
EO 251 s. 1970;
EO 305 s.
PD 946 RA 3844
1971
(Chap.
RA 6657
IX)
PD 946 (sec.
PD 1038 RA 6657
12)
1976
PD 1039 RA 3844
PD 1177 ACT 2711 (secs.
1656, 1657);
CA 246; CA
RA 9593
992
RA 8175
PD 1448
RA 9593
PD 1467
RA 9520
PD 1616
PD 1645
PD 1817
(secs. 3, 5, 7)
RA 3844 (sec.
62)
AMENDED REPEALED
BY BY
Proc.
246 s.
1988
Proc. 106 s.
1987
Proc. 136 s. Proc. 1530 s.

1993 1976
Proc.
742 s.
1996
Proc. 166 s.
1995
Proc.
900 s.
1996
Proc. 174 s.
1928
1977
Proc. 180 s. Proc.
1993 263 s.
2000
Proc. 196 s.
1987
Proc. 582 s.
Proc. 246 s.
1940
1988
Proc.
106 s.
Proc. 263 s. Proc. 180 s.

1987
2000 1993
Proc.
2342 s.
1984
Proc. 284 s.
1938
AMENDED REPEALED
BY BY
Proc.
635 s.
1959
Proc. 378 s.
1953
Proc.
454 s.
1994
Proc. 391 s.
1939
Proc. 446 s. Proc. 858

1994 s. 1996
Proc. 454 s.
1994
EO 63 s. 1914;
Proc.
Proc. 391 s. 1939
1978
1531 s.
1976
Proc. 457 s.
1939
Proc.
1531 s.
1976
Proc. 544 s.
1940
Proc.
196 s.
1987
Proc. 582 s.
1940
Proc. 635 s.
1959
Proc. 378 s. 1953
Proc. 742 s.
1996
Proc. 166 s. 1995
Proc. 835 s. Proc. 1530 s.

1991 1976
AMENDED REPEALED
BY BY
Proc. 858 s. Proc. 446 s.
1996 1994
Proc. 900 s.
1996
Proc.
174 s.
Proc. 1530 s. Proc.

1928
1976 136 s.
1993;
Proc.
835 s.
1991
Proc. 1531 s.
1979
1976
Proc. 457 s.
1939; Proc.
544 s. 1940
1984
Proc. 2342 s. Proc. 284 s. 1938
RA 34 ACT 4054
(secs. 3, 4, 7, 8,
BP 65
9, 22)
PD 1177
RA 720
RA 1160 EO 355 s.
RA 992
1950
AMENDED REPEALED
BY BY
RA 1199 ACT
4054;
CA 461
CA 53;
RA 3844 PD 251;
PD 444;
PD
1039;
RA
6389;
RA
7907;
RA
1980
10878
RA 3844 PD
946
RA 6657
(Chap. IX)
RA 3844 (sec.
RA 9700
35)
RA 3844 (sec.
PD
53)
1817
RA 3844 (sec.
RA 3844 RA
62)
(sec. 162, 5984

par. 1)
AMENDED REPEALED
BY BY
RA
4886
RA 3844 (sec.
RA 4886
163)
RA 3844 (sec.
RA 5984 RA 3844
163)
(sec. 162, par.
RA 6390
1)
RA 6389 RA 3844
RA 6125 (sec. 4)
RA 6390 PD 544
1981
RA 6125 (sec.
RA 6657 RA PD 316; PD 946

4)
7881;
RA 9700 1038; RA
PD 175
(sec. 12); PD
RA 7905
3844 (sec. 35)
RA 6657 (secs.
RA 6657 RA 8532
35, 36, 44, 45)
RA 9054
(sec. 63)
RA 6938 RA 9520
RA 6734
RA 9593
PD 175
RA 7160
AMENDED REPEALED
BY BY
RA
7661;
RA 8758
RA 7181
RA
10574
RA 7353
RA 7661
RA
RA 7181
10000
RA 7721 (sec.
RA 9593
9)
RA 7881 RA 6657
RA 7722
RA
1982
10000
RA 7900 (sec.
RA 7905 RA 6657
8, par. 2)
(secs. 35, 36,
RA 7907 RA 3844
44, 45)
RA 8748
RA 8175
RA 7916
RA
PD 1467
11203
RA 8178
RA 8532 RA 6657 (sec.
RA
63)
10915
RA 8559
AMENDED REPEALED
BY BY
RA 8748
RA 8758
RA 7916
RA 9054
RA 7181
RA 9593
RA 6734
RA 9520 RA 6938
RA 9497
BIR Revenue PD 175
Regulation
No. 20-2001;
EO 623 s.
2007; PD
1983
1645 s. 1979
RA 9593
(secs. 3, 5, 7)
EO 20 s. 1987;
EO 30 s. 1963;
EO 46 s. 1987;
PD 37; PD
189; PD 442;
PD 1448; PD
1616; RA
7160; RA
7722; RA
RA 9700
9497
RA 6657 RA 3844 (sec.

53)
AMENDED REPEALED
BY BY
RA 10000 PD 717;
RA 7900
RA 7721
(sec. 9);
(sec. 8,
RA 10068 RA
par. 2)
11511
RA 10574
RA 10878 RA 3844
RA 7353
RA 10915
1984
RA 11201
RA 8559
EO 90 s.
1986; EO
648 s.
RA 11203
1981
RA 11511 RA 10068
RA 8178
LEGEND:
art. = Article arts. = Articles chap. = Chapter chaps. = Chapters

ex. = except par. = Paragraph pars. = Paragraphs pt. = Part
pts. = Parts s. = series of sec. = Section secs. = Sections
subsec. = Subsection

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LAWS & EXECUTIVE ISSUANCES

T he history of agrarian reform

SEC. CONRADO M. ESTRELLA III

COMMONWEALTH ACTS Page

COMMONWEALTH ACT NO. 178 77

REPUBLIC ACT NO. 34 89

REPUBLIC ACTS Page

A BASIS OF ECONOMIC EQUALITY WITH OTHER

REPUBLIC ACTS Page

REPUBLIC ACT NO. 4886 235

REPUBLIC ACTS Page

REPUBLIC ACT NO. 6657 294

REPUBLIC ACTS Page

REPUBLIC ACT NO. 7881 362

REPUBLIC ACTS Page

REPUBLIC ACT NO. 8425 394

REPUBLIC ACTS Page

REPUBLIC ACT NO. 8748 485

REPUBLIC ACTS Page

GROWTH AND NATIONAL DEVELOPMENT, AND

REPUBLIC ACTS Page

REPUBLIC ACT NO. 7353, OTHERWISE KNOWN AS “THE

REPUBLIC ACTS Page

REPUBLIC ACT NO. 11201 711

BATAS PAMBANSA BLG. 65 779

BATAS PAMBANSA Page

HOUSING PROJECTS IN URBAN AND RURAL AREAS

PRESIDENTIAL DECREES Page

PRESIDENTIAL DECREE NO. 2 807

PRESIDENTIAL DECREES Page

PROVIDED IN PRESIDENTIAL DECREE NO. 27 AND FOR

PRESIDENTIAL DECREES Page

PRESIDENTIAL DECREE NO. 462 898

PRESIDENTIAL DECREES Page

PRESIDENTIAL DECREE NO. 816 914

PRESIDENTIAL DECREES Page

PRESIDENTIAL DECREE NO. 1040 960

PRESIDENTIAL DECREES Page

PRESIDENTIAL DECREE NO. 1817 1099

EXECUTIVE ORDER NO. 8 s. 2001 1109

EXECUTIVE ORDERS Page

EXECUTIVE ORDER NO. 26 s. 1998 1119

EXECUTIVE ORDERS Page

EXECUTIVE ORDER NO. 83 s. 1998 1148

EXECUTIVE ORDERS Page

EXECUTIVE ORDER NO. 129-A s. 1987 1189

EXECUTIVE ORDERS Page

EXECUTIVE ORDER NO. 180 s. 1999 1237

EXECUTIVE ORDERS Page

REMAINING UNVALUED RICE AND CORN LANDS

EXECUTIVE ORDERS Page

EXECUTIVE ORDER NO. 347 s. 1971 1303

EXECUTIVE ORDERS Page

EXECUTIVE ORDER NO. 364 s. 2004 1370

EXECUTIVE ORDERS Page

EXECUTIVE ORDER NO. 407 s. 1990 1383

EXECUTIVE ORDERS Page

EXECUTIVE ORDER NO. 506 s. 1992 1399

EXECUTIVE ORDERS Page

EXECUTIVE ORDER NO. 726 s. 2008 1421

ADMINISTRATIVE ORDERS Page

ADMINISTRATIVE ORDER NO. 72 s. 1963 1451

ADMINISTRATIVE ORDERS Page

ADMINISTRATIVE ORDER NO. 200 s. 1970 1463

Dated this _ day of _____